Citizens Bank v. Norfolk & Western Railway Co.

78 S.E. 568, 115 Va. 45, 1913 Va. LEXIS 7
CourtSupreme Court of Virginia
DecidedJune 12, 1913
StatusPublished
Cited by2 cases

This text of 78 S.E. 568 (Citizens Bank v. Norfolk & Western Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Citizens Bank v. Norfolk & Western Railway Co., 78 S.E. 568, 115 Va. 45, 1913 Va. LEXIS 7 (Va. 1913).

Opinion

Buchanan, J.,

delivered the opinion of the court.

The Norfolk and Western Railway Company proceeded by notice and motion, under section 3211 of the Code, against the Citizens Bank of Norfolk, to recover freight charges and demurrage on coal. There was a verdict and judgment in favor of the railway company. To that judgment this writ of error was awarded.

The court gave two instructions to the jury, upon motion of the railway company, and declined to give three instructions asked for by the bank. This action in giving and refusing instructions is assigned as error.

By instruction No. 1 given for the railway company, the jury were told that the bank in agreeing to pay all just freight and demurrage charges on coal covered by the McRae assignment, became primarily responsible for all such charges, and was liable to the railway company for so much thereof as might be shown to remain unpaid.

It appears that for some time prior to the year 1910 C. J. McRae had been doing business in Norfolk as a coal dealer, handling coal in carload lots consigned to him in various consigning names from mines in the State of West Virginia, and carried by the railway company for transshipment from its piers at Lambert’s Point. On the 5th [47]*47of May, 1910, McRae executed an assignment to the bank, as agent of the Consolidated Coal Company, and on the 15th day of June following h'e executed two assignments to the bank, individually, of all coal that was then or that might be consigned thereafter to him under his consigning names. These assignments, so far as they involve questions for decision in this case, are substantially the same, and by them McRae, for value received, assigned to the bank all cars of coal that were then on th’e tracks of the railway company either en route to or at Lambert’s Point. On the 12th of July following, the railway company acknowledged the receipt of the McRae assignments, and wrote: “We will accept this assignment and deliver such coal on the order of the Citizens National Bank of Norfolk with the understanding and guarantee of the bank that all freight and demurrage charges accruing on such coal will be paid by the bank as presented. Please have the necessary agreement drawn up and executed by the bank.”

On the 15th of the same month, the bank wrote to the railway company as follows: “ Referring to conversation of yesterday regarding letter from Mr. Spangler accepting the assignment from C. J. McRae to this bank, we write to confirm our agreement to pay the just freights and demurrage charges on coal covered by this .assignment and authorize delivery to Mr. C. J. McRae as agent for the bank until notice is given to the contrary.”

Pursuant to this agreement, the bank paid freight and demurrage charges on coal shipments covered by the said assignments until October 10, 1910, when it wrote to the railway company terminating the said agreement, to take effect as of the 12th of that month.

There can be no question that by the terms of the letter of the railway company of July 12, and the bank’s letter of July 16, the bank expressly undertook and agreed to [48]*48pay all such freight and demurrage charges on the coal covered by McRae’s, assignments to it, and did not, as the bank insists, merely guarantee such payments. While there had been conversations and communications between the agents of the railway company and the agents of the bank in reference to the matter prior to the letters of July 12 and 16, 1910, those letters evidence the undertaking and agreement of the parties. Whether the bank was primarily liable for such charges or had merely guaranteed their payment as claimed in instruction “A” offered by it, was a question for the court and not for the jury. The court did not, therefore, err in giving instruction No 1 offered by the railway company, or in refusing to give instruction “A” asked for by the bank.

Neither do we think the court erred in giving instruction No. 2 offered by the railway company, nor in declining to give instruction “C” asked for by the bank, which was in conflict with the former.

By the instruction given the jury were told that the delay of the railway company in presenting its final accounts did not constitute a waiver by it of its demand against the bank. That demand consisted of freight and demurrage charges on coal shipped on or before October 12, 1910, at which time the bank by letter terminated, as it had the right to do, its agreement to pay freight and demurrage charges on shipments made thereafter to McRae. That letter is as follows:

“This will notify you that the relations existing between Mr. G. J. McRae and ourselves under an assignment from him to us, a copy of which has been filed with you, by which he assigned all his interest in all coal shipped to him, will be terminated ón and after Wednesday, October 12, 1910, and from that date you will please look to Mr. McRae for the payment of all charges due on coal consigned to him. For coal shipped to Mr. McRae covered by said as[49]*49signment prior to that date we will be responsible for the freight and demurrage charges as heretofore, and will no-, tify your local agent what disposition to make of this coal.

“In order to avoid confusion, we would thank you to send us a statement of the car numbers and their weight, if any, which may be consigned to Mr. McRae before the 12th inst.”

In that letter the bank recognizes that it is liable to pay all freight and demurrage charges on coal shipped to McRae prior to that date. In it the bank asked for a statement of the car numbers and weights of coal that were shipped to McRae before the 12th of October, 1910. This letter was received by the agent of the company to whom it was written, and referred to the comptroller of the railway company. On the same day the comptroller, without reference to that letter (and perhaps before it had been received by him) wrote the bank advising of a draft for June demurrage, and calling attention to the fact that the bank had not taken it up with the railway company as suggested in its letter of August 13th. On October 13th the bank returned the draft with the statement that the matter, “is now in dispute,” and asked the comptroller to telegraph exactly how much freight the bank was responsible for. This was not done because, as the bank knew, the railway company did not have and could not obtain the information desired until the coal was actually delivered at Lambert’s Point. On October 18th the railway company drew on the bank for certain freight charges on coal shipped prior to the 12th of that month, and two days later the bank wrote that it had paid the drafts, and concluded its letter with the statement, that “On the basis of our letters of October 10th and your reply of October 11th, we assume that you have no other charges against us for any coal shipped during the life of the assignment.” Upon the receipt of that letter, and on the next day after it was written, the [50]*50comptroller of the railway company wrote: “I will look into the matter, and if there are any additional cars for which drafts should have been made will see that they are drawn for immediately, and will also endeavor to render you formal account as soon as cars covered by these drafts above mentioned are finally disposed of and deliveries made to vessels.” On the 2nd of November following the railway company rendered what purported to be the final account and the total amount due to it from the bank for freight and demurrage.

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

Related

McGuire v. Atlantic Coast Line Railroad
118 S.E. 225 (Supreme Court of Virginia, 1923)
North Shore Improvement Co. v. N. Y. P. & N. R. Co.
108 S.E. 11 (Supreme Court of Virginia, 1921)

Cite This Page — Counsel Stack

Bluebook (online)
78 S.E. 568, 115 Va. 45, 1913 Va. LEXIS 7, Counsel Stack Legal Research, https://law.counselstack.com/opinion/citizens-bank-v-norfolk-western-railway-co-va-1913.