Sands v. American Railway Express Co.

193 N.W. 721, 154 Minn. 308, 1923 Minn. LEXIS 630
CourtSupreme Court of Minnesota
DecidedJanuary 19, 1923
DocketNo. 23,060
StatusPublished
Cited by3 cases

This text of 193 N.W. 721 (Sands v. American Railway Express Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sands v. American Railway Express Co., 193 N.W. 721, 154 Minn. 308, 1923 Minn. LEXIS 630 (Mich. 1923).

Opinion

Dibell, J.

Action to recover for the loss of goods of the plaintiff! delivered to the defendant at Detroit, Michigan, for shipment to Sauk Rapids, Minnesota. There was a verdict for the value of the goods. The defendant appeals from the judgment.

On June 8, 1920, the plaintiff delivered to the defendant at Detroit, Michigan, three trunks containing household belongings to be sent to Sauk Rapids, Minnesota. They were not delivered. The defendant does not disclaim liability. It contends that the shipment was valued and that a greater recovery than the released value of $250 cannot be had. A receipt was delivered to the plaintiff. It shows a declared value of $250. It was not signed by the plaintiff. The circumstances attending its making and delivery are left uncertain. The parties differ as to the effect of the Cummins Amendment of August 9, 1916. U. S. Comp. St. § 8604a. In view of the facts now to be mentioned, and the conclusion which we reach from them, a construction of the statute, and its application to the facts in evidence, is unnecessary.

The trunks did not reach Sauk Rapids. The plaintiff notified the express company and a search of some kind commenced. Nothing resulted. The plaintiff suggested to the company that it look to other stations on its line having the word “Rapids” as a part of the name. If anything was done it did not bring results. In April, 1921, the plaintiff commenced suit. While the action was pending and before answer the trunks, which had been sent to Grand Rapids, Minnesota, and so far as appears were there all the time, were sent to the Twin Cities as unclaimed express, and about April 30 were sold, the defendant taking the proceeds. The trunks were opened. [310]*310Some of the articles were sold separately. It fairly appears that there were in the trunks letters which would have shown the name of the owner and that Sauk Eapids was the destination. It is not necessary to locate individual fault. The- company knew what its employes knew. The property was in its possession. It was not lost nor injured nor destroyed. There was a continuous demand for 9 or 10 months. Under circumstances such as narrated there was a conversion as a matter of law and the company should respond for full value. See Central of Georgia R. Co. v. Chicago Portrait Co. 122 Ga. 11, 49 S. E. 427, 106 Am. St. 87; Skelton v. Canadian N. R. Co. 189 Fed. 153; Georgia R. Co. v. Johnson, King & Co. 121 Ga. 231, 48 S. E. 807; Merchants & Miners Transp. Co. v. Moore & Co. 124 Ga. 482, 52 S. E. 802.

We do not fail to note that the action was not brought upon the theory of conversion. The evidence was in , without objection. There is no dispute as to> the controlling facts. An amendment could have been made at any time. There can be but one result.

Judgment affirmed.

After reargument, on May 25,1923, the following opinion was filed:

The former decision was placed upon the ground that there was an actual conversion, for which the defendant was liable, irrespective of the construction to be placed upon the Cummins Amendment of August 9, 1916, 39 St. 441, c. 301, U.'S. Comp. St. § 8604a. The effect of the amendment was not considered. The question of actual conversion was hardly considered in the briefs and arguments, and was decided without the aid of the views which counsel were entitled to present. A rehearing was granted. The two questions are:

(1) Was it necessary under the Cummins Amendment of August 9, 1916, 39 St. 441, c. 301, U. S. Comp. St. § 8604a, that the express receipt be signed by the shipper in order that he be bound by the declared value?

[311]*311(2) Was there such an actual conversion that there could be a recovery of actual value irrespective of the declared or released value?

The shipper did not sign the express receipt. The drayman delivered the shipment to the express company, received a receipt with a declared value of $250, which he returned to the shipper. It was not signed by the shipper. The proper schedules of authorized and established rates were filed with the Interstate Commerce Commission. After the argument, but before the decision, American Ry. Exp. Co. v. Lindenburg, 260 U. S. 584, 43 Sup. Ct. 206, 67 L. ed. -, was decided. It was there held that the receipt need not be signed by the shipper to be binding upon him, and that his acceptance of the receipt, the contents of which he was presumed to know, was an assent to its terms making it the written agreement of the parties. This case reversed Lindenburg v. American Ry. Exp. Co. 88 W. Va. 439, 106 S. E. 884, which was cited on the original hearing. The Federal decision is controlling. The plaintiff is limited in his recovery to the declared value, though he did not sign, unless the carrier in the particular case is liable as for an actual conversion.

The question now is whether the sale of the express under the circumstances stated in the original opinion constitutes such a conversion as renders the express company liable irrespective o>f the declared value. The Georgia cases cited in the opinion hold the affirmative. That of Central of Georgia R. Co. v. Chicago Portrait Co. 122 Ga. 11, 49 S. E. 427, 106 Am. St. 87, involving the sale of freight shipped to its point of designation and then reshipped and sold as unclaimed freight, is quite in point. St. Louis R. Co. v. Wallace (Tex. Civ. App.) 176 S. W. 764, is much the same. The case of Shelton v. Canadian N. R. Co. 189 Fed. 153, involving a Canadian contract, looks in the same direction.

On the reargument attention is specially directed to Georgia F. & A. R. Co. v. Blish Milling Co. 241 U. S. 190, 195, 197, 36 Sup. Ct. 541, 60 L. ed. 948; Moore v. Duncan, 237 Fed. 780, 150 C. C. A. 534; and D’Utassy v. Barrett, 219 N. Y. 420, 114 N. E. 786, 5 A. L. R. 979. In Moore v. Duncan the rule limiting liability to the [312]*312declared value was applied where goods were stolen by the carrier’s employes. The same holding was made in the D’Utassy case, and in Henderson v. Wells-Fargo (Tex. Civ. App.) 217 S. W. 962. The Blish case involved a bill of lading requiring a notice of claim for misdelivery to1 be made within a stated time. The railway company delivered the freight to the consignee without the surrender of the bill of lading or accompanying draft. Upon unloading the consignee found that the freight was damaged by water. The railway then retook possession and sold. The question was whether the Blish company gave the required notice. A telegram sent by it was held sufficient and the railway was held liable. In commenting upon the requirement of notice as a condition of liability the court said [241 U. S. 195]:

“It may be urged that the carrier is bound to know whether it has delivered to the right person or according to instructions. This argument, however, even with respect to the particular carrier which makes a misdelivery, loses sight of the practical object in view. In fact, the transactions of a railroad company are multitudinous and are carried on through numerous employees of various grades. Ordinarily the managing officers, and those responsible for the settlement and contest of claims, would be without actual knowledge of •the facts of a particular transaction.”

And again the court says [241 U. S. 197]:

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193 N.W. 721, 154 Minn. 308, 1923 Minn. LEXIS 630, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sands-v-american-railway-express-co-minn-1923.