Browne v. Union Pacific Railroad

216 P. 299, 113 Kan. 726, 1923 Kan. LEXIS 204
CourtSupreme Court of Kansas
DecidedJune 9, 1923
DocketNo. 24,605
StatusPublished
Cited by2 cases

This text of 216 P. 299 (Browne v. Union Pacific Railroad) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Browne v. Union Pacific Railroad, 216 P. 299, 113 Kan. 726, 1923 Kan. LEXIS 204 (kan 1923).

Opinions

The opinion of the court was delivered by

Dawson, J.:

The plaintiff brought this action for damages sustained through his reliance on erroneous datings on four* shipper’s order bills of lading issued by defendant.

The plaintiff, a grain dealer of McKinney, Texas, alleged on October 18, 1920, he bought 10,000 bushels of wheat from the Ed Past Grain Company of Denver, Colo., at $2.36 per bushel, to be shipped on or before November 2, 1920, but the time was extended until November 9, 1920. Plaintiff gave the grain company instructions to ship the wheat to Whitewater, Texas, via defendant’s railway and another. Separate shipper’s order bills of lading for each of four cars of this wheat were issued at Denver by the defendant railroad company. On October 30, 1920, plaintiff sold 5,000 bushels of this wheat to the Gladney Milling Company, of Sherman, Texas, shipment to be made by November 9, 1920, and billed to Sherman. The Ed Past Grain Company presented to plaintiff four sight drafts with the four shipper’s order bills of lading attached, each of which recited receipt of a carload of wheat by defendant. Plaintiff paid these drafts and received the bills of lading. He alleged that he relied on the recitals in the bills of lading, which had been signed [727]*727by defendant’s agent, and that he would not have paid the drafts and would not have taken up the bills of lading had they not shown that the cars were shipped by November 9, 1920. Plaintiff then tendered the four bills of lading to the Gladney Milling Company pursuant to his sale of 5,000 bushels of wheat to that company, but the latter refused to accept them and refused to accept the four cars of wheat, on the ground that the bills of lading were incorrectly dated and that the wheat had not been shipped as represented thereon, or by November 9, 1920, and were therefore inapplicable on plaintiff’s contract of sale with the Gladney Milling Company. Consequently, plaintiff had to sell the wheat at a loss, by which he sustained damages. The alleged inaccuracies in the bills of lading were—

On B/L for car G. N. #17527, it was recited:

“Received at Peavey, Idaho, 10/25/20. Stop at Denver for federal inspection. Issued at Denver, Colo., in lieu of B/L issued at Peavey, Idaho, 10/25/20 Destn. unchanged.”

Plaintiff alleged that'this order bill should have shown that it was issued at Denver, Colo., November 22, 1920, in exchange for bill of lading issued at Ogden, Utah, November 19, 1920.

On B/L for C. P. #72066, it was recited:

“Received at Buhl, Idaho, 11/5/20. Stop at Denver for Fed. Inspection. Issued at Denver, Colo., in lieu of B/L issued at Buhl, Idaho. Destination unchanged.”

Plaintiff alleged that this order bill should have shown that it was issued at Denver, Colo., November 24, 1920, in exchange for bill of lading issued at Ogden, Utah, November 19, 1920.

On B/L for M. C. #62632, it was recited:

“Received at Buhl, Idaho, 11/5/20. Stop at Denver for Federal Inspection. Issued at Denver, Colo., in lieu of B/L issued at Buhl, Idaho, Destn. unchanged.”

Plaintiff alleged that this order should have shown that it was issued at Denver, Colo., November 24, 1920, in exchange for bill of lading issued at Ogden, Utah, November 19, 1920.

On B/L for W. A. B. #75411, it was recited:

“Received at Buhl, Idaho, 11/2/20. Stop at Denver for Federal Inspection. Issued at Denver, Colorado in lieu of B/L issued at Buhl, Idaho, 11/2/20 Destination unchanged.”

Plaintiff alleged that this order bill should have shown that it [728]*728was issued at Denver, Colo., November 22, 1920, in exchange for bill of lading issued at Ogden, Utah, November 19, 1920.

Plaintiff also alleges that before he learned that the datings on the bills of lading were incorrect and that the shipments had not been made at the times therein recited, Ed Past, trading as the Ed Past Grain Company, became insolvent and was and is a fugitive from justice, and—

“That said damage to plaintiff was caused by the fault of defendant in issuing said incorrect order bills of lading which were negotiated to plaintiff for value and which were relied on by plaintiff, he having no knowledge that the recitations therein contained were not true, when he became the lawful holder thereof.”

The defendant answered, admitting plaintiff’s contracts of purchase and sale, but alleging, in substance—

Second: That under the terms of his contract with the plaintiff the Past Company was bound to accept the shipments regardless of dating of bills of lading.

Third: That defendant, at the time its Denver agent signed the bills of lading, had no knowledge of any contract between plaintiff and the Past company, or between plaintiff and the Gladney Milling Company either specific or by reason of custom or usage, and that it did not and could not know that any special reliance would be placed by anyone on the dating of the bills of lading.

Fourth: That if the Denver bills of lading were misdated this was done by the Past grain company who prepared the forms, presenting them to the carrier for signature only; that it was without, the scope of authority of defendant’s agent to bind the company by signing bills of lading containing any false statements; that such bills described the shipments accurately, stated the weight thereof correctly, and that the shipments were carried through to destination promptly and were fully delivered to the order of plaintiff at destination.

Fifth: That had plaintiff awaited the arrival of the shipments at destination before taking up the drafts he would have been fully informed of the original points of origin of the shipments in Idaho and the dating of the Ogden, Utah, bills by notations on the statements for freight charges which would have been presented to him for payment in usual course. That in any event the plaintiff should have been warned of the probability o-f misdating of the Denver bills by reason of the late arrival of the bills of lading and shipments.

[729]*729Plaintiff moved to strike out the most of the matters in defendant’s answer summarized above. The motion was overruled. Plaintiff then filed a general demurrer and a special demurrer to the third, fourth and fifth paragraphs of the answer. These demurrers were overruled, and plaintiff appeals, contending that these shipper’s order bills of lading having to do with interstate commerce are strictly negotiable.

Since the decision of the United States supreme court, June 5,1916, in Atchison & Topeka Ry. v. Harold, 241 U. S. 371, 60 Law Ed. 1050, reversing our own decision, Harold v. Railway Co., 93 Kan. 456, 144 Pac. 823, it is too clear for comment that these interstate bills of lading under consideration are exclusively governed by federal law, and the Kansas law touching responsibilities arising from their issue is inapplicable. At the time the Harold case was decided, interstate shipper’s order bills of lading were not negotiable instruments. Following that decision the congress on August 29, 1916, enacted chapter 415, 39 U. S. Stat. 538 (Fed. Stat. Ann., 1918 Supp. 72; U. S. Comp. Stat. 1916, §8604 aaa, et seq.).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Strong v. Atchison, Topeka & Santa Fe Railway Co.
254 P. 405 (Supreme Court of Kansas, 1927)

Cite This Page — Counsel Stack

Bluebook (online)
216 P. 299, 113 Kan. 726, 1923 Kan. LEXIS 204, Counsel Stack Legal Research, https://law.counselstack.com/opinion/browne-v-union-pacific-railroad-kan-1923.