Edward Levy Metals, Inc. v. New Orleans Public Belt Railroad

148 So. 2d 580, 243 La. 860, 1963 La. LEXIS 2169
CourtSupreme Court of Louisiana
DecidedJanuary 14, 1963
Docket46143
StatusPublished
Cited by33 cases

This text of 148 So. 2d 580 (Edward Levy Metals, Inc. v. New Orleans Public Belt Railroad) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edward Levy Metals, Inc. v. New Orleans Public Belt Railroad, 148 So. 2d 580, 243 La. 860, 1963 La. LEXIS 2169 (La. 1963).

Opinion

SUMMERS, Justice.

*863 During February 1957 (the exact date not being shown by the pleadings) Edward Levy Metals, Inc,, loaded a freight car with scrap steel. The car was turned over to New Orleans Public Belt Railroad with instructions that it be transported to New Orleans Cotton Warehouse to be unloaded there onto a vessel then in the port of New Orleans.

A portion of the scrap steel was unloaded onto the designated vessel that was almost full and unable to receive the entire car. Thereupon the railroad notified the shipper of these facts and received instructions to weigh the car containing the balance of the steel and hold it for further instructions, as another vessel was to be loaded in a short time and the remaining steel was to be loaded onto this second vessel.

Later when the shipper sought information concerning the whereabouts of the car containing the scrap steel, it was advised by the railroad that the car had not been weighed but had been placed at the Galvez Street Wharf on March 1, 1957, where, through error, it was unloaded by Cooper Stevedoring Company onto the steamship “George L” for the account of Southern Scrap Material Company, Ltd. On March 31, 1957, the car was removed from the wharf and it was empty. A representative of Edward- Levy Metals, Inc., then telephoned an employee of Southern Scrap Material Company, Ltd., who was informed that the scrap steel- had been delivered to its account. This employee denied that the scrap steel had been received.

Thereafter on February 18, 1959, the shipper, Edward Levy Metals, Inc., instituted suit against the railroad claiming $2,-030.32 for the value of the lost steel, alleging that the loss it sustained resulted from the violation of its contract of carriage by the railroad. The railroad answered asserting a general denial and then filed a third party complaint against Southern Scrap Material Company, Ltd., under the provisions of Louisiana Third Party Practice Act, R.S. 13:3381.

This third party complaint set forth in part the facts that had been alleged against it by the plaintiff, Edward Levy Metals, Inc. It then alleged that on March 1, 1957, it placed the car of scrap steel at the Galvez Street Wharf and on March 31, 1957, when the car was removed, it was empty. The third party petition then continued to allege that on information and belief the scrap steel from the car was unloaded by Cooper Stevedoring Company, for the account of Southern Scrap Material Company, Ltd., onto the steamship “George L.,r As heretofore set forth the third party petition then prayed for dismissal of the principal demand and, alternatively, for judgment against Southern Scrap Material Company, Ltd., for any amount which it may be cast to pay to the original plaintiff.

In bar of the third party petition, Southern Scrap Material Company, Ltd., filed *865 pleas of prescription of one and two years. The former being based upon the contention that the claim asserted against it sounded in tort and was prescribed in one year according to Articles 3536 and 3537 of the LSA-Civil Code; the latter plea of two years prescription being based upon LSA-R.S. 45 :1100 providing that actions for loss or damage to shipments of freight prescribe in two years. Both pleas of prescription were maintained by the trial court. The Court of Appeal, without passing on the plea of prescription of two years, affirmed the judgment of the trial court maintaining the plea of prescription of one year. We granted certiorari to review this judgment.

The sole issue to be determined is whether the third party action of New Orleans Public Railroad is prescribed. We have decided that the action is not prescribed.

Counsel for Southern Scrap Material Company, Ltd., in support of its plea of prescription argues that the facts of the case permit the third party plaintiff to file suit either in quasi contract or in tort; that the pleadings demonstrate an election by third party plaintiff to sue in tort and, therefore, its action is prescribed in one year.

The theory of the argument is that the scrap steel in question was loaded on board ship for the account of Southern Scrap Material Company, Ltd. The effect of this was to unjustly enrich Southern Scrap Material Company, Ltd., at the expense of New Orleans Public Belt Railroad which is charged by its contract of affreightment with the responsibility for the safekeeping and proper delivery of the scrap steel according to the instructions of the shipper. The violation of its contract with the shipper that occurs by permitting the erroneous delivery to Southern Scrap Material Company, Ltd., impoverishes the railroad and enriches Southern Scrap Material Company, Ltd. Thus, we understand the argument to be that Southern Scrap Material Company, Ltd., under Articles 2292, 2293, 2294 and 2301 of the LSA-Civil Code, having received what was not due it through error, is obliged to restore it to the owner, Edward Levy Metals, Inc., or to New Orleans Public Belt Railroad from which it had unduly received it; and this obligation is a quasi contractual one that is enforceable by New Orleans Public Belt Railroad against Southern Scrap Material Company, Ltd. Such an obligation gives rise to a personal action and is prescribed in ten years under Article 3544 of the LSA-Civil Code.

With respect to the tort remedy available to the railroad, the rationale of the argument is understood to be that upon being informed of the delivery of the scrap steel to its account the refusal of Southern Scrap Material Company, Ltd., to concede that the property had thus erroneously come into its possession constituted in essence a *867 wrongful detention and a refusal to deliver possession thereof to the party entitled thereto. Thus a conversion took place—a quasi offense 'under Article 2315 of the LSA-Civil Code. Importsales, Inc. v. Lindeman, 231 La. 663, 92 So.2d 574 (1957); Prosser, Law of Torts, (1955 ed.) § 5(c). lienee, the argument is that such an offense is considered ex delicto and an action thereon is prescribed in one year under Article 3536 of the LSA-Civil Code.

' According to this theory it would appear that the railroad has two remedies that it may assert against Southern Scrap Material Co., Ltd.,—one sounding in quasi contract and the other sounding in tort. Importsales, Inc. v. Lindeman, 231 La. 663, 92 So.2d 574 (1957); Lafleur v. Brown, 223 La. 976, 67 So.2d 556 (1953); Kramer v. Freeman, 198 La. 244, 3 So.2d 609 (1941); American Heating and Plumbing Company v. West End Country Club, 171 La. 482, 131 So. 466 (1930). So it is argued whether the prescription of one year or ten years is applicable depends upon which of these two actions the railroad has elected-to pursue and this can only be determined, under well-recognized authority, by an analysis of the pleadings and the character of the relief prayed for. Importsales, Inc. v. Lindeman, supra; Kramer v. Freeman, supra; Iberville Land Company v. Amerada, 5 Cir., 141 F.2d 384 (1944). -Under this theory if the railroad has elected to pursue an, action in quasi contract its action is prescribed in ten years and the plea .Of prescription must fail; whereas, if the action the railroad has in fact elected to pursue is one sounding in tort that action -is prescribed in one year and the.

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148 So. 2d 580, 243 La. 860, 1963 La. LEXIS 2169, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edward-levy-metals-inc-v-new-orleans-public-belt-railroad-la-1963.