Norfolk Terminal Corp. v. United States Lines, Inc.

205 S.E.2d 400, 215 Va. 80, 1974 Va. LEXIS 235
CourtSupreme Court of Virginia
DecidedJune 10, 1974
DocketRecord 730578
StatusPublished
Cited by3 cases

This text of 205 S.E.2d 400 (Norfolk Terminal Corp. v. United States Lines, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Norfolk Terminal Corp. v. United States Lines, Inc., 205 S.E.2d 400, 215 Va. 80, 1974 Va. LEXIS 235 (Va. 1974).

Opinion

Cochran, J.,

delivered the opinion of the court.

On November 14, 1969, the PIONEER CRUSADER, a ship operated by United States Lines, Inc. (U. S. Lines), sailed from Norfolk, leaving on the pier a number of cartons of cotton goods owned by Dan River International Corporation (Dan River) which had been booked for the voyage. After paying Dan River the sum of $4,756.81 in settlement of its claim for non-delivery of the cartons to its consignee in Hong Kong, U. S. Lines filed a motion for judgment against Norfolk Terminal Corporation (NTC) seeking reimbursement for this payment.

The motion for judgment alleged that U. S. Lines’ failure to load the goods on board the PIONEER CRUSADER was caused by the negligence of NTC in failing to notify U. S. Lines that the cartons had been received by NTC and in failing to deliver the cartons to U. S. Lines for loading onto the ship. When this action came to trial, the amount in controversy was reduced to $3,786.60 because U. S. Lines conceded that three of the undelivered cartons could not be charged to NTC, the claimed value of each carton, including freight, being $323.40. The trial court, sitting without a jury, heard the evidence and entered judgment in favor of U. S. Lines for the amount claimed, with interest and costs. We granted NTC a writ of error to the judgment order.

The shipment of cotton goods was the subject of a contract of carriage between Dan River and U. S. Lines. A “Booking Memo” dated November 5, 1969, shows that U. S. Lines had booked 351 cartons of Dan River’s cotton piece goods for carriage to Hong Kong on the PIONEER CRUSADER. The memo provided that Dan River was to “stuff” (load) the cartons into five shipping containers at its plant in Danville and to ship the loaded containers by motor carrier to NTC’s terminal in Norfolk. If the five containers did not accommodate all the cartons, Dan River was to ship the excess cartons to the terminal for stuffing.

Wilson Babb, Assistant Manager of the Norfolk office of U. S. Lines at the time of the shipment, testified that U. S. Lines was able to provide Dan River with only three containers. Dan River stuffed the containers, sealed them, and shipped them to the NTC terminal via Old Dominion Freight Line, a motor carrier. *82 NTC received the containers and placed them berthside on its pier; U. S. Lines then loaded the containers on board the PIONEER CRUSADER.

On November 12, 1969, Dan River loaded the excess cartons into two trailers, which Old Dominion hauled to Norfolk. The first trailer arrived at NTC’s terminal at 11:45 a.m. on November 13, 1969, and was unloaded on the pier between 1:30 p.m. and 4:30 p.m. NTC stuffed the cartons into three containers, which were loaded by U. S. Lines onto the PIONEER CRUSADER.

The second Old Dominion trailer also arrived at the terminal on November 13, 1969. Twenty cartons were unloaded from this vehicle onto the pier in the vicinity of the other cartons between 2:30 p.m. and 3:00 p.m.

When the PIONEER CRUSADER arrived in Hong Kong, the consignee reported to Dan River that its shipment was short by 26 cartons. Dan River discovered that it had failed to load three cartons in Danville but made claim against U. S. Lines for the remaining 23 cartons. Two of the undelivered cartons were found in the possession of Old Dominion and one other carton was, by U. S. Lines’ concession, not chargeable to NTC. This left 20 cartons in controversy, of which 18 cartons were found in the NTC warehouse after the short shipment had been reported. Dan River credited U. S. Lines with the salvage value of these 18 cartons.

Both U. S. Lines and NTC appear to have assumed throughout this litigation that the 20 cartons unloaded from the second Old Dominion trailer onto the pier at the NTC terminal were never loaded on board the PIONEER CRUSADER. This assumption is not entirely correct. Each of the cartons was numbered. A comparison of these carton numbers with the numbers on cartons reported undelivered in Hong Kong shows that the carton numbered 389934, listed as one of the 20 cartons unloaded from the second Old Dominion trailer at the NTC terminal, was not reported undelivered by the consignee in Hong Kong. Hence, this carton was apparently stuffed into a container with other cartons from the first Old Dominion trailer and delivered as required in Hong Kong. The numbers on the remaining 19 cartons unloaded from the second Old Dominion trailer appear on the list of cartons reported undelivered in Hong Kong. It thus appears that 19 of the 20 cartons remained on the NTC pier *83 when the PIONEER CRUSADER sailed from Norfolk. The evidence shows that there was room for these cartons in the containers in which the cartons from the first trailer were stuffed.

W. F. Morris, who was a loading checker employed by NTC in November, 1969, testified that, while he and another employee were stuffing into three containers the cartons unloaded onto the pier from the first Old Dominion trailer, he noticed the 20 cartons from the second trailer lying nearby and inquired whether they should be stuffed also. Morris said that he was specifically instructed by an unidentified person that the 20 cartons were not to be stuffed.

There was no direct evidence that U. S. Lines had ordered NTC to stuff Dan River’s cartons into containers. Old Dominion’s waybill shows that the word “stuffed” is hand printed next to the signature of the NTC employee who received the 20 cartons, but the word “stuffed” does not appear on NTC’s copy of the waybill. U. S. Lines’ copy of the cargo list contains a typewritten statement that five containers were expected from Dan River and the hand printed note: “REST OF CARGO VIA OLD DOMINION TO BE STUFFED.” The hand printed note does not appear on NTC’s copy of the cargo list.

U. S. Lines issued an Ocean Bill of Lading to Dan River covering the six containers loaded on board the ship, stating that they were “said to contain 351 ctns cotton/polyester piece goods.” The carrier did not learn of the loose cartons on the pier until the ship had off-loaded at Hong Kong. John Cole, Pier Superintendent for U. S. Lines, testified that, although he worked in the berthside area of the pier, he had never noticed the 20 cartons. He further testified that he would not have looked for the cartons because the cargo list, from which he worked, showed that Dan River’s goods would be shipped in containers.

NTC’s first argument is that U. S. Lines cannot recover because the carrier acted as a volunteer when it paid Dan River’s claim. If U. S. Lines was not legally liable for the claim, but paid it out of a spirit of generosity or a feeling of moral responsibility, then the carrier has suffered no legally cognizable damages. See City of Richmond v. Hanes, 203 Va. 102, 108, 122 S.E.2d 895, 900 (1961). Since the evidence shows that one of the 20 cartons in controversy was delivered to Hong *84 Kong, U. S. Lines acted as a volunteer in paying for the alleged loss of this carton, and cannot properly claim reimbursement for it.

U. S. Lines was liable to Dan River for non-delivery of the remaining 19 cartons if the 20 cartons in controversy were delivered to U. S. Lines and accepted by the carrier for transport.

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Bluebook (online)
205 S.E.2d 400, 215 Va. 80, 1974 Va. LEXIS 235, Counsel Stack Legal Research, https://law.counselstack.com/opinion/norfolk-terminal-corp-v-united-states-lines-inc-va-1974.