Smokeless Fuel Co. v. Chesapeake & Ohio Railway Co.

140 S.E. 823, 149 Va. 13, 1927 Va. LEXIS 172
CourtSupreme Court of Virginia
DecidedJune 16, 1927
StatusPublished
Cited by1 cases

This text of 140 S.E. 823 (Smokeless Fuel Co. v. Chesapeake & Ohio Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smokeless Fuel Co. v. Chesapeake & Ohio Railway Co., 140 S.E. 823, 149 Va. 13, 1927 Va. LEXIS 172 (Va. 1927).

Opinion

Chichester, J.,

delivered the opinion of the court.

This is an action by notice of motion for judgment instituted on May 1, 1922, in the Circuit Court of the city of Newport News by the Chesapeake and Ohio Railway Company, hereafter called plaintiff, against the Smokeless Fuel Company, hereafter called defendant, to recover for car demurrage alleged to be due by defendant to the plaintiff for the months of January, February and September, 1921. The bill rendered defendant was stated in the notice as follows:

[18]*18“1921 Demurrage War Tax Total

“Jan. $ 4,667.87 $140.04

“Feb. 5,464.83 163.94

“Sept. 225.00 6.75

$10,357.70 $310.73 $10,668.43”

The cause was tried, in the circuit court without a jury, with the result that the court entered judgment against the defendant and in favor of the plaintiff for the sum of $8,628.48. A writ of error was duly awarded defendant from this judgment, and after argument before this court the judgment was reversed in part and remanded to the circuit court for a new trial, as will be more specifically stated later, upon the items of the account alleged to be due for the months of January and February, and judgment was entered by this court for the September item. (Smokeless Fuel Co. v. C. & O. Ry. Co., 142 Va. 355, 128 S. E. 624.) The new trial, thus awarded defendant, resulted in a verdict by the jury for the plaintiff for the sum of $7,093.56, with interest from the 25th day of November, 1925, until paid. Judgment was rendered by the circuit court upon the verdict, and this judgment is now before us for review upon the second writ of error awarded in this case.

Before taking up the assignments of error upon the second trial, a brief history of the cause and a summary of what was decided upon the first writ of error seem necessary to a full understanding of the present controversy.

The plaintiff and defendant were members of the Newport News Coal Exchange, Incorporated, a corporation formed in 1917 for facilitating the trans-shipment of tidewater coal from car to vessel. All the [19]*19coal of members of the exchange was pooled in the exchange according to size and quality, and while each member of the exchange had credit for whatever coal he shipped in, the exchange was the consignee of all the coal. The coal was never dumped in a heap, but was kept in the ears until ordered dumped into vessels by the member.

Only members could ship through the exchange and to become a member one had to purchase a share of stock and sign an agreement to abide by the rules and regulations of the exchange and to carry out the terms and conditions of membership.

The rules provided for an average demurrage agreement. While all the coal was shipped to the exchange as the consignee and the monthly statements of demur-rage were rendered to the exchange, the demurrage charges were apportioned by the exchange among the members according to the detention of ears chargeable to each, and when approved by the members had to be paid by the member to whom it was apportioned and not by the exchange.

The bill sued for in this case went through this process up to the point of approval by the defendant, at which time a controversy arose between the litigants here as to the correctness of the bill. Under the rules and regulations of the exchange each member was required to sign an agreement known as Form C, as follows: “I (or we) hereby agree to pay all freight charges, when waybilled collect, loading charges, and car demurrage charges assigned to me - (or us) by authority of the commissioner or deputy commissioner of the Newport News Coal Exchange, Incorporated, on coal shipments going into vessels for my (or our) account at Newport News, Va., under the Newport News Coal Exchange, Incorporated, agreement,whether [20]*20shipped from mines, or obtained elsewhere, for my (or our) account, or for the account of any other member of the exchange.”

The defendant signed this agreement and it is the basis of this action. The rules and regulations of the exchange, however, were not made a part of the tariff.

The defendant, upon the first trial, while acknowledging some indebtedness for demurrage, resisted payment of the account upon numerous grounds, all of which, upon the first writ of error, this court decided adversely to its contention, except that it appeared from the record that all the demurrage against the defendant had been computed under paragraph 4 of Rule 3 of Tariff I. C. C. 8645, which is as follows:

“Rule 3 — Computing Time.

“Paragraph 4. To reduce switching service and to prevent delay, cars subject to the rules of this tariff may, at the option of the railway company, be delivered otherwise than in the order of their arrival. In this event the dates on which the substituted' cars are delivered will be used in computing the detention of the cars for which they are substituted so that, as far as credit and debit are concerned, the record will be the same as though the cars were being delivered in the order of their arrival.”

This rule for computing time is known as the “substitution rule.” It also appeared that this rule did not become a part of the demurrage tariff until March 29, 1921, whereas the account comprised demurrage charges for January, 1921, February, 1921, and September, 1921. Under these circumstances, this court affirmed the judgment of the trial court as to the September, 1921, demurrage, and remanded the cause to the circuit [21]*21court for á new trial to ascertain what, if any, demur-rage accrued under the tariff in force during the months of January and February, 1921 (Tariff I. C. C. 7777).

The tariffs, I. C. C. 8645 and I. C. C. 7777, are identical, with the exception of clause 4, above quoted. The parts of Tariff I. C. O. 7777 with which we are concerned are:

“Rule 2 — Free Time Allowed.

“An average of five (5) days per car free time will be allowed, * * * *

“(b) A car shall be considered as released:

“1. 'At the time vessel registers for the cargo or fuel supply of which the coal or coke dumped into such vessel is a part, * *

“Rule 4 — Demurrage Charges.

“Settlement shall be made on basis of the detention to all cars released during the month. The date of .arrival notice shall be subtracted from the date of release. From the total days detention to all ears thus obtained under Rule 3 deduct five (5) days free time allowance for each car, except on cars containing coke for export, deduct ten (10) days free time allowance for each car; the remainder, if any, will be the number of days to be charged at the rate of $2.00 per car per day. Excess credit days of any month cannot be deducted from excess debit days of another month.”

The position of the defendant upon the trial in -the circuit court was, and its position here is, that [22]*22when a ear in each pool is dumped out of order of arrival that the oldest car in that pool should be released on the demurrage books if there is a substitution clause authorizing it in the tariff, and if there is no substitution clause then the cars in that pool must be dumped in the order of their arrival in that pool, in compliance with the common law duty of the carrier.

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Related

J. Aron & Co. v. Chesapeake & Ohio Railway Co.
151 S.E. 126 (Supreme Court of Virginia, 1930)

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Bluebook (online)
140 S.E. 823, 149 Va. 13, 1927 Va. LEXIS 172, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smokeless-fuel-co-v-chesapeake-ohio-railway-co-va-1927.