United Parcel Service of America - Page 27




                                       - 12 -                                         

          excess of $100, petitioner was liable to the shipper for the                
          value of the package up to $100.                                            
               In June 1983, petitioner filed supplements to its ICC                  
          tariffs amending the provision related to the method of                     
          determining rates for shippers under the original tariff.  The              
          supplements provided an additional clause with respect to the               
          method of determining rates:                                                
               Unless otherwise directed by the shipper, the carrier                  
               may remit excess valuation charges to an insurance                     
               company as a premium for excess valuation cargo                        
               insurance for the shipper's account and on its behalf.                 
               If the carrier does so, claims for loss of or damage to                
               the shipper's property will be filed with and settled                  
               by the carrier on behalf of the insurance company.  In                 
               the event that the insurance company fails to pay any                  
               claim for loss of or damage to the shipper's property                  
               under the terms of its policy, the carrier will remain                 
               liable for loss or damage within the limits declared                   
               and paid for.[11]                                                      
          Although the supplements were filed June 1983 and became                    
          effective July 1983, petitioner did not remit EVC's to an                   
          insurance company before 1984.                                              
               The declared value in excess of $100 is indicated on                   
          petitioner's package pickup record.12  The package pickup record            


               11Identical changes were made to petitioner's State tariffs.           
               12Petitioner's pickup record states:                                   
               Unless a greater value is declared in writing on this                  
               receipt, the shipper hereby declares and agrees that                   
               the released value of each package or article not                      
               enclosed in a package covered by this receipt is $100,                 
                                                             (continued...)           




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