Pennsylvania R. Co. v. Charles E. Gibson, Inc.

23 F. Supp. 857, 1938 U.S. Dist. LEXIS 2073
CourtDistrict Court, E.D. South Carolina
DecidedJuly 6, 1938
DocketNo. 3932
StatusPublished

This text of 23 F. Supp. 857 (Pennsylvania R. Co. v. Charles E. Gibson, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pennsylvania R. Co. v. Charles E. Gibson, Inc., 23 F. Supp. 857, 1938 U.S. Dist. LEXIS 2073 (southcarolinaed 1938).

Opinion

MYERS, District Judge.

On the 17th day of May, 1937, plaintiff instituted this action against the defendant asking judgment for Two hundred and sixty-one and B%oo ($261.59) Dollars.

In the original complaint plaintiff alleged that on May 16, 1934, the defendant shipped over the lines of plaintiff and its connecting carriers from Norman, in Charleston County, South Carolina, certain cabbages to Zimmerman Bros, in Baltimore, Maryland. That the cabbages arrived at Baltimore and were seized by the Government for violation of the Pure Food and Drug Act, 21 U.S.C.A. § 1 et seq., and demurrage accrued. That in accordance with the tariff rates there became due the sum of Two hundred and sixty-one and B9/ioo ($261.59) Dollars. •

It will be seen that at the time of the above suit the three-year Statute of Limitations had almost barred any claim. The defendant claims it was barred. At best there remained only a few hours in which to bring the suit. The defendant filed answer to the complaint and alleged that the cabbages were the property of Zimmerman Bros., and .were known so to be by the plaintiff. That the contract of shipment was not made with plaintiff but with Seaboard Air Line Railway Company, and that there was no privity of contract between plaintiff and defendant, nor is plaintiff the real party in interest or entitled to sue. It plead also the Statute of Limitations.

Subsequently, to wit, on March 4, 1938, plaintiff filed an amended complaint. There plaintiff sets forth that the shipment was delivered to Seaboard Air Line Railway Company at Norman, S. C., for transportation from said point via Seaboard Air Line Railway and connecting carrier and delivery to be made by plaintiff at Baltimore, Md., a copy of the bill of lading being attached to complaint. That there became due the sum of $261.59, etc., “for which sum defendant is liable to plaintiff under said contract of shipment” and under the rules, regulations and Acts of Congress, said rules and regulations to be found in tariffs lawfully published, etc.

This is the substance of the complaint as amended. In the bill of lading attached, the Seaboard Air Line Railway agrees to carry the freight to its usual place of delivery at said destination,—otherwise to [859]*859deliver to another carrier to said destination, etc. The Pennsylvania Railroad is named in said bill of lading as the “delivering carrier”. This designation of route is provided for in Section 15, paragraph 8, of the Transportation Act, 49 U.S.C.A. § 15(8). It does not make the plaintiff a party to the contract.

To this amended complaint, the defendant filed a demurrer on the ground that the complaint did not state a cause of action, in that the contract was made with Seaboard Air Line Railway and not with plaintiff. That plaintiff was only a connecting carrier for said Seaboard Air Line Railway Company, and that any service rendered by plaintiff was rendered to Seaboard Air Line Railway Company; and if plaintiff has any cause of action, same is against Seaboard Air Line Railway Company and not against defendant, who made no agreement with plaintiff whatsoever.

This brings up squarely the issue, can the terminal carrier sue the shipper under the terms of the Transportation Act and the bill of lading in question in this case?

The cabbages were destroyed, and with them went the lien given the terminal carrier by the Transportation Act. Can the terminal carrier, having lost its lien and the remedy given it by law, sue the shipper under the contract of carriage made between the shipper and the initial carrier? [1] What is the legal relationship between the parties? The theory of the Transportation Act seems to be that the terminal carrier is given a lien and that it should collect from the consignee before surrendering its lien.

In Louisville & N. R. R. v. Rice, 247 U.S. 201, 202, 38 S.Ct. 429, 62 L.Ed. 1071, the court says:

“The Interstate Commerce Act requires the carrier to collect and the consignee to pay all lawful charges duly prescribed by the tariff in respect of every shipment.”

It is for this reason that the terminal carrier may sue the consignee. Nor can the consignee plead no privity of contract; because, when the carrier surrenders its lien and delivers goods to the consigneee, it extends its personal credit to consignee and the law implies a contract on the part of the consignee to pay the terminal carrier. Union Pacific R. R. v. American Smelting & Ref. Co., 8 Cir., 202 F. 720; New York Central & H. R. R. Co. v. York & Whitney, 256 U.S. 406, 407, 41 S.Ct. 509, 65 L.Ed. 1016; Galveston, H. & S. A. R. Co. v. Lykes, D. C., 294 F. 968; Pittsburgh, C., C. & St. L. R. Co. v. Fink, 250 U.S. 577, 40 S.Ct. 27, 63 L.Ed. 1151, and other cases.

Nowhere have I found any authority for the proposition that, under the facts of this case, where the lien has never been voluntarily surrendered or the freight delivered, the terminal or delivering carrier may then sue the shipper, with whom it has made no contract, either express or implied. Certain cases cited by plaintiff’s counsel on this point are based entirely on the implied contract arising out of the voluntary surrender of this lien by the terminal carrier.

Under the Transportation Act the contract is between the one interested in the shipment and the initial carrier. Michigan Cent. R. R. v. Mark Owen & Co., 256 U.S. 427, 430, 41 S.Ct. 554, 65 L.Ed. 1032.

In Missouri, K. & T. R. Co. v. Ward, 244 U.S. 383, 386, 37 S.Ct. 617, 61 L.Ed. 1213, the court says in substance:— The purpose of the Act is to create in the initial carrier unity of responsibility for transportation and any provision .in the bill of lading inconsistent is void. The connecting carriers are mere agents, whose duty it is to forward the goods under the contract made by their principal, the initial carrier. See, also, Texas & P. R. Co. v. Leatherwood, 250 U.S. 478, at page 480, 39 S.Ct. 517, 63 L.Ed. 1096.

Plaintiff’s counsel urges that these cases do not apply,—that they refer only to the right to sue the carrier for damages. I do not so construe them. They fix principles. These principles are applicable to the case at bar.

The case of Atlantic Coast Line R. Co. v. Riverside Mills, 219 U.S. 186, at page 208, 31 S.Ct. 164, 55 L.Ed. 167, 31 L.R.A., N.S., 7, suggests that the fixing of the liability of the carrier was not all that might well induce the regulating power of Congress, etc., and refers to the question of joint rates and singleness of charge and continuity of transportation.

The legal status of the parties to this cause being principal and an agent of the initial carrier, what right has the agent of the initial carrier to sue the shipper with whom it made no contract?

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Related

Atlantic Coast Line Railroad v. Riverside Mills
219 U.S. 186 (Supreme Court, 1911)
Missouri, Kansas & Texas Railway Co. v. Ward
244 U.S. 383 (Supreme Court, 1917)
Louisville & Nashville Railroad v. Rice
247 U.S. 201 (Supreme Court, 1918)
Texas & Pacific Railway Co. v. Leatherwood
250 U.S. 478 (Supreme Court, 1919)
Michigan Central Railroad v. Mark Owen & Co.
256 U.S. 427 (Supreme Court, 1921)
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Ouzts v. State Highway Department
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Coral Gables, Inc. v. Palmetto Brick Co.
191 S.E. 337 (Supreme Court of South Carolina, 1937)
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173 S.E. 638 (Supreme Court of South Carolina, 1934)
Lilly v. Railroad Co.
10 S.E. 932 (Supreme Court of South Carolina, 1890)
Union Pac. R. v. American Smelting & Refining Co.
202 F. 720 (Eighth Circuit, 1912)

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Bluebook (online)
23 F. Supp. 857, 1938 U.S. Dist. LEXIS 2073, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pennsylvania-r-co-v-charles-e-gibson-inc-southcarolinaed-1938.