Neuss, Hesslein & Co. v. Louisville & Nashville R.

59 So. 2d 195, 221 La. 296, 1952 La. LEXIS 1201
CourtSupreme Court of Louisiana
DecidedApril 28, 1952
DocketNo. 40314
StatusPublished
Cited by2 cases

This text of 59 So. 2d 195 (Neuss, Hesslein & Co. v. Louisville & Nashville R.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Neuss, Hesslein & Co. v. Louisville & Nashville R., 59 So. 2d 195, 221 La. 296, 1952 La. LEXIS 1201 (La. 1952).

Opinion

FOURNET, Chief Justice.

This case is before us on certiorari to review the judgment of the Court of Appeal, Parish of Orleans, affirming the judgment of the district court (1) maintaining a plea of prescription under the provisions of Act 223 of 1914, LSA-R.S. 45:1100, and dismissing plaintiff’s claim for $1,308 against the defendant, Louisville & Nashville Railroad Company, due to the loss 6f goods shipped by plaintiff from Alabama for carriage by defendant railroad and delivery for export via defendant United [300]*300Fruit Company at New Orleans; and also (2) dismissing, on the merits, the plaintiffs alternative claim for the said loss against the defendant United Fruit Company. See La.App., 50 So.2d 855.

The plaintiff, on April 17, 1942, delivered to the railroad at Speigner, Alabama, for transportation under a contract evidenced by bill of lading, five bales of unfinished cotton goods, consigned to a freight forwarding agency at New Orleans, W. L. Eicheson & Sons, for the account of plaintiffs. That agency, upon being advised of the arrival of the goods at New Orleans, instructed the railroad to deliver the shipment to United Fruit Company 'at its wharf for transportation to Panama; however, according to the facts found by the District Court and the Court of Appeal, the goods were never delivered to United Fruit C&mpany. Claim for nondelivery and loss of the merchandise was duly filed, within the period prescribed in the bill of lading, with the railroad company on November 17, 1942. The claim was declined on October 2, 1944, and this suit was instituted on November 29, 1944.

The applicable section of the Interstate Commerce Act, as amended by the Transportation Act of 1920, c. 91, Secs. 434-438, 41 Stat. 456, 494, 49 U.S.C.A. § 20(11), as amended, provides that “Any common carrier, railroad, or transportation company subject to the provisions of this chapter receiving property for transportation from a point in one State * * * 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 * * * and no contract, receipt, rule, regulation, or other limitation-of any character whatsoever shall exempt such common carrier, railroad, or transportation company from the liability imposed; * * * 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 in this case, labeled “Uniform Straight Bill of Lading,” issued in conformity with the foregoing provisions, contains this stipulation: "As a condition precedent to recovery, claims must be filed in writing with the receiving or delivering carrier, or carrier issuing this bill of lading, or carrier on whose line the loss, damage, injury or delay occurred, within nine months after delivery of the property * * * and suits shall be instituted against any carrier only within two-years and one day 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 [302]*302thereof specified in the notice. Where claims are not filed or suits are not instituted thereon in accordance with the foregoing provisions, no carrier hereunder shall be liable, and such claims will not be paid.” (Italics ours)

The defendant railroad, nevertheless, relying on the cases of Louisiana & Western Railroad Co. v. Gardiner, 273 U.S. 280, 47 S.Ct. 386, 71 L.Ed. 644, and Paul Klopstock Co. v. United Fruit Co., 177 La. 811, 149 So. 462, contends that the federal act is not a statute of limitation but only restricts the freedom of carriers to fix the period within which suit can be brought, and therefore Act 223 of 1914 (now incorporated in Louisiana Statutes Annotated — ’Revised Statutes of 1950, Sec. 45:1100) is controlling. The pertinent language of that statute is that “all actions * * * against common carriers * * * for loss of or damage to shipments of freight, shall be prescribed by the lapse of two years, from the date of shipment.”

While the two cases relied on by the defendant declare that the provision quoted supra from the Transportation Act is not a statute of limitation, a careful examination discloses that they are not applicable from a factual standpoint and therefore not necessarily controlling. In the Gardiner case the railroad company, in its bills of lading, undertook to restrict the time for institution of suits to a shorter period than provided in the Transportation Act, and the Supreme- Court of the United States held the stipulations to be illegal and ineffective and therefore applied the state statute of limitation. The Klopstock case presented the same factual situation, see 171 La. 296, 131 So. 25, when the appeal was first considered by this Court, and therefore the holding in the Gardiner case was properly followed. However, the observation in the opinion on second appeal that “regardless of the character of the shipment, whether made within the intendment of the Interstate Commerce Act or otherwise, Act No. 223 of 1914 is applicable and the defendant’s plea of prescription should be maintained”, [177 La. 811, 149 So. 463.] was not necessary to a decision of the case and is not controlling. Moreover, it is not supported by law, logic, or sound reasoning.

By execution of the bill of lading covering the shipment here involved, the plaintiff entered into a contract with the defendant carrier in strict accordance with the Act of Congress, the power of which to regulate commerce between the states is supreme. Art. I, Sec. 8, Constitution of the United States. The contract therefore has the effect of law and is binding on the parties, and the validity of the limitation imposed is a federal question, Chesapeake & O. R. v. Martin, 283 U.S. 209, 51 S.Ct. 453, 75 L.Ed. 983 to be determined under the general common law, and, as such, is withdrawn from the field of state law or legislation. Missouri, K. & T. R. Co. v. Harriman Bros., 227 U.S. [304]*304657, 33 S.Ct. 397, 57 L.Ed. 690; Adams Express Co. v. Croninger, 226 U.S. 491, 33 S.Ct. 148, 57 L.Ed. 314; Michigan Central Railroad Co. v. Vreeland, 227 U.S. 59, 33 S.Ct. 192, 57 L.Ed. 417. A mere reading of the provision of the Transportation Act quoted above leads to the inescapable conclusion that Congress clearly intended to allow the parties to such contracts, as a condition precedent to recovery for any loss, damage or injury to the goods, to fix a period within which claims must be filed and suits instituted; and while the Congress did not see fit, as it did in the case of complaints filed before the Commission, Sec. 16, Interstate Commerce Act, as amended, 49 U.S.C.A.

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Cite This Page — Counsel Stack

Bluebook (online)
59 So. 2d 195, 221 La. 296, 1952 La. LEXIS 1201, Counsel Stack Legal Research, https://law.counselstack.com/opinion/neuss-hesslein-co-v-louisville-nashville-r-la-1952.