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Full opinion text

MEMORANDUM

RAMBO, District Judge.

This action concerns the interstate transportation of a letter shipped by Uniden Corporation of America (Uniden) via Federal Express Corporation (Federal) under Air-bill No. 150984890. Federal Express has filed a Motion for Summary Judgment alleging that the limitation of liability in the airbill precludes recovery of the damages sought by Uniden and in any event limits Federal’s liability to $100.00. Uniden has filed a Motion for Partial Summary Judgment arguing that the contractual limitation of liability is void.

The following facts are not disputed:

1. On November 16, 1984, Uniden shipped by Federal Express an overnight letter by Airbill No. 150984890.

2. The overnight letter contained a performance bond to support a bid to be submitted by Uniden to the Commonwealth of Pennsylvania, Department of General Services.

3. Airbill No. 150984890 was marked to “Mr. Mike Wildeson, 1 Box 1047, Brodbeck, PA 17329” and contained a telephone number “717/229-2823” in the box for a phone number for Hold for Pick-Up or Saturday Delivery.

4. Airbill No. 150984890 was marked with an “XX” in the boxes designated for “Hold for Pick-Up” and “Saturday Service Required”.

5. Airbill No. 150984890 was marked with a “ — ” in the box designated for “Declared Value”.

6. Uniden did not pay additional charges, which are required when declaring that the value of a package is in excess of $100.00.

7. The airbill was completed by a Uni-den employee.

8. Federal Express provides a hold for pick-up service at its Lewisberry, Pennsylvania office.

9. The Federal Express Service Guide, effective October 1, 1984, states on pages 38 and 39 “Shipments marked ‘Hold for Pick-Up’ will be held at the Federal Express destination station for pick-up by the recipient ... After being held for five (5) business days from the date of tender, the shipment will be considered undeliverable.”

10. Federal Express delivered the “Overnight Letter” to its office in Lewisberry, Pennsylvania, on Saturday, November 17, 1984.

11. Sometime between November 17, 1984, and November 19, 1984, the “Overnight Letter” was placed on a delivery truck and taken from the Federal Express office in Lewisberry, Pennsylvania.

12. The “Overnight Letter” was finally delivered to a B. Thomas, 1414 North Office, Capitol Building, Harrisburg, Pennsylvania, on Monday, November 19, 1984.

13. The airbill in question, no. 150984890, provides on its face:

IN TENDERING THIS SHIPMENT, SHIPPER AGREES THAT F.E.C. SHALL NOT BE LIABLE FOR SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING FROM CARRIAGE HEREOF. F.E.C. DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THIS SHIPMENT. THIS IS A N ON-NEGOTIABLE AIRBILL SUBJECT TO CONDITIONS OF CONTRACT SET FORTH ON REVERSE OF SHIPPER’S COPY. UNLESS YOU DECLARE A HIGHER VALUE, THE LIABILITY OF FEDERAL EXPRESS CORPORATION IS LIMITED TO $100.00. FEDERAL EXPRESS DOES NOT CARRY CARGO LIABILITY INSURANCE. (emphasis added).

14. The reverse of shipper’s copy of Airbill No. 150984890 provides in pertinent part:

6. DECLARED VALUE AND LIMITATION OF LIABILITY. THE LIABILITY OF FEDERAL EXPRESS IS LIMITED TO THE SUM OF $100.00 unless a higher value is declared for carriage herein and a greater charge paid at a rate of 30