Commercial Milling Co. v. Western Union Telegraph Co.

115 N.W. 698, 151 Mich. 425, 1908 Mich. LEXIS 618
CourtMichigan Supreme Court
DecidedMarch 17, 1908
DocketDocket No. 82; Docket No. 3
StatusPublished
Cited by2 cases

This text of 115 N.W. 698 (Commercial Milling Co. v. Western Union Telegraph Co.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commercial Milling Co. v. Western Union Telegraph Co., 115 N.W. 698, 151 Mich. 425, 1908 Mich. LEXIS 618 (Mich. 1908).

Opinion

Ostrander, J.

In point of time, the statute considered here was passed after this court had, in the absence' of a statute, held that regulations similar to the one in question, limiting the liability of a telegraph company for mistakes and delays in transmitting messages and for failures to deliver them, were not unreasonable. The statute is entitled:

“An act to prescribe the duties of telegraph companies, incorporated either within or without this State, relative to the transmission of messages, and to provide for the recovery of damages for negligence in the performance of such duties.” Act No. 195, Pub. Acts 1893.

The duties of telegraph companies with respect to the transmission of messages arise not alone upon the terms of express contracts which they make, but, also, upon the nature of the business carried on and the interest of the public in the manner of conducting the business. They are not common carriers and they would not, at common law, be liable for mistakes or for delays or failures for which they were not, exercising proper care, responsible. It must be assumed that the legislature, taking into account this rule of law and the one established by this court, and already referred to, attempted to change, not the rule affecting liability for such miscarriages as proper care would have prevented, but the rule that for miscarriages for which they were responsible they might limit [427]*427liability by contract or by conditions imposed upon senders of messages. If this statute is not considered to have this effect, it seems an entirely useless and ineffectual legislative effort. In reaching this conclusion, neither the reasoning employed nor the authority of the ruling made in McMillan v. Railroad Co., 16 Mich. 79, is questioned. Assuming the intent and the effect of the legislation to be what I have stated it to be, it follows that the word negligence, employed in the statute, does not mean a tort or wrong of defendant distinct from its express or implied contract obligations, but it means such a failure to perform its duty as at the common law would render it liable for the consequences. It must be held that the proper construction of the statute and its effect is to forbid a limitation of liability for the consequences of those miscarriages for which at common law such companies are liable, and to this extent to make void the stipulation contained in the contract, which reads:

It is agreed that the company shall not be liable for mistakes or delays in the transmission or delivery or for nondelivery of any unrepeated message beyond the amount received for sending the same. * * * ”

The declaration of the plaintiff is in assumpsit and counts upon the contract and avers breach thereof. The message was delivered by plaintiff at Detroit, Michigan, addressed to a corporation in Kansas City, Missouri. The evidence shows the message was transmitted by defendant to its Chicago office, and, fairly, that it was sent no further. It was not delivered at Kansas City. The reason for failure to deliver was, it may be inferred, failure to transmit beyond Chicago. No reason appears for failure to so transmit. Plaintiff, during the same day that the message in question was sent and was lost, sent to and received from the same party at Kansas City various messages by defendant’s service. The jury found, and were warranted in so doing, that the miscarriage was the consequence of defendant’s negligence.

I am of opinion that the legislature intended its ac[428]*428tion to be coextensive with its authority to act, and that the statute should be given the broadest possible application. The case presented, then, is this: The contract was made in this State, is single, involves in its performance service of defendant within and without this State, for a single charge. It may be assumed that the service which was performed within the State was perfect and that miscarriage occurred- beyond its boundaries. For the consequences of the miscarriage, a breach of common-law and of contract duty, the plaintiff, who sent the mes-' sage, has brought a suit upon the contract in .a court of this State. Defendant insists that its liability for the consequences of its miscarriage is to be determined by the stipulation, found in the contract. By the law of the State, the stipulation is of no force or effect. The court so declared. It is contended here that in so doing the court was in error. It will be well to have in mind the effect of the statute as it was applied by the trial court. Undoubtedly, it was the application of a local law to the contract. But the local law does not attempt to state, measure, or define, any duty of defendant, or to establish, define, or fix, the consequences of its miscarriage. The liability of defendant is established without reference to the statute. It is when it asks to be discharged therefrom, by giving effect to the stipulation, that the local law becomes, if at all, effective. These considerations answer those objections which are based upon the notion that the local law has been given extraterritorial effect, and they require, also, that this case and Western Union Tel. Co. v. Pendleton, 122 U. S. 347, shall be distinguished.

But, it is said, the contract is for interstate service, which fact furnishes a controlling reason why the local law may not be given effect. It seems clear that the application of the statute does not deny to defendant a right, privilege, or immunity created by Federal authority simply because it denies, where formerly the law of the State affirmed, as the law of the Federal courts does now affirm, the validity of the stipulation. Western Union [429]*429Tel. Co. v. Carew, 15 Mich. 525; Primrose v. Telegraph Co., 154 U. S. 1. The rule referred to was arrived at, in both jurisdictions, by the statement and the application of common-law principles. In neither jurisdiction did the rule excuse the nonperformance of contracts or, except by agreement lawfully entered into, avoid the consequences of negligent performance thereof. The adoption of the rule by the Federal courts conferred upon the defendant no right, privilege, or immunity created by Federal authority. A reversal of the rule would take away no such right. If this court should be of opinion that the rule of the Carew Case should be denied and that sound public policy, in view of changed conditions, prohibited the defendant from limiting its liability for its negligence, by contract, condition, rule, or stipulation, the application of the announced rule to the present case would have required a denial of defendant’s contention. No different question is presented when the decision of the State court is reached by applying a statute of the State.

The statute as applied by the court below does not, in fact, regulate commerce among the several States, interfere with it in any way, tax or burden it, place obstacles in the way of entering into or performing contracts of commerce. If, as so given effect, the statute is invalid as an exercise of power belonging to the Congress, it is because the silence of Congress upon the subject is equivalent to an express enactment that the subject should be let alone. That Congress has not acted is plain, and the ruling of the court below was not in contravention of any Federal statute.

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Related

Bowman & Bull Co. v. Postal Telegraph-Cable Co.
124 N.E. 851 (Illinois Supreme Court, 1919)
Burroughs v. Postal Telegraph Cable Co.
165 N.W. 707 (Michigan Supreme Court, 1917)

Cite This Page — Counsel Stack

Bluebook (online)
115 N.W. 698, 151 Mich. 425, 1908 Mich. LEXIS 618, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commercial-milling-co-v-western-union-telegraph-co-mich-1908.