Smallwood v. Allied Van Lines, Inc., et al.

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This case arose when plaintiff hired defendant to move some of his household goods from southern California to the United Arab Emirates (UAE). When the UAE officials discovered plaintiff's box of firearms and ammunition, they arrested him, imprisoned him for 11 days, and tricked him into pleading guilty to smuggling firearms. Plaintiff alleged that he was facing deportation from the UAE and sued defendant based on various tort and contract theories. At issue was whether defendant could compel plaintiff to arbitrate pursuant to the contract's foreign arbitration clause in its shipment contract. The court affirmed the judgment of the district court and held that the district court correctly interpreted the Carmack Amendment, 49 U.S.C. 14706, to preclude foreign arbitration clauses and the Carmack Amendment, having been enacted subsequent to the federal arbitration statutes, controlled this case.