Robinson, McLeod & Co. v. Memphis & Charleston R.

9 F. 129, 1881 U.S. App. LEXIS 1927
CourtUnited States Circuit Court
DecidedOctober 24, 1881
StatusPublished
Cited by7 cases

This text of 9 F. 129 (Robinson, McLeod & Co. v. Memphis & Charleston R.) is published on Counsel Stack Legal Research, covering United States Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Robinson, McLeod & Co. v. Memphis & Charleston R., 9 F. 129, 1881 U.S. App. LEXIS 1927 (uscirct 1881).

Opinion

Hammond, D. J.

No technical objections'have been raised as to the form of any of the pleadings in this case, nor has the case been strictly argued on the facts as they appear by the pleadings. The difficulty is that the second and third pleas are not special pleas, stating the particular facts, and amount to no more than the general denial of the first, on which issue has been joined. Of course, if the bill of lading “was given, executed, and signed without authority from this defendant,” and the demurrer admits this, there can be no recovery in any view of the case; hut the allegation amounts to no more than that of the first plea, that the company “did not contract, undertake,” etc. Nor is the statement contained in these pleas, that the cotton was never delivered to the company, anything more than this general denial of the first plea; for neither of the pleas admiis the bill of lading to have been signed by an agent of the company who would have Leen authorized to sign it if the cotton had been delivered, although that important fact has been assumed in the argument. The allegation of these pleas, that the bill of lading was “false and fraudulent,” is a mere conclusion of law, based upon the other allegations that it was issued without authority, and that no cotton was delivered for transportation. The court understands from counsel on both sides that there was an agent of the defendant company at Jackson authorized to sign bills of lading when cotton was actually delivered to him, or the company’s other agents, for transportation, — the defendant contending that this was a special agency arising only on actual delivery of cotton, while the plaintiff treats him as a general agent of the largest powers; that this man Chiles, either by collusion with this agent or by false representations to him, procured him to sign the bill of lading in controversy without any aet[132]*132ual delivery of the cotton, attached it to the draft as stated in the declaration, negotiated them as alleged, but never delivered any cotton to the company. This is the case that has been argued, but it is readily seen that it is not precisely the one presented by the record. Inasmuch, however, as counsel have treated these pleas as if the facts stated to the court were contained in them, and seem desirous of taking the judgment of the court on those admitted facts, I shall so treat the case, but will require a special plea to be added, stating the facts something in the form indicated, and reserve the right, if I have mistaken them, to reconsider the case on those to be stated in the plea, or to render the judgment demanded by the record as it now stands.

It will be seen, from this statement of the facts and those contained in the pleadings, that the question is whether or not a common carrier is liable for damages sustained by the indorsee of a bill of lading, issued by its agent, binding it to deliver merchandise never in fact delivered to the carrier for transportation, where there is an allegation of special damage sustained by reason of the fact that the indorsee has advanced money on the faith of a receipt of the goods by the carrier, as expressed in the bill of lading. That the plaintiffs believed this cotton was in the hands of the carrier, as certified by its agent, under a contract to deliver it to the order of Chiles, there can be no doubt. I cannot see that it is material whether this agent trustingly confided in the misrepresentations or promises of Chiles, or whether he fraudulently conspired with him to do the wrong. The question is, who shall suffer the loss, the railroad company or the plaintiffs ? If I may use the language of Mr. Justice Field:

The question involved is one so often unfortunately raised in courts of. justice as to which of two innocent parties is to suiter by the dishonest dealing of a third, and the only course open to a court in such case is to ascertain upon which of the parties the loss is cast by the operation of the rules of law applicable to the case, and decide accordingly. In this action the question is one of considerable mercantile importance, and I have taken time to consider the authorities applicable to it, but the legal result of the facts has always seemed and now seems to me plain.” Glyn v. E. & W. India Dock Co. 5 Q. B. D. 129,132.

But, notwithstanding this seeming confidence, the judgment of that learned court was, as the one I am about to give may be, reversed on writ of error, and the case is, though not precisely like this, very instructive here. The shipper and consignee received from the master three bills of lading, — or rather one bill of lading in three parts, as is sometimes customary, — marked [133]*133“first,” “second,” and “third.” The first he indorsed to the plaintiffs for advances made, and afterwards, the goods being entered at a warehouse in the shipper’s name, he dishonestly gave orders to other persons for the goods, assigning the “second” part of the bill of lading, upon which the goods were delivered. The plaintiffs sued the warehouseman, and the queen’s bench division gave judgment for the value of the goods. That court calls attention to the fact that the carrier would not have been liable, though the concession is somewhat reluctantly made, because he was not bound to settle conflicting claims, and might deliver the goods to an apparent owner holding either part of the bill of lading. I have not seen the report of the judgment of the court of appeal reversing the queen’s bench division, but it must have been on the ground that the warehouseman was equally protected with the carrier. 15 Am. Law Rev. (N. S.) 156. I cite the case to show that while the law holds a carrier to a very rigid and often harsh degree of liability for the performance of his contract qua carrier, it does not readily impose any outside liability or embarrassment upon him. And this is in the interest of commerce, and in pursuance of that public policy which encourages the unembarrassed transportation of goods by common carriers. Their business is that of transportation, and they are not engaged in issuing bills, of lading as negotiable securities, to be used as such for the convenience of bankers, brokers, and commercial men. A bill of lading is issued primarily as an evidence of their executory contract to carry, and the acknowledgement of the receipt of the goods for that purpose is only incidental, — the mere averment of a fact for the purpose of .founding thereon the contract to carry. Now, commercial men have, from time immemorial, for their own advantage, and not at all for that of the carrier, let it be remembered, treated these documents as convenient symbols or muniments of title, and as instruments of transfer of title, and they have, for that purpose, acquired among them a quasi negotiability or capacity to pass from hand to hand by indorsement. But the carrier is not at all benefited by this, and it is not for his gain that it is done. Mr. Justice Clifford defines a bill of lading thus: “Such an instrument acknowledges the bailment of the goods, and is evidence of a contract for the safe custody, due transport, and right delivery of the same, upon the terms as to freight therein described, the extent of the obligation being specified in the instrument.” The Delaware, 14 Wall. 579, 596.

It seems to me, with all deference, that it is a misapprehension of [134]*134the true character of this instrument, and of the true relation of the parties to it, to treat -it as if the maker were engaged in the business of issuing negotiable securities, which he is bound to protect at all hazards in the hands of a bona fide

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Cite This Page — Counsel Stack

Bluebook (online)
9 F. 129, 1881 U.S. App. LEXIS 1927, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robinson-mcleod-co-v-memphis-charleston-r-uscirct-1881.