Humphrey Feed & Grain, Inc. v. Union Pacific Railroad

257 N.W.2d 391, 199 Neb. 189, 1977 Neb. LEXIS 770
CourtNebraska Supreme Court
DecidedAugust 17, 1977
Docket41088
StatusPublished
Cited by8 cases

This text of 257 N.W.2d 391 (Humphrey Feed & Grain, Inc. v. Union Pacific Railroad) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Humphrey Feed & Grain, Inc. v. Union Pacific Railroad, 257 N.W.2d 391, 199 Neb. 189, 1977 Neb. LEXIS 770 (Neb. 1977).

Opinions

Brodkey, J.

This is an action by Humphrey Feed & Grain, Inc. [191]*191(“Humphrey”), against Union Pacific Railroad Company for damages resulting from alleged losses of grain transported by the railroad for Humphrey; and for loss of profits allegedly caused by the railroad’s failure to maintain in good repair a sidetrack which serves the premises leased to Humphrey by the railroad. The District Court granted summary judgment in favor of Union Pacific on Humphrey’s claim for lost profits. Humphrey received a jury verdict on its claim for damages resulting from losses of grain, and the trial court denied Humphrey interest or attorney’s fees on its judgment. Humphrey has appealed from the summary judgment granted to the railroad, and from the denial of interest and attorney’s fees on the judgment. Union Pacific has cross-appealed from the judgment in Humphrey’s favor on the ground a verdict should have been directed. We affirm the judgment for Humphrey for damages for loss of grain, and also the denial of interest and attorney’s fees. We vacate, with instructions, the summary judgment granted in favor of Union Pacific on the claim for lost profits.

In its petition, Humphrey alleged that between October 1, 1971, and December 31, 1974, it had delivered to the railroad 121 carloads of grain for shipment, and had received a bill of lading for each car which reflected the number of pounds of grain loaded aboard each car. Plaintiff alleged that each carload of grain was delivered by the defendant or a connecting carrier to a point of destination with a shortage of grain in excess of generally accepted shrinkage. Humphrey alleged that the railroad is subject to the provisions of the Carmack Amendment, Title 49 U. S. C. A., § 20, par. (11); and it was liable to Humphrey thereunder for the loss of the grain in excess of normal shrinkage. Humphrey further alleged that it had filed claims with the railroad for the alleged losses within the time provided by section 74-715, R. R. S. 1943; that the claims were not [192]*192adjusted or paid by the railroad within the specified time period; and that it was therefore entitled to interest and reasonable attorney’s fees under that section. Humphrey prayed for judgment against the railroad in the amount of $21,677.36, plus interest and attorney’s fees.

In a separate cause of action, Humphrey alleged that it was the lessee of a portion of the railroad’s right-of-way, and that there is an implied covenant under the lease that the railroad would keep its sidetrack, which serves the leased premises, in such a state of repair and maintenance so as to provide Humphrey with full and satisfactory shipping facilities. Humphrey also alleged that the railroad had a statutory duty to keep the sidetrack in repair under section 74-503, R. R. S. 1943. Humphrey alleged that the railroad has failed to maintain the sidetrack in good repair during the period from September 1, 1972, through December 31, 1974; that only three cars could be “spotted” on the sidetrack due to the disrepair; that the railroad failed to make necessary repairs despite oral demands by Humphrey; and that Humphrey received approximately 130 cars less on the average than his competitors as a result of the disrepair of the sidetrack. Humphrey prayed for a judgment against the railroad in the amount of $91,000 for lost profits incurred as a result of the alleged failure of the railroad to maintain its sidetrack in good repair.

In its answer, Union Pacific denied the shortages of grain and its liability on Humphrey’s claim for damages. The railroad admitted the existence of the lease, but denied it had failed to keep the sidetrack in good repair, and denied the allegation of lost profits. Union Pacific filed a motion to dismiss the claim for lost profits on the ground that the subject matter of that claim was outside the jurisdiction of the District Court, but that motion appears not to have been ruled on by the trial court. The railroad [193]*193also moved for summary judgment on the claim for lost profits, and that motion was sustained by the District Court. As previously stated, Humphrey received a jury verdict and judgment in its favor on its claim for damages incurred as the result of grain losses, but the trial court denied interest and attorney’s fees on that judgment.

We first examine the contentions of the parties in regard to the judgment in Humphrey’s favor on its claim for damages resulting from grain losses. The facts adduced at trial are as follows.

From October 1, 1971, through December 31, 1974, Humphrey delivered 118 carloads of grain to the railroad for shipment. Three claims for 121 carloads originally filed were withdrawn prior to or during the trial. The cars were “spotted” by the railroad on the sidetrack which serves Humphrey’s business, and were loaded by Humphrey. In loading the cars, Humphrey uses a “dump” scale, which is a balance scale governed by a 560 or 600 pound weight. Grain is loaded into the scale, which automatically dumps the grain when the 560 or 600 pound weight limit is reached. A counter is automatically tripped when each dump occurs so that the number of dumps is recorded.

After a car is loaded, the railroad is notified, and its agent seals the car. The agent prepares a bill of lading, and in so doing uses the weight figure provided by Humphrey. After the grain reaches its destination, an account of sales is sent to Humphrey, which shows the weight at destination. The bills of lading and the account of sales regarding the 118 shipments involved in this case were received in evidence, and showed that the weight at destination was less than the weight at origin, taking into account the tariff of normal shrinkage of 1/8 of 1 percent, on the 118 shipments.

In support of the contention that the dump scale was accurate, Humphrey’s owner testified that the [194]*194weights arrived at by using the dump scale compared with weights recorded on Humphrey’s truck scale. Such comparisons were made when a grain producer delivered grain to Humphrey in a truck and the grain was weighed on the truck scale. When the grain was immediately loaded on railroad cars via the dump scale, the truck scale weight could be compared to the dump scale weight. The truck scale was inspected annually by the State of Nebraska, and passed inspections for accuracy..

Humphrey also introduced evidence that one of its customers, who had a truck too large for its truck scale, would load grain on the truck via the dump scale, and the weight would be checked by weighing the truck at a scale of another elevator. Comparisons between the dump scale weight and the weight recorded on the scale of the other elevator were favorable.

Humphrey’s owner testified that he had filed claims with the railroad on the 118 shipments within 90 days of settlement, which was the time he was told what the weight at destination was, and that the claims were not adjusted or paid by the railroad.

A professor who was an expert in grain science testified on behalf of Union Pacific. In summary, his testimony was that grain loses weight during shipment due to loss of moisture, and that the amount of weight loss depends on the water content of the grain and the humidity. Another expert witness, a supervisor of weights, testified that dump scales are not regarded as accurate scales in the industry. Evidence was adduced to the effect that dump scales are inaccurate if not properly maintained and kept in good repair.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
257 N.W.2d 391, 199 Neb. 189, 1977 Neb. LEXIS 770, Counsel Stack Legal Research, https://law.counselstack.com/opinion/humphrey-feed-grain-inc-v-union-pacific-railroad-neb-1977.