Pennsylvania Railroad v. Lord & Spencer, Inc.

3 N.E.2d 231, 295 Mass. 179, 105 A.L.R. 1211, 1936 Mass. LEXIS 1085
CourtMassachusetts Supreme Judicial Court
DecidedJuly 11, 1936
StatusPublished
Cited by9 cases

This text of 3 N.E.2d 231 (Pennsylvania Railroad v. Lord & Spencer, Inc.) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pennsylvania Railroad v. Lord & Spencer, Inc., 3 N.E.2d 231, 295 Mass. 179, 105 A.L.R. 1211, 1936 Mass. LEXIS 1085 (Mass. 1936).

Opinion

Rugg, C.J.

This is an action of contract by a common carrier to recover the amount due for freight charges on a shipment of a carload of lettuce from California to Baltimore, Maryland, less the proceeds from the sale of the lettuce in Baltimore. It was agreed at the trial that the [180]*180plaintiff was a common carrier of freight and being the final carrier was the proper party to bring this action, and there is no dispute as to the amount due to it. The only controversy was whether the defendant was a party liable. Material facts were admitted or shown by uncontradicted testimony for the defendant as follows: The shipment was made by the Engebretson Grape Company on May 31, 1930, from California to Toronto,' Canada, consigned to one Charles Cira. On or before June 10, M. L. Catania of Toronto, Canada, telephoned to the defendant in Boston that he had a car of lettuce in Toronto and inquired if the defendant would handle it for his account. The defendant agreed to the proposed reconsignment on conditions that the quality of the lettuce was good and that the defendant was to act as commission agent only. Pursuant to this conversation, the shipment was diverted to Boston consigned to the defendant, the New York, New Haven and Hartford Railroad being the delivering carrier. The shipment arrived in Boston on or about June 14. Meanwhile, the defendant, ón June 10, had given to that railroad notice in writing (containing also its name and place of business and signed by it) of this tenor:

“Special.Notice to NY NH & H RR, at Boston, Mass.
Please take notice that as to Car PFE26761 containing lettuce diverted from Toronto, Canada to us, we are agents only and have no beneficial title in the property contained in the car.
(The following additional information must be given in connection with cars diverted or reconsigned.)
The beneficial owner of the property is M. L. Catania, Toronto, Can.
This notice is given pursuant to the provisions of amended paragraph (2) of section 3 of the Interstate Commerce Act, effective March 4th, 1927.” ■

On the arrival of the lettuce in Boston the defendant in-' spected it, found it to be in poor condition, refused to ac-[181]*181cept it and wired Catania to that effect, who requested the defendant to divert the shipment to George Fava Fruit Company in Baltimore, Maryland. On June 14 instructions were given to the New York, New Haven and Hartford Railroad Company by the defendant that the shipment be so diverted and pursuant to instructions from Catania it sent to that railroad a notice in writing signed by the defendant (containing also its name and place of business) of this tenor:

“This is to confirm telephone conversation with your Mr. Dever today referring to two cars of lettuce now on track billed to us: PFE26761, also PFE20076. Please reconsign these cars immediately to:
George Fava Fruit Co.
Baltimore, Maryland, via Penn R R
All charges to follow the cars.
These cars were forwarded to us by M. L. Catania, Toronto, Canada.”

The shipment was rediverted to Baltimore, where the George Fava Fruit Company refused to take delivery because of the condition of the shipment, and the plaintiff as the delivering carrier sold the shipment in accordance with the bill of lading in order to prevent further deterioration.

At the close of the evidence, motion by the plaintiff for a directed verdict in its favor was granted. It was stipulated by the parties that, if this direction was erroneous in law, final judgment is to be entered for the defendant.

This is an action to recover charges for transportation in interstate commerce. Therefore the issues of law must be decided according to statutes of the United States so far as applicable. Where not governed by such statutes, the rights of the parties depend upon the principles of the common law. The Federal statutes impose no obligation upon a particular party to pay charges for transportation. “As to these matters carrier and shipper were left free to contract, subject to the rule which prohibits discrimination.” [182]*182Louisville & Nashville Railroad v. Central Iron & Coal Co. 265 U. S. 59. American Railway Express Co. v. Mohawk Dairy Co. 250 Mass. 1, 6. See 44 U. S. Sts. at Large, 1447.

The position of the defendant in the case at bar is somewhat anomalous. The goods were consigned to it from Toronto by Catania, but it refused to accept delivery. It gave notice to the railroad of its agency for Catania. Later it directed the reconsignment of the goods to Baltimore. Its liability as consignor and as consignee must be considered. The obligation of the consignor or shipper was discussed in Louisville & Nashville Railroad v. Central Iron & Coal Co. 265 U. S. 59, where it was said at page 67: “Ordinarily, the person from whom the goods are received for shipment assumes the obligation to pay the freight charges; and his obligation is ordinarily a primary one. This is true even where the bill of lading contains, as here, a provision imposing liability upon the consignee.. For the shipper is presumably the consignor; the transportation ordered by him is presumably on his own behalf; and a promise by him to pay therefor is inferred (that is, implied in fact), as • a promise to pay for goods is implied, when one orders them from a dealer. But this inference may be rebutted, as in the case of other contracts. It may be shown, by the bill of lading or otherwise, that the shipper of the goods was not acting on his own behalf; that this fact was known by the carrier; that the parties intended not only that the consignee should assume an obligation to pay the freight charges, but that the shipper should not assume any liability whatsoever therefor; or that he should assume only a secondary liability.” This statement does not differ essentially from that in Union Freight Railroad v. Winkley, 159 Mass. 133, 137-138: “. . . in this Commonwealth, when the vendor of goods delivers them to a railroad to be carried to the purchaser, although the title passes to the purchaser by the delivery to the railroad company, and the name and address of the consignee who is the purchaser is known to the company, the vendor is presumed to make the contract for transportation with the company on his own behalf, and is held liable to the company for the pay[183]*183ment of the freight. This presumption, however, is a disputable one, and may be rebutted or disproved by evidence; and if the vendee has ordered the goods to be sent at his risk and on his account, he also may be held liable, as the real principal in the contract. See Byington v. Simpson, 134 Mass. 169. But whether the presumption be one way or the other, it is a matter of inference from the particular circumstances of the case, and the question which is always to be considered is the understanding of the parties. See Boston & Maine Railroad v. Whitcher,

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Bluebook (online)
3 N.E.2d 231, 295 Mass. 179, 105 A.L.R. 1211, 1936 Mass. LEXIS 1085, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pennsylvania-railroad-v-lord-spencer-inc-mass-1936.