Hamilton Manufacturing Co. v. Chicago & Northwestern Railway Co.

176 F. Supp. 546, 1959 U.S. Dist. LEXIS 4009
CourtDistrict Court, E.D. Wisconsin
DecidedSeptember 10, 1959
DocketNo. 55-C-116
StatusPublished
Cited by3 cases

This text of 176 F. Supp. 546 (Hamilton Manufacturing Co. v. Chicago & Northwestern Railway Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hamilton Manufacturing Co. v. Chicago & Northwestern Railway Co., 176 F. Supp. 546, 1959 U.S. Dist. LEXIS 4009 (E.D. Wis. 1959).

Opinion

TEHAN, Chief Judge.

This is an action brought pursuant to Title 49 U.S.C.A. § 20(11) as amended, by the consignee of an interstate shipment of steel sheets to recover for rust damage allegedly caused by the negligence of the defendant, a common carrier, which transported the steel from Indiana Harbor, Indiana, to Two Rivers, Wisconsin. The action against Inland Steel Company, the consignor, has heretofore been dismissed without prejudice by the plaintiff.

On or about February 11, 1954, the plaintiff ordered and purchased from Inland Steel Company, approximately 120,-000 pounds of sheet steel for use by the plaintiff in its manufacturing business. The steel was loaded onto Penn. Car No. 84646 by Inland Steel employees on February 11,1954. The building from which the steel was loaded had a temperature of about 50° to 60°, and the box ear into which the steel was loaded was approximately 10° cooler. Before loading, the steel sheets were oiled and packaged in 10,000 pound banded “lifts” which were not wrapped. Each “lift” was inspected by an employee of Inland Steel, and the employee testified that they were in good condition when loaded.

After the loading was completed, the box car, which is stipulated to have been in satisfactory condition, was sealed by the shipper. The box car was then moved by the defendant from Indiana Harbor to Two Rivers, Wisconsin, leaving Indiana Harbor either on February 12th or 13th, 1954, and arriving at plain[548]*548tiff’s plant on February 17, 1954. The box car was not heated en route and no heating had been requested by the plaintiff. The seals placed upon the box car by the shipper were intact upon arrival in Two Rivers.

Plaintiff’s employee, Harry Klein, inspected the shipment of steel on February 18,1954, and testified that most of the sheets had an edging of rust approximately two to three inches wide. He thereupon reported this fact to Leo Sonntag, his superior, and Sonntag himself conducted an inspection and found rust damage along the edges, which he estimated to be one and one-half to two inches wide. Sonntag stated that it was not unusual to find some rust on steel shipped in box cars, but this shipment had an unusual amount of rust which rendered it unusable by the plaintiff without reconditioning. The damaged steel was sent to Milwaukee and Chicago for reconditioning, at a total cost to the plaintiff of $1720.56, which amount has been stipulated as reasonable. It has been further stipulated that the box car itself was inspected at Two Rivers and found to be in satisfactory condition. Since it appears that, in addition to the credible testimony of the Inland Steel inspector that the steel was in good condition when it left the plant, there has been a stipulation made that the rusting was the result of water settling on said steel from natural condensation out of the air by reason of natural changes in temperature during the'transportation of said steel from Indiana Harbor, Indiana, to Two Rivers, Wisconsin, it clearly appears that the steel was in good condition when turned over to the carrier. It is just as clear from the undisputed evidence that the steel when delivered to plaintiff was in such badly rusted condition that it could not be used by the plaintiff without reconditioning. The plaintiff, therefore, having established by the preponderance of the evidence that the steel sheets involved herein were in good condition when delivered to the defendant and in a damaged condition when they arrived at their destination, has established its prima facie case.

The parties are agreed that a railroad shipping goods in interstate commerce is subject to the provisions of § 20(11) of the Interstate Commerce Act. 49 U.S.C.A.’§ 20(11) as amended, which provides that any common carrier subject to the Act receiving property for interstate transportation,

“* * * shall be liable * * 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 within the United States. # * *

The defendant properly admits that this section codifies the common law rule making a railroad liable without proof of negligence for all damage to goods transported by it unless it affirmatively shows that the damage was occasioned by the shipper, acts of God, the public enemy, public authority, or the inherent vice or nature of the commodity, citing in this respect Chesapeake & Ohio Railway Co. v. Thompson Manufacturing Co., 1926, 270 U.S. 416, 46 S.Ct. 318, 70 L.Ed. 659; Adams Express Co. v. Croninger, 1913, 226 U.S. 491, 33 S.Ct. 148, 57 L.Ed. 314; Secretary of Agriculture v. United States, 1956, 350 U.S. 162, 76 S.Ct. 244, 100 L.Ed. 173.

The defendant has not been successful in affirmatively showing that the damage was occasioned by the shipper, the court having heretofore found that the shipper was without fault; nor has the defendant made any effort to affirmatively show that the damage was occasioned by an act of God, a public enemy, or public authority. By elimination, therefore, the defendant’s exoneration depends on whether it has affirmatively shown that the damage was caused solely by the inherent vice or nature of the goods shipped. It is not enough to show that an “inherent vice” was causal [549]*549without proving that the carrier used all reasonable care and precautions under the circumstances. The Court of Claims in the recent decision of Johnson Motor Transport v. United States, 1957, 149 F.Supp. 175, 137 Ct.Cl. 892, a case which involved the transportation of truckloads of meat, laid down the rule that this court believes should be followed here: (149 F.Supp. at page 180)

“Where the evidence shows that a cargo was in good condition when it was entrusted to an interstate common carrier for transportation and that it was in a damaged condition when it arrived at the destination, this is sufficient to show, prima facie, that the carrier (or carriers, if two or more were involved in the transportation) failed to discharge the common law duty for the protection of the cargo. The liability of the carrier (or carriers) in tort for the damages is thereby established unless evidence is presented to show that, in fact, the common law duty for the protection of the cargo was discharged by the carrier (or carriers). Southern-Plaza Express, Inc. v. Harville, 5 Cir., 1956, 233 F.2d 264, 267; Jackson & Perkins Co. v. Mushroom Transportation Co., supra, [351 Pa. 583], 41 A.2d [635], at page 636; R. C. A. Truck Lines v. Georgia Rug Mill, supra [88 Ga. App. 658], 77 S.E.2d [442], at page 444; Sugar v. National Transit Corporation, supra, [82 Ohio App. 439], 81 N.E.2d [609], at page 611. This is the situation that confronts the court in the present case.”
“The evidence shows that the three consignments of meat were in good condition when entrusted to the initial carrier in New York City for transportation, and that the meat was spoiled when it was tendered by the terminal carrier for delivery at Dow Field.

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176 F. Supp. 546, 1959 U.S. Dist. LEXIS 4009, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hamilton-manufacturing-co-v-chicago-northwestern-railway-co-wied-1959.