Welliver v. Federal Express Corp.

Neil Welliver (plaintiff) painted two original watercolor paintings and gave them to Arlene Gostin (plaintiff) to create prints. With Welliver’s authorization, Gostin packaged the paintings and hired Federal Express Corporation (FedEx) (defendant) to ship them from Philadelphia to New York. Gostin had used FedEx on a few prior occasions but never for a valuable item. The FedEx courier was supposed to bring all necessary documentation for the shipment when he came to pick up the package. The courier was in a hurry when he arrived. Gostin agreed to allow the courier to take the paintings and then fill out the airbill for her. When Gostin insisted on a receipt, the courier took the paintings to his vehicle and returned with a blank airbill form. The courier wrote his employee number and the date on the airbill and gave it to Gostin. The paintings did not make it to their destination and were never seen again. Welliver and Gostin sued FedEx for the value of the lost paintings. FedEx moved for an order limiting its liability to a maximum of $500. In support of its motion, FedEx presented evidence that the airbill contract contained a provision setting $100 as the default limit for FedEx’s liability for shipments and had a place for a shipper to declare a higher value of up to $500 for a shipment. Gostin filed a cross-motion for summary judgment on her breach-of-contract claim.