Cleveland, Cincinnati, Chicago & St. Louis Railway Co. v. Dettlebach

239 U.S. 588, 36 S. Ct. 177, 60 L. Ed. 453, 1916 U.S. LEXIS 1935
CourtSupreme Court of the United States
DecidedJanuary 10, 1916
Docket229
StatusPublished
Cited by90 cases

This text of 239 U.S. 588 (Cleveland, Cincinnati, Chicago & St. Louis Railway Co. v. Dettlebach) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cleveland, Cincinnati, Chicago & St. Louis Railway Co. v. Dettlebach, 239 U.S. 588, 36 S. Ct. 177, 60 L. Ed. 453, 1916 U.S. LEXIS 1935 (1916).

Opinion

*589 Mr. Justice Pitney

delivered the opinion of the court.

The court whose judgment we have here under review sustained a judgment rendered by an inferior state court in favor of Dettlebach and against the Railway Company for the market value of certain goods which, having been shipped in interstate commerce, were lost through the negligence of the Railway Company (the terminal carrier) while in its possession as warehouseman at the place of destination; overruling the contention that, because of a limitation of liability agreed upon by plaintiff’s agent in consideration of a reduced rate of freight and eontáined in the bill of lading that was issued by the initial carrier, and by force of the provisions of the Interstate Commerce Act and its amendments, especially the Hepburn Act of 1906, the recovery ought to be limited in accordance with the stipulation. This question, it may be observed, as affecting the warehouseman’s responsibility, was not passed upon in Boston & Maine R. R. v. Hooker, 233 U. S. 97, 109.

The facts are as follows: Dettlebach, the plaintiff, on September 18, 1911,. shipped certain packages of merchandise, described as household goods, over the Chicago, Burlington & Quincy Railway and connecting lines from Denver, Colorado, consigned to his wife at Cleveland, Ohio. They were received for transportation under the terms of a bill of lading, prepared in the form approved and recommended by the Interstate Commerce Commission in its report of June 27, 1908 (14 I. C. C. 346, 352; 22 Annl. Rep. I. C. C. 1908, p. 57), which contained the following provision:

"It is mutually agreed, as to each carrier of all or any of said property over all or any portion of said route to destination, and as to each party at any time interested in all or any of said property, that every service to he performed *590 hereunder shall be subject to all the conditions, whether printed or written, herein contained (including conditions on back hereof), and which are agreed to by the shipper and accepted for himself and his assigns.”

Among the conditions printed upon the back were the following:

"Sec. 3. . . . The amount of any loss or damage for which any carrier is liable shall be computed on the basis of the value of the property ... at the place and time of shipment under this bill of lading, unless a lower value has been represented in writing by the shipper or has been agreed upon or is-determined by. the classification or tariffs upon which the rate is based, in any of which events such lower value shall be the maximum amount to govern such computation, whether or not such loss or damage occurs from negligence. . . .”
"Sec. 5. Property not removed by the party entitled to receive it within forty-eight hours (exclusive of legal holidays) after notice of its arrival has been duly sent or-given may be kept in car, depot, or place of delivery of the carrier, or warehouse, subject to a reasonable charge for storage and to carrier’s responsibility as warehouseman only. . . .”

Upon the face of the bill of lading was the following declaration signed by plaintiff’s agent: "I hereby declare the valuation of the property shipped under this bill of lading does not exceed $10.00 per cwt.”

The court found as a fact that the shipper by consenting to the limitation received a consideration in the shape of a substantial reduction in the freight rate, and that this supported the agreement to limit the company’s liability. No question was made but that the agreement was in accordance with the filed tariff.

The goods thus shipped were transported by the initial carrier to the junction between its line and that of defend *591 ant, and transported by the latter company to destination, where they arrived on September 27. They were not called for by the consignee, and remained in defendant’s possession as warehouseman. until November 1, 1911, when, through its negligence, certain of the goods, of the market value of $2,792, were lost.

This action-having been brought to recover the value of ■the goods lost, and the claim of Federal right already mentioned having been made and overruled, a verdict and judgment went against defendant for the market value of the goods, and this was affirmed by the Court of Appeals, Eighth District, State of Ohio. The Supreme Court of the State declined to review the judgment. The case comes here under § 237, Jud. Code.

It is no longer open to question that if the loss had occurred in the course of transportation upon defendant’s line, the limitation of liability agreed upon with the initial carrier, as this was, for the purpose of securing the lower of two rates of freight, would have been binding upon plaintiff, in view of the Carmack Amendment. Adams Express Co. v. Croninger, 226 U. S. 491, 509; Kansas Southern Ry. v. Carl, 227 U. S. 639, 648, 654; Mo., Kans. & Tex. Ry. v. Harriman, 227 U. S. 657, 668. The question is, whether the limitation of liability may be deemed to have spent its force upon the completion of the carrier’s service as such, or must be held to control, also, during the ensuing relation of warehouseman. The Court of Appeals, recognizing the question as one of difficulty, reasoned thus:

“To occupy this twofold relation is of advantage to the company. As soon as the company can occupy it by replacing with it its former relation as a common carrier, it obtains the benefit of the rule of ordinary care instead of the higher degree of vigilance which the law charges upon carriers for hire. And the company is further advantaged by an early shifting of its status as carrier to that of warehouseman, through its right in the latter capacity to *592 charge for the storage of consigned goods, from the time when its relation to them as carrier ceases.”

The court considered that the declaration of value stamped upon the bill of lading and signed by plaintiffs agent, carried no suggestion that it should inure to the advantage of a warehouseman after becoming inert for the relief of the carrier, and that the custody and protection of the goods as warehouseman is a distinct service from that of their transportation, and for it additional compensation may be charged; proceeding as follows: “The additional compensation is not at all diminished in this case because of the agreement of limitation of liability.

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Bluebook (online)
239 U.S. 588, 36 S. Ct. 177, 60 L. Ed. 453, 1916 U.S. LEXIS 1935, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cleveland-cincinnati-chicago-st-louis-railway-co-v-dettlebach-scotus-1916.