Davis v. Cayuga Operating Co.

217 A.D. 675, 216 N.Y.S. 186, 1926 N.Y. App. Div. LEXIS 7877
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMay 21, 1926
StatusPublished
Cited by2 cases

This text of 217 A.D. 675 (Davis v. Cayuga Operating Co.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davis v. Cayuga Operating Co., 217 A.D. 675, 216 N.Y.S. 186, 1926 N.Y. App. Div. LEXIS 7877 (N.Y. Ct. App. 1926).

Opinions

McCann, J.

The plaintiff brings this action to recover certain moneys paid to the defendant through an error. Between April 15, 1919, and October 22, 1919, defendant shipped seventy-five carloads of cement from Portland Point, N. Y., to Rochester, N. Y., consigned to different consignees at Rochester. Bills of lading were prepared by the defendant in respect to each such shipment and were delivered to the plaintiff’s agent in Ithaca, N. Y., who signed them and issued them. These bills were made in the usual form. They did not designate any single specific route over which the shipment was to be made. In the space provided for such designation appear the words “ N. Y. C. delivery ” or B. R. & P. delivery,” as the case might have been. These words were to indicate the railroad switch or side track in Rochester on which deliveries should be made and were not for the purpose of designating such railroad as the route over which the shipment was to be made from Portland Point to Rochester. In the body of each bill of lading appeared the words “ freight $1.80 ton.” Between the dates above mentioned there were three routes between Portland Point and Rochester over any one of which the cement might have been transported. Route 1 was a direct one over the lines of the Lehigh Valley railroad to Rochester. The freight rate legally established in respect to cement shipped over this route was one dollar and thirty cents per ton, which included delivery to switch or side track of either the New York Central or the Buffalo, Rochester and Pittsburg. Route 2 was over the fines of the Lehigh Valley to Weedsport, N. Y., and thence over the fines of the New York Central to Rochester, the legally established rate being one dollar and eighty cents per ton for which the cement would be delivered as indicated under route 1. Route 3 was over fines of the Lehigh Valley to Pittsburg and Lehigh Junction, thence over the fines of the Buffalo, Rochester and Pittsburg railroad to Rochester. The freight rate legally established in such case was also one dollar and eighty cents a ton delivered on side track or switch as above indicated. The schedules of the tariff rates were filed with the Interstate Commerce Commission, also with the Public Service Commission of the State of New York and the freight agent of the Lehigh Valley railroad as required by law. All of the seventy-five carloads of cement involved in this controversy were moved over either the second or the third routes above described and to each of which routes the rate of one dollar and eighty cents applied. The consignors paid the plaintiff the rate of one dollar and eighty cents for such shipment plus war tax. Thereafter the defendant filed with the plaintiff a claim for a refund of fifty cents per ton [677]*677on all cement shipped, on the ground that such cement had been misrouted by plaintiff. Such refund was made amounting to $1,625.08. The plaintiff now seeks to recover said refund on the theory that there was a valid contract by which the plaintiff agreed to carry the seventy-five cars of cement at a rate of one dollar and eighty cents per ton and that under the laws of the State of New York and of the United States the plaintiff is entitled to the full rate and can recover back the amount erroneously paid to the «defendant. The defendant contends that there was no designation of any route in any of the bills of lading involved and that plaintiff misrouted the carloads of cement by failing to send them over the cheapest available route and that the defendant is, therefore, entitled to retain the sum of money which was refunded to it by the plaintiff. The .controversy has been submitted as provided by sections 546-548 of the Civil Practice Act.

The bill of lading signed by the parties constituted a contract between them. (Long v. N. Y. Central R. R. Co., 50 N. Y. 76; Hoffman v. Metropolitan Express Co., 111 App. Div. 407.)

The Federal government (through section 6, subdivision 7, of the Interstate Commerce Act) and the State of New York (through the Public Service Commission Law [Laws of 1910, chap. 480], § 33, subd. 1) have provided for the collection of full tariff rates by any carrier in interstate and intrastate commerce respectively, and such acts furthermore prohibit the refund of any part of any such rates. For the purpose of carrying into effect and enforcing the operation of the statutes, the Interstate Commerce Act and the Public Service Commission Law, respectively, authorized the adoption of rules by their respective Commissions, The Interstate Commerce Commission has provided as follows:

Conference Ruling 214 (c): “ In the absence of specific through routing by shipper, which carrier is willing to observe, it is the duty of the agent of the carrier to route shipment via the cheapest reasonable route known to him.”

Conference Ruling 474 (c): When, therefore, the rate and the route are both given by the shipper in the shipping instructions and [678]*678the rate given does not apply via the route designated it is the duty of the carrier’s agent to ascertain from the shipper whether the rate or the route given in the shipping instructions shall be followed. The carrier will be held responsible for any damages which may result from the failure of its agent to follow this course.”

These rulings have the effect of law in the regulation of shipments of goods by interstate commerce. It is immaterial that similar provisions do not seem to have been adopted by the Public Service Commission for intrastate shipments, in view of the,fact that the shipments in question were made during the period of Federal control of railroads (Federal Control Act [40 U. S. Stat. at Large, 456], § 10), and that both parties hereto argue that such Federal rulings controlled the shipments' in question.

The plaintiff claims that the bills of lading were sufficiently specific to notify it as to the route of shipment.. The bill of lading did not name any one route but inasmuch as there were three routes it is claimed that in designating “ freight $1.80 ton ” the shipper intended that the plaintiff should select either one of the two routes from Portland Point to Rochester and that it was in effect a specific notice not to ship by the cheaper route over the lines of the plaintiff. Plaintiff also claims that Conference Ruling 474 (c) does not apply because that is applicable only in cases where rate ” and “ route ” are inserted and do not coincide, in which case the carrier should consult with the shipper before forwarding the shipment. Such provision necessarily implies that if either is given, it should control, if sufficiently specific, but it is only in the case of inconsistency that it is necessary to comply with such ruling. Defendant claims that the bills of lading are silent as to the route and that no specification of route can be inferred by the use of the words “ freight $1.80 ton.” If the latter phraseology constituted a specific routing by the shipper, it must be conceded that the contract is as claimed by plaintiff, but if it was silent on this point, as claimed by defendant, the law implied a direction to ship by the cheapest route. It is clear that the bill of lading contemplated shipment by either one of the two routes having rates at one dollar and eighty cents per ton. Why the shipper should have chosen the higher rate and left the choice of the two routes to the plaintiff we cannot say.

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Bluebook (online)
217 A.D. 675, 216 N.Y.S. 186, 1926 N.Y. App. Div. LEXIS 7877, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-cayuga-operating-co-nyappdiv-1926.