Crowley Industrial Bag Co. v. Western Union Co.

204 So. 2d 725, 1967 La. App. LEXIS 4796
CourtLouisiana Court of Appeal
DecidedNovember 29, 1967
DocketNo. 2145
StatusPublished
Cited by5 cases

This text of 204 So. 2d 725 (Crowley Industrial Bag Co. v. Western Union Co.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crowley Industrial Bag Co. v. Western Union Co., 204 So. 2d 725, 1967 La. App. LEXIS 4796 (La. Ct. App. 1967).

Opinion

LEAR, Judge.

Petitioner alleges the erroneous transmission and delivery of a telegram addressed by petitioner to Defense General Supply Center, Richmond, Virginia, which caused petitioner to lose a contract for the sale of certain Osnaburg Sand Bags and a profit of $25,000.00.

Defendant admitted that on July 21, 1965, plaintiff presented to it a message typed by plaintiff on a Western Union Telegraph Company standard message contract form, addressed to the Defense General Supply Center, as follows:

“3000 PG 60 DAYS AFTER AWARD-6000 PG 90 DAYS AFTER AWARD-6000 PG 120 DAYS AFTER AWARD-6000 PG 150 DAYS AFTER AWARD-6000 PG 180 DAYS AFTER AWARD. DELIVERED TRACY, CALIFORNIA. PRICE $20.77 PER PG. DISCOUNT -i/g of 1% — 20 DAYS. SIGNED: CROWLEY INDUSTRIAL BAG COMPANY, INC., CROWLEY, LOUISIANA.”

The answer further admitted that the defendant omitted the transmission of the bid on 6000 PG 120 DAYS AFTER AWARD and 6000 PG 150 DAYS AFTER AWARD.

In further answer to the demand, defendant alleges that the message was delivered to and accepted by it subject to the terms of its standard message contract, which it claims provides that defendant shall not be liable for mistakes in the transmission or delivery or any message received at the unrepeated message rate beyond the sum of $500.00. It goes on to allege that the message was in interstate commerce and was received by defendant for transmission at its unrepeated message rate. It then shows that its message contract was on file with the Federal Communications . Commission as part of its tariff.

Defendant then asked for judgment in its favor, but further asked that if liability is established, then the amount of the award to plaintiff should not exceed $500.00.

On the trial of the case, it was shown without contradiction that the actual loss to plaintiff by the erroneous transmission was the sum of $20,052.00. There was also received in evidence a certified copy of the defendant’s tariff on file with the Federal Communications Commission. The tariff provides as follows :

“To guard against mistakes or delays, the sender of a message should order it repeated, that is, telegraphed back to the originating office for comparison. For this, one-half the unrepeated message rate is charged in addition. Unless otherwise indicated on its face, this is an unre[727]*727peated message and paid for as such, in consideration whereof it is agreed between the sender of the message and the Telegraph Company as follows:
“1. The Telegraph Company shall not be liable for mistakes or delays in the transmission or delivery, or for non-delivery, of any message received for transmission at the unrepeated-message rate beyond the sum of five hundred dollars; nor for mistakes or delays in the transmission or delivery, or for non-delivery, of any message received for transmission at the repeated-message rate beyond the sum of five thousand dollars, unless specially valued; nor in any case for delays arising from unavoidable interruption in the working of its lines.”

The above quoted language of the tariff is printed on the reverse side of the telegram blanks furnished by Western Union to its customers for the writing of the message desired to be sent. Such a blank was used by petitioner in the instant case, and it is to be noted that on the front of the message blank there is printed the following clause :

“Send the following message, subject to the terms on back hereof, which are hereby agreed to”.

The trial court gave judgment for the plaintiff in the sum of $20,052.00 and defendant perfected an appeal to this court.

Mr. H. J. Scholl, president of the Crowley Industrial Bag Company, testified that he initiated the message in question, that he directed that it be sent by the defendant, and that he had never heard of “a repeat rate as a form of telegramming”.

Mr. Charles Miller was the Western Union operator who transmitted the message and who testified that he had never called it to anyone’s attention that the reverse of the telegram blank contained a limitation of liability provision. Therefore, we think it can be taken as established that petitioner had no actual knowledge of the wording of the printed matter on the reverse side of the blank used to type in the original message for transmission over the telegraphic lines of defendant. This finding of fact is mentioned because plaintiff makes much of its lack of knowledge in brief filed before this court.

The trial court, in its written reasons for judgment, states that it is not the intent of the law to allow defendant to set aside a ‘moral obligation’ to properly transmit messages and in justification for the decision in favor of plaintiff and the award of all damages shown, cites La.R.S. 45:785, which provides that persons operating telegraph or telephone lines or systems and doing business in the State of Louisiana are required to pay for all damages that may arise from the failure, refusal or neglect to transmit or to deliver or from any delay in the transmission or delivery or from any error made in the transmission or the delivery of any message offered them for transmission.

Unfortunately for plaintiff’s position, neither the actual notice of the limitation of liability, or the lack thereof, nor the moral obligation incumbent upon defendant to properly transmit messages authorizes our courts to award petitioner more than $500.00 in damages.

Prior to 1910, telegraph companies attempted to limit their liability for errors and mistakes in transmission and delivery by having provisions printed on the blanks furnished for messages to the effect that unless the message was repeated (for which an additional charge was made), the telegraph company would not be liable beyond a return to the sender of the cost of transmission. Some states upheld as valid that type of provision, whereas others struck them down as being opposed to public policy and hence void. Some states made a distinction between ordinary negligence and gross negligence or willful default, ajlow-ing a limitation of liability for the former but denying it in case of the latter. Some jurisdictions made a distinction between errors which would not have been prevented by repetition of the message, and in such cases allowed recovery of actual damages regardless of the presence of a limitation [728]*728stipulation. The United States Supreme Court stated that as a matter of general common law, telegraph companies were prohibited on grounds of public policy from contracting for exemption from all liability for negligence but were permitted to limit the measure of their liability to a reasonable extent by a special contract, adding that a stipulation limiting liability for mistakes in the transmission of unrepeated messages would be a reasonable limitation. See Primrose v. Western Union Telegraph Co., 154 U.S. 1, 14 S.Ct. 1098, 38 L.Ed. 883 (1894).

In 1910, the Interstate Commerce Act of 1887 was extended to include telegraph companies. As amended by Act of February 28, 1920, ch. 91, 41 Stat. 474, 49 U.S.C. Section 1(5), it was provided:

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Bluebook (online)
204 So. 2d 725, 1967 La. App. LEXIS 4796, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crowley-industrial-bag-co-v-western-union-co-lactapp-1967.