General Electric Co. v. Brown Transport Corp.

597 F. Supp. 1258, 1984 U.S. Dist. LEXIS 21777
CourtDistrict Court, E.D. Virginia
DecidedNovember 26, 1984
DocketCiv. A. 83-861-N
StatusPublished
Cited by14 cases

This text of 597 F. Supp. 1258 (General Electric Co. v. Brown Transport Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Electric Co. v. Brown Transport Corp., 597 F. Supp. 1258, 1984 U.S. Dist. LEXIS 21777 (E.D. Va. 1984).

Opinion

ORDER

DOUMAR, District Judge.

This is an action pursuant to the Carmack Amendment to the Interstate Commerce Act, 49 U.S.C. § 11707, to recover for cargo that was damaged while being shipped from Cleveland, Ohio to Norfolk, Virginia. The primary issues before the Court are:

(1) Whether or not the shipper-plaintiff was required to send a written claim to the carrier-defendant; and

(2) If a- written claim was required, whether or not the purported written notice which failed to claim a specified or determinable amount of damages was sufficient to constitute a valid claim under the facts of the case.

After a trial without a jury, the Court rules that:

(1) the shipper was required to send a written claim to the carrier; and

(2) a valid written claim should contain a request for the payment of a specified or determinable amount of money, unless such information was not then available. When information pertaining to the amount of damages is not immediately available it must be communicated to the carrier within a reasonable time after the shipper reasonably obtains the information. In the instant case, the shipper did not have information pertaining to the amount of damages when it sent its “Intent to Claim” letter, the purported written notice. The shipper, however, failed to communicate the amount of damages within a reasonable time after it obtained such information. The Court, therefore, enters judgment in favor of the defendant.

1. Facts

The facts may be summarized as follows. The plaintiff, General Electric Co., (G.E.) the owner of four electrical control panels, entered into a shipping contract with the defendant, Brown Transport Corp. (Brown). Acting as carrier, Brown was to deliver the goods of the shipper, G.E., to Norfolk, Virginia. The control panels were picked up by an agent of Brown on or about February 5, 1982 at the plant of the Automatic Sprinkler Corporation of America located in Cleveland, Ohio. The documents of transport did not note any exceptions as to the condition of the control panels when Brown took the panels into its care and custody. The panels were delivered by an agent of Brown on February 12, 1982 to Dixie Box and Crating located in Norfolk, Virginia. The delivery receipt, executed in Norfolk, noted exceptions to the condition of the electrical control panels. Thus, the control panels, in satisfactory condition when placed in the care and custody of Brown, were damaged by the time the shipment reached Norfolk. Therefore, it appears that the control panels were damaged while under Brown’s care and custody. The electrical control panels were then returned to the Automatic Sprinkler Corp. for repairs. Prior to shipping the panels back to Cleveland, an inspector representing Brown ex *1260 amined the panels and signed an inspection report dated March 17, 1982 (Ex. 2).

G.E. claims to have sent a letter to Brown, dated March 9, 1982, expressing an intent to submit a claim (Ex. 7). Brown claims never to have received the letter in question. The purported letter sets forth the waybill number, the date of shipment, the route of the shipment and the contents of the cargo. Although the letter does not claim a specific or ascertainable amount of damages, it states that such information will be provided at a later date (Ex. 7). The last paragraph of the letter asks Brown to acknowledge “receipt of this Intent to Claim.” Id. The control panels were then repaired and G.E. received a bill for the repairs in the amount of $10,200 on or about August 30, 1982 (Ex. 10).

There was no communication between G.E. and Brown from the time the purported letter of March 9th was sent until the middle of November 1982. Brown never acknowledged receipt of the March 9th letter, as G.E. had requested, nor did G.E. attempt to communicate with Brown. Nine months ahd. three days after the control panels were noted as damaged and approximately two months and fifteen days after G.E. was aware of the amount of damages, a letter dated November 15, 1982, was sent to Brown setting forth damages in the amount of $10,681.80. 1 This letter was received by Brown on November 18, 1982 (Ex. 8). On November 30, 1982 Brown sent a letter to G.E. denying the claim because it was not filed within the nine month limit specified in Section 2(b) of the bill of lading (Ex. 15).

G.E. argues that the claim letter dated March 9 is sufficient to satisfy a written notice requirement. In the alternative, the plaintiff argues that the carrier’s actual knowledge of the damage is sufficient to satisfy a written notice requirement. Brown’s position, on the other hand, is that section 2(b) of the uniform straight bill of lading, incorporated in the contract between parties, requires a claim to be in writing. Furthermore, this writing requirement cannot be satisfied by actual notice. Assuming arguendo that the March 9 letter was sent to it, the defendant is of the opinion that it was insufficient to establish a valid claim by virtue of 49 C.F.R. § 1005.(b) which provides, inter alia, that a written claim must set forth a specified or determinable amount of damages. Furthermore, the letter of November 15, setting forth the actual amount of damages, was sent after the 9 month time limit of Section 2(b) of the bill of lading.

The Court notes the importance of the issues presented inasmuch as they have not been previously addressed by this Court or the Court of Appeals for the Fourth Circuit. In addition, there appears to be a conflict between at least two United States Courts of Appeals. 2

2. Letter of March 9, 1982 Was Sent by G.E.

As a preliminary factual matter, the Court must decide whether the March 9 letter was sent by G.E. to Brown. Robert J. Condon, the author of the letter, testified that he placed the letter in his outgoing mailbox located on his desk. He further testified that G.E. maintained a standard business practice of collecting letters from outboxes and depositing them into the U.S. mail system. A copy of this letter was also sent to the plaintiff’s insurance agent. As evidence that the letter was mailed, the copy of the letter admitted in court contains a stamp denoting that it was received on March 12, 1982 by the plaintiff's insur *1261 anee agent Marsh & McLennan (Ex. 7). Against the evidence presented by G.E., a witness for Brown testified that Brown never received the March 9 letter.

The Court acknowledges that, generally, proof that a letter was properly mailed raises the presumption that it was received by the addressee. See Hartford Fire Ins. Co. v. Mutual Sav. & Loan, 193 Va. 269, 68 S.E.2d 541 (1952); Roto-Lith, Ltd. v. F.P. Bartlett & Co., 297 F.2d 497, 498 (1st Cir.1962).

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Bluebook (online)
597 F. Supp. 1258, 1984 U.S. Dist. LEXIS 21777, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-electric-co-v-brown-transport-corp-vaed-1984.