Omaha Elevator Co. v. Chicago, Burlington & Quincy Railroad

178 N.W. 211, 104 Neb. 566, 1920 Neb. LEXIS 217
CourtNebraska Supreme Court
DecidedMay 15, 1920
DocketNo. 20832
StatusPublished
Cited by6 cases

This text of 178 N.W. 211 (Omaha Elevator Co. v. Chicago, Burlington & Quincy Railroad) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Omaha Elevator Co. v. Chicago, Burlington & Quincy Railroad, 178 N.W. 211, 104 Neb. 566, 1920 Neb. LEXIS 217 (Neb. 1920).

Opinion

Rose, J.

This is a suit , in the nature of a hill of interpleader. The subject of litigation is a fund of $2,582.95, the proceeds of a ear of corn loaded at La Platte, Nebraska, received there by the Chicago, Burlington & Quincy Railroad Company, carrier, from H. Rohn, consignor, consigned to the Dawson Crain Company, Omaha, Nebraska, transported to Omaha by the carrier, and unloaded by the Omaha Elevator Company, plaintiff, at its elevator in Council Bluffs. Plaintiff claims no interest in the consignment beyond the right to retain the customary charges for elevator services. After the corn became the subject of controversy, plaintiff brought into court in this' action as defendants the rival claimants and other parties, pleading a willingness, upon an adjudication of their rights, to turn over to the owner the fund derived from an authorized sale; the proceeds, by agreement of all concerned, being held by plaintiff in lieu of the corn. The claimants are the Dawson Crain Company, consignee, and the Chicago, Burlington & Quincy Railroad Company, carrier. The controversy between them grew outuf conflicting orders relating to the carrier’s disposition or delivery of the car at Omaha.

[568]*568The transactions through which the consignee traces the title to the corn and to the proceeds in the hands of plaintiff may be summarized as follows: Walter F. Dawson, a dealer in grain in the name of the Dawson Grain Company, consignee, was a jnember of the Omaha Grain Exchange. On the trading floor thereof, before procuring the bill of lading, Dawson conditionally sold the car of corn to William R. Richter, also a member of the Omaha Grain Exchange, doing business as the United States Commission Company. Under the rules of the Omaha Grain Exchange, Richter gave Dawson a. receipt containing an agreement; that the title to the bill of lading and to the contents of the car should pass to Richter only upon a surrender of the receipt and full payment of the purchase price, though the terms of the sale were not publicly recorded. Following the sale the carrier was directed in writing by Dawson to switch the car to the order of Richter, “bill of lading to follow.” Richter authorized the Albers Commission Company to resell the corn, and to that end, under authority from the latter, the carrier was directed by plaintiff to deliver the car to it. In compliance with this direction, the carrier, without the surrender of the bill of lading, switched the car to a transfer track in Omaha, whence it was taken by the Union Pacific Railroad Company to plaintiff’s elevator at Council Bluffs and there unloaded. Dawson insists that he procured the corn from Rohn by purchase, did mot receive the purchase price after he sold it to Richter or part with his title, never lost his right to assert his ownership, and is entitled to the proceeds.

The other claimant, the carrier, contends that it is not bound by any rule of the Omaha Grain Exchange, or by any undisclosed condition of the sale by Dawson to Richter. The carrier relies in part on orders, transactions and facts which, for the purposes of one phase of the case, may be summarized as follows : Richter purchased the car of corn from Dawson, procured the bill [569]*569of lading, directed the carrier in writing to divert the consignment to Chicago, “notify the Updike Commission Company,” and demanded what is termed an “order hill of lading,” which the carrier issued in exchange for the surrendered original hill of lading, and delivered the order hill of lading to Richter, who indorsed it, attached it to a draft for $2,800, which was mailed to Chicago for collection and there paid by the Updike Commission Company. The car of corn was never diverted or shipped to Chicago. The Updike Commission Company sued the carrier for the loss, and recovered a judgment, which the carrier paid in full. The carrier contends that the title to the corn passed to the Updike Commission Company in the manner described, that the latter is entitled to the protection of a bona fide purchaser, and that the carrier is subrogated to the rights of the Updike Commission Company.

The facts on ' which the rival claimants base their claims are alleged in detail and traversed by formal pleas. The carrier also pleads other facts to show that its loss is recoverable from plaintiff, if it is not protected by the fund in controversy; but these pleas will be omitted here and considered later in proper order to prevent the confusion of complicated issues. The evidence in material respects is practically without conflict. The trial court found all of the issues in favor of plaintiff and of defendant Dawson. The carrier has appealed.

Who has the better claim? Who shall suffer the loss occasioned by Richter’s double-dealing which resulted in the unloading of the car at plaintiff’s elevator and in the issuing of an order bill of lading for the purpose of diverting the original consignment from Omaha to Chicago? Who first learned of the dual orders? Who trusted the perpetrator of the fraud? Who could have prevented the loss?

By means of the receipt, Dawson retained in himself the title to the original bill of lading and to the contents [570]*570of the car, when he sold Ms corn to Richter. Under the terms of the sale, title conld pass only upon payment of the purchase price in full. These terms of the sale complied with the' rules of the Omaha Grain Exchange and-bound both parties, who were members thereof. The purchase price was never paid to Dawson, nor to any one for Mm. As between him and Richter.the title remained in the former. Is either the Updike Commission Company or the carrier entitled to the protection of an innocent purchaser? The original bill of lading, when surrendered by Richter to the carrier under the circumstances, the order by him to divert the original consignment to Chicago, the issuance of the order bill of lading, and the making and the paying of the draft, did not necessarily destroy Dawson’s title to the corn, nor make the Updike Commission Company or the carrier an innocent purchaser. A bill of lading is a carrier’s receipt for property and a contract to carry and deliver it. It is not the consigned property, nor the title thereto, nor a negotiable instrument. It is evidence of ownership-in the hands of the holder, but does not preclude inquiry into the circumstances under which it is transferred or surrendered. Without the receipt or possession of property to transport, or to divert beyond the original destination, there can be no valid bill of lading. The liability of a carrier for the transportation and delivery of property does not attach until it receives the property. Chicago, B. & Q. R. Co. v. Powers, 73 Neb. 816; Burrowes v. Chicago, B. & Q. R. Co., 85 Neb. 497. It follows that, after a carrier has transported property and permanently lost possession and control of it by delivery under the original bill of lading, a subsequent bill of lading issued by the same carrier for the purpose of diverting the original consignment to a different destination is void. “The receipt of the goods,” said the supreme court of the United States, “lies at the foundation of the contract to carry and deliver. If no goods are. actually received, there can be no valid contract to carry [571]*571or to deliver.” Pollard v. Vinton, 105 U. S. 7; St. Louis I. M. & S. R. Co. v. Knight, 122 U. S. 79; Crenshawe v. Pearce, 37 Fed. 432;

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Cite This Page — Counsel Stack

Bluebook (online)
178 N.W. 211, 104 Neb. 566, 1920 Neb. LEXIS 217, Counsel Stack Legal Research, https://law.counselstack.com/opinion/omaha-elevator-co-v-chicago-burlington-quincy-railroad-neb-1920.