Glanzer v. Cunard Steamship Co.

214 A.D. 473, 212 N.Y.S. 500, 1925 N.Y. App. Div. LEXIS 10548
CourtAppellate Division of the Supreme Court of the State of New York
DecidedNovember 27, 1925
StatusPublished
Cited by2 cases

This text of 214 A.D. 473 (Glanzer v. Cunard Steamship Co.) 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
Glanzer v. Cunard Steamship Co., 214 A.D. 473, 212 N.Y.S. 500, 1925 N.Y. App. Div. LEXIS 10548 (N.Y. Ct. App. 1925).

Opinion

Merrell, J.:

The action was brought to recover the invoice value of 47 boxes of raisins, being a part of a shipment of 2,130 boxes shipped on the steamship River Orontes from Smyrna to New York. Two bills of lading were issued at the time of shipment, one covering 1,000 boxes of Sultana raisins, and the other bill of lading covering 1,130 boxes of black raisins.' Upon arrival in New York the shipment of Sultana raisins was found to be 37 boxes short, and the shipment of black raisins 10 cases short. The total invoice value, as agreed upon between the parties in the Municipal Court, of the raisins lost was two hundred and fifty-six dollars and eighty cents. Plaintiffs sued to recover such amount from the defendant, a common carrier, which had undertaken to transmit said raisins from Smyrna to New York. The defendant claimed upon the trial in the Municipal Court, and was sustained in such claim by that court and by the Appellate Term affirming the judgment of the Municipal Court, that the liability of the defendant was limited by reason of the following clause contained in each of the bills of lading: “ It is also mutually agreed * * * that the value of each package receipted for above does not exceed the sum of Twenty Shillings. sterling, or Five Pounds per freight ton, whichever be the less, unless otherwise stated herein, on which basis the rate of freight is adjusted, and under no circumstances shall the carrier be hable for or on the basis of a larger value than this.” It was conceded upon the trial that under said valuation clause the amount for which the defendant was hable because of the loss of said 47 cases at the valuation specified in said clause was sixteen dollars and fifty-eight cents, and that the freight which the shipper paid [475]*475on said goods amounted to three dollars and eighty-two cents. Upon such basis a recovery was had in the Municipal Court in the sum of twenty dollars and forty cents. In this amount the defendant conceded it was hable.

The plaintiffs, appellants, appealed to the Appellate Term from the judgment of the Municipal Court, and the Appellate Term affirmed the same with twenty-five dollars costs to be offset against the recovery. Thereafter the plaintiffs moved for a reargument or for leave to appeal to this court from the determination of the Appellate Term. This motion was denied, and subsequently an appeal was allowed by order of the presiding justice of this court. (See 212 App. Div. 809.)

It is the contention of the appellants that the clause contained in each of the bills of lading limiting the carrier's liability was invalid and unenforcible, and that under the common law the plaintiffs are entitled to recover the invoice value of the goods lost. The appellants rely upon the decision in Union Pacific R. R. Co. v. Burke (255 U. S. 317), in which case it was held that a contract limiting the common-law liability of a common carrier for the consequences of its own negligence was against public policy. Under the facts in that case the decision was unquestionably sound; but I think that case clearly differs from the case at bar, and a careful reading of the opinion in Union Pacific R. R. Co. v. Burke leads me to conclude that that decision supports in all respects the position of the respondent in the case at bar. In the Burke case the clause relied upon was as follows: “ It is expressly agreed that the goods named in this bill of lading are hereby valued at not exceeding $100.00 per package * * * and the liability of the Companies therefor, in case of the total loss of all or any of the said goods from any cause, shall not exceed $100.00 per package.”

In the Burke case there was but one possible rate available to the shipper, and there was no evidence that the shipper obtained a more favorable rate by agreeing to the valuation of the goods shipped and the liability of the carrier therefor in case of loss, and the United States court held that that clause constituted a stipulation exempting the carrier from liability for its own negligence, and was, therefore, invalid under the rales prevailing in the Federal courts. The distinction in the case at bar, it seems to me, lies in the fact that it is apparent that the valuation of the packages of raisins receipted for in the bills of lading in suit were upon the basis of adjusted freight rates; and I think it may clearly be inferred from the limiting clause contained in the bills of lading that the rate charged for transportation was made less by virtue of the provision in the clause limiting any recovery in case of loss to twenty shillings [476]*476sterling per package or five pounds per freight ton. That such a clause is entirely valid appears to have been distinctly held in the Burke case upon which the plaintiffs, appellants, herein rely. In the course of his opinion Mr. Justice Clarke said, in Union Pacific R. R. Co. v. Burke (255 U. S. 317, 321): “This court has consistently held the law to be that it is against public policy to permit a common carrier to limit its common-law liability by contracting for exemption from the consequences of its own negligence or that of its servants [Hart v. Pennsylvania R. R. Co., 112 U. S. 331, 338 and Boston & Maine R. R. v. Piper, 246 U. S. 439, 444], and valuation agreements have been sustained only on principles of estoppel and in carefully restricted cases where choice of rates was given — where ‘ the rate was tied to the release.’ ”

It seems to me that the clause contained in the bills of lading in suit, “ on which basis the rate of freight is adjusted,” clearly means that a choice of rates was given to the shipper, and that “ the rate was tied to the release,” as suggested in the opinion of Mr. Justice Clarke quoted above. In the course of his opinion in the Burke case, Mr. Justice Clarke uses the following language defining the circumstances where a shipper would be bound by a limitation clause in a bill of lading:

“ In many cases, from the decision in Hart v. Pennsylvania R. R. Co., 112 U. S. 331, decided in 1884, to Boston & Maine R. R. v. Piper, 246 U. S. 439, decided in 1918, it has been declared to be the settled Federal law that, if a common carrier gives to a shipper the choice of two rates, the lower of them conditioned upon his agreeing to a stipulated valuation of his property in case of loss, even by the carrier’s negligence, if the shipper makes such a choice understandingly and freely, and names his valuation, he cannot thereafter recover more than the value which he thus places upon his property.

“As a matter of legal distinction] estoppel is made the basis of this ruling — that, having accepted the benefit of the lower rate, ■ in common honesty the shipper may not repudiate the conditions on which it was obtained — but the rule and the effect of it are clearly established. * * *

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Bluebook (online)
214 A.D. 473, 212 N.Y.S. 500, 1925 N.Y. App. Div. LEXIS 10548, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glanzer-v-cunard-steamship-co-nyappdiv-1925.