Porter v. Pennsylvania Railroad

217 A.D. 49, 215 N.Y.S. 727, 1926 N.Y. App. Div. LEXIS 7738
CourtAppellate Division of the Supreme Court of the State of New York
DecidedMay 5, 1926
StatusPublished
Cited by5 cases

This text of 217 A.D. 49 (Porter v. Pennsylvania Railroad) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Porter v. Pennsylvania Railroad, 217 A.D. 49, 215 N.Y.S. 727, 1926 N.Y. App. Div. LEXIS 7738 (N.Y. Ct. App. 1926).

Opinion

Davis, J.

In October, 1920, plaintiff had written orders from Fred Morinelli, Jr., for fifteen carloads of grapes. This controversy has arisen over four of these cars. The grapes were shipped from Branchport, N. Y., on order bills of lading, consigned to plaintiff with directions to notify Morinelli and giving him the right to inspect. Delivery was to be at Market House, Philadelphia. Defendant was the terminal carrier. “ Market House ” is a yard, with capacity for sixty-eight cars, where perishable freight may be readily unloaded. Adjacent to this yard is the outer yard where cars arriving may be stored, but not unloaded, until ordered into the Market House by consignees.

There seems to have been no delay in transportation to Philadelphia. The bills of lading did not require the cars to be iced. On arrival they were placed in the outer yard. Notice of arrival was given to Morinelli in the usual manner. Without doubt he received it seasonably. He could have obtained prompt placing of the cars for unloading by giving notice.

Morinelli gave no such notice nor did he refuse to accept the shipments. It appears that he had more cars of grapes there than he could conveniently handle. He was ordering in some cars each day but these were not among the number. One had arrived on November first, and the other, three on November third. Plaintiff received a telegram from Morinelli November eighth stating that two cars were leaking badly and refusing to accept without reduction in price. The next day Morinelli telegraphed that four cars of grapes were leaking and he would accept only on new terms.

Plaintiff went immediately to Philadelphia, inspected the cars, found the grapes in bad condition and gave notice to defendant who brought the cars to the Market House. The grapes were sold on [51]*51November eleventh at the best price obtainable. The defendant had given no notice to plaintiff of non-acceptance or the condition of the grapes. This action is to recover the loss caused by the delay in delivery. On the trial a verdict was directed for plaintiff.

The defendant urges here: (1) The plaintiff is not entitled to sue; (2) defendant discharged its full duty under the contract and there was no duty to notify consignor; (3) it was error to direct a verdict for damages.

The written orders and certain printed terms on the back evidenced the sale. A cash deposit was made for each car, the balance to be paid on draft. The seller was required to reimburse the buyer for defects in quality, but on goods shipped f. o. b. shipping point, the buyer assumed all risk of damage in transit not caused by the shipper. The shipment was deemed to have reached destination when placed on any railroad team track or while awaiting consignee’s order for placing on such track. It was also provided that where delivery of bill of lading or delivery order may be necessary, acceptance of such by the buyer will constitute completion of sale.” The bills of lading with drafts attached were sent to a bank and were not taken up by Morinelli.

The appellant contends that title passed when the shipment was delivered to the carrier, and, therefore, plaintiff has no cause of action. The general rule as between seller and purchaser is that upon the sale of f. o. b. the point of shipment, title passes from the seller at the moment of delivery to the carrier, and the subject of sale is thereafter at buyer’s risk. The reservation by the consignee of the privilege of inspection does not place the goods while in transit at the risk of the consignor, nor is the incidence of risk affected by the right retained by defendant to determine whether the bill of lading should run to consignor or to consignee. (Standard Casing Co. v. California Casing Co., 233 N. Y. 413; Rosenberg Bros. & Co. v. Buffum Co., 234 id. 338; Pennsylvania R. R. Co. v. Bank of United States, 214 App. Div. 410.)

While this is the general rule, the title may not pass if there is a contrary intent in the minds of the parties. (Pers. Prop. Law, § 99.) By the contract of sale, acceptance of the bill of lading constituted completion of the sale.” This implies an intent that payment and the passing of title were to be concurrent. So the parties seemed to have construed it by their acts. Plaintiff recognized MorineUi’s right to reject when he went to Philadelphia, asserted dominion over the property and sold it without objection by the buyer at that time or since. The defendant acquiesced by [52]*52placing the cars on plaintiff’s order and accepting freight charges and collecting demurrage from him. The practical construction of a contract by the parties themselves is always entitled to great weight and may, under certain circumstances, become conclusive. (Carthage T. P. Mills v. Village of Carthage, 200 N. Y. 1; Dworsky v. Herstein, 207 App. Div. 333; Halperin v. McCrory Stores Corp., Id. 448; affd., 239 N. Y. 547.) Even if we regard Morinelli as the consignee, the presumption that he was the owner might be rebutted or overcome. (Sweet v. Barney, 23 N. Y. 335, 337; Levy v. Weir, 38 Misc. 361.) Under the circumstances we may construe the contract as leaving title in the plaintiff. (Clark v. Carolina & Y. R. R. Co., 225 N. Y. 589.) And a consignor, although not the general owner, has sufficient interest in the goods when he has paid for the carriage so that he may maintain an action to protect his rights. (Swift v. Pacific Mail S. S. Co., 106 N. Y. 206, 213.)

It was evidently in the mind of the learned trial justice that defendant had failed in its duty by neglecting to make immediate delivery at the Market House in position to unload. We think this was not an essential cause of plaintiff’s loss. Delivery at the outer yard with readiness to move the shipment promptly to the Market House when ordered, was a substantial performance of the agreement to deliver. (Carrizzo v. New York, S. & W. R. R. Co., 145 App. Div. 566; Pennsylvania R. R. Co. v. Marshall, 147 id. 806.) Morinelli had notice of arrival and was doing nothing to facilitate acceptance. It cannot be said as a matter of law that the failure to place the cars for unloading affected the situation. The deviation in the manner of delivery was too slight to prejudice the plaintiff. (Constable v. National Steamship Co., 154 U. S. 51.) There was no neglect or refusal to deliver. (Fenner v. Buffalo & S. L. R. R. Co., 44 N. Y. 505, 511.)

The railroad company may have been justified in waiting a reasonable time in the expectation that these cars would be among those Morinelli was ordering placed. In the meantime the grapes were spoiling. While the original fault lay with Morinelli, there were duties the carrier was bound to recognize. If it failed to perform them, the negligent acts of Morinelli and the defendant were not concurrent but in succession. (Zinn v. New Jersey Steamboat Co., 49 N. Y. 442.)

In respect to notice at least, Morinelli might be treated by defendant as a consignee. (See Federal Bills of Lading Act [39 U. S. Stat. at Large, 539], § 8; Id. 540, § 9, subd. c; Id. 545, § 42; Barnes Federal Code, §§ 7985, 7986, subd. c, 8019; U. Si Comp; Stat. §§ 8604dd, 8604e(c), 8604uu; Jennings Automatic Dump Body, Inc., v. Virginian R. Co., 137 Va. 207; 119 S.

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Bluebook (online)
217 A.D. 49, 215 N.Y.S. 727, 1926 N.Y. App. Div. LEXIS 7738, Counsel Stack Legal Research, https://law.counselstack.com/opinion/porter-v-pennsylvania-railroad-nyappdiv-1926.