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Defendant-appellant Trylon Trucking Corp. ("Trylon") appeals from a judgment entered on April 10, 1989 in the United States District Court for the Southern District of New York (Brieant, Ch.J.) in favor of plaintiff-appellee Calvin Klein Ltd. ("Calvin Klein") for the full value of a lost shipment of clothing. The appeal presents a novel issue under New York law: whether a limitation of liability agreement between a shipper and a carrier is enforceable when the shipment is lost as a result of the carrier's gross negligence.

The district court held that the parties' customary limitation of liability agreement did not extend to the shipment at issue, due to the absence of assent and consideration. The court observed that, had there been such an agreement, the liability of the carrier for its gross negligence would be limited. For the reasons that follow, we reverse the judgment of the district court, find that the parties agreed to the limitation of liability, and determine that the agreement limits Trylon's liability for its gross negligence.


892 F.2d 191 (1989)

CALVIN KLEIN LTD., Plaintiff-Appellee,


TRYLON TRUCKING CORP., Defendant-Appellant.

No. 46, Docket 89-7363.

United States Court of Appeals, Second Circuit.

Argued September 14, 1989.

Decided December 15, 1989.

New York Law School location: File #835, Box #123