Atchison, T. & S. F. Ry. Co. v. Springer

172 F.2d 346, 1949 U.S. App. LEXIS 3851
CourtCourt of Appeals for the Seventh Circuit
DecidedJanuary 25, 1949
DocketNo. 9570
StatusPublished
Cited by19 cases

This text of 172 F.2d 346 (Atchison, T. & S. F. Ry. Co. v. Springer) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atchison, T. & S. F. Ry. Co. v. Springer, 172 F.2d 346, 1949 U.S. App. LEXIS 3851 (7th Cir. 1949).

Opinion

BRIGGLE, District Judge.

Action was brought in the District Court by appellant, The Atchison, Topeka and Santa Fe Railway Company, to recover unpaid freight charges allegedly incurred by appellee as demurrage for the detention, for forty-seven days, of a carload of shavings or sawdust. Appellee made counterclaim for failure of appellant to divert or reconsign the car in accordance with instructions and resultant loss. The trial judge entered judgment for appellant for seven days’ demurrage amounting to $31.-60, and for appellee on his counterclaim, in the amount of $172.57, for the value of the contents of the car, from which judgment this appeal is taken. The facts were stipulated by the parties or were otherwise shown by the uncontroverted evidence.

On June 28, 1944, Whitmer Mills of Albuquerque, New Mexico, shipped via the Santa Fe a carload of shavings owned by appellee and consigned to himself at Arkansas City, Kansas. On June 29, 1944, appellee diverted said carload of shavings to Maurer-Neuer Corporation, Arkansas City, Kansas. At 1:0Q a. m. on July 3, 1944, said car arrived at Arkansas City, Kansas, and, prior to 7:00 a. m. on the same day, was placed on the other-than-public delivery track, serving Maurer-Neuer Corporation at Arkansas City, Kansas.

During the time in which the controverted demurrage charges accrued there were in force applicable tariffs granting consignees of carload shipments a period of forty-eight hours, known as “free time,” to unload and release the freight cars in which such shipments had been delivered. “Free time” began to run at the first 7:00 a. m. after delivery of such shipment to the consignee. Upon the expiration of such free time, demurrage charges accrued at $2.20 per day for the first two days’ detention of each freight car, and at $5.50 per day for och day’s detention thereafter.

Tariff rules also provided that a request for diversion or reconsignment must be made or confirmed in writing. A custom existed in the trade, whereby verbal orders to a carrier to divert a shipment were accepted on shipper’s agreement later to confirm such verbal orders in writing by the shipper and whereby such verbal request became valid as of the date made, upon receipt by the carrier of said written confirmation.

On July 3, 1944, the day the car was delivered to Maurer-Neuer Corporation, the consignee wired appellee that the car contained fine sawdust, not the shavings they had ordered, and asked appellee to wire disposition to be made of the car. Santa Fe was notified on July 10, 1944, by Maurer-Neuer Corporation of such refusal to accept.

On July 11, 1944, appellant notified its agent at Chicago, Illinois, by telegram, that the consignee had refused the shipment, and said agent on July 12, 1944, notified appellee of consignee’s refusal and requested his advice on the disposition to be made of the shipment.

Meantime, appellee, acting on information that the car had been partially unloaded by the consignee, advised appellant’s rate clerk, Honan, to that effect in a telephone conversation on July 7, 1944, and requested that the car in question be removed from consignee’s siding ai Arkansas City, Kansas, by Santa Fe, that it be weighed by Santa Fe, and if found to contain the weight specified in the bill of lading covering the movement from Albuquerque, that it be diverted to appellee at Milwaukee, Wisconsin, and was informed by Honan that diversion or reconsigning ad[348]*348vice would have to be given to the railroad by the consignee, and that Santa Fe could not accept a diversion as requested with a condition attached, and ■that if appellee wanted to divert to Milwaukee without any condition attached the railroad would do it. Appellee did not at any time confirm in writing his telephoned request of July 7, 1944, but renewed it by telephone on July 11, 1944.

Employees of Santa Fe on four or five occasions thereafter requested appellee to give instructions regarding disposition to be made of the car, but did not, at any time, receive any instructions different from those of July 7, 1944.

Findings 10 and 111 of the District. Court’s findings of fact are. not entirely accurate and are somewhat misleading. The inferences contained in such findings are unsupported by the evidence. The inference from Finding 10 is that the shipper unconditionally requested the Santa Fe to ship the car in question to Milwaukee; and in Finding 11 that the resultant demurrage charges occurred by reason of the carrier’s wrongful refusal to accept the unconditional request. The stipulated and undisputed facts are as heretofore recited that the request was conditioned upon acts to be performed by the carrier unrelated to its duties as a carrier and not provided for by its tariffs, and conditioned also upon the results to be determined from such acts. Appellee at no time gave the carrier a direct and unconditioned order either oral or written to ship the car to Milwaukee.

On August 3, 1944, appellee sent a letter to the railroad abandoning said shipment and authorizing it to make such disposition thereof as it desired; pursuant to such notice it removed, the car from the consignee’s siding on August 3, 1944, and sold the contents at public auction on August 22, 1944, for $5.00 after an expenditure of $4.70 to advertise the sale. Forty-seven days’ detention had then accumulated at $2.20 per day for the first two days and at $5.50 per day for the remaining forty-five days, making a total demurrage charge of $251.90. Federal transportation tax thereon at three per cent or $7.56 and advertising expense of $4.70, made a total due of $264.16. Crediting $5.00 thereon, received from the sale, left a net of $259.16 due the carrier, if it was entitled to recover In full on its claim.

The District Court concluded that Santa Fe should have acted upon the appellee’s oral diversion order of July 7, upon July 11, 1944, when it was notified by the consignee of its refusal of the shipment; and accordingly awarded Santa Fe only the demurrage which accrued to and including that date, and found the subsequent disposal of the car’s contents through sale wrongful.

The facts as above recited are embraced in the findings of the District Court with the exception of those italicized and noted in our reference to that Court’s Findings 10 and 11.2

Appellant principally contends that it should have been furnished, with a written [349]*349request, or a written confirmation of a verbal request to divert or reconsign, and that in any event and regardless of form, such request should not have conditioned diversion or reconsignment of the car to Milwaukee only if weighed, and if the weight was still the same as at the point of origination, Albuquerque, New Mexico.

Appellee contends it was relieved from giving a written request or written confirmation of a verbal request because such requirement was waived by statements of appellant’s employees, that a diversion or reconsignment order must come from the consignee.

Appellee was required in the first instance to make a request to the appellant which it could lawfully perform. The railroad itself could neither intentionally nor inadvertently through waiver or negligence, accept and perform a request which was not warranted by an applicable tariff and was inherently preferential or otherwise discriminatory. The conditions attached to appellee’s request were such that neither the making of it orally, nor its confirmation in writing, would avail the appellee.

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Bluebook (online)
172 F.2d 346, 1949 U.S. App. LEXIS 3851, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atchison-t-s-f-ry-co-v-springer-ca7-1949.