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Federal and State Governments. We do not believe that petitioner
would have restructured a significant portion of its business in
order to avoid a potential State law problem without having
thoroughly analyzed and considered the matter and the
ramifications that any proposed change might have.
Had petitioner been seriously concerned with State insurance
regulation, a logical question would have been whether
petitioner's EVC activity regarding interstate transportation was
preempted by Federal law. The liability of an interstate carrier
for damage to a shipment is a matter of Federal law controlled by
Federal statutes and decisions. See Missouri Pac. R.R. v. Elmore
& Stahl, 377 U.S. 134, 137 (1964); A.T. Clayton & Co. v.
Missouri-Kan.-Tex. R.R., 901 F.2d 833, 834 (10th Cir. 1990) ("The
Carmack Amendment codifies an initial carrier's liability for
goods lost or damaged in shipment."). Generally, carriers are
liable for loss or damage caused by them to property they
transport. See id.; see also Shippers Natl. Freight Claim
Council, Inc. v. ICC, 712 F.2d 740, 745 (2d Cir. 1983).
During the years in issue, pursuant to the Carmack Amendment
to the Interstate Commerce Act,31 a motor common carrier could
31Although the substance of the Carmack Amendment
(originally 49 U.S.C. sec. 20(11) (1906)) was recodified into 49
U.S.C. secs. 11707, 10730, and 10103, these sections were
commonly termed the Carmack Amendment. See Hughes v. United Van
Lines, Inc., 829 F.2d 1407, 1412 n.6 (7th Cir. 1987). Effective
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