Otto Gerdau Co. v. Bowne-Morton's Stores, Inc.

208 Misc. 748, 144 N.Y.S.2d 651, 1955 N.Y. Misc. LEXIS 3799
CourtNew York Supreme Court
DecidedOctober 5, 1955
StatusPublished
Cited by2 cases

This text of 208 Misc. 748 (Otto Gerdau Co. v. Bowne-Morton's Stores, Inc.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Otto Gerdau Co. v. Bowne-Morton's Stores, Inc., 208 Misc. 748, 144 N.Y.S.2d 651, 1955 N.Y. Misc. LEXIS 3799 (N.Y. Super. Ct. 1955).

Opinion

Tilzer, J.

The plaintiff sues for negligence in connection with the storing of certain merchandise at the defendant’s warehouse. The first cause of action concerned the shipment of chilies; the jury returned a verdict in favor of plaintiff in the sum of $5,970.31. The second cause of action was in negligence and concerned a shipment of tumeric. The verdict of the jury was in favor of the defendant. No motion to set aside the verdict was made as to the second cause of action, and accordingly this opinion concerns itself merely with the first cause of action (chilies).

The plaintiff, an importer of spices, ordered about 200 bags of chilies from Japan by cable or purchase invoice. The chilies were shipped from Kobe, Japan, in December, 1950, aboard the SS Flying Clipper, and arrived on Pier 7, Bush Terminal Dock, on February 7, 1951. The peppers were not purchased by sample, nor were they inspected prior to their shipment in Kobe, Japan, nor when they arrived on February 7,1951.

When the chilies arrived in New York, they were inspected by the Federal government pursuant to the provisions of title 21 (§ 334; § 342, subd. [a]) of the United States Code). Apparently [750]*750the type of inspection and the number of bags actually inspected is determined by the customs inspectors, depending, of course, upon the exigencies of each case, and more specifically depending upon how busy the customs men happen to be at that time.' In the instant case they inspected 5% of the 200 bags involved and apparently found them to be in good condition. They ordered the entire shipment released, and on February 19, 1951, the merchandise was delivered to the defendant corporation, which maintained the warehouse. At that time the property in the bags was not examined by the plaintiff or the defendant.

On August 8, 1954, the New York City department of health, upon investigation, found that 78 of the bags which were in a duty-paid status were infected, and accordingly detained them pursuant to the Federal Food, Drug, and Cosmetic Act. (U. S. Code, tit. 21, § 301 et seq.) Eventually this lot of 78 bags and the remainder of the bags of chilies, 99, which were stored “ in bond ’’were all seized. The 78 bags in duty-paid were destroyed by the United States Government and the 99 bags ‘ in bond ’ ’ were sold outside of the United States and shipped outside of the United States.

The only question which concerned the court at this time is whether the proof established that the bags of chilies were received by the defendant in good condition. The plaintiff relies upon the following circumstances to establish its case: (1) a clean warehouse receipt; (2) direct testimony of sampling by the United States authorities of 10 bags; (3) testimony that 22 bags in this lot were sold and shipped by the defendant corporation to people outside the country, that they were accepted and no complaint was made with respect to these 22 bags.

The court, at the end of the plaintiff’s case and at the end of the entire case and when the verdict was returned in favor of the plaintiff, expressed grave doubt as to whether the plaintiff had sustained the proof which it is required to establish.

The clean warehouse receipt referred to by the plaintiff surely cannot establish that the merchandise in these bags was in good condition. Obviously they were not inspected by either the plaintiff or the defendant, and the warehouse receipt provides as follows: “In apparent good order except as noted (contents, weight, condition and quality unknown);” Thus, plaintiff’s contention that this was a clean warehouse receipt has absolutely no significance except that there was nothing visible from the outside which would indicate that there was anything wrong with the contents of these bags. The receipt specifically provided [751]*751that the quality of the contents was unknown. In the instant case, as the discussion in this opinion will later show, these chilies were subject to contamination by a number of causes. The expert opinion in this case clearly supported the theory that they could have been contaminated in Japan from whence they came, during the trip on board the steamship, or while on the pier (all before the defendant corporation came into possession of these bags).

The sampling of 10 bags does not establish that all of the bags were in good condition at that time. Indeed, there is evidence which indicates that a proper sampling may not have revealed anything wrong with the merchandise, although in fact the merchandise had been contaminated before that time. The bags were large and weighed 200 pounds. The sampling involved the extracting of a few unknown pounds from a bag of 200 pounds. However, if we assume that the 10 bags were in good condition at the time they were received by the defendant, this is proof merely that the bags examined were in good condition. Similarly, if we accept the evidence which established that 22 bags were shipped from the defendant corporation to various customers and no complaints received as evidence that these 22 bags were in good condition, it would merely establish that the 22 bags involved were in good condition.

In a similar case the United States Court of Appeals, Fifth Circuit, in deciding the case of Reider v. Thompson (197 F. 2d 158, 161) said: “ Evidence was introduced to show that the exterior of the boxes was in good condition and that there were no water stains apparent at the time of the issuance of the bill of lading and transshipment. The bill of lading recited receipt in ‘ apparent good order ’, but that the ‘contents and conditions of contents of packages [were] unknown These provisions are considered to relate to the external conditions of the packages and do not establish the condition of the contents ” citing The Dondo (287 F. 239) and The Niel Maersk (91 F. 2d 932) to the same effect.

The courts have always held that the sufficiency of evidence is for the court to decide as a question of law. Accepting all of the plaintiff’s evidence as true and drawing every favorable inference that the court or jury could have drawn from the evidence adduced, the totality of the evidence was insufficient to establish that the merchandise received by defendant was in good condition. Proof that 10 bags were in good condition is not proof that the entire number, or 199 bags, were in good condition.

[752]*752The recovery in the instant case excludes the 22 bags delivered outside the country. It is entirely probable that some or all of the 10 bags were included in the lot of 22 bags.

The law is clear that the plaintiff has the burden of proving negligence in this case. Ordinarily a bailor relies upon the presumption in his favor created by proving the delivery of his merchandise in good order to the bailee and the bailee’s failure to return it in good order to the bailor. It is incumbent upon the defendant, then, to offer by way of overcoming the presumption the showing by the defendant of the exercise of such care and diligence to avoid the damage entailed as a prudent person would have taken in the storage of his own merchandise. The plaintiff’s burden to establish his case by a fair preponderance of evidence never shifts. It is with the plaintiff at all times.

It cannot be doubted that the first essential to the plaintiff’s' recovery is proof of delivery of sound merchandise to the defendant (see cases cited).

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Bluebook (online)
208 Misc. 748, 144 N.Y.S.2d 651, 1955 N.Y. Misc. LEXIS 3799, Counsel Stack Legal Research, https://law.counselstack.com/opinion/otto-gerdau-co-v-bowne-mortons-stores-inc-nysupct-1955.