Narrative Summary

My company manufactures specialized audio circuit boards that utilize gold-plated contacts for maximum conductivity. We shipped a $3,500 batch to a client via FedEx. The box was heavily water-damaged in transit, corroding the components and rendering them useless. When we filed the claim, FedEx approved it but capped the payout at $1,000. They cited the "precious metals" clause in their Service Guide, classifying our high-end electronics as an extraordinary value item because they contained gold.

The Resolution Strategy

Claims adjusters will scan item descriptions for keywords like "gold" or "silver" and immediately apply the $1,000 precious metals cap, completely ignoring the actual nature of the manufactured product.

Using the Authori shipping appeal strategy, the defense dismantled this classification using FedEx Service Guide Section 16.

The drafted appeal argued that the item tendered was a manufactured, functional electronic component, not raw bullion, dust, or jewelry. It pointed out that virtually all high-end computer processors and smartphones contain trace amounts of gold, yet they are not subjected to the precious metals cap. By demonstrating that the $3,500 value was derived entirely from engineering and electronic utility—rather than the fractional commodity melt value of the gold plating—the appeal successfully escaped the restriction. FedEx issued a check for the remaining $2,500.