Nationwide Logistics, Inc. v. Condor Transport, Inc.

606 S.E.2d 319, 270 Ga. App. 277, 2004 Fulton County D. Rep. 3601, 2004 Ga. App. LEXIS 1403
CourtCourt of Appeals of Georgia
DecidedNovember 1, 2004
DocketA04A1410
StatusPublished
Cited by5 cases

This text of 606 S.E.2d 319 (Nationwide Logistics, Inc. v. Condor Transport, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nationwide Logistics, Inc. v. Condor Transport, Inc., 606 S.E.2d 319, 270 Ga. App. 277, 2004 Fulton County D. Rep. 3601, 2004 Ga. App. LEXIS 1403 (Ga. Ct. App. 2004).

Opinion

Barnes, Judge.

Condor Transport, Inc. (“Condor”) sued Nationwide Logistics, Inc. (“Nationwide”), for breach of contract alleging that Nationwide had failed to pay $46,791.48 in freight charges. Nationwide answered and counterclaimed seeking indemnification for the loss of a trailer of breakfast cereal valued at $57,919.69 that was transported by Condor. Nationwide also filed a third-party complaint against Freight Handlers, Inc., the company Condor contracted with for trailer handling services, but subsequently voluntarily dismissed this complaint against Freight Handlers without prejudice. The parties filed cross-motions for summary judgment, and following a hearing on the motions, the trial court granted summary judgment in favor of Condor, and Nationwide now appeals. We discern no error, and affirm.

A trial court properly grants summary judgment when there is no issue of material fact and the record demonstrates that the moving party is entitled to judgment as a matter of law. See Columbus Clinic v. Liss, 252 Ga. App. 559, 562 (556 SE2d 215) (2001). “On appeal, we review the trial court’s grant of summary judgment de novo to determine whether the evidence of record, viewed in a light most favorable to the nonmoving party, demonstrates any genuine issue of material fact.” (Citation omitted.) Id.

So viewed, the record reflects that Nationwide is a “third-party logistics provider” and freight broker. In its function as a freight broker it hires third-party carriers to transport goods for other companies. Food Lion is one of the companies that used Nationwide to broker the delivery of loads from its vendors to its distribution centers.

Condor is an interstate contract and common carrier, and had contracted with Nationwide since 1999 as a third-party carrier. Condor, per the “Motor Transportation Contract” with Nationwide, *278 provided transportation services for Nationwide on behalf of Nationwide’s consignors, including Food Lion. On March 24, 2000, Condor picked up a load of cereal from a Kellogg facility in Fairburn, Georgia, and transported it to a facility in Florida. Food Lion was the consignor. Upon arrival in Florida, Condor left the trailer of cereal at the designated storage yard that was operated by Freight Handlers, and put the paperwork in a drop box. The trailer was subsequently stolen, and although it was later recovered, the cereal, valued at $57,919.69, was missing. When Nationwide inquired about the missing cargo, Condor informed it that the cereal had been dropped off at the designated location, and that the bill of lading was left in a drop box at the facility. The bill of lading was not located, and when personnel could not find the cargo, Nationwide determined that the load “had not been delivered or was stolen,” and planned to file a claim against Condor. Although Nationwide’s policy was to “file the claim with the carrier immediately,” it did not file a claim for the missing goods until almost seven months later, on October 19, 2000. In the interim, Nationwide paid Food Lion on its claim for the stolen cereal.

In the months following the theft, Condor continued to transport goods for Nationwide until November 27, 2000, and accrued freight charges of $46,791.48. Nationwide, however, refused to pay Condor the freight charges because of the $57,919.69 claim for the loss of the cereal. Condor filed this action to recover the freight bills, alleging breach of contract, breach of the property brokers’ regulations, and money had and received. Nationwide answered, denying that it owed the charges, and asserting a counterclaim for the value of the stolen or lost cereal.

In granting summary judgment to Condor, the trial court found that the brokerage contract,

imposes two unambiguous conditions precedent on Nationwide’s right to recover indemnity from Condor. First, [Nationwide] must submit a written claim to Condor within ninety (90) days of the loss, damage or delay involving cargo in order to preserve its right to recover indemnity. Second, Nationwide may offset a cargo loss claim against freight charges owed to Condor only if the cargo claim has not been resolved within ninety (90) days of the date Nationwide submits its written claim to Condor and if Nationwide provides written notice to Condor by certified mail of its intent to use the cargo loss claim to offset the freight charges owed to Condor.

*279 Nationwide failed to do either, and the court held that “[u]nder Missouri law, failure of a condition precedent prevents the nonperforming party from enforcing the terms of an agreement.” Thus, Nationwide’s claim for indemnity failed as a matter of law.

The construction of a written contract is generally a matter for the trial court to decide as a matter of law. Peachtree on Peachtree Investors v. Reed Drug Co., 251 Ga. 692, 694 (1) (308 SE2d 825) (1983). On appeal of such contract construction by the trial court, we conduct a de novo review of the legal issues. Tachdjian v. Phillips, 256 Ga. App. 166, 168 (568 SE2d 64) (2002).

1. Nationwide first argues that the trial court erred in granting summary judgment because the evidence demonstrates that Condor failed to deliver the cereal and was therefore liable for the loss.

Nationwide brought its counterclaim for indemnification and breach of contract pursuant to the terms of the brokerage contract. The contract held in pertinent part that,

[Condor] agrees to indemnify and hold [Nationwide] harmless from all losses, damages, claims, or liabilities (including attorney’s fees) that arise from the performance of transportation services hereunder by [Condor], unless such losses, etc., arise exclusively as a result of the negligence of [Nationwide].

Condor’s liability for the loss is wholly irrelevant to whether Nationwide would be indemnified. The contract only stipulates that liability could not exclusively lie with Nationwide, and here, it is undisputed that Nationwide had nothing to do with the loss. Condor had a duty to indemnify regardless of its liability, and accordingly, the trial court did not err for failing to make a finding on the issue of Condor’s liability. See generally Edwards Bros., Inc. v. Overdrive Logistics, 260 Ga. App. 222 (581 SE2d 570) (2003).

2. Nationwide also argues that the trial court erred in finding that it had failed to file a timely claim for the lost cereal. We do not agree.

The contract stipulated that,

[i]t is further understood and agreed that all commodities transported under the terms and in accordance with this Agreement shall be transported in accordance with the rates, charges, rules and regulations as set out in the Schedule of Actual Rates and Charges (the “Schedule”) applying to the commodities herein, attached hereto as Exhibit “A” and incorporated herein by reference, and all supplements thereto and reissues thereof.

*280 Under the terms of the Schedule, “[a] claim for loss, damage, or delay to cargo totaling in excess of $ 100.00 will not be voluntarily paid by [Condor], unless filed in writing, as provided in subparagraph (b) below, with carrier, within 90 days.” (Emphasis supplied.)

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606 S.E.2d 319, 270 Ga. App. 277, 2004 Fulton County D. Rep. 3601, 2004 Ga. App. LEXIS 1403, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nationwide-logistics-inc-v-condor-transport-inc-gactapp-2004.