Cleveland C., C. & St. L. Ry. Co. v. Southern Coal & Coke Co.

147 Tenn. 433
CourtTennessee Supreme Court
DecidedSeptember 15, 1922
StatusPublished
Cited by23 cases

This text of 147 Tenn. 433 (Cleveland C., C. & St. L. Ry. Co. v. Southern Coal & Coke Co.) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cleveland C., C. & St. L. Ry. Co. v. Southern Coal & Coke Co., 147 Tenn. 433 (Tenn. 1922).

Opinion

Mr. Justice McKinney

delivered the opinion of the Court.

This suit was instituted for the purpose of recovering-$331.39, balance of freight charges alleged to be due on eleven cars of coal shipped in the months of January and February, 1916, by the defendant, Southern Coal & Colee Company, from its mine at Gatliff, Ky., to John T. Solon at Toledo, Ohio.

• Said-coal was sold by the defendant to Solon f. o. b. cars at mine. This fact, however, was unknown to complainant. Gatliff is located on the Louisville & Nashville Railroad, and said coal was routed over said road to Cincinnati, Ohio; thence over the road of complainant to Toledo. The freight was not prepaid by the consignor. There was no express agreement at the time of shipment that Solon was to pay the freight charges, but the defendant had previously shipped him coal and the freight was collected by the complainant from him, or his assignee. Solon, it appears, was a coal broker, and siold the eleven cars of coal in question to the Toledo Ice & Cold Storage Company, located about eleven miles from complainant’s road in Toledo on the Toledo, St. Louis & Western Railroad, known as the “Clover Leaf” Road.

It is inferable from the record, and the cause proceeds upon that theory, that said coal was delivered to the To[438]*438ledo Ice & Cold Storage Company without any demand being made for the freight charges.

' Mr. Wench, freight agent for the complainant, testified, in a general way, that .he subsequently undertook to collect said freight from both the Toledo Ice •& Cold Storage Company and Solon.

Subsequent to the delivery of said coal, the Toledo Ice & Cold Storage Company was adjudged a bankrupt.

The freight on said eleven cars of coal from Gatliff to Toledo was $665.48. The complainant filed its claim for said amount in said bankruptcy proceeding, alleging that the Toledo Ice & Cold Storage Company was indebted to it in said sum, and received on said claim, in said proceeding, $339.09. It then demanded the balance of $331.39 of Solon, which he declined to pay, and, without any previous notice that said freight had not been paid, or without any demand therefor, and nearly three years after the shipments were made, it filed the present bill.

Solon died July 1,1920, and his estate was insolvent.

The answer filed by the defendant is as follows:

“I. That it does not owe the complainant the amount sued for or any part thereof.

“II. That said coal, referred to in said original bill, was sold by respondent to one John T. Solon, f. o. b. cars at mines, where shipments originated, that the carriers handling said shipments, including complainant, well knew said fact' at the time, and had previously handled similar shipments, and looked to and collected the transportation charges from the said consignee thereof, or his assigns, by reason and account of which the complainant has estop-ped itself and is now estopped from asserting otherwise, that pursuant to an agreement or understanding between [439]*439complainant and said consignee, or Ms assigns, the complainant upon the arrival of said shipments, at the point of destination, delivered the same to said consignee or his assigns, and extendéd to said consignee, or Ms assigns, the sole credit for the transportation charges thereon, thus and thereby releasing and discharging the respondent from any and all liabilities touching said matters, in any event, and thereby estopping the complainant from asserting otherwise.

“III. On information and belief, the respondent further shows to the court that complainant, without having previously made any demand on respondent, or given respondent any notice touching said matters, said complainant filed its petition, or proof of claim, predicated on said alleged transportation charges, in a bankrupcty or general creditor’s proceedings against the Toledo Ice & Cold Storage Company, was indebted to it for said transportation charges, and that complainant, upon said theory, participated in the distribution of the assets of said Toledo Ice & Cold Storage Company, to the extent of approximately §334.07; that without the knowledge and consent of re spon dent, said coal was diverted by said Solon with the acquiescence and consent of complainant to the said Toledo Ice & Cold Storage Company, about January or February, 1916, and that complainant by so participating and thus electing and so proceeding' has thereby precluded and es-topped itself, in any event.”

Solon paid for the coal in February and March of 1916, and the defendant did not know that the freight had not been paid until the bill was filed in this cause.

The chancellor entered a decree in favor of the complainant for the balance of said freight, with interest.

[440]*440Upon appeal, the court of civil appeals reversed the chancellor and dismissed the bill. The basis of its decision is thus stated in its opinion, to-wit:

“We do not rest this opinion upon the doctrine of estop-pel, but upon the distinct proposition, or rather propositions, that complainant in this case turned over the coal after it arrived at destination under the bill of lading to another carrier, as its agent, to deliver the coal to the as-signee of the original consignee, and, presumably, authorized its carrier agent to deliver the goods without demanding payment of the freight charges, after which it proceeded against the assignee of the original consignee as its debtor to collect the freight charges.

“We have been able to discover no case, or authority in any text-writer,. treating of the subject of the rights of common carriers with respect to the collection of freight charges, that forbids them to waive the collection of freight charges by the original consignee, and having delivered the shipment of goods to the assignee of the original consignee, to treat said assignee as its debtor, and proceed against said assignee to collect its freight charges.

“To hold that a common carrier doing that could, after proceeding against its debtor to collect the freight charges, and having failed to collect all of the freight charges, it could delay about three years and then proceed against the shipper and collect the balance of the freight charges it failed to collect from its debtor, would, it seems to US', establish a most unequitable rule, under the operation of which might, could, and would arise serious inconveniences and obstructions to the normal course of an immense mass of business transactions necessitating the shipment of merchandise in interstate commerce over connecting lines of carriers.”

[441]*441The bills of lading issued to the defendant for said coal at the time of shipment are the standard form approved by the Interstate Commerce Commission, and contain the following provision, to-wit:

“The owner or consignee shall pay the freight, and average if any, and all other lawful charges accruing on said property, and if required, shall pay the same before delivery. If upon inspection it is ascertained that the articles shipped are not those described in this bill of lading, the freight charges must be paid upon the articles actually shipped.”

' The Interstate Commerce Act of 1887, as amended (U. S. Comp.

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147 Tenn. 433, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cleveland-c-c-st-l-ry-co-v-southern-coal-coke-co-tenn-1922.