Dillard Bros. v. L. & N. R. R.

70 Tenn. 288
CourtTennessee Supreme Court
DecidedApril 15, 1879
StatusPublished
Cited by1 cases

This text of 70 Tenn. 288 (Dillard Bros. v. L. & N. R. R.) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dillard Bros. v. L. & N. R. R., 70 Tenn. 288 (Tenn. 1879).

Opinion

Cooper, J.,

delivered the opinion of the court.

On the 20th of January, 1872, Dillard Bros. & Coffin delivered to the defendant at Memphis one hundred bales of cotton, to be transported by rail to the city of New York, the defendant’s road extending from Memphis to Louisville, Kentucky, constituting the first link in the chain of roads. They received on the same day a bill of lading signed by the defendant’s agent, acknowledging the receipt of the cotton for transportation upon certain conditions embodied therein, one of them being that the defendant and the forwarding lines with which it connected should not be liable for loss or damage by fire. Afterward the plaintiff insured the cotton in several insurance companies. Thirty-three bales of the cotton were lost by fire while in transit on the defendant’s road. The insurance companies paid the loss, and on the 14th of [290]*290May, 1873, this suit was brought for the use of the insurance companies, to recover damages for the failure to deliver the cotton at New York. The trial resulted in a verdict and judgment in favor of the defendant, and the plaintiff prayed and obtained an appeal in error to this court.

On the trial the plaintiff proved the delivery of the cotton to the defendant at Memphis, the failure of the defendant to deliver the cotton at New York, and the value of the cotton.

The defendant then proved that the bill of lading received by the plaintiff on the day the cotton was delivered, was the bill of lading on which the cotton was shipped, that the plaintiff held it from that time and produced it in court. The defendant introduced evidence tending to show that, on the 23d of January, 1872, while the cotton was in transit on the defendant’s road, the ear in which were the thirty-three bales in controversy was seen by the employees of the defendant to emit smoke; that it was about the middle of a long train of cars; that the employees of the defendant, after examining the smoking car, detached the cars behind it, and hauled it with the cars in front to the nearest siding, distant about a mile, ran it on the side track, and brought the engine as near to it as they could on the main track, with a view to use the water in the tank, broke into the car, and sought to extinguish the fire and save the cotton; that these efforts were unavailing, and the cotton was lost by fire. There was proof also tending to show that the car was a close one, that the company’s smoke [291]*291stacks were protected by the most approved apparatus for preventing the escape of sparks, that they had on the train a portable extinguisher, and all the necessary employees and instruments of a first-class road to discover and extinguish accidental fires.

The defendant further proved that the cotton was in this case guaranteed to be carried through to Newj York at a much cheaper rate than it could have been] shipped if it had been sent to the end of defendant’s road and there reshipped, the rate on such freight to Louisville alone being more than two-thirds of the entire charge; that the defendant took no through freight except upon these bills of lading, without which the shipper would be required to reship from road to road; that it. was the custom of the defendant to give bills of lading for local freight between Memphis and Louisville, or not, at the option of the shipper, the bills of lading in such cases containing in substance the same stipulations and conditions as those of the bill of lading in this case.

In Owell v. Adams Express Company, 1 Cent. L. J., 186, this court held it to be well settled by the current of American authority, that common carriers may, outside of their responsibility for negligence and bad faith, limit their liability by special contract. The case of York Company v. Central Railroad, 3 Wall., 113, was cited, where it was held that a bill of lading, by which the carrier agreed to deliver the property, “ fire and the unavoidable dangers of the river only excepted,” was a special and valid contract. And it was said that if, as in that case, the carrier [292]*292may stipulate not to be chargeable for loss by' fire,. lie might also, as in the case then before the court,, stipulate not to be liable for loss by robbery. “Ordinarily,” adds Judge McFarland, who delivers the opinion of the court, “we would suppose, if there be nothing .to raise a contrary presumption, that the natural presumption would be that the shipper was apprised of the contents of the receipt, and assented to its terms. And this would certainly be so, where the terms of the contract were in accordance with the business of the company, to which the shipper had assented in previous transactions.” It was further held' in this case, that a stipulation limiting the common law liability of the carrier, in order to be binding, must be based on a special consideration, such as a lower rate of freight, or something equivalent.”

The present suit was brought before this decision was made, and the learned counsel of the plaintiffs express a wish to be heard on the points involved, if the court should entertain any doubt of the correctness of the conclusions therein announced. Unquestionably, much might be said, on the one hand, on the policy of allowing common carriers to limit their common law liabilities, and, on the, other hand, on the impolicy of interfering with the rights of parties to make such contracts as they may see proper. Perhaps in this, as in so many other vexed questions, while an adherence to either extreme may be more logical and better sustained by principle, the middle course, into which the courts have certainly fallen, is best in its practical results, both because it is more [293]*293flexible, and therefore capable . of 'being adapted to varying exigences, and because it subjects to less restraint tbe great interests of the commerce upon which so much of onr modern civilization rests. “A modification,” says the Supreme Court of the United States, “of the strict rules of responsibility, exempting the •carrier from liability for accidental losses, where it can be safely done, enables the carrying interest to reduce its rate of compensation, thus proportionally relieving the transportation of produce and merchandise from some of the burden with which it is loaded.” Railroad Company v. Lockwood, 17 Wall., 360.

We are content with the conclusions heretofore ■reached. These conclusions are, in brief, that the common carrier may, by general stipulations based on sufficient consideration, limit his liabilities, except such as grow out of his negligence or bad faith; that this stipulation may be embodied in the bill of lading, in which case “ ordinarily,” if there be nothing to the contrary, “the natural presumption would be that the' shipper was apprised of the contents of the receipt, and assented to its terms,” and that a lower rate of freight or something equivalent will be a sufficient consideration for the stipulation.

Some courts, while yielding to the current of authority on the main point, have at the same time run counter to it, and involved themselves in useless refinements, by refusing to recognize what Judge McFarland very properly calls the “natural presumption,” arising from the acceptance by the shipper of •a bill of lading embodying the stipulations, and by [294]*294requiring an uncertain quantum of evidence aliunde to-establish a contract.

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