Davis v. Zimmern

99 So. 307, 211 Ala. 63, 1924 Ala. LEXIS 415
CourtSupreme Court of Alabama
DecidedFebruary 16, 1924
Docket1 Div. 221.
StatusPublished
Cited by4 cases

This text of 99 So. 307 (Davis v. Zimmern) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davis v. Zimmern, 99 So. 307, 211 Ala. 63, 1924 Ala. LEXIS 415 (Ala. 1924).

Opinion

SOMERVILLE, J.

The bills of lading under which the various shipments of coal were made to the plaintiff contained the following stipulations:

“Section 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 (being the bona, fide invoice price, if any, to the consignee including the freight charges, if prepaid) at the place and time of shipment under this bill of lading, unless a lower value 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.”

Section 5514 of the Code provides that in cases of loss or destruction of, or injury to, property received for shipment, common carriers shall be liable to the Owner “for the market value of such chattels, property or goods at the place of destination, at the time and in the condition they should have been delivered,” with interest from that time. But it has been held that this statute does not prohibit contracts between the shipper and the carrier in derogation of that rule, if such contracts are otherwise valid. Ill. Cent. R. Co. v. Kilgore, 12 Ala. App. 358, 67 South. 707, affirmed in Ex parte Kilgore, 191 Ala. 671, 67 South. 1002.

In 10 Corp. Jur. 176, § 222, it is said:

“A regulation that the liability of the carrier in case of loss shall be limited to the invoice yalue of the goods is a reasonable regulation as to the damage to he recovered, and is valid (The Hadji, 18 Fed. 459; Pierce v. South. Pac. Co., 120 Cal. 156, 47 Pac. 874, 40 L. R. A. 350). So a stipulation that the liability for loss shall be measured by the value at the time and place of shipment is generally upheld, in the absence of a statute otherwise providing.” Denver, etc., R. Co. v. Peterson, 59 Colo. 125, 129, 147 Pac. 663; Gratiot St. W’house Co. v. Missouri, etc., R. Co., 124 Mo. App. 545, 102 S. W. 11; Missouri, etc., R. Co. v. Walker, 27 Okl. 849, 113 Pac. 907; Matheson v. South R. Co., 79 S. C. 155, 157, 60 S. E. 437; Davis v. N. Y., etc., Ry. Co., 70 Minn. 37, 72 N. W. 823; Shellaberger, etc., Company v. Ill. Cent. R. Co., 212 Ill. App. 1.

Our own court is in line with this statement of the law. In the case of South. Ry. Co. v. Cofer, 149 Ala. 565, 568, 569, 43 South. 102, 103, it was said:

“The bills of lading each contain the following^ stipulation in respect to the rule for the admeasurement of damages in case of loss: ‘The amount of any loss or damage for which any carrier becomes liable shall be computed at the value of the cotton at the place and time of shipment under this bill of lading, unless a lower value has been agreed on or is determined by the classification upon which the rate is based, in either of which events such lower value shall be the máximum price to govern such computation.’ It will be observed that no exemption from liability na account of negligence is involved in this stipulation, but the sole effect of it is to fix the place at which the1 price of the cotton shall be ascertained in respect to the measurement of damages. It has been held that such stipulations in bills of lading are reasonable and enforceable. This being true, the general rule which fixes the value of the goods at the place of delivery at the time at which they should have been delivered as the one for the admeasurement of damages was varied by the contract of the parties; and the court erred in the oral charge to the jury requiring the damages to be estimated with respect to the price of cotton at Selma, instead of Randolph, and in permitting evidence of the value of cotton at Selma.—L. & N. R. R. Co. v. Oden, 80 Ala. 38.”

The decision there was that the stipulation, being reasonable and enforceable on its face, was applicable to loss from the carrier’s , negligence, and required no special consideration to support it.

In L. & N. R. R. Co. v. Oden, supra, there *65 is a dictum to tlie effect that the carrier cannot thus stipulate except as against the extraordinary risks ,with respect to which it is regarded as an insurer. But in the Gofer Case that suggested restriction is ignored, the decision resting on the proposition that the stipulation in question does not involve an exemption from liability on 'account vof negligence.

This, we think, is the correct view, and is supported by many recent and well-considered cases.

The identical stipulation here in question was included in a uniform bill of lading recommended by the Interstate Commerce Commission in 1908. In re Bills of Lading, 14 Interst. Com. Com’n R. 346. And in Shaffer & Co. v. Chicago, etc., Ry. Co., 21 Interst. Com. Com’n R. 8, that tribunal held the stipulation valid though the loss was the result of the carrier’s negligence.

Dealing with this identical stipulation, the following cases hold it as valid and enforceable against negligent loss or injury, and without any special consideration — as a reduced freight rate — to support it: Denver, etc., R. Co. v. Peterson Co., 59 Colo. 125, 147 Pac. 663; Gratiot St. W’house Co. v. M., K. & T. Ry. Co., 124 Mo. App. 545, 102 S. W. 11; Wallingford v. A. T. & S. F. Ry. Co., 101 Kan. 544, 167 Pac. 1136, L. R. A. 1918B, 716; Bowman-Kranz Lbr. Co. v. Bush. 104 Neb. 165, 176 N. W. 91; F. W. Brockman, etc., Co. v. Mo. Pac. Ry. Co., 195 Mo. App. 607, 188 S. W. 920; Coleman v. N. Y., etc., R. Co., 215 Mass. 45, 102 N. E. 92, 7 A. L. R. 1366; Grubbs v. A. C. L. R. R. Co., 101 S. C. 210, 85 S. E. 405; Inman v. S. A. L. R. Co. (C. C.) 159 Fed. 960.

In Wallingford v. Ry. Co., supra, the Kansas court said:

“In our opinion the measure of damages as fixed by the contract is reasonable, valid and controlling. The provision is intended to establish a rule for determining the value of the property in the event of loss and not, as plaintiffs contend, to limit or diminish the carrier’s liability.”

. And in Coleman v. N. Y., etc., R. Co., supra, the Massachusetts court said:

“It was a reasonable contract to base the damages to be recovered in case of loss upon the genuine and honest invoice price between the parties. There is nothing contrary to public policy in such a contract.”

In South. Ry. Co. v. Brewster, 9 Ala. App. 597, 603, 63 South. 790, the Court of Appeals followed South. Ry. Co. v. Cofer, 149 Ala. 568, 43 South. 102, supra, in holding that a stipulation in a bill of lading (identical with that in the Cofer Case) was valid and enforceable ; and counsel for appellee, criticizing the Brewster Case, call attention to the later case of Ill. Cent. R. Co. v. Kilgore, 12 Ala. App. 358, 67 South. 707, wherein the Court of Appeals, speaking again through Thomas, J., held as valid a stipulation in a bill of lading for the carriage of cattle that—

“The liability * * * shall not exceed the actual cost at the point of shipment, and in no event exceed the above valuation [arbitrary values previously set out — $50 for each bull or ox, $30 for each cow, and $10 for each calf] for each animal” — the opinion noting that it appeared from the bill of lading “that the freight rate charged for the shipment was based on the valuation of the animals as stated.”

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Bluebook (online)
99 So. 307, 211 Ala. 63, 1924 Ala. LEXIS 415, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-zimmern-ala-1924.