Home Insurance v. New York Central Railroad

124 N.W.2d 911, 372 Mich. 62
CourtMichigan Supreme Court
DecidedDecember 5, 1963
DocketCalendar No. 24, Docket No. 49,707
StatusPublished
Cited by1 cases

This text of 124 N.W.2d 911 (Home Insurance v. New York Central Railroad) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Home Insurance v. New York Central Railroad, 124 N.W.2d 911, 372 Mich. 62 (Mich. 1963).

Opinion

Kelly, J.

(for reversal). Plaintiffs, as subrogees of Lee Paper Company, instituted suit in the Kalamazoo county circuit court to recover damages for [63]*63defendant’s negligence resulting in contamination of photographic paper pulp during shipment over defendant’s railroad.

The pretrial statement contained the following: •“The subrogation is agreed to, and if plaintiffs are 'entitled to judgment their damages are agreed to he $4,275.55.”

A jury verdict was returned for the stipulated .amount, and defendant appeals claiming (1) that the (evidence presented at the trial was not sufficient to .justify submission to the jury the question of defendant’s negligence, and (2) that plaintiffs did not sustain their burden of proof that the shipment of pulp was delivered to defendant carrier in good condition.

¡Lee Paper Company (hereinafter referred to as Lee) purchased the pulp in question from a Norway manufacturing company who transported same to South Haven, Michigan, in 2 ships — the Makef jell, -•arriving in May, 1957, and the Ravnef jell, arriving 'in August, 1957.

Lee stored this pulp in the South Haven Terminal 'Company’s (hereinafter reférred to as Terminal) warehouse until Lee would request shipment of same to its Vicksburg, Michigan, plant.

On or about April 7, 1958, Terminal loaded car CNW and car LV with Lee’s pulp. Lee made no inspection as to the condition of the pulp at the time of Terminal’s loading but a chemist’s inspection was made upon arrival at its Vicksburg plant and, as a result of said chemical analysis, refused to accept the pulp in car CNW because of sulphur contamination.

Previous to this April, 1958, shipment, Lee had been troubled with sulphur contamination involving shipments by truck and boat of “goods (pulp) that were contaminated in the manufacture of the goods.”

[64]*64Lee had warned those it dealt with in' regard to pulp, including its warehouseman (Terminal), of the danger of sulphur and other contaminations, and Lee’s purchasing agent testified that Terminal “was very much aware of that, of our problems.”

Previous to the April, 1958, shipment, which resulted in subrogees seeking damages from defendant, Lee gave no such warning to defendant. After the April, 1958, shipment now in dispute, Lee’s purchasing agent set up a new procedure and, because inspection of bos cars would not disclose sulphur contamination, Lee’s chemists inspected defendant’s cars before loading and if found to be free of contamination, defendant would “press them into what we refer to as shuttle service.” This new procedure Lee found to be an effective way to combat their contamination problem.

In the record presented to us, the only reference to any requirements that were made known to defendant is the testimony of defendant’s retired freight agent, as follows:

“Q. When cars were requested to load this paper-pulp, what sort of cars were requested by the-South Haven Terminal Company?
“A. They requested clean cars. Good, clean ears” y the testimony of Terminal’s vice-president and secretary that:
“Q. And when you order those cars from the New York Central Railroad Company, how do you order them ?
“A. A clean car for Lee,”

and the testimony of Terminal’s foreman, who supervised the loading of all freight cars from Terminal’s warehouse for Lee, that:

“Q. When you order a car for this pulp for the-Lee Paper Company, how do you order it? What, do you say?
[65]*65“A. I order good clean car for Lee Paper Company.”

Defendant’s station agent testified that he furnished what he believed to be clean cars because he knew from previous experience that if the cars did not meet Terminal’s requirement after inspection, it rejected same and he would have to furnish another car; that the car in question was a new car, a red car, that he believed to be a clean car.

Terminal’s loading foreman confirmed the station agent’s testimony that cars had to meet his inspection approval or they were rejected and the car in question, namely car CNW, he testified, was swept out thoroughly before loading. His testimony discloses that he stated unequivocally that he believed it to be a clean car before loading, and the record shows that plaintiffs’ attorney did not endeavor to question him in that regard.

The law is well established, and there is no dispute in this appeal, that in order to recover plaintiffs must meet their burden of proving that the shipment of pulp was delivered to defendant carrier in good condition.

Appellees, claiming they established a “prima facie” case, state: “It is the contention of the appellee that while the proofs were not conclusive, they were such as to provide the jury with a basis upon which to make a reasonable inference that the goods were, in fact, delivered to the carrier in a good condition and were received in a damaged condition.”

The trial court, in his opinion denying defendant’s motion for judgment notwithstanding the verdict, gave as his only reason for concluding there was “some evidence from which the jury might infer that the contamination must have occurred from the condition of the CNW car,” stated:

[66]*66“The third reason assigned is that there is no evidence that the pnlp was in good condition when delivered to the railroad and in contaminated condition when it arrived at plaintiff’s mill. The car in question was the CNW car. In this car was loaded pulp in hales from each of 2 ships. In the LY car, which was hauled at the same time, all of the bales were from 1 of the ships. Both the CNW and the LY car were loaded from the same warehouse in South Haven. After these 2 ears were shipped out, there were 450 bales left in the warehouse which was shipped out on April 11, 1958. There was then no more pulp from these 2 ships in the warehouse. The fact that the CNW car in question contained the only pulp from the 2 ships in question which was contaminated is some evidence from which the jury might infer that the contamination must have occurred from the condition of the •CNW car. There was no contamination in the LV load which was transported in the Ravenfjell. The defendant’s argument seems to be that plaintiff has failed to prove that there was no contamination in the Makef jell shipment. The fact that no other bales of the Makef jell were contaminated is evidence which the jury might consider.”

No testimony was introduced in regard to the manufacture of the pulp; as to whether the pulp was manufactured at the same time, or even by the same process. There is no testimony introduced to show how long before shipment from Norway that the goods were manufactured. No testimony is in this record to show the condition of the pulp as it was unloaded from the ship or, in fact, at any time while in the storage at the South Haven Terminal Company.

Appellant states:

“Plaintiffs rely on the testimony of an employee of the paper company who saw a certain amount of ‘muss’ on the floor of the car when it was in[67]*67spected 6 days after arrival.

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Bluebook (online)
124 N.W.2d 911, 372 Mich. 62, Counsel Stack Legal Research, https://law.counselstack.com/opinion/home-insurance-v-new-york-central-railroad-mich-1963.