Earnest v. Delaware, Lackawanna & Western Railroad

149 A.D. 330, 134 N.Y.S. 323, 1912 N.Y. App. Div. LEXIS 6399
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMarch 6, 1912
StatusPublished
Cited by6 cases

This text of 149 A.D. 330 (Earnest v. Delaware, Lackawanna & Western Railroad) 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
Earnest v. Delaware, Lackawanna & Western Railroad, 149 A.D. 330, 134 N.Y.S. 323, 1912 N.Y. App. Div. LEXIS 6399 (N.Y. Ct. App. 1912).

Opinion

Spring, J.:

On the 2d day of November, 1908, the plaintiff delivered to the defendant, a common carrier, at its station in Bath, N. Y., 240 [332]*332barrels of apples, consigned to the order of the First National Bank of Wayland, N. Y., and destined for Chicago, 111. The contract or bill of lading made by the defendant was delivered to the plaintiff and the same was attached by the latter to a sight draft upon Train, Letterman & Ford, of Chicago, 111., for $660, payable to the order of the said First National Bank of Wayland, N. Y.; and this draft was, with the bill of lading, sent through the bank for collection. An oral contract for the purchase of said apples had been made prior to their delivery to the defendant by an agent of Train, Letterman &' Ford, whereby he agreed on behalf of said company to purchase said apples at $2.75 per barrel. No payment or written memorandum was made of such purchase.

The bill of lading provided: “ Inspection of property covered by this bill of lading will not be permitted unless provided by law, or unless permission is indorsed on this original bill of lading or given in writing by the shipper. * * * The carrier or party in possession of any of the property herein described shall be liable for any loss thereof, or damage thereto except as hereinafter provided.”

The contract further provided that the defendant should not be hable for loss, damage or injury not occurring on its own road, “except as such liability is or may be imposed by law.”

Before the apples were shipped a few barrels of them were inspected by the agent of the Chicago firm. They arrived in Chicago on the sixth of November, and the yard agent of the railroad company erroneously entered the shipment as if there were no restrictions as to inspection in the bill of lading. The firm of Train, Letterman & Ford was notified by the defendant of the arrival of the apples in compliance with the direction contained in the bill of lading. It sent two employees to the freight yard of the defendant and the yardmaster unsealed the car, and these employees, with his permission, inspected about sixteen barrels of these apples, and thereafter resealed the car. The Chicago company refused -to receive the apples and the plaintiff commenced this action of trover against the defendant. There is no proof that the apples were damaged, or that there was any loss or injury to the plaintiff [333]*333by reason of the inspection made by Train, Letterman & Ford in violation of the agreement set forth in the bill of lading.

The plaintiff founds her right to recover upon a clause in an act of Congress regulating commerce between the States, and which is designated as the Carmack amendment to the Hepburn Act, , being an amendment to the Interstate Commerce Act (approved February 4, IBS'!, in effect sixty days thereafter), and which Hepburn Act as thus amended is chapter 3591 of the first session of the fifty-ninth Congress, and became a law sixty days after June 29, 1906, the date of its approval. Section 20 of the original act was amended by section 7 of the amendatory enactment, and, among the provisions added by the amendment, is the following: “That any common carrier, railroad, or transportation company receiving property for transportation from a point in one State to a point in another State shall issue a receipt or bill of lading therefor and shall be liable to the lawful holder thereof for any loss, damage, or injury to such property caused by it or by any common carrier, railroad, or transportation company to which such property may be delivered "or over whose line or lines such property may pass, and no Contract, receipt, rule, or regulation shall exempt such common carrier, railroad, or transportation company from the liability hereby imposed: Provided, That nothing in this section shall deprive any holder of such receipt or bill of lading of any remedy or right of action which he has under existing law.” (See 24 U. S. Stat. at Large, 386, § 20, as amd. by 34 id. 593, 595, § 7; 34 id. 838, Res. No. 47.)

There is an added clause entitling the common carrier, railroad or transportation company issuing the bill of lading to recover of the carrying company “on whose line the loss, damage, or injury shall have been sustained, the amount of such loss, damage, or injury as it may be required to pay to the owners of such property.” (Id.)

Irrespective of this amendment, the initial carrier might by contract make itself liable for the delivery of property accepted by it for transportation to the point of destination wherever in transit the loss might occur. Unless it did so extend its liability its obligation to the shipper terminated upon the safe delivery of the goods to the first connecting carrier on the [334]*334route. (Atlantic Coast Line v. Riverside Mills, 219 U. S. 186, 196 et seq.)

The effect of the Carmack amendment as to interstate shipments is to make the connecting carriers the agents of the initial carrier, the same as if it had contracted for through carriage to the point of destination. (S. C., 196. See, also, p. 200 et seq.)

This act made a radical change in the obligation imposed upon the first carrier, and Congress defined the extent of the liability which it incurred for loss of property received by it and lost in transit beyond its own line. The section provides that the carrier accepting the property for interstate shipment “shall be liable * * * for any loss, damage, or injury to such property ” en route.

The act itself did not provide for any specific bill of lading or shipping contract. Eepresentatives of the common carriers and transportation companies and of the shippers, after many conferences, agreed on a formal bill of lading to make^ effective in equity to all parties the amendment adverted to, and this uniform bill of lading, so called, was on June 22, 1908", approved by the Interstate Commerce Commission. (Matter of Bills of Lading, 14 I. C. C. Rep. 346.)

The bill of lading so approved contained this provision: “Inspection of property covered by this bill of lading will not be permitted unless provided by law or unless permission is indorsed on this original bill of lading or given in writing by the shipper.”

The Carmack Act contained no provision prohibiting the inspection of property at the point of destination. Where the right of the shipper and carrier are not regulated by agreement, the right of the consignee to inspect exists. (Hutch. Carriers [3d ed.], § 733; Brand v. Weir, 27 Misc. Rep. 212, 214.)

And there was no inhibition of that rule by the act of Congress. The matter was adjusted by agreement, and the parties to this action in the bill of lading, we may assume, were endeavoring to comply with the agreement of the shippers and carriers and approved by the Interstate Commerce Commission, and in furtherance of the provisions of the Carmack amendment quoted. The use of this bill of lading is not obligatory [335]*335upon either shipper or carrier. If it is adopted as the agreement of the parties and loss or damage occurs by reason of a breach of any of the provisions contained in it through the fault of a connecting carrier, the initial carrier must stand the loss. The bill of lading did not extend the liability beyond the scope of the Carmack amendment.

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

Related

Hoffman v. Atchison, Topeka & Santa Fe Railway Co.
281 P. 935 (Supreme Court of Kansas, 1929)
Reed Oil Co. v. Smith
114 S.E. 56 (Supreme Court of Georgia, 1922)
Southern California Commercial Co v. Alberti
207 P. 1023 (California Court of Appeal, 1922)
Bobzein v. New York Central Railroad
187 A.D. 767 (Appellate Division of the Supreme Court of New York, 1919)
Nashville, Chattanooga & St. Louis Railway v. Truitt Co.
86 S.E. 421 (Court of Appeals of Georgia, 1915)

Cite This Page — Counsel Stack

Bluebook (online)
149 A.D. 330, 134 N.Y.S. 323, 1912 N.Y. App. Div. LEXIS 6399, Counsel Stack Legal Research, https://law.counselstack.com/opinion/earnest-v-delaware-lackawanna-western-railroad-nyappdiv-1912.