Calvin Klein, Ltd., a New York clothing company, had used
the services of Trylon Trucking Corporation for more than
three years, involving hundreds of shipments. After completing each carriage, Trylon would forward to Calvin Klein an
invoice that contained a limitation of liability provision. The
provision stated,
In consideration of the rate charged, the shipper agrees
that the carrier shall not be liable for more than $50 on
any shipment accepted for delivery to one consignee
unless a greater value is declared, in writing, upon
receipt at time of shipment and charge for such greater
value paid, or agreed to be paid, by shipper.
On April 2, Trylon dispatched its driver Jamahl Jefferson
to the John F. Kennedy International Airport to pick up 2,833
blouses sent from Hong Kong, China, to Calvin Klein. The
driver disappeared, stealing both the truck and the blouses.
Calvin Klein sued Trylon for the full value of the blouses. Does
the limitation of liability provision extend to the shipment?
Explain.