Henderson v. Louisville & N. R.

41 So. 252, 116 La. 1047
CourtSupreme Court of Louisiana
DecidedApril 9, 1906
DocketNo. 15,970
StatusPublished
Cited by1 cases

This text of 41 So. 252 (Henderson v. Louisville & N. R.) 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
Henderson v. Louisville & N. R., 41 So. 252, 116 La. 1047 (La. 1906).

Opinion

LAND, J.

'Plaintiff as the holder and owner of an “order notify” bill of lading issued by the agent of defendant company at the •city of New Orleans, and acknowledging the receipt of 100 barrels of sugar from Drew & Ilarvey, to be transported to the city of Chicago, sued the defendant for the value of the sugar on the ground of refusal to deliver the same on demand and offer to surrender the bill of lading.

Defendant in its answer, after pleading the general issue, admitted that the bill of lading was signed by its agent and delivered to Drews & Harvey, but specially denied that the sugar or any part thereof was delivered to or received by the defendant company and that the agent had any authority to sign and issue the alleged instrument.

For further answer, and in the alternative, the defendant company charged that plaintiff had been guilty of laches in not forwarding the bill of lading and demanding delivery of the sugar at the point of destination, and in not communicating with Sprague, Warner & Co. of Chicago, who were to be notified, and in not making any inquiry of or giving any information to defendant.

The defendant averred that on account of such laches it was prevented from protecting itself against loss by timely recourse against the firm of Drews & Harvey, which was in good standing when the bill of lading was issued, but became insolvent before plaintiff communicated knowledge of the facts to defendant.

The district court rendered judgment in favor of plaintiff, and the defendant appealed to the Court of Appeal for the parish of Orleans, which affirmed the judgment in an elaborate and well-considered opinion.

The Court of Appeal found with the district court that the plaintiff was an innocent and bona fide transferee for value of the bill of lading, and proceeded to discuss and decide the case on the assumption that Drews & Harvey made no such shipment as was recited in the bill of lading, and consequently that the sugar was not delivered to the defendant company.

The district court ruled that the defendant was estopped' by the bill of lading to deny the receipt of the 100 barrels of sugar, and excluded specific evidence on the subject, but [1050]*1050nondelivery to the carrier is inferentially shown by the evidence, and it may be said that plaintiff’s suit is based on that theory.

It is admitted in the opinion of the Court of Appeal that the English rule is that, even as against a bona fide consignee or indorsee for value, the carrier is not estopped by the recital of the bill of lading issued by its agent to show that the goods therein described were not in fact received for transportation. It is further admitted in the opinion that this is also the settled doctrine of the federal courts.

The Court of Appeal, however, cites decisions in some of the states to the effect that the carrier is estopped to deny the delivery of the goods to the prejudice of third persons, who have in good faith in the ordinary course of business acted upon the representations of the agent.

The Court of Appeal held that this controverted question was set at rest in the state of Louisiana by Act No. 150, p. 193, of 1868; and that the case of Hunt & Macauley v. Railroad Co., 29 La. Ann. 446, decided by a divided court is not an authoritative construction of the statute.

In their very able and interesting brief, counsel for defendant contend that the English rule has been followed in all the courts of the United States, federal and state, except those of New York, Kansas, and Nebraska, and that this rule was not abrogated or modified by Act No. 150, p. 193, .of 1868, making bills of lading negotiable, as was decided by the Supreme Court of this state in the Hunt & Macauley Case, supra.

The English doctrine, as set forth in Grant v. Norway, 2 Eng. L. & E. 337, and in Buckingham v. Freeman, 18 How. (U. S.) 188, 15 L. Ed. 341, was expressly approved by our predecessors in Fellows v. Str. Powell, 16 La. Ann. 316, 79 Am. Dec. 581. The same doctrine had been previously recognized in Fearn Putnam & Co. v. Richardson, 12 La. Ann. 752.

The question to be solved is whether this-rule is inconsistent with the provisions of Act No. 150, p. 193, of 1868. In the Hunt v. Macauley Case, two of the justices were-of opinion that this rule of commercial law was not affected by the provisions of said act. One of the justices concurred in the-decree, on the ground that the plaintiff was not a third party to the bill of lading. The two dissenting justices were of opinion that it was the intent of the statute “to protect both the carriers and the public, the former by punishing any persons in their employ for issuing false bills of lading or receipts, and the latter by putting such bills or receipts upon the same footing as commercial paper and protecting the holder in good faith with all the privileges and immunities given to-bills of exchange and promissory notes.”

It is apparent that there was an even balance of opinion on the question before the-court, and that therefore the point was not decided.

The object of the act of 1868 as stated in the title, was “to prevent the issue of false, receipts or bills of lading, and to punish fraudulent transfers of property by cotton presses, wharfingers, and others.”

The first section provides that no cotton compress, wharfinger, or other person shall issue any receipt or other voucher for goods, wares, etc., to any person purporting to be the owner or holder thereof, unless such goods, wares, etc., shall have been actually received, and shall be in store or on the premises, or under his control at the time of the issuing of the receipt.

The second section provides that no cotton compress, wharfinger, or other person shall issue any receipt or other voucher upon any goods, wares, etc., to any person for money loaned or other indebtedness, unless such goods, wares, etc., shall be at the time in store or upon the premises and under his-control.

The third section prescribes that duplicate-[1052]*1052¿receipts shall not be issued while the originals are outstanding without writing across ■the face of the same the word “Duplicate.”

The fourth section prohibits any cotton .press, wharfinger, or other person from selling, incumbering, shipping, transferring, or removing any goods, wares, etc., for which a receipt shall be given, without the written .assent of the holder of the receipt.

Section 5 of the act reads as follows:

“That no master, owner, or agent of any boat .or vessel of any description, forwarder, or officer or agent of any railroad, transfer or transportation company, or other person, shall sign or give any bill of lading, receipt or other voucher or document for any merchandise or property by which it shall appear that such merchandise has been shipped on board of any ■boat, vessel, railroad car or other vehicle, unless the same shall have been actually shipped and put on board and shall be at the time actually .on board, or delivered to such boat, vessel, car or other vehicle, to be carried or conveyed as expressed in said bill of lading, receipt, voucher ,or other document.”

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Bluebook (online)
41 So. 252, 116 La. 1047, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henderson-v-louisville-n-r-la-1906.