Calvin Klein, Ltd. (Calvin Klein), a New York clothing company, had used the services of Trylon Trucking Corporation (Trylon) 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 $50.00 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 J.F.K. 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.