Schneider v. Evans

25 Wis. 241
CourtWisconsin Supreme Court
DecidedJanuary 15, 1870
StatusPublished
Cited by19 cases

This text of 25 Wis. 241 (Schneider v. Evans) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schneider v. Evans, 25 Wis. 241 (Wis. 1870).

Opinion

Paine, J.

There can be no doubt that the contract' between the plaintiff and the Pittsburg, Fort Wayne and Chicago Railway Company was not what is called a [249]*249through contract. That company did not undertake to carry the goods to Hudson; on the contrary, it expressly restricted its liability as a carrier to its own route. It did, however, guaranty, on its behalf, and in behalf of the other companies and carriers constituting the entire route,, that the through freight should not exceed a certain sum. But it is a stipulated fact in the case, that each of the companies acted independently, and that they did not form a continuous line, interested together in the transportation over the whole route. It is clear, therefore, that each of the succeeding- carriers, after the first, had the right to' charge its usual rates, without regard to the guaranty of the first company, even if this had been known. This is not disputed. But' the respondent’s counsel very ingeniously and forcibly urges, that, although this was so, yet, when the succeeding companies decided to charge their us ual rates, that diminished, by the amount of the excess over the guarantied rate thereby caused, the sum which the first company were entitled to; and that, therefore, the Chicago and Northwestern Company ought to have deducted the amount of such excess from the back charges which it paid to the Pittsburg, Fort Wayne and Chicago Company ; and that it could not, by improperly paying over that amount to the first company, acquire any lien on the property as against the plaintiff for that sum, nor transmit any such lien to the succeeding carrier, who might receive it, paying also the same sum as a part of the back charges.

If the guaranty of the first company had been known to the others, the question would have been more difficult. But it is not entirely clear to my mind that even then the position of the respondent’s counsel would have been correct. If it could be assumed that the Chicago and Northwestern Company, which received the property from the first company, could have known or readily ascertained the exact amount which the first company might ultimately be entitled to, after comply[250]*250ing with, its guaranty, there would be more force in the argument; but this could scarcely be assumed. There were several succeeding carriers after the Chicago and Northwestern. It might not have known what their usual rates would be. If it had known this, it might not know whether they would all charge their usual rates, or whether some of them might choose to conform to the rate guarantied by the first company. It would seem impossible, therefore, for it to be able to adjust the controversy between the plaintiff and the first company, that might arise on the guaranty. Yet it would be evident on the face of the contract that the plaintiff desired the property to be transported, and that he contemplated the employment of the succeeding carriers on the route for that purpose. This the Chicago and Northwestern company would have had the right to assume, even if it had known the exact terms of the contract. It would also have had the right to assume that the plaintiff knew the general custom among carriers so situated, of receiving goods from each other and paying the back charges. And under such circumstances it seems to me extremely questionable whether it would not be reasonable to say that the second carrier would have the right to receive the goods, paying the back charges demanded by the first, as though its guaranty was to be complied with by the other companies, leaving the plaintiff to resort to his contract to recover whatever he might be entitled to, when the fact should be ultimately ascertained. But as this question is not presented, I will not pursue it further. It is conceded here that the other companies, after the first, had no knowledge-of the contract between the first and the plaintiff. Upon these facts, it seems to me clear that the carriers who have acted in accordance with the usual general custom, which the plaintiff is presumed to have known, and probably did well know, in fact, ought to have their lien for the ordinary back charges paid by them. It would be unreasonable; where nothing accompanies the goods to [251]*251notify tliem of the fact, to require them to ascertain at their peril whether there are any secret stipulations between the owner and some prior carrier from whom they have been received, which may ultimately ^prevent him from being entitled to the ordinary rates. It is not like the case of goods being delivered to a carrier by a person having no authority to deliver them, and then the carrier claiming a lien for his charges as against the true owner. Some cases have held that there the carrier has no lien, because the owner’s title cannot be thus -divested or incumbered. It is not a case where the goods have been diverted from their true destination; on the contrary, the goods have been transported over the whole route, exactly in accordance with the authority and intention of the owner. It is a mere question, where the owner has taken a guaranty from the first carrier that the through rate shall not exceed a certain sum, whether the others, having no knowledge of it, are not entitled to act upon the general custom. It seems to me that they are, and that it is more reasonable to impose on the owner, who, knowing the custom, causes the goods to be delivered to the carriers, without notifying them of his secret contract, the burden of resorting to the company with which he contracted, than to impose on the carriers the burden of ascertaining at their peril all the secret agreements between the shipper and prior carriers from whom the goods are received, affecting their right to receive the ordinary freights.

The custom under which these carriers acted is more for convenience of shippers than of the carriers. It enables property to be transported over long routes, composed of many distinct companies and lines, with great safety and dispatch, and without the necessity of employing any intermediate agents other than the carriers themselves. If, therefore, the risk is to be. imposed on each, to ascertain at its peril whether there are any secret agreements affecting the liability of goods received in the ordinary course of business to the ordinary freights, [252]*252this liability must result in breaking up the custom, and thus tend greatly to the public inconvenience. Upon the facts found, the defendants were entitled to their lien for the back charges.

The judgment should be reversed, and the cause remanded with directions to enter judgment for the defendants.

By the Qourt. — So ordered.

On a motion fora rehearing, the plaintiff’s counsel argued substantially as follows: 1. Had the subsequent carriers a right to charge their regular rates, notwithstanding the agreement of the first carrier % It is pretty clear that if the Pittsburg, Port Wayne and Chicago Company had made a “through” -contract, i. e., had undertaken for the carriage of the goods to Hudson, the subsequent carriers would have been regarded in law as acting in subordination to that contract, without proof that they had any actual knowledge of.it. See 52 Barb, and cases there cited. And this seems. to have been the opinion of Woodruff, C. J., in Mallory r. Burrett, 1 E. D. Smith, 234. We do not see clearly how subsequent carriers are chargeable in law with notice that the first carrier had made such a through contract, although they are in fact

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Bluebook (online)
25 Wis. 241, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schneider-v-evans-wis-1870.