British & Foreign Marine Ins. Co. v. Southern Pac. Co.

72 F. 285, 18 C.C.A. 561, 1896 U.S. App. LEXIS 1706
Court of Appeals for the Second Circuit·Decided February 20, 1896·Published·Cited by 6 cases

Opinion

LAOOMBE, Circuit Judge.

A large number of bales of cotton were shipped under 52 bills of lading from various points in Louisiana and Texas to points in Europe. Thirty of the bills of lading are railroad bills acknowledging receipt of such and such bales at various points on the Houston & Texas, etc., Railroad, to be carried to Liverpool or Genoa, in this way, viz. by railroad to Galveston, thence by the Morgan Line of steamers to New York, and thence by some line of trans-Atlantic steamers to Liverpool or Genoa. The other 22 bills of lading cover shipments from Galveston or New Orleans to Liverpool, Bremen, or Genoa by way of New York; the carrier to New York being the Morgan Line of steamers, and the carrier thence to port of destination being some trans-Atlantic line, named in the bill. There are variances in the phraseology of these bills of lading, which may be grouped into five different forms, but the variances are immaterial to the case made here, and need not be rehearsed. In all of them the rate of freight named in the bill is a through rate from the place of shipment to the place of delivery at so much per pound. Three of the forms provide expressly for payment of freight “immediately on landing the goods”; the other two forms are silent as to the time for payment of the freight, but it is well settled that in such cases the law' implies that it is to be paid upon delivery of the goods at the port of discharge. Oarv. Carr, by Sea (2d Ed.) § 543. By slightly variant phraseology all the bills of lading provide that the liability of each carrier shall cease on his delivery to the next carrier.

The cotton reached the Morgan Line pier in New York, and on February 28, 1887, while certain portions of the shipments were either on the pier or on partially loaded lighters alongside the pier, a fire occurred, by v'hich some of the bales w'ere destroyed and other bales w'ere injured to such an extent that, instead of being reconditioned, and forwarded to destination, they were sold here. The libelant was insurer upon the cotton covered by the 52 bills of lading, and in consequence of the fire paid to its respective insured total losses in respect to the cotton destroyed or sold in New York, and took assignments of the rights of the assured on the proceeds. An adjustment was made, the details of which need not be recited, and from the net proceeds of the sale the respondent reserved $2,318.60 as pro rata freight on the cotton sold and $614.72 as pro rata freight on the cotton destroyed, turning over to the insurance company only the balance left after making these deductions. Libelant sued to recover both sums, and the district court sustained the claim as to the second item, viz. pro rata freight on cotton sold, and dismissed the libel as to the other. Both sides appeal.

[287] Tlie libelant’s counsel has discussed at some length the leading authorities on the subject of pro rata freight, but, in view of the undisputed facts set out in the record, it is unnecessary to review them here. He quotes, and does not question the accuracy of, .Dr. Lushinglon’s statement in The Soblomsten, L. R. 1 Adm. & Ecc. 297, that a claim for pro rata freight is justified where there had been “a voluntary acceptance of the goods by their owner at an intermediate port in such mode as to raise a fair inference that the further carriage of the goods was intentionally dispensed with.” Although the libel alleges that certain of the said bales “were so damaged that they could not be forwarded to destination,” — an allegation admitted by the answer, — sucli averment is not necessarily to be taken as implying any more than that the condition of these bales was such that they could not go forward without such expensive reconditioning as would make an effort to forward them a losing venture. So long as the cotton still existed, — and the language quoted imports a continued existence as damaged hales, — it is difficult to understand why it was not physically possible for the shipowner to load and carry it to Europe. As to each damaged bale, therefore, there arose the question whether it should he reconditioned and forwarded or sold for the benefit of all concerned. It appears from the evidence that the insurance company, which, as abandonee of the damaged cotton, represented the cargo owners, was from the beginning in communication with the representatives of the carrier; that it was informed as to every important step taken; that when there was any question as to whether a bale of cotton should be reconditioned for forwarding or be sold here it was informed and consulted with; and that whatever course was taken, was taken with its approval and concurrence. There is no contradiction of this testimony, and, in our opinion, it clearly makes out a case of voluntary acceptance at the intermediate port, any further carriage of those particular bales being intentionally dispensed with by the owner, and implies a contract to remunerate the carrier for the service actually performed. The district court offered to take further proofs if any question was made as to the proper proportion of the whole freight to be applied pro rata itin-eris, and, no objection being made there by libelant, it is to be presumed that the sum fixed by that court is fair and just.

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British & Foreign Marine Ins. Co. v. Southern Pac. Co., 72 F. 285, 18 C.C.A. 561, 1896 U.S. App. LEXIS 1706 (2d Cir. 1896).

72 F. 285 (British & Foreign Marine Ins. Co. v. Southern Pac. Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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