United States District Court,

S.D. New York.

ROYAL INSURANCE COMPANY, of America a/s/o Pilot Air, Plaintiff,

v.

CARO TRANS INTERNATIONAL INC., Defendant.

June 20, 2005.

MEMORANDUM AND ORDER

 

HAIGHT, Senior J.

This is a cargo subrogation action brought by plaintiff Royal Insurance Company of America against defendant Caro Trans International Inc., which contracted to transport a conveyor belt and related components owned or controlled by plaintiff’s subrogor, Pilot Air, by rail from Houston to Los Angeles. As the result of a derailment in Rio Puerco, New Mexico, on or about December 13, 2001, the cargo was deemed a total loss. It is common ground that the provable damages amount to less than $7,000.

Plaintiff alleged subject matter jurisdiction in this Court pursuant to 28 U.S.C. § 1337. Section 1337(a) vests the federal district with “original jurisdiction of any civil action or proceeding arising under any Act of Congress regulating commerce….” The act of Congress plaintiff relies upon is the Carmack Amendment, codified at 49 U.S.C. § 11706, which governs the liability of rail carriers under receipts and bills of lading. However, 28 U.S.C. § 1337(a) goes on to provide that the district courts shall have original jurisdiction of an action brought under 49 U.S.C. § 11706 “only if the matter in controversy for each receipt or bill of lading exceeds $10,000, exclusive of interest and costs.”

Because the jurisdictional amount is not present in this case, the Clerk of the Court is directed to dismiss the complaint. The dismissal being on the basis of lack of subject matter jurisdiction, it is without prejudice.

It is SO ORDERED.