Cornelius & Co. v. Central of Georgia Ry. Co.

69 So. 331, 13 Ala. App. 533, 1915 Ala. App. LEXIS 95
Alabama Court of Appeals·Decided June 3, 1915·Published·Cited by 4 cases

Opinion

THOMAS, J.

The appeal is by defendant from a judgment of the lower court, sitting without a jury, and which was rendered against him in an action brought against him by plaintiff, the appellee railway company, to recover of him, the defendant, as the consignee of a certain shipment of goods, the difference in amount, which was $35.19, between the lawful freight rate (Central of Ga. Ry. v. Birmingham S. & B. Co., 9 Ala. App. 419, 64 South. 202) on such shipment, and the lesser rate which, at the time of and upon the delivery to the consignee of the shipment, the latter paid, and which the carrier then accepted by error or mistake as being the correct or lawful rate. The case was tried on an agreed. statement of facts, which the reporter will set out, and which, at its conclusion, stipulated that: “If, upon the foregoing statement of facts, the court is of opinion that the plaintiff is entitled to recover, a judgment shall be entered for the plaintiff for the sum of $35.19 with interest thereon from the 10th day of February, 1910 [which was done], or, if upon such facts the court is of opinion the plaintiff is not entitled to recover, judgment shall accordingly be entered for the defendant.”

(1, 2) There was an exception by defendant to the judgment of the court for the plaintiff, and it is insisted by defendant’s counsel here that the court erred in rendering such judgment because, as is contended by them, under the law applicable to the agreed statement of facts the judgment should have been for the defendant instead of the plaintiff. The basis of the insistence is predicated upon the fact that the agreed statement of facts shows that the defendant, who -was sued as [537] the consignee of the mentioned shipment, was not the owner of the shipment, but that the consignor was the owner thereof, and that the latter made the shipment to the .defendant consignee, who was a commission merchant, for him, the consignee, to sell on commission for the consignor, and to remit to the consignor the proceeds of sale after first deducting commissions for selling and the freight paid on the shipment.

In the case of Central of Ga. Ry. Co. v. Birmingham S. & B. Co., 9 Ala. App. 419, 64 South. 202, we held that where the consignee was the owner of the shipment, the carrier might recover of him the freight under circumstances as here; and we now hold that, even though the consignee is not the owner of the shipment, the carrier may nevertheless recover, unless it appears that it knew, or Avas in some way put on notice, at or before the time of the delivery of the shipment to the consignee, that the latter was not the oAvner of the shipment, but was merely the agent of the consignor in dealing with it.

The carrier, in the absence of-knowledge or notice to the contrary, certainly had a right to presume, at the time it delivered the shipment to the consignee, Avhat the law continues to presume as between the parties, in the absence of evidence to the contrary, and that is that the consignee Avas the owner of the shipment consigned to and accepted by him.—Southern Ry. Co. v. Brewster, 9 Ala. App. 600, 63 South. 790; Jones v. Sims & Scott, 6 Port. 138; L. & N. R. R. Co. v. Allgood, 113 Ala. 163, 20 South. 986; Southern Ry. Co. v. Proctor, 3 Ala. App. 413, 57 South. 513; 4 Am. & Eng. Ency. Law (2d Ed.) 525-536.

If so, then, when the consignee accepts such a shipment, he accepts it with the knowledge that the car[538] rier is presuming, as the law authorizes, that he, .the consignee, who so accepts the shipment, is the owner of the goods so shipped, and that he either authorized, or by his acceptance ratified, the act of the carrier in transporting and delivering them, and with knowledge that the law places upon the owner an implied promise to pay the carrier the lawful freight on goods which have been transported by the carrier at such owner’s request. Therefore, where a carrier, who, as here, has no knowledge or notice that the consignee is not the owner of a shipment the freight on which has not been prepaid, delivers such shipment to the consignee, who accepts it without giving notice that he is not the owner, it will be held that the carrier delivered the shipment on the faith of an implied promise on the part of the consignee to pay the lawful freight charges for the transportation, and that such consignee cannot escape liability therefor by showing that subsequent to such delivery, and after the goods had been disposed of by him, and when the carrier called on him for the balance of such freight, he then notified the carrier that he was not the owner of the shipment, but handled it merely as the agent of the consignor.

It is a well-settled principle of law that an agent who, at the time of entering into a contract with another, does not disclose the fact that he is an agent, and that he is acting as such for some other person in making the contract, may be held personally liable on such contract.—Wood v. Brewer, 73 Ala. 259; Bell v. Teague, 85 Ala. 211, 3 South. 681; Brent v. Miller, 81 Ala. 309, 8 South. 219; Dexter v. Oslander, 93 Ala. 446, 9 South. 361. We think this principle obtains here, where a consignee accepts from the carrier a delivery of goods transported and does not, at the time, inform the carrier [539] that he is not the owner of the goods, but that he is the mere agent of the owner, knowing then, as the law says he, the consignee, should and must know, that the carrier is, as the law authorizes, presuming him to be the owner and is further presuming, as the law authorizes, that he is accepting the delivery under an implied promise on his part to pay the lawful freight.

Of course, where the carrier knows to the contrary, or where there is anything in the bill of lading or otherwise (4 Am. & Eng. Ency. Law), 525) to put him on notice, then information from the consignee is perhaps unnecessary to save himself from liability. This question, however, we need not and do not decide, since there is nothing in the agreed statement of facts in the case at bar to show that the carrier, at the time of the delivery of the shipment to the consignee, was either informed or otherwise knew, or even had anything to put it on inquiry, that the consignee was not the owner of the goods.

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Cornelius & Co. v. Central of Georgia Ry. Co., 69 So. 331, 13 Ala. App. 533, 1915 Ala. App. LEXIS 95 (Ala. Ct. App. 1915).

69 So. 331 (Cornelius & Co. v. Central of Georgia Ry. Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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