Magistrate Judge Robert Levy
Flagship Logistics Group was known as Sataria 3PL and Sataria Group Inc. (collectively Sataria). In 2011 Olympus Dairy contracted for freight broker Pavil Associates’ shipment of cheese from Greece to California. After shipping the cheese to a refrigerated warehouse in New Jersey, Pavil contracted with Sataria to transport the cheese, by refrigerated truck, to California. Sataria subcontracted transport to Sunline Logistics. The buyers rejected the cheese as unfit after it froze in transit because the truck’s refrigerator was set well below the temperature directed by Pavil’s order tickets to Sataria and Sataria’s Load and Rate Confirmation Sheet to Sunline. After Olympus sued Pavil for contract breach and negligence, Pavil brought a third-party claim against Sataria, which in turn countersued for past-due freight charges. Sataria also brought a second third-party complaint against Sunline. District court granted Sataria summary judgment as against Olympus and Pavil. Discussing the Carmack Amendment to the Interstate Commerce Act it deemed Sataria a “broker,” not a motor carrier or freight forwarder. Thus, under the Carmack Amendment, Sataria—which never took possession of the cheese for shipment—could not be held liable.
