Liberty Mutual is seeking to claw back $600,000 after a shipment of audio equipment disappeared between Italy and Massachusetts, putting freight liability and insurer subrogation in the spotlight.
Liberty Mutual Insurance Company, acting as subrogee of K-Array USA LLC, has filed a complaint in the United States District Court for the Eastern District of New York against ALPI U.S.A., Inc. and Albini & Pitigliani S.P.A., two freight forwarding and logistics firms. The insurer alleges that a shipment of audio equipment entrusted to the defendants was lost or stolen during transit from Firenze, Italy, to Randolph, Massachusetts, with a stop at JFK International Airport in New York.
According to the complaint, the shipment was delivered to the defendants in good order and condition on July 25, 2025, and was covered by House Air Waybill No. 052513250. The air waybill was issued “clean,” with no notations of damage or irregularity at the point of origin. The defendants, acting as common carriers and transportation intermediaries, were responsible for ensuring the safe delivery of the cargo to its final destination.
Liberty Mutual alleges that after the cargo arrived at JFK International Airport, the defendants engaged a trucking company to complete the delivery to K-Array’s warehouse in Randolph, Massachusetts. The cargo was allegedly in good order and condition when handed over to the trucking company, but it never arrived at its intended destination. The insurer claims that timely notice of the loss was provided to the defendants, as required under applicable law.
The complaint sets out five causes of action: breach of contract and violation of the Montreal Convention, breach of bailment, negligence and/or recklessness and/or willful misconduct, breach of contract under federal and/or state common law, and liability under the Carmack Amendment to the Interstate Commerce Act. Liberty Mutual contends that the loss or theft of the cargo was not the result of any act or omission on its part or that of its subrogor, but was due solely to the negligence, fault, breach of contract, and breach of bailment by the defendants and their agents. The complaint specifically points to the alleged negligent retention of sub-contractors and sub-carriers, including the allegation that the cargo was lost or stolen by individuals hired by the defendants to transport the shipment.
The insurer asserts that it paid K-Array $600,000 for the lost shipment and now seeks to recover that amount from the defendants, along with interest and costs. Liberty Mutual claims that it is entitled to subrogation and assignment rights, allowing it to pursue recovery on behalf of K-Array and any other parties with an interest in the shipment.
The legal action invokes both the Montreal Convention, which governs international air carriage, and the Carmack Amendment, which imposes liability on carriers for losses relating to goods transported in interstate commerce. The complaint alleges that the defendants, as carriers and transportation intermediaries, failed to provide the requisite care for the shipment during carriage from Italy to Massachusetts.
Liberty Mutual is one of the 10 biggest insurance companies in Massachusetts by market share. Learn more in this guide.
No specific insurance policy clauses are quoted or discussed in the complaint. The case remains at the pleading stage, and all allegations are yet to be tested in court.
This dispute highlights the issues insurers and logistics firms can face when valuable cargo goes missing in transit. It also illustrates the legal landscape governing international and interstate shipments, where multiple treaties and statutes may come into play. For insurance professionals, the case underscores the importance of subrogation practices and the need for diligence when working with transportation intermediaries and subcontractors.
