Insurance Company of North America, a Corporation Zomaya Group, Inc., a Corporation v. Federal Express Corporation, a Corporation,defendant-Appellee

WARDLAW, Circuit Judge:

At approximately 11:00 p.m. on December 20,1995, a shipment of computer memory modules disappeared from the storage area of the Memphis, Tennessee hub of the Federal Express Corporation (“Federal Express”). The intended recipient, Zoma-ya Group, Inc. (“Zomaya”), and its insurer, Insurance Company of North America,1 sued Federal Express for a loss of $745,-000 in California Superior Court. After Federal Express removed the case to federal court, the district court granted summary judgment in favor of Federal Express, limiting Federal Express’ liability to $2,494.25 under…