American Cotton Co-Operative Ass'n v. New Orleans & Vicksburg Packet Co.

157 So. 733, 180 La. 836, 1934 La. LEXIS 1577
CourtSupreme Court of Louisiana
DecidedOctober 29, 1934
DocketNo. 32607.
StatusPublished
Cited by13 cases

This text of 157 So. 733 (American Cotton Co-Operative Ass'n v. New Orleans & Vicksburg Packet Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Cotton Co-Operative Ass'n v. New Orleans & Vicksburg Packet Co., 157 So. 733, 180 La. 836, 1934 La. LEXIS 1577 (La. 1934).

Opinion

ODOM, Justice.

The American Cotton Co-operative Association delivered to the New Orleans & Vicksburg Packet Company, Inc., a common carrier, 295 bales of cotton at Hard Times Landing on the Mississippi river at Newellton, La., for shipment on the steamer Tennessee Belle from Newellton to New Orleans. After bills of lading were issued, but before the cotton was loaded on board the steamer, 268 bales of it were destroyed by fire. The present suit is to recover the value of the cotton destroyed. Plaintiff’s demands were rejected by the trial court, and it appealed.

The facts are not disputed. The origin of the fire is unknown, or at least not explained. Plaintiff relies on article 2754 of the Civil Code, which says that: “Carriers and waterman are liable for the loss or damage of the things entrusted to their care, unless they can prove that such loss or damage has been occasioned by accidental and uncontrollable events.”

Plaintiff having proved that the cotton was destroyed by fire while in the hands of the carrier, and the carrier having failed to prove that the loss was occasioned by accidental and uncontrollable events, under the above article of the Code and under the holding in such cases as Dejean v. Louisiana Western R. Co., 167 La. 111, 118 So. 822, and Anderson, Clayton & Co. v. Y. & M. V. R. Co., 174 La. 762, 141 So. 453, 455, the ease would be with plaintiff but for a clause in the bill of lading specifically exempting the carrier from liability on account of loss occasioned by fire. That clause provides that the cotton is “to be delivered with reasonable' dispatch, in like good order, the danger of explosion, navigation, fire, collision and unavoidable accidents excepted.”

The carrier specially pleaded as a defense to the action that it was exempted from liability on account of loss by fire under the plain terms of the bill of lading, and alleged that the fire was not due to its negligence.

*840 Counsel for defendant carrier rely mainly on the case of Borneman & Co. v. New Orleans, M. & C. R. R. Co., 145 La. 150, 81 So. 882, 883. In that case the plaintiff brought suit on bills of lading issued by the defendant company in the state of Mississippi for the transportation of cotton from Houston, in that state, to New Orleans, La. The cotton was destroyed by fire, and one of the defenses urged was that there was a clause in the bill of lading exempting the carrier from liability in ease the cotton was destroyed by fire. It was held that this defense was good, the court saying:

.“The risk of fire having been excepted, and the loss having been by fire, and no negligence on the part of the defendant company having been shown, the defendant company is not liable.”

We may state here that no negligence on the part of the carrier was shown in the instant case. It had a watchman at the landing where the cotton was stored ready for shipment, whose duty it was to guard the cotton against fire. He testified that the fire •originated about 1:80 a. m„ and that during .the night he went to where the cotton was .stored about once each hour. After making one of his rounds and while in his tent, he looked through a window and saw that the cotton, or part of it, was in flames. He could not tell how the fire started. He was apparently careful, and exercised due diligence in watching the cotton. He was the only witness present when the fire originated. Under the circumstances, it cannot be said that the carrier was negligent. In fact, it is not contended by counsel for plaintiff that the carrier was guilty of negligence. Their contention in oral argument was, and that in their brief is, that the stipulation in the bill of lading exempting the carrier from liability on account of loss by fire is contrary to law and public policy, and therefore null. They base their right to recover solely upon the proposition that the carrier failed to show that the loss was due to an accidental and uncontrollable event.

It is argued by learned counsel for plaintiff that the Borneman Case cited, supra, has no application here, for the reason that in that case the court had under consideration a bill of lading which called for an interstate shipment, whereas in the ease at bar the shipment was intrastate; that in ■ the cited case the court considered and decided only the question whether the Carmack Amendment (Act Cong. June 29, 1906, c. 3591, § 7, pars. 11, 12, 34 Stat. 595 [see 49 USCA § 20 and note]) was preclusive of such a fire risk clause.

In that case it was plaintiff’s contention that the Carmack Amendment did preclude such clause, but the court held against the contention citing 10 C. J. 136.

The so-called Carmack Amendment referred to (paragraph 11), which relates to interstate shipments only, provides that a common carrier, to which any property is delivered for shipment, shall be liable to the holder of any bill of lading “for any loss, damage, or injury to such property caused by it or by any common carrier, railroad, or transportation company to which such property may be delivered or over whose line or lines such property may pass, and no contract, receipt, rule, or regulation shall exempt such common carriel-, railroad, or transportation company *842 from the liability hereby imposed.” (Italics ours.)

Following the adoption of this amendment, and especially in view of the last above quoted clause thereof, controversies frequently arose as to whether carriers could limit or qualify their liability by special contract with the shipper, and, if so, to what extent. In all cases it was conceded that such right, if any, as the carriers had to limit their liability depended upon the provisions of that amendment. There was considerable diversity of opinion, especially in the state courts, on these points, but all doubt upon these questions was settled by the Supreme Court of the United States in 1913. In the case of Missouri, K. & T. R. R. Co. v. Harriman Bros., 227 U. S. 657, 33 S. Ct. 397, 401, 57 L. Ed. 690, the court said:

“The liability imposed by the statute is the liability imposed by the common law upon a common carrier, and may be limited or qualified by special contract with the shipper, provided the limitation or qualification be just and reasonable, and does not exempt from loss or responsibility due to negligence”—citing Adams Express Co. v. Croninger, 226 U. S. 491, 33 S. Ct. 148, 57 L. Ed. 314, 44 L. R. A. (N. S.) 257.
As we have already noted, the Carmack Amendment to the Hepburn Law expressly provided that a common carrier “shall be liable * * * for any loss, damage, or injury to such property caused by it” or any connecting carrier, and further stipulated that “no contract, receipt, rule, or regulation shall- exempt such common carrier * * * from the liability hereby imposed.”

It was held by some courts that the last above quoted clause contained in the amendment prohibited common carriers from limiting or qualifying their liability by contract with the shippers.

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157 So. 733, 180 La. 836, 1934 La. LEXIS 1577, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-cotton-co-operative-assn-v-new-orleans-vicksburg-packet-co-la-1934.