Duholm v. Chicago, Milwaukee & St. Paul Railway Co.

177 N.W. 772, 146 Minn. 1, 1920 Minn. LEXIS 540
CourtSupreme Court of Minnesota
DecidedMay 14, 1920
DocketNo. 21,670
StatusPublished
Cited by2 cases

This text of 177 N.W. 772 (Duholm v. Chicago, Milwaukee & St. Paul Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Duholm v. Chicago, Milwaukee & St. Paul Railway Co., 177 N.W. 772, 146 Minn. 1, 1920 Minn. LEXIS 540 (Mich. 1920).

Opinion

Hallam, J.

1. There is evidence to sustain the following facts:

On August 30, 1917, at Austin, Minnesota, plaintiff delivered to defendant, a vulcanizing outfit, to be transported to Terry, Montana. At the time the goods were so delivered plaintiff stated to defendant’s agent that he wanted them shipped C. O. D. one hundred dollars. The agent said: “All right, we can fix that up.” The agent then made out a bill of lading and handed it to plaintiff. Plaintiff asked if it wasn’t necessary to specify in the bill of lading the amount of one hundred dollars to be collected at the other end. The agent said: “No, that isn’t necessary at all.” Defendant again asked the agent if he could get his money at the other end before delivery, and the agent told him that the bill of lading as made out would accomplish that, and that he should take the bill of lading to a bank and send it out with a draft and that would get him the money. The agent’s statement accurately described an order bill of lading and its effect. In fact he made out and delivered to plaintiff a straight bill of lading which gave no such protection. Plaintiff took it to the bank and forwarded it with a draft attached. The consignee did not pay the draft, but took the goods from defendant [3]*3without payment, as the straight bill of lading permitted him to do. After trying in vain to collect from the consignee, plaintiff brought this action to recover from defendant the value of the shipment. The action was tried and submitted to the jury as one in fraud. The jury found ■ for plaintiff. Defendant appeals. No- question is raised but that, if the facts entitle plaintiff to relief at all, he may recover in this action.

2'. This was an interstate shipment. We may assume that the case is governed by Federal statutes, and the “common law principles accepted and enforced by the Federal courts.” Northwestern C. M. Co. v. Chicago, B. & Q. R. Co. 135 Minn. 363, 160 N. W. 1028; Southern Ry. Co. v. Prescott, 240 U. S. 632, 36 Sup. Ct. 469, 60 L. ed. 836.

In cases arising under the Hepburn act and its amendments, the -Federal decisions are to the effect that, so far as concerns the matter of rates, or regulations or provisions which are in effect part- of the rate, neither the intentional nor accidental misstatément by a station agent as to the applicable published rate will bind the carrier or shipper. “The lawful rate is that which the carrier must exact and that which the shipper must pay.” Kansas City Southern Ry. Co. v. Carl, 227 U. S. 639, 653, 33 Sup. Ct. 91, 395, 57 L. ed. 683; Louisville & N. R. Co. v. Maxwell, 237 U. S. 94, 98, 35 Sup. Ct. 494, 59 L. ed. 853, L.R.A. 1915E, 665. There is no such thing as actionable misrepresentation as .to rates, for every person is bound to know the lawful rate, and, since the amount of liability for loss of goods transported depends upon the rate, the liability incident to a particular rate attaches automatically to the contract. Adams Express Co. v. Croninger, 226 U. S. 491, 33 Sup. Ct. 148, 57 L. ed. 314, 44 L.R.A.(N.S.) 257; Boston & M. R. v. Hooker, 233 U. S. 97, 34 Sup. Ct. 526, 58 L. ed. 868, L. R. A. 1915B, 450, Am. St. 1915D, 593; Atchison, T. & S. P. Ry. Co. v. Robinson, 233 U. S. 173, 34 Sup. Ct. 556, 58 L. ed. 901; American Express Co. v. U. S. Horse Shoe Co. 244 U. S. 58, 65, 27 Sup. Ct. 595, 61 L. ed. 990.

Counsel for defendant rely much on this line of decisions, but it seems ■ to us they are not pertinent to this case. This is not a rate case. No question of tariff is directly or indirectly involved. Two forms of bill of lading are prescribed by Federal statutes, namely, the order bill of lading and the straight bill of lading, chapter 415, approved August [4]*429, 1916 (U. S. Comp. St. §§ 8604aaa-8604w). Whichever form is used the rate is the same.

The case is simply one in fraud. Perhaps plaintiff might have treated it as one of mistake with the same result. We know of no Federal legislation that is applicable. General principles of common law control.

There was evidence of a palpable deception practiced by the agent upon plaintiff. The parties, in effect, agreed upon an order bill of lading. The agent, in effect, told plaintiff that he was supplying him with an order bill of lading, and plaintiff, with his unfamiliarity with such transactions, relied on the agent’s superior knowledge, and trustingly took the bill of lading, and went through the futile motion of sending it through his bank with a draft attached, with the result above stated.

A bill of lading is a contract, Northern Pac. Ry. Co. v. Wall, 241 U. S. 87, 91, 92, 36 Sup. Ct. 493, 60 L. ed. 905, and in the absence of fraud or mutual mistake its language is controlling. Cau v. Texas & Pac. Ry. Co. 194 U. S. 427, 24 Sup. Ct. 663, 48 L. ed. 1053; Schaller v. Chicago & N. W. Ry. Co. 97 Wis. 31, 41, 71 N. W. 1042; McMillan v. Mich. S. & N. I. R. Co. 16 Mich. 79, 112, 93 Am. Dec. 208; 1 Hutchinson, Carriers, § 409. But, as in case of any other contract, in the event of fraud or mutual mistake, the written contract may be avoided and the actual contract of the parties may be shown. 4 Am. & Eng. Enc. (2d ed.) 543, and eases cited. For example, it has been held that, where the shipper advises the carrier’s agent that he wants to employ a method by which the goods will be delivered only upon payment of a draft for the price, and is advised by the agent that the use of a straight bill of lading with an indorsement thereon, of the words: “Bill of lading attached to draft,” will accomplish that purpose, the carrier becomes liable by surrender of the goods without payment, Sturges v. Detroit, G. H. & M. Ry. Co. 166 Mich. 231, 131 N. W. 706; that a prior agreement as to rate of demurrage is not changed by delivery of a form of bill of lading, stipulating for a different rate, used by mistake, Burns v. Burns, 125 Fed. 432, affirmed Burns v. Burns, 131 Fed. 238, 65 C. C. A. 224; 2 Hutchinson, Carriers, § 832, and generally it is held that parol evidence is admissible to show fraud or mistake in a bill of lading, Steamboat Wisconsin v. Young, 3 Greene (Iowa) 268; to [5]*5show that words were omitted by mistake, Star of Hope, 2 Sawy. 15, Fed. Cas. No. 13,313; or that a clause' inconsistent with the agreement of the parties, was by mistake left unerased, Chouteaux v. Leech & Co. 18 Pa. 224, 57 Am. Dec. 602, and that, where a shipper has entered into a Yerbal agreement for transportation, “he may rightfully assume, in the absence of notice to that effect, that it is embodied in the paper or receipt, or at least that the receipt contains nothing contrary to it.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Placke v. White-Price Co.
228 N.W. 554 (Supreme Court of Minnesota, 1930)
Chandler Motor Car Co. v. United Fruit Co.
127 Misc. 432 (New York Supreme Court, 1926)

Cite This Page — Counsel Stack

Bluebook (online)
177 N.W. 772, 146 Minn. 1, 1920 Minn. LEXIS 540, Counsel Stack Legal Research, https://law.counselstack.com/opinion/duholm-v-chicago-milwaukee-st-paul-railway-co-minn-1920.