E. L. Cleveland Co. v. Bangor & Aroostook Railroad

173 A. 813, 133 Me. 62, 1934 Me. LEXIS 49
CourtSupreme Judicial Court of Maine
DecidedJuly 19, 1934
StatusPublished
Cited by6 cases

This text of 173 A. 813 (E. L. Cleveland Co. v. Bangor & Aroostook Railroad) is published on Counsel Stack Legal Research, covering Supreme Judicial Court of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
E. L. Cleveland Co. v. Bangor & Aroostook Railroad, 173 A. 813, 133 Me. 62, 1934 Me. LEXIS 49 (Me. 1934).

Opinion

Hudson, J.

“Law” on brief statement of facts.

Under a written permit from the defendant Companycdated July 12, 1932, the plaintiff maintained a potato warehouse “on land of the defendant but not used by it in the operation of its railroad.” On May 18, 1933, this warehouse with its contents was destroyed by fire, communicated to it from the defendant’s locomotive.

This action to recover fire loss is based on Section 63 of Chapter 64, R. S. 1930, which provides:

“When a building or other property is injured by fire communicated by a locomotive engine the corporation using it is responsible for such injury, and it has an insurable interest in the property along the route, for which it is responsible, and may procure insurance thereon. . . .”

[64]*64The sole defense claimed is the fire release in the permit which is couched in these words:

“The contractor” (meaning the plaintiff) “hereby assumes all risk of loss or damage to said building, or property stored therein . . . occasioned by fire, whether communicated directly or indirectly from locomotives, or in or by the operation of said railroad, or otherwise, and all damage-caused by fire, for which the Company would but for this agreement be liable, so that neither said Contractor nor any person, claiming under the Contractor shall have or make any claim against the Company for damages to such property caused by fire communicated as aforesaid, or otherwise, . . .”

The plaintiff contends that this provision of the permit is in- • valid, because, (1) it violates the statute above quoted, and, (2) is against public policy.

The statute itself is not attacked as unconstitutional. In St. Louis & San Francisco Railway v. Mathews, 165 U. S., 1, Justice Gray, speaking of our Maine statute, after remarking that it was enacted in 1842, said its “validity” had been “upheld” by our highest court, citing Chapman v. Atlantic & St. Lawrence R. R., 37 Me., 92; Pratt v. Same, 42 Me., 579; Stearns v. Same, 46 Me., 95; Sherman v. Maine Central Railroad, 86 Me., 422, 30 A., 69. Similar statutes have been held constitutional by United States Courts. St. Louis & San Francisco Ry. v. Mathews, supra; Atchison, Topeka & Santa Fe R. R. v. Matthews, 174 U. S., 96; Aetna Insurance Co. v. Chicago, Great Western R. R., 180 N. W., 649.

The sole issue in this case is whether or not this release is legal. It is not invalid because of the statute. Neither by express language nor by implication does it forbid such a release, although its language is broad enough to release from liability on account of a fire occasioned through negligence.

“This language is general and comprehensive and if read literally it includes all cases of fire communicated by locomotive engines, whether by reason of negligence or not.”
— Farren v. Railroad Company, 112 Me., 81, 83.

[65]*65The purpose of. the statute was to create a right of action where, except by early English common law, afterwards abrogated by 6 Ann, Chap. 31 (Farren v. Railroad Co., supra), there was none unless negligence could be shown. Section 63 aforesaid, while giving a remedy, does not compel its adoption. In spite of the statute, there can be no doubt that one whose property has been destroyed by fire can lawfully refrain from prosecution of his rights, and in the absence of sugIi prosecution, the railroad company can fail to pay without violation of law. We see in the statute no implication that would prevent the giving of such a release in a contract before the loss.

It should now be noted, however, that the fire in this case is not shown by the agreed statement to have been of negligent origin. We can not assume any negligence upon the part of the defendant. If not negligent, the cause of the fire was accidental. We can not conceive of any reason why a contract can not legally include such a provision as to fire accidentally communicated.

But even if the permit contemplates a release of fire negligently communicated, it is still valid in this case.

“Contracts exempting a railroad company from liability for damages to buildings on its right of way from fire caused by its negligence are not invalidated by laws making carriers liable for damages irrespective of negligence.”—51 C. J., 1185, Sec. 1314; Griswold v. Illinois Central Railroad Co., 90 Iowa, 265, 57 N. W., 843, 24 L. R. A., 647; Manchester Marble Company v. Rutland Railroad Co., 100 Vt., 232, 136 A., 394.
“Such contracts are not in violation of a constitutional provision that ‘no common carrier shall be permitted to contract for relief from its common law liabilities.’ ” —51 C. J., 1185, Sec. 1314; Greenwich Ins. Co. v. Louisville, etc., R. Co., 112 Ky., 598, 66 S. W., 411, 56 L. R. A., 477.

The stipulation of facts in this case does not state definitely whether this warehouse was on the railroad right of way or off from it. We think we are justified, however, from the arguments made, in inferring that if not located on the right of way, it was in close proximity thereto. Certainly it was within the reach of loco[66]*66motive sparks. While it is true that some cases have distinguished in the application of the law as to whether the property destroyed is on or off the right of way (see distinction mentioned in Manchester Marble Co. v. Rutland Railroad Co., supra,) yet the cases generally hold “that contracts, in consideration of some privilege or concession granted by a railroad company which it would not otherwise be bound to extend, exempting it from liability for the destruction even of buildings not on its right of way, are valid and enforceable.” — See Annotation in 48 A. L. It., page 1003, supported by citations of many cases therein.

Furthermore, although the defendant was, at the time of the making of the contract, a common carrier, yet it was not one for carriage of either persons or property, nor pertained to performance of its duties as a carrier or a public utility. Bartee Tie Co. v. Jackson, 117 N. E. (Ill.) 1007, (holding that the leasing of land by a railroad company to a private corporation for the purpose of storing cross ties is not a lease of a public utility.)

“While a railroad company may not contract for exemption wholly or partially from liability for damages caused by fire in derogation of its duty to the public as common carrier, in its private capacity as owner of property it may, by a valid contract, be relieved from liability for damages by fire caused by its negligence.”—51 C. J., page 1183.

While we find no Maine case in support of the above statement of the law, yet it is overwhelmingly sustained by decisions in Federal as well as State Courts. Perhaps the leading case is Griswold v. Illinois Central Railroad Company, supra, in which the decision is based on the theory that the company enters into such a contract in its private capacity in which it owes no duty to the public to exercise care. The Court said:

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Bluebook (online)
173 A. 813, 133 Me. 62, 1934 Me. LEXIS 49, Counsel Stack Legal Research, https://law.counselstack.com/opinion/e-l-cleveland-co-v-bangor-aroostook-railroad-me-1934.