Arizona Feeds v. Southern Pacific Transportation Co.

519 P.2d 199, 21 Ariz. App. 346, 1974 Ariz. App. LEXIS 319
CourtCourt of Appeals of Arizona
DecidedFebruary 27, 1974
Docket2 CA-CIV 1491
StatusPublished
Cited by17 cases

This text of 519 P.2d 199 (Arizona Feeds v. Southern Pacific Transportation Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arizona Feeds v. Southern Pacific Transportation Co., 519 P.2d 199, 21 Ariz. App. 346, 1974 Ariz. App. LEXIS 319 (Ark. Ct. App. 1974).

Opinion

OPINION

HOWARD, Judge.

In this action appellee Southern Pacific Transportation Company, hereinafter referred to as Southern Pacific, sought to recover the freight charges for five cars of bulk barley delivered to Arizona Feeds in Phoenix. The case was tried to the court, without a jury, which made findings of fact, conclusions of law and entered judgment against appellant Arizona Feeds for the full amount of the freight charges in the sum of $14,807.26. We shall recite the facts in this case as found by the trial court excepting from said recitation portions of the findings of fact which are in reality conclusions of law.

Arizona Feeds is an Arizona corporation with its principal place of business in Tucson, Arizona. At the time of the transactions hereinafter set forth, Arizona Feeds *349 also maintained and operated a feed manufacturing plant in Phoenix, Arizona. This plant had a railroad spur adjacent to it for receiving bulk rail shipments of the commodities used in Arizona Feeds’ manufacturing process.

Southern Pacific is a common carrier doing business in Arizona and elsewhere.

On November 5, 1970, Arizona Feeds contracted to purchase from Moses Lake Grain & Livestock Company of Moses Lake, Washington, hereinafter referred to as Moses Lake, nine cars of #2 Montana barley (rolling grade) at the “delivered” price of $2.85 per hundred weight, to be delivered to Arizona Feeds’ plant in Phoenix. Moses Lake was instructed to deliver the first five cars to the Phoenix plant and mail the bills of lading to Arizona Feeds’ Phoenix post office box number. Only five of the nine carload orders were actually received by Arizona Feeds. In the commodity trade, a “delivered” price includes the cost of the commodity and all freight and haulage charges to its destination.

Subsequent to November 5, 1970, Farmer’s Union Gráin Terminal Association delivered the subject five cars of bulk barley to the Burlington Northern Railroad Company at Glasgow, Montana on the following dates and on such dates, Burlington Northern issued five “straight uniform bills of lading — short form” with respect to each of such cars as follows: November 12, 1970, a bill of lading, reference car # GN172056 and a bill of lading, reference car # NP76496; November 19, 1970, a bill of lading, reference car # NP18419 and a bill of lading, reference car # NP15000; November 24, 1970, a bill of lading, reference car # GN34060.

All five bills of lading named Moses Lake as consignee and directed that the cars be held at Shelby, Montana Tor inspection and orders. All of the bills of lading contained the following language in the “Remarks” column: “Freight to be paid by Moses Lake Grain & Livestock Co., Moses Lake, Washington.”

Neither the space provided in a bill of lading to show that the freight charges were to be prepaid nor the space provided for negating recourse on the consignor, Farmer’s Union Grain Terminal Association, was completed.

Moses Lake gave Burlington Northern Railroad Company diversion orders to divert the five cars from Shelby, Montana, to Arizona Feeds at its Phoenix plant by three telegrams on the following dates: November 12, 1970, cars # NP76496 and # GN172056; November 19, 1970, cars # NP18419 and #NP15000; and December 21, 1970, car # GN34060. None of these diversion orders contained any instruction modifying the original bill of lading instructions as to payment of the freight charges. No exchange bills of lading were issued for any of the five cars. One of the accepted purposes and uses of an exchange bill of lading is to change a bill to a “prepaid” or “to be prepaid” bill or vice-versa.

As a result of the three diversion orders Burlington Northern delivered the five cars to Southern Pacific, the connecting carrier, and furnished Southern Pacific with copies of the five bills of lading. By letter dated November 23, 1970, Moses Lake sent Arizona Feeds two of the five bills of lading and requested early payment. While the exact date Arizona Feeds first received the other three bills of lading could not be precisely determined, the customary practice was for Arizona Feeds’ Phoenix plant production manager to hold the bills and use the information therein contained to identify incoming rail cars and their contents. Presumably, that procedure was followed and applied in connection with these transactions. In any event, Arizona Feeds had the appropriate bills of lading in hand prior to making any payment.

By December 9, 1970, Southern Pacific had delivered and Arizona Feeds had accepted, unloaded, and released to Southern Pacific the first two cars and mailed its check to Moses Lake in the sum of *350 $10,779.84 in payment for the grain and all freight and haulage charges to Phoenix, Arizona. The amount of this check, as well as subsequent checks, was calculated by using the actual weight shown on the bills of lading covering the particular car times the $2.85 per hundredweight delivery price.

By December 11, 1970, Southern Pacific had delivered and Arizona Feeds had accepted, unloaded, and released to Southern Pacific the third and fourth cars. On December 11th, Helen Williams, of Arizona Feeds’ accounts, payable department in Tucson, received three freight bills from Southern Pacific’s accounting office in Los Angeles, California on the first three cars received by Arizona Feeds. She advised Villa Horner, Arizona Feeds’ assistant purchasing agent in Phoenix of such receipt.

On December 16, 1970, Arizona Feeds paid Moses Lake the sum of $7,115.60 in payment of the delivered price for the third and fourth cars received.

On December 21, 1970, Arizona Feeds received a freight bill for the fourth car from Southern Pacific’s accounting office in -Los Angeles, California. Arizona Feeds contacted Moses Lake and was told that it had been taken care of.

By January 7, 1971, Southern Pacific had delivered and Arizona'Feeds had accepted, unloaded and released to Southern Pacific the fifth and final car. On January 18, 1971, Arizona Feeds issued its check in the sum of $3,488.40 payable to Moses Lake for the fifth car. However, the check was held by Arizona Feeds’ internal auditor and manager of methods and procedures, Harry Aronson, who telephoned Art Rutka, Southern Pacific’s Tucson traveling freight and passenger agent. Aronson advised Rutka that the bill was a “to be prepaid” bill and “freight was to be paid by Moses Lake” and that he was holding up payment on the car. Rutka advised Aronson that Arizona Feeds was not responsible and was at liberty to go ahead and make payment to Moses Lake. On February 6, 1971, Arizona Feeds received a'freight bill from Southern Pacific for the fifth car.

The total freight bill for the delivery of the five cars in question was $14,807.26.

Of the total amount due $2,591.86 was the freight bill for the fifth car. Arizona Feeds would not have paid Moses Lake the portion of the delivered price attributable to the freight for the fifth car except for the telephone conversation with Rutka. However, Rutka would not have advised payment to Moses Lake if Aronson had not informed him that there was a “to be prepaid” bill of lading.

Based upon the foregoing facts the trial court made the following conclusions of law:

“1.

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Cite This Page — Counsel Stack

Bluebook (online)
519 P.2d 199, 21 Ariz. App. 346, 1974 Ariz. App. LEXIS 319, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arizona-feeds-v-southern-pacific-transportation-co-arizctapp-1974.