A. S. Burg Co. v. Railway Express Agency, Inc.

8 Mass. App. Dec. 3
CourtMassachusetts District Court, Appellate Division
DecidedSeptember 24, 1954
DocketNo. 350765
StatusPublished

This text of 8 Mass. App. Dec. 3 (A. S. Burg Co. v. Railway Express Agency, Inc.) is published on Counsel Stack Legal Research, covering Massachusetts District Court, Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A. S. Burg Co. v. Railway Express Agency, Inc., 8 Mass. App. Dec. 3 (Mass. Ct. App. 1954).

Opinion

Adlow, C. J.

Action to recover for failure to deliver merchandise shipped by air express from Boston, Massachusetts to a consignee in Mexico City, Mexico.

On March 28, 1952, A. S. Burg Company delivered to the Railway Express Agency, Incorporated, in Boston, Massachusetts, a parcel for transportation by air express to a consignee in Mexico City. With the goods the shipper delivered to the carrier invoices and customs declarations to accompany the shipment and a letter of instructions for the Pan American Air-Lines. The carrier, later on the same day, notified the shipper that it could not deliver the goods by Pan American Air-Lines, and that a letter of instructions to Lamsa Airlines would be necessary. The shipper through his agent acquiesced in the change and authorized the preparation of an appropriate letter of instructions.

On April 16 and April 18, 1952, two other shipments were delivered to the carrier by the shipper for delivery to Mexico City. Each of these shipments was accompanied by a letter of instructions for Lamsa Airlines which had been prepared and signed by the shipper himself.

The carrier transported the three shipments from Boston, Massachusetts, to El Paso, Texas via the Airlines. The shipment of March 28 arrived at El Paso on March 31, 1952; that of April 16 arrived them on April 18, 1952; and that of April 18 arrived there on April 21, 1932. At El Paso, Texas, each of the parcels was carried by cart across the Rio Grande and delivered to Lamsa Airlines which loaded them into its plane for conveyance to Mexico City. The Lamsa Airlines plane landed at Torreon, Mexico. [5]*5where customs officials examined the cargo and demanded the payment o£ custom duties on the goods.

Lamsa Airlines paid the duty claimed by Mexican customs authorities and notified the consignee in Mexico City that the goods were being held at Torreón and would be delivered upon payment of the custom duties. The consignee claimed that the duties levied were too high because of an erroneous classification of the goods, and refused to accept delivery of the goods or to pay the duties levied. On application to custom authorities Lamsa Airlines obtained a rebate of a part of the duties on a reclassification of the goods.

Lamsa Airlines notified the shipper of the consignee’s refusal to accept the shipments and the shipper notified Lamsa Airlines not to dispose of the goods in any other manner than by delivery to the consignee with whom the shipper had arranged for the acceptance of the goods. However, the consignee again rejected the shipments.

In this action the shipper seeks to recover from the Railway Express Agency, Incorporated, for the value of the merchandise involved in the three shipments. In finding for the defendant the court made the following findings of fact:

"Upon all the evidence, I find as a fact that neither the defendant nor the Lamsa Airlines, the connecting airline carrier in Mexico, in any way did anything to delay or prevent the completion of the contract of carriage entered into between the plaintiff and the defendant. I further find as a fact that neither the defendant nor Lamsa Airlines was guilty of negligence.

I rule that the stoppage in transit by the custom officials of a sovereign nation was expressly provided for in the terms of the uniform express receipts — three in number, herein sued upon.”

It is unnecessary to set forth the many requests for rulings of law filed by the plaintiff with the court. It is apparent that the plaintiff bases its right to re[6]*6cover on the theory that the defendant as the initial carrier is responsible for any failure or default with respect to the shipment on the part of the connecting carrier, or on the alternative theory that the defendant’s relationship to the connecting carrier is that of principal and agent and as a consequence the defendant is responsible for the connecting carrier’s failure to deliver the shipment to the consignee. Neither theory has any validity under the circumstances peculiar to this case.

While a common carrier has historically been treated as a virtual insurer of the safety of goods entrusted to his care, his right to limit his responsibility as an insurer under certain circumstances has been recognized. Liverpool Steam Co. v. Phoenix Ins. Co., 129 U. S. 397. The sole restriction on this right of the carrier is that the provisions of this special contract be just and reasonable and do not exempt the carrier from responsibility for loss due to negligence. Cox v. Central Vermont Railroad, 170 Mass. 129, 136.

A pertinent item in the express receipt given by the defendant carrier to the shipper provides:

"12. It is hereby agreed that the property destined to such foreign countries, and assessable with foreign governmental or customs duties, taxes, or charges, may be stopped in transit in foreign ports, frontiers or depositories and there held pending examination, assessments, and payments, and such duties and charges, when advanced by the company shall become a lien on the property.” An exemption from responsibility of similar tenor is noted in the tariff schedule of Lamsa Airlines. The presence of these provisions in the express receipts issued tends to limit the carrier’s responsibility.

In order to fasten responsibility on the defendant carrier it is necessary to establish (1) that there was a failure to properly perform the contract of carriage in Mexico, and (2) that the defendant carrier was responsible for the conduct resulting in the default.

[7]*71. Keeping in mind that the stoppage of these shipments in Mexico was due to the intervention of Mexican customs authorities, and the further fact that both the initial carrier and the connecting carrier had expressly exonerated themselves from responsibility for delays attributable to such causes, we encounter at the outset the question whether the consequent loss to the shipper was attributable to the default or negligence of either the initial or connecting carrier. It is apparent from the record that both the consignee and the shipper were informed of the fact that Mexican customs authorities had levied duties on the shipments, that these had been paid by the connecting carrier, and that the only thing that prevented delivery of the goods to the consignee was his refusal to recognize the validity of the customs levy or to discharge the lien which the connecting carrier had on the goods for the sums advanced by it in payment of the customs duties. The right to this lien was provided for in the contract of carriage. There was ample reason for the refusal of Lamsa Airlines to deliver the goods while it continued to have such a lien.

While the report does not disclose the dates on which telegrams were sent by Lamsa Airlines to A. S. Burg Company, by A. S. Burg Company to Lamsa Airlines, and by the consignee to A. S. Burg Company, it does not appear that any serious claim was made by the shipper that there was any unreasonable delay in notifying the consignee or the shipper of the circumstances which delayed delivery. It is sufficient for our purposes to note that there was ample evidence to warrant the finding made by the court that "neither the defendant nor Lamsa Airlines was guilty of negligence.”

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8 Mass. App. Dec. 3, Counsel Stack Legal Research, https://law.counselstack.com/opinion/a-s-burg-co-v-railway-express-agency-inc-massdistctapp-1954.