Indiana Harbor Belt Railroad v. Alpirn

296 N.W. 158, 139 Neb. 14, 1941 Neb. LEXIS 24
CourtNebraska Supreme Court
DecidedFebruary 4, 1941
DocketNo. 30947
StatusPublished
Cited by12 cases

This text of 296 N.W. 158 (Indiana Harbor Belt Railroad v. Alpirn) 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
Indiana Harbor Belt Railroad v. Alpirn, 296 N.W. 158, 139 Neb. 14, 1941 Neb. LEXIS 24 (Neb. 1941).

Opinion

Messmore, J.

This is an action to recover demurrage charges on a carload of scrap iron from the shipper, in the amount of $138.24. The pleadings reflect and the record discloses:

On March 20, 1937, the Chicago, Burlington & Quincy Railroad Company received from a shipper at Kleenburn, Wyoming, a carload of small scrap iron, consisting of mining wheels, mixed with 20 to 25 per cent, of hangers or scrap, made out of steel that is malleable. The car was consigned to the defendant at Omaha, Nebraska, by a uniform bill of lading, with instructions to notify him. April 14, 1937, the shipment was consigned by defendant, as shipper, to himself at Chicago, Illinois. The car, by order, of the defendant, was delivered to the American Steel Foundries at Indiana Harbor over plaintiff’s switching tracks, plaintiff having received the car from Chicago, Burlington & Quincy Railroad Company, as a common carrier, for switching and delivery. The car was rejected. May 3, 1937, plaintiff wired defendant by its district freight claim agent of the New York Central System, of which plaintiff is a part, showing rejection of the car and requesting that disposition thereof be made. Defendant made no disposition of the car. Subsequently, a telegram, dated May 12, 1937, was sent by plaintiff to defendant, showing charges against the car in the amount of $541.92, to increase at the rate of $5 a day for demurrage, and requesting that disposition be rushed, stating: “Wire if you (defendant) will protect charges.” May 14, 1937, plaintiff wired defendant that car was rejected by the American Steel Foundries, was not ordered, impossible to use, and to “rush disposition.” May 18, 1937, plaintiff wired defendant: “Failure to receive disposition on car * * * within forty-eight hours we will be [16]*16obliged to sell under bill lading conditions, involving extra auction, advertising expense and demurrage. Have we your authority to sell at private sale without prejudice to bill lading conditions? Answer promptly.” May 18, 1937, defendant replied by letter to plaintiff, referring to the car of scrap iron, and asking plaintiff to contact railroad companies and foundries which might be interested in purchasing such material, to obtain best price they would pay and wire immediately, stating: “However, do not pv . this car up for sale as a distressed car by the claim department as this will naturally depreciate the value of the material.” Pursuant to this letter, efforts were made by plaintiff to secure bids from various dealers and brokers in the scrap-iron business, but it received no bids before the date of May 20, 1937, when this fact was communicated to the defendant by telegram, which asked what action should be taken. May 22, 1937, plaintiff, by telegram, made known to defendant that an offer of $500, constituting the best offer,' had been received, and showing the charges to date to be $596.92, and further stating: “Have we your authority to accept and send you balance due bill for outstanding charges?” June 8, 1937, the amount of $500 was credited to freight charges of defendant’s account, leaving an amount due, for which plaintiff sues.

The defendant cross-petitioned, setting forth failure on the part of the plaintiff to comply with the terms of the bill of lading by selling the scrap iron, without authority for so doing, at private sale, and further alleging that the reasonable value of the material was $974.24, and prayed judgment accordingly.

Plaintiff’s amended answer to defendant’s cross-petition alleged failure of defendant to make written claim and demand on plaintiff for damages for disposition made of the shipment by plaintiff within nine months, as required by law, thus waiving the provisions of section 4 (b) of the bill of lading by ordering and requesting shipment to be sold at private sale. At the conclusion of the evidence, which was heard before a jury, the plaintiff moved for a directed [17]*17verdict, in which defendant joined, asking for judgment on his cross-petition.

The court found that there was due plaintiff from defendant the sum of $638.24, and due defendant from plaintiff on his cross-petition the sum of $800, leaving a net amount due defendant from plaintiff of $161.76. Judgment was so entered. Motion for a new trial was submitted and overruled, from which ruling plaintiff appeals.

The evidence relating to the value of the contents of the car need not be detailed. The trial court determined the fair market value thereof as a question of fact, amply supported by the record.

Plaintiff contends that defendant failed to give notice of a claim for loss or damage, as required by 49 U. S. C. A. sec. 20 (11), which reads:

“Any common carrier, railroad, * * * receiving property for transportation from a point in one State or Territory or the District of Columbia to a point in another State * * * shall issue a receipt or bill of lading therefor, and shall be liable to the lawful holder thereof 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 * * * Provided further, That it shall be unlawful for any such receiving or delivering common carrier to provide by rule, contract, regulation, or otherwise a shorter period for the filing of claims than nine months, and for the institution of suits than two years, such period for institution of suits to be computed from the day when notice in writing is given by the carrier to the claimant that the carrier has disallowed the claim or any part or parts thereof specified in the notice.”

The bill of lading, section 2 (b), required written notice of claim under the interstate commerce act by the Cummings amendment thereto, and acts amendatory, and forming a part of the bill of lading. Plaintiff’s amended answer to defendant’s cross-petition alleged that said provisions had formed a part of the bill of lading and were binding on the shipper on an interstate shipment. Defendant made no written claim.

[18]*18Many cases cited by plaintiff, including Georgia, F. & A. Ry. Co. v. Blish Milling Co., 241 U. S. 190, 36 S. Ct. 541, affirming 15 Ga. App. 142, 82 S. E. 784; Erie R. Co. v. Stone, 244 U. S. 332, 37 S. Ct. 633; Chesapeake & O. Ry. Co. v. Martin, 283 U. S. 209, 51 S. Ct. 453, and Gilinsky v. Illinois C. R. Co., 98 Neb. 858, 154 N. W. 730, establish the rule that failure to give written notice of a claim by a shipper, as required by law, after reasonable time for delivery has elapsed, is a bar to an action by the shipper.

In the case of Chesapeake & O. Ry. Co. v. Martin, supra, the court held: “Where a bill of lading for an interstate shipment provides that claim, in case of failure to make delivery, must be made in writing to the carrier within sis months after a reasonable time for delivery has elapsed, the reasonable time meant is such time as is necessary to transport and make delivery of the shipment in the ordinary-course of business, in the circumstances and conditions of the transaction.”

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Cite This Page — Counsel Stack

Bluebook (online)
296 N.W. 158, 139 Neb. 14, 1941 Neb. LEXIS 24, Counsel Stack Legal Research, https://law.counselstack.com/opinion/indiana-harbor-belt-railroad-v-alpirn-neb-1941.