Atlantic Compress Co. v. Central of Georgia Railway Co.

68 S.E. 1028, 135 Ga. 140, 1910 Ga. LEXIS 447
CourtSupreme Court of Georgia
DecidedSeptember 23, 1910
StatusPublished
Cited by2 cases

This text of 68 S.E. 1028 (Atlantic Compress Co. v. Central of Georgia Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atlantic Compress Co. v. Central of Georgia Railway Co., 68 S.E. 1028, 135 Ga. 140, 1910 Ga. LEXIS 447 (Ga. 1910).

Opinion

Holden, J.

.The Central of Georgia Bailway Company (hereinafter called the plaintiff) sued the Atlantic Compress Company (hereinafter called the defendant) on an indemnity contract, wherein the latter agreed to indemnify the former against any liability1" to the owner of cotton lost or damaged after it was received by the compress company for compressing and before it was loaded by the compress company for shipment. 125 bales of cotton received by the defendant, from the owner, to be compressed and loaded for the plaintiff, were destroyed by fire after a bill of lading was issued to the owner by the plaintiff in exchange for the receipt given the owner by the defendant, and while it was in the possession of the defendant as the agent of the plaintiff and before it had been compressed. The plaintiff paid the owner the value of the cotton, and sued the defendant to recover the amount thus paid. The case was submitted to the judge on an agreed statement of facts, and to his judgment in favor of the plaintiff for the full amount for which suit was brought the defendant excepted.

1. The defendant contends that the owner of the cotton made an express contract whereby the plaintiff was exempted from liability to the owner for loss of the cotton by fire. The plaintiff makes the contrary contention. Unless the plaintiff was in law liable to pay the owner of the cotton on account of its destruction, the defendant would not be liable to reimburse the plaintiff for the amount so paid by the latter. Civil Code, § 2276, is as follows: “A common carrier can not .limit his legal liability by any notice given, either by publication or by entry on receipts given or tickets sold. He may make an express contract, ancl will then be governed thereby.35 Counsel have argued the case on the theory that the [142]*142receipt of the compress company was given on its own account, and also on the opposing theory that it was given as agent of the railway company. In considering the question whether the conditions in the bill of lading created an exemption from liability in the event the cotton was destroyed by fire, let us first consider the receipt as having been issued by the defendant on its own account and not as agent for the plaintiff. The bill of lading issued by the plaintiff had in it this condition: “No carrier or party in possession of all or any of the property herein described shall be liable for any loss thereof or damage thereto, by . . fire,” etc. The words “party in possession” are broad enough to cover the compress company, which, as agent of the railway company, was in actual possession of the cotton when it was destroyed by fire. The receipt of the compress company acknowledged receipt of the cotton from the shipper, “to be compressed and loaded for Central of Georgia. Subject to all the conditions.of bill of-lading of above-named carrier, which may be issued in exchange for this receipt.” Treating the receipt as that of the compress company on its own account, and assuming that the bill of lading became a part of the agreement between the compress company and the shipper, or that the receipt was given subject to conditions of bill of lading that might be issued in exchange for it, or that the cotton was to be compressed and loaded subject to such conditions, one of which was that any party other than the railway company in possession of the property would not be liable for its loss by fire, the meaning of the receipt would be that should the cotton be lost by fire in the. possession of the compress company after the receipt was given and bill of lading issued, the compress company would not be liable therefor to the shipper. If the receipt be treated in this way and given the effect and meaning above referred to, no violence would be done to the provisions of tils' Civil Code, § 2264, as the provision therein contained, that the common-law liability of a common carrier shall not be limited by any notice given, etc., but in order to do so there must be an express contract, only applies to common carriers, and the compress company is not a common carrier. The condition in a writing issued by the compress company, or in another writing made a part thereof, that the one to whom the writing was delivered would not hold the company liable for losses by fire, might be binding on such person when it would not [143]*143be binding if issued by a common carrier. If it is proper to treat tlie receipt in this way, and give it tlie meaning that tlie compress company.was not to be liable to the shipper if the cotton was lost by fire before it reached its destination, this fact alone would not relieve the railway company from liability if the cotton was destroyed by fire. The railway company would not be relieved of liability to the shipper-for loss of the cotton'by fire while in its possession because the shipper had bound himself, with the knowledge of the railway company, not to hold another liable for the loss of the cotton by fire while in the possession of the railway company. The railway company could not properly say to the shipper, “You should not hold me-liable,'because you have agreed not to hold another liable.” The railway company is not seeking to hold the compress company liable because of negligence of the latter, but on its indemnity contract with the railway company, to which the shipper was no party, and, as far as disclosed by tlie record, never knew there was such a contract.- What has just ■been said is on the theory that the receipt of the compress company was one given by it on its own account, not as an agent of the railway company. If the receipt be dealt with on the theory that the railway company was no party to it, and as plainly evidencing a contract by the shipper not to hold the compress company liable for loss of the cotton by fire occurring at any time before delivery at its destination, we do not think this fact would be sufficient to show that there was an express contract by the shipper that the railway company would be likewise relieved of liability, although the receipt was delivered to the railway company in exchange for a bill of lading and it was contemplated by the parties when the receipt was given that this should be dohe.

For would the facts in the record warrant the conclusion that there was an express contract regarding the exemption of the railway company from liability if the cotton was lost by fire, if the compress company’s receipt be treated as having been given by that company as an agent for the railway company. On this theory, it would simply be an exchange of the receipt of one agent of the railway company for a bill of lading from" another agent. The main office of the receipt of-the compress company, on this theory, would be to evidence from one agent of the railway company the number of bales of cotton for which the other agent of [144]

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Related

Hall & Ham v. Stone
75 S.E. 140 (Court of Appeals of Georgia, 1912)
Seaboard Air-Line Railway v. Atlantic Compress Co.
69 S.E. 566 (Supreme Court of Georgia, 1910)

Cite This Page — Counsel Stack

Bluebook (online)
68 S.E. 1028, 135 Ga. 140, 1910 Ga. LEXIS 447, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atlantic-compress-co-v-central-of-georgia-railway-co-ga-1910.