FedEx moves to block probe by attorney general

FedEx Corp is trying to block a probe by New York Attorney General Andrew Cuomo into its policies regarding the declared value of shipped items and its liability limits for those shipments, reported Dow Jones Newswires.

In a lawsuit filed in federal court in Manhattan, FedEx claimed the attorney general's office has exceeded its authority and is preempted by federal laws regulating air carriers. FedEx is seeking an injunction blocking the investigation.

The probe is looking in alleged fraud or illegal acts under New York state law, according to the complaint.

In a letter attached to the lawsuit, a FedEx lawyer said the probe relates to the company's declared-value policies for shipped items, liability limits under those policies and "alleged oral representations of one or more FedEx employees".

The lawsuit is in response to a June subpoena by Cuomo's office seeking details about FedEx's liability limits for shipments, copies of insurance agreements for items shipped by the company and complaints by customers related to coverage of items valued at more than US$1,000.

The subpoena specifically mentions complaints regarding artwork, antiques, jewelry, musical instruments that are more than 20 years old and other valuable items.

"FedEx is an airline," said Maury Lane, a FedEx spokesman. "Anything that relates to airlines' rates, routes and services is controlled by federal law. We believe the attorney general does not have jurisdiction in this matter."

FedEx has until next week to respond to the subpoena, according to the lawsuit.

"We're reviewing the [FedEx] filing, which we have just received," said John Milgrim, a spokesman for Cuomo.
(Source:www.cargonewsasia.com)