Southern Produce Co. v. Norfolk Southern Railroad

132 S.E. 360, 144 Va. 422, 1926 Va. LEXIS 261
CourtSupreme Court of Virginia
DecidedMarch 18, 1926
StatusPublished
Cited by4 cases

This text of 132 S.E. 360 (Southern Produce Co. v. Norfolk Southern Railroad) 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
Southern Produce Co. v. Norfolk Southern Railroad, 132 S.E. 360, 144 Va. 422, 1926 Va. LEXIS 261 (Va. 1926).

Opinion

Pbentts, P.,

delivered the opinion of the court.

This is an action brought by Southern Produce Company, a corporation, against the Norfolk Southern Railroad Company, as initial carrier, under the Car-mack-Cummins amendment to the interstate commerce act (U. S. Comp. Sta't., 1923 Supp., sec. 8604-a, page 2356). The action is based upon the claim that, as the receiving or initial carrier, the defendant company is responsible for loss caused by negligent delay in the delivery of an interstate shipment.

The trial court sustained a demurrer to an amended declaration and entered final judgment for the carrier, of which the plaintiff shipper is here complaining.

The declaration, in substance, alleges that on May 27, 1922, there were delivered to the carrier in Norfolk county, Virginia, to be transported to the shipper at Edgemoor, Delaware, a station on the line of a connecting carrier, 235 crates of cabbage, for which the initial carrier issued its bill of lading. It is then averred that Edgemoor, Delaware, is a diverting point on the line of the Pennsylvania railroad, and well known as such to the carrier; that the consignment was made with the intent and purpose on the part of the shipper of diverting the shipment to some other destination before it reached that point, by instructing the Pennsylvania railroad to that effect; and that this method [427]*427of shipment and diversion was in accordance with the regular custom and course of dealing between the plaintiff and the defendant in such cases; that before the shipment reached Edgemoor, the shipper directed the Pennsylvania Railroad Company, to whom the initial carrier had delivered the property, to divert it to S. J. Shallow & Co., Boston, Mass., a station on the line of a connecting carrier, and that the Pennsylvania Railroad Company agreed to and did divert the property as directed; that the freight charges were neither demanded nor paid upon the shipment until the property had arrived at Boston; that no new bill of lading was issued or required en route, the shipment being made throughout on the original bill of lading, which was not surrendered, all of which was in accordance with a custom of the shipper and in accordance with a long course of dealing between the shipper and the initial carrier; and then follows the allegation of, negligence, in that the property was not delivered in Boston, Mass., until long after the lapse of a reasonable time from the date of shipment, namely, May 31, 1922, and from this delay the property was greatly injured and depreciated in value.

So that the question to be determined is whether the initial carrier is liable for damages not alleged to have occurred either upon the line of the initial carrier, or upon that of any connecting carrier between Norfolk county, Virginia, the point of origin, and Edge-moor, Del., the point of delivery specified in the bill of lading issued by the carrier.

Of course, if the shipper is entitled to recover, it is by virtue of the United States statute referred to, the pertinent part of which reads thus: “Any common carrier, railroad, or transportation company subject to the provisions of this act receiving property for [428]*428transportation from a point in one State or Territory or the District of Columbia to a point in another State, Territory, District of Columbia, or from any point in the United States to' a point in an adjacent foreign country, shall issue a receipt or bill of lading therefor, and shall be liable to the lawful holder thereof for any loss, damage, or injury to such property caused by it or by any common carrier, railroad, or transportation company to which said property may be delivered or over whose line or lines such property may pass within the United States or within an adjacent foreign country when transported on a through bill of lading, and no contract, receipt, rule,' regulation, or other limitation of any character whatsoever shall exempt such common carrier, railroad, or transportation company from the liability hereby imposed.”

In support of the claim for the shipper, B. & O. R. Co. v. Montgomery & Co., 19 Ca. App. 29, 90 S. E. 740, is cited. The shipment there was a carload of peaches, which started at Moorefield, W. Va., and the original bill of lading issued to the shipper named Richmond as its destination, and Montgomery & Co., at Richmond, as the consignees. The consignees inspected the contents of the car at Richmond, and the opinion contains these further statements: “Upon the same date this car was delivered to the Atlantic Coast Line Railroad Company, at Richmond, Va., and was reshipped to E. B. Stewart & Co., Atlanta, Georgia, upon the original bill of lading issued by the defendant. The bill of lading issued by the Baltimore and Ohio Railroad Company was the only bill of lading issued during the transit of the shipment. It was undisputed that Montgomery & Co, were the lawful holders of this bill of lading.” It is further said that “the shipment was carried from the point of origin — -Moorefield, [429]*429W. Va. — to Atlanta, Ga., under one contract, the bill of lading issued by the defendant company, and the shipment moved under a through rate of freight from the point of origin to Atlanta, the final destination, as appears from the freight bill. If the defendant or its connection had delivered the shipment at Richmond, demanded a surrender of its bill of lading, there collected the freight charges due it, and thereafter a new bill of lading had been issued for the' shipment from Richmond, Va., to Atlanta, then there would have been a new shipment, and the railroad issuing this second bill of lading at Richmond would have been the initial carrier of the shipment to Atlanta. In this connection see Myers v. Norfolk Southern R. Co., 171 N. C. 190, 88 S. E. 149.” The conclusion upon that state of facts was against the initial carrier. In that case the Georgia court refuses to follow and undertakes to distinguish the case of Parker-Bell Lumber Co. v. Great Northern Ry. Co., 69 Wash. 123, 124 Pac. 389, 41 L. R. A. (N. S.) 1064, which holds, upon substantially similar facts, that where the property is reconsigned by the consignee when it reaches the destination named in the original bill of lading, the initial carrier is not liable for damage or injury which occurs in the course of transportation from its original destination to the point to which it is reeonsigned. The distinction in the opinion of the Georgia court seems to be based upon the fact that in the Washington case, upon the reeonsignment, a new bill of lading was issued for the property, from the destination named in the first bill of lading to its new destination. The court in the Washington case held that the carrier issuing the original bill of lading was not liable for any damages occurring after the reeonsignment.

Another ease also relied on for the shipper is Terra-[430]*430nova v. Southern Pacific Co., 200 N. Y. Supp. 309, 206 App. Div. 64. There a carload of grapes was shipped by the Western Fruit Company from Florin, Cal., to the California Grape Company, at Chicago, Ill., on a straight (not order) bill of lading, dated October 24, 1920. The consignee, a wholesaler, sold the grapes to the plaintiff and transferred to him the bill of lading at about the time the car reached Chicago, and while the grapes were in transit. Of this transfer the carrier (that is, the defendant, the initial carrier) was duly notified, and a diversion order was made as follows: “Consignee and destination changed to read Cal.

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Bluebook (online)
132 S.E. 360, 144 Va. 422, 1926 Va. LEXIS 261, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-produce-co-v-norfolk-southern-railroad-va-1926.