When using a packaging company, who is responsible if the item you ship arrives broke

[hlstarkey]

What is the name of your state (only U.S. law)? Ohio
I sold an item that was of considerable value and it needed to packaged and shipped. I thought that, to be on the safe side I would use a company that packages/ships items professionally. They mailed it out and the man that bought the item says that it arrived broken. I did insure the item but ups denied the claim stating that it wasn't packaged properly. I had to refund my customer his payment. Is the packaging company then obligated to repay me for the cost of the item? Also, I sold the item for less than what it is valued at...I insured the item for what it was valued at. If they are obligated to pay me, how much should I expect to get back, the value of the item or how much my customer paid for it?

 

[OHRoadwarrior]

Before getting too excited, I suggest you contact the shipper/packer and attempt to collect what you lost on selling the item. The value of the item is clear. The value is what you sold it for.

 

[tranquility]

I agree. The value of the item is what it was sold for in an arm's length transaction.

As to the packing, what did your agreement say?