Southern Express Co. v. Gibbs

46 So. 465, 155 Ala. 303, 1908 Ala. LEXIS 282
Supreme Court of Alabama·Decided April 21, 1908·Published·Cited by 16 cases

Opinion

TYSON, C. J.

This action is to recover damages for the breach of a contract. The breach alleged and relied on for recovery is the defendant’s failure to deliver to plaintiff at Birmingham, in this state, certain goods, which it contracted to deliver as a common carrier for a reward. The value of the goods was alleged to be $800. Special pleas 2 and 3, to which a demurrer was sustained, do not deny the contract to deliver or its breach as alleged, but seek simply to confine the amount of plaintiff’s recovery to the sum of $50; which it is alleged in these pleas was the' agreed value of the goods when accepted for shipment by the Adams Express Company in the city of New York, and that such a stipulation is valid under the laws of New York. It is not averred in either of them where the contract for the acceptance and delivery of the goods was made with this defendant. For aught appearing, the contract with defendant was entered into in some state other than New York, and where the same rule prevails with respect to the invalidity of such a contract as does in this state. — Southern Express Co. v. Owens, 146 Ala. 413, 418, 41 South. 752, 8 L. R. A. (N. S.) 369. That rule is that it is violative of public policy for a carrier, as a paid bailee, to limit the extent of its liability for the negligence of itself or its agents or servants by an agreed valuation upon consideration of reduced charges for carriage of goods, when such agreed valuation is disproportionate to the real value of the goods, although the contents of the package or its real value are not disclosed to the carrier-Southern Express Co. v. Jones, 132 Ala. 437, 31 South. 501; Southern Express Co. v. [307] Owens, supra, and cases there cited. It may be that we could rest our decision of the insufficiency of these pleas upon this point, but we do not care to do so.

The insistence is that, as the stipulation limiting defendant’s liability to $50 is valid under the laws of New York, where made, it should be enforced by the courts of this state, notwithstanding it is in violation of the public policy of this state as declared by our decisions. ^Whether this court is committed by former decision to the proposition asserted is not necessary, under the view we take of this case, to be here determined. The rule seems to be universal that a contract, as to its nature, obligation, and validity, is to be governed by the law of the state where made, unless it is performed in another state. As said by Mr. Justice Story, and approved by this court in Hanrick, v. Andrews. 9 Port. 26: “When the contract is expressly or tacitly to be performed in any other place, there the general rule is in conformity to the presumed intention of the parties — that the contract, as to its validity, nature, obligation and interpretation, is to be governed by the law of the place of performance!^ See, also, 1 Brickell’s Dig. p. 252, §§ 19, 20, 21, 22; 3 Brickell’s Dig. p. 125, § 18; Clark on Contracts, p. 507. According to the complaint the defendant contracted to deliver the goods in this state.\l?he place of performance was Birmingham, in this state. The delivery could have been made nowhere else, and therefore the contract, so far as delivery was involved, was to be wholly performed in this state. Transporting the property out of the state of New York and through other states did not constitute performance, “That was merely a means of enabling the company to perform by delivery of the property at its destination,Pittsburg Ry. Co. v. Sheppard, 56 Ohio St. 68, 46 N. E. 61, 60 Am. St. Rep. 732.

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Southern Express Co. v. Gibbs, 46 So. 465, 155 Ala. 303, 1908 Ala. LEXIS 282 (Ala. 1908).

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