South Carolina Steel Corp. v. Southern Railway Co.

206 S.E.2d 828, 262 S.C. 543, 1974 S.C. LEXIS 353
CourtSupreme Court of South Carolina
DecidedJuly 1, 1974
Docket19845
StatusPublished
Cited by1 cases

This text of 206 S.E.2d 828 (South Carolina Steel Corp. v. Southern Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
South Carolina Steel Corp. v. Southern Railway Co., 206 S.E.2d 828, 262 S.C. 543, 1974 S.C. LEXIS 353 (S.C. 1974).

Opinion

Bussey, Justice:

In this action the plaintiff-respondent seeks to recover for damage done to certain fabricated steel beams and appurtenances while in transit in the course of a shipment by rail from Greenville, South Carolina to a customer in Pekin, Illinois. By stipulation of the parties, the sole issue involved upon this appeal is that of compliance or noncompliance by the plaintiff-shipper with the contractual provisions of the bill of lading requiring the filing of a written claim within nine months of the delivery of the property in question. On motions for summary judgment the trial court decided this issue favorably to the plaintiff. By the stipulation the defendant-appellant has expressly waived its right to a trial on any of the other issues raised by the pleadings, including the amount of damages.

As to factual situation we quote the following from the agreed statement of the case:

“The relevant facts presented by the pleadings and the affidavits offered by the parties are as follows: The property in question was delivered to the Defendant by the Plaintiff in an undamaged condition on July 18, 1970, and July 22, 1970. The property was delivered by the Defendant to the consignee, a customer of the Plaintiff, in Pekin, Illinois, [546]*546on August 4, 1970. Shortly thereafter, the Defendant received written damage reports, dated August 5, 1970, from the receiving railroad company. On February 17, 1971, the Plaintiff received from the consignee copies of the same two damage reports. Immediately upon receipt of the damage reports, an agent of the Plaintiff called the Greenville office of the Defendant, discussed the damage reports and claims with several agents of the Defendant, informed them of the material provisions of the damage reports, and asked for specific instructions concerning filing claims. One of the agents of the Defendant instructed the agent of the Plaintiff that the claim could not be processed until the necessary forms had been completed and that it would be necessary to determine the exact amount of the claim and supply such information on forms supplied by the Defendant. Upon receipt of an invoice from the consignee, showing the exact amount of damage, the agents of the Plaintiff immediately transmitted that information tO' the Defendant on March 23, 1972. The Defendant refused to pay the Plaintiff’s claim on the grounds that the Plaintiff had failed to file a written claim within nine (9) months after delivery of the property in question as required by Section 2(b) of the Uniform Domestic Straight Bill of Lading which applied to the shipment in question.”

The shipment involved in this case being one in interstate commerce, Federal law controls this action. Adams Express Co. v. Croninger, 226 U. S. 491, 33 S. Ct. 148, 57 L. Ed. 314; Georgia, Florida & Alabama Railway Co. v. Blish Milling Co., 241 U. S. 190, 36 S. Ct. 541, 60 L. Ed. 948.

Title 49, U. S. C., Section 20(11) provides in part as follows: “that it shall be unlawful for any such receiving or delivering common carrier to provide by rule, contract, regulation, or otherwise a shorter period for the filing of claims than nine months.”

In accordance with the foregoing statute the shipment in question was made subject to the terms and conditions of [547]*547the Uniform Domestic Straight Bill of Lading, Section 2(b) thereof providing in pertinent part as follows: “as a condition precedent to recovery, claims must be filed in writing with the * * * carrier * * * within nine months after delivery of the property * *

The written damage reports received by the defendant railroad from the receiving railroad company in August, 1970, showed not only the nature of the damage but the probable cause thereof, to wit: “that the beams were damaged from being bumped very hard and the loss could have been prevented by handling the cars more carefully and by using blocking inside the cars to keep the steel beams from sliding.”

While the defendant railroad was promptly notified by the receiving railroad, which delivered the damaged shipment to the consignee, as far as the record goes the shipper knew nothing of the damage until February 17, 1971, when it received from the consignee copies of the same two damage reports, sent months before by the receiving railroad to the defendant in this case. Obviously the receiving railroad at some point made copies of the report available to the consignee. The record is silent as to the time and circumstances of the consignee obtaining the damage reports, but from the agreed facts a reasonable inference is that the consignee did not immediately discover the damage but upon discovery thereof requested a report from the receiving railroad. No other explanation, readily occurs for the delay in the plaintiff-shipper being informed by the consignee of the damage.

“The purpose [of the requirement for written notice] is not to escape liability, but to facilitate prompt investigation ****** The stipulation * * * does not require documents in a [ny] particular form. It is addressed to a particular exigency and is to be construed in a practical way.” Georgia, Florida & Alabama Railway Co. v. Blish, supra. Neither the briefs of counsel nor research on our part has disclosed any decision of the U. S. Supreme Court, or of [548]*548any Circuit Court of Appeals, which is anything like precisely in point factually with the present case. A review of a number of circuit decisions would indicate that the circuits are not in complete accord as to how to construe this requirement of a written claim, within the prescribed time, in a “practical way.”

The decisions, however, both Supreme Court and Circuit, are in accord that the claim or other documents constituting a claim do not have to be in any particular form; but that neither mere actual knowledge on the part of the carrier nor an oral claim by the shipper or consignee will suffice. It is also settled by the Blish case that a carrier cannot waive the requirement of a written claim, as to do so would allow a carrier to discriminate amongst shippers contrary to law.

It also seems to be settled by the Blish case and by Chesapeake & Ohio Railroad Company v. Martin, 283 U. S. 209, 51 S. Ct. 453, 75 L. Ed. 983, that a shipper may not invoke the doctrine of estoppel, to avoid the time limitation for filing claim, predicated upon the conduct of the carrier which gave rise to liability in the first instance. Expressly reserved in the Martin case was the question of whether a shipper might, under other circumstances, rely upon the doctrine of estoppel. Under the rationale of these decisions it would appear that the test as to whether a shipper can invoke the doctrine of estoppel is whether or not permitting the application thereof to a given state of facts would open the door to a shipper discriminating among shippers contrary to law.

In the present case there is conduct on the part of the defendant carrier, independent of any conduct giving rise to the liability initially, which should be held to estop' the carrier from avoiding its liability for failure of the shipper to file a formal written claim within the nine month period.

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Bluebook (online)
206 S.E.2d 828, 262 S.C. 543, 1974 S.C. LEXIS 353, Counsel Stack Legal Research, https://law.counselstack.com/opinion/south-carolina-steel-corp-v-southern-railway-co-sc-1974.