Miller v. Greyvan Lines, Inc.

284 A.D. 133
Appellate Division of the Supreme Court of the State of New York·Decided May 12, 1954·Published·Cited by 8 cases

Opinions

Wheeler, J.

In June of 1947, plaintiff and defendant Grey-van Lines, Inc., entered into an oral agreement to transport and store plaintiff’s household goods. The move was from Cleveland, Ohio, where plaintiff then resided, to Buffalo, New York, where the goods were to be stored until called for by Mr. Miller. Greyvan Lines, Inc., insists that this was the entire contract; the plaintiff has testified that the arrangement was more specific in that Greyvan Lines agreed to move his goods from Cleveland to Buffalo and to store them in its own fireproof warehouse in the latter city. It is conceded that the goods, after being packed by representatives of either Greyvan Lines or its subsidiary corporation, Greyvan Storage, Inc., were (with the exception of some rugs) transported to Buffalo by defendant E. F. Daley, Inc., at the instance of Greyvan Lines. It is also undisputed that the goods were placed by the Daley organization in its warehouse at 200 Cherry Street in the city of Buffalo. Established by the record and not disputed upon this appeal is [135] the fact that the warehouse at 200 Cherry Street was not a fireproof warehouse. Plaintiff produced expert testimony in that regard and the secretary of the Daley corporation admitted the fact.

Sometime in the fall of 1947, the plaintiff received a statement for storage from the Daley concern, which he and his wife claim is the first time either of them knew the goods were not stored at the warehouse of Greyvan Lines or Greyvan Storage, Inc. Immediate inquiry was instituted by the plaintiff, who testified he was told by the Buffalo manager of Greyvan Storage, Inc., wholly owned by Greyvan Lines, Inc., that neither Greyvan corporation had a warehouse of any kind in Buffalo at the time plaintiff’s goods were shipped there from Cleveland, that Daley often took care of Greyvan’s storage, and that plaintiff’s goods were as safe in the Daley warehouse as they would be in that of Greyvan Storage, as Daley operated a fireproof warehouse. Having thus assured himself, plaintiff took no further action with regard to the goods.

In August of 1948, the Daley warehouse at 200 Cherry Street was consumed by fire, completely destroying plaintiff’s goods. Plaintiff was notified of this loss by registered letter. This action resulted. Greyvan Lines, Inc., and E. F. Daley, Inc., appeal from the judgment for the plaintiff against them for the sum of $10,000, with interest from August 12, 1948.

The Referee to whom the action was referred for trial has found that the plaintiff and defendant Greyvan Lines, Inc., entered into a contract whereby the latter was to move plaintiff’s goods from Cleveland to Buffalo and to store those goods in its fireproof warehouse in Buffalo. Without outlining in detail all the evidence bearing on this issue, we find the evidence ample to support that finding. The greater share of the documentary evidence bearing upon this issue buttresses the testimony of the plaintiff regarding the original contract.

There is sufficient evidence to support both the plaintiff’s version of the contract for transportation and storage and the finding that Greyvan Lines breached its contract, first, by not placing the goods in its own warehouse in Buffalo, and, secondly, by not storing them in a fireproof warehouse. This breach of the contract is sufficient to hold Greyvan Lines responsible for plaintiff’s loss. (Mortimer v. Otto, 206 N. Y. 89; 6 Am. Jur., Bailments, § 228, pp. 333-334; 56 Am. Jur., Warehouses, § 154, pp. 392-393; Note, 12 A. L. R. 1322; Note, 17 A. L. R. 979.) “ The rule is particularly applicable where the change of the [136] place of storage subjects the goods to a greater risk than contemplated by the contract of the parties.” (56 Am. Jur., Warehouses, § 154, p. 393.)

Assuming the contract, the breach as regards storage is conceded. However, Greyvan Lines urges that plaintiff waived any breach of the contract when he received the first statement for storage from Daley and later learned his goods were being-stored by Daley. There can be no waiver until the facts which are being waived are known to the person to be charged with the waiver. Under the circumstances of this case it seems certain that plaintiff never intentionally waived a known fact, as he never learned that Greyvan Lines had subjected his goods to a risk not contemplated by the contract. It was impossible for him to acquiesce in or ratify that of which he did not have knowledge.

As to the cause of action in fraud, we feel the plaintiff is weak in his proof offered to establish the necessary requisites. That the terms of the agreement were not carried out, there is no question, but doubt remains as to the intent with which any alleged misrepresentations by the representatives of Greyvan lines were made. In any event, as the plaintiff has established a cause of action against Greyvan Lines for breach of contract, the issue of fraud assumes considerably less materiality or importance.

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Miller v. Greyvan Lines, Inc., 284 A.D. 133 (N.Y. Ct. App. 1954).

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