New York & Honduras Rosario Mining Co. v. Riddle Airlines, Inc.

3 A.D.2d 457, 162 N.Y.S.2d 314, 1957 N.Y. App. Div. LEXIS 5702
CourtAppellate Division of the Supreme Court of the State of New York
DecidedApril 30, 1957
StatusPublished
Cited by4 cases

This text of 3 A.D.2d 457 (New York & Honduras Rosario Mining Co. v. Riddle Airlines, Inc.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New York & Honduras Rosario Mining Co. v. Riddle Airlines, Inc., 3 A.D.2d 457, 162 N.Y.S.2d 314, 1957 N.Y. App. Div. LEXIS 5702 (N.Y. Ct. App. 1957).

Opinion

Valente, J.

The plaintiff, in San Salvadore, delivered to Transportes Aereos Nacionales, S. A., a Honduran corporation authorized to fly cargo to the United States (hereinafter referred to as TAN) 25-pound bars of dore bullion — partially processed gold and silver ore —- of a declared or released value of $100, and consigned to the American Smelting Company at Perth Amboy, New Jersey. The actual value of the shipment was in excess of $50,000.

It appears from the testimony that TAN’S certificate of authority to carry freight in the United States did not extend beyond Miami. In instances where TAN undertook to fly cargo beyond Miami it availed itself of the services of connecting [459]*459carriers1 to complete the delivery. In this case it used the Riddle Airlines, Inc., the respondent herein. TAN issued an airway bill which set forth the portion of the journey to be covered by TAN, the portion to be covered by Riddle and fixed the charges for TAN and for Riddle. The charge for the transportation from El Salvador to Miami was at the rate2 of $68.40, which was in accordance with TAN’S filed tariffs. The charge for transportation from Miami to New Jersey by the defendant Riddle was at the rate of $49.74, which TAN collected for Riddle. This rate was'in accordance with Riddle’s weight rate as listed in its tariff but not in accord with its valuation requirement.

It is conceded that while in the custody of Riddle, six of the bars of the value of $27,811.82 were lost in transit from Miami to destination. Plaintiff sued Riddle in contract to recover this sum. At the trial Riddle defended that as an interline carrier for TAN its liability was limited to the value of the shipment declared by plaintiff in TAN’S airway bill, viz., $100. The trial court limited plaintiff’s recovery to $100, from which finding plaintiff appealed to this court.

The record discloses that the plaintiff shipper, the owner and operator of gold and silver mines in South America, negotiated with various airlines with a view to obtaining the lowest possible freight rates for the transportation of its bullion from El Salvador to New York. TAN’S tariff filed with the Civil Aeronautics Board at that time did not permit it to carry the bullion at less than actual value. The plaintiff did not wish to pay transportation based on the actual value of the bullion because it carried separate insurance and its insurance carrier had consented that the bullion be shipped at a reduced value in order that the plaintiff might have the advantage of a lower freight rate. Upon plaintiff’s insistence, TAN amended its tariff so as to make available to its customers a choice of rates. This is reflected in the airway bill that provided: “ (3) A choice [460]*460of rates according to value having been offered, the shipper agrees that the liability (if any) of the Carrier(s) shall in no event exceed the Shipper’s Declared Value for Transportation stated on the face hereof, upon which charges for carriage are partly based, liability for partial loss or damage to be computed pro-rata on the basis of such declared value.”

Following the amendment of TAN’S tariff, a number of shipments were made without incident until the one in issue. The testimony indicates that the fixation and apportionment by TAN of Riddle’s charges in the airway bill was with the knowledge and upon prior approval of Riddle.

There is some evidence of communication between the plaintiff and Riddle as to weight rate but plaintiff’s witness testified that no independent steps were taken concerning the fixation of a charge or rate based on value.

Riddle’s rates, rules and regulations for the transportation of air freight filed with the Civil Aeronautics Board,3 and in effect at the time in question, limited its liability to 50 cents per pound unless a higher value was declared; but as to dore bullion they specifically provided that such cargo would be accepted only if the actual value was declared on the airway bill, in which case transportation charges would be assessed on the weight and the actual value of the shipment.

Thus the provision by TAN in the airway bill for transportation of the bullion by Riddle from Miami to New York at a rate computed on a $100 valuation was not in conformity with Riddle’s tariffs. The issue that we must resolve is whether the provision in TAN’S tariff giving the shipper the choice of fixing a value less than the actual value or the use of a so-called released value inured to the defendant — a connecting carrier.

The learned trial court properly found that the defendant deviated from its tariff provision that dore bullion, “ will be accepted only if the actual value is declared on the airway bill at the time of acceptance ”. However, when it went on to find that, notwithstanding, the released value fixed in the airway [461]*461bill inured to the benefit of the defendant as an agent of the original carrier or as a connecting or terminal carrier, it erred.

TAN’S tariff could inure to Riddle only in the event that an interline agreement between TAN and Riddle was in existence. Such an arrangement contemplates an agreement wherein the carriers agree to act as connecting carriers, each for the other. This arrangement permits a carrier to accept for transportation shipments that are beyond the limits provided in its certificate of authority. However, to be effective, such agreements must be filed with the Civil Aeronautics Board.4 In addition, through rates to the point of destination must be provided in the tariffs as well as charges between intermediate points served by the carriers who are parties to the agreement (see n. 3). Section 221.34 of the Economic Regulations of the Civil Aeronautics Board makes further provision for filing of pooling and other agreements and specifically provides that ‘ the names of all carriers which participate in a tariff shall be shown in alphabetical order in one list with the power of attorney or concurrence number of each carrier shown opposite its name.” The requirements for filing and listing are mandatory.

TAN’S tariff provisions are not in evidence, so there is no way of knowing what they provide, except that TAN’S manager testified that TAN had no through rates or services. There is testimony of the existence of an interline agreement, but no proof that it was in effect at the time of the loss and there is no proof of the existence of any through rates having been authorized, approved or filed by either carrier.

There is no basis upon which the defendant could be considered an agent of TAN, because TAN had no authority to carry beyond Miami. If the shipper authorized TAN to use Riddle’s facilities, that would not permit TAN to fix any rates for Riddle’s services that were different from the rates set forth in Riddle’s tariffs.

The deviation from the filed tariff rates that occurred when Riddle accepted the bullion for carriage under the terms set [462]*462forth in the airway bill is prohibited.5 An air carrier is specifically prohibited from charging or receiving a greater, less or different rate than those specified in its concurrently effective tariffs. The primary purpose of this act is to assure uniformity of rates and services to all persons using the facilities of an air carrier.

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3 A.D.2d 457, 162 N.Y.S.2d 314, 1957 N.Y. App. Div. LEXIS 5702, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-york-honduras-rosario-mining-co-v-riddle-airlines-inc-nyappdiv-1957.