Southern Railway Co. v. Jones Cotton Co.

52 So. 899, 167 Ala. 575, 1910 Ala. LEXIS 491
CourtSupreme Court of Alabama
DecidedFebruary 3, 1910
StatusPublished
Cited by6 cases

This text of 52 So. 899 (Southern Railway Co. v. Jones Cotton Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern Railway Co. v. Jones Cotton Co., 52 So. 899, 167 Ala. 575, 1910 Ala. LEXIS 491 (Ala. 1910).

Opinion

SAYRE, J.

When this case was here on a former occasion (157 Ala. 32, 47 South. 251) the equity and frame of the bill were settled in favor of the complainant. The present appeal raises only the question of the liability of the defendants for certain items charged against them in the decree. First, then, with reference-to the two lots of cotton, 54 bales were marked “O. S. T.,” and 50 marked “E. W. L.” The decree was that the Southern Railway Company should respond to the complainant for the actual loss in weight sustained by this cotton while in the possession of the Gulf Compress Company as the agent of the said railway company, and that the Gulf Compress Company was liable for the diminution in value of 34 bales of the “O. S. T.” cotton, and 21 bales of the “E. W. L.” cotton on account of its being reconditioned and repacked while in storage with the compress company. This cotton had been stored by the cotton company with the compress company. The railway company had an arrangement with the compress company, evidenced by formal'writing, by which, on delivery to it by the owner of warehouse receipts issued [579]*579by tbe compress company, it issued bills of lading for tbe shipment of cotton whenever occasion arose. The compress company agreed to keep all cotton insured for the benefit of the railway company after the issuance of such bills of lading and until it should be loaded in the cars of the railway company, and to hold the railway company harmless against any damage which such cotton might sustain while in its possession pending shipment. The cotton company having contracted for the sale and delivery of the cotton in controversy to purchasers in North Carolina, and with the railway company for its transportation thither, delivered its warehouse receipts to the railway company and received bills of lading for the cotton. Thereby the railway company recognized the compress company as its agent to keep the cotton pending its loading into the cars and became responsible for the compress company’s negligence therein.

Between the time when the railway issued its bills of lading and the time when the cotton was loaded on the cars for transportation to the consignees a considerable period elapsed, the delay in shipment being caused in part at least by the fact that when the compress company tendered the cotton to the railway company, it was. found to have been damaged by exposure to the weather so that the railway company refused to receive it from the compress company. This made it necessary for the cotton to be reconditioned and in part repacked. Cotton is “reconditioned” by loosening the ties, removing the bagging, and pulling or picking the damaged part of it from the outside of the bale. Where the bales are much reduced by this process, as we gather, the reduced báles are combined into new bales by repacking. Mere repacking injures the quality of the cotton put into the repacked bales and affects its value in the market. The [580]*580•chancellor evidently found that the cotton had sufféred ■damage by exposure to the weather subsequent to the issue of the bills of lading. The testimony has been closely scrutinized, and we find no sufficient reason to challenge the correctness of that conclusion. The reconditioning and repacking were also done subsequent to the issue of the bills of lading by the railway company, and most certainly account for the loss in weight of the two lots. The processes here mentioned, after the cotton had been damaged by exposure, did not cause further damage to the cotton as a whole, hut were resorted to, and had the effect, beyond doubt, to increase the value of the cotton as a whole although it diminished the value per pound of so much of it as was put into the repacked bales. But the loss in weight of the entire lot, and the loss of value in the cotton repacked together represent the total loss suffered by the cotton, and these elements of loss must alike be referred to its damage by exposure as its proximate cause. For this loss the ■defendants were both liable to the complainant, the railway company for the reason already indicated, the compress company for the reason that it was bailee for the ■complainant, and by accepting bailment from the railway company could not defeat the rights of the true ■owner. The defendants were jointly liable to the complainant for the entire loss to the cotton, and a decree might well have been made against them both for the ■entire amount of the loss, though there could be, of ■course, one satisfaction only. Neither appellant is in a position to complain of a decree the error of which consists in charging each appellant with a lesser sum than its liability as measured by law. The appellee has contented itself with the decree in its present shape.

It is denied by appellants that the right of recovery resides in the cotton company. This denial is grounded [581]*581upon the fact, itself not denied by appellee, that drafts with hills of lading attached were drawn by appellee company on the consignees and honored by payment before the cotton was delivered at its destination. These drafts were for the stipulated price of the cotton estimated at its original weight and quality. The cotton company does not appear in the evidence to have been called on for restitution of any part of the sum realized from the drafts. Prima facie the delivery of a bill of lading by the consignor to the consignee operates as a transfer of title in the goods shipped, and an action against the carrier for loss or damage while in its possession will lie only at the suit of the consignee; but if the consignee is not in fact the owner and the goods while in transit are at the risk of the consignor, the right of action resides in the latter.—Louisville & Nashville R. R. Co. v. Allgood, 113 Ala. 163, 20 South. 986. Any proper rule must require that the suit be brought by the party at whose risk the goods are while in course of transportation. The evidence shows without dispute or contrary inference that the contract of purchase required that the cotton should be delivered in good condition to the mills in North Carolina “landed.” In the terminology of the trade, “landed” meant that the consignor was responsible for the cotton and for damages to it until delivered at the point of destination, meaning, of course, delivery at destination of the entire shipment in the stipulated condition. The appellant Gulf Compress Company contends that the cotton shipped was landed. And so some of it was in a way, but appellant will hardly contend that the cotton destroyed and cast away while in its hands, aggregating approximately 16 hales, was landed in any sense, or that the remainder was landed as it ought to have been. Thus the railroad company continued to be the agent of the consignor for [582]*582the cotton at the time of the loss, as it had been constituted in the beginning by the bill of lading in which plaintiff was both consignor and consignee, and with this status payment and delivery of the hills of lading were not inconsistent. This fact brings the complainant within the reason of the rule, and establishes its right-to maintain this bill. It is no concern to the appellant companies that the complainant has a sum of money which in equity and good conscience belongs to the consignees, if that be the case. That is an equity which concerns the consignees only; nor is there a necessary dependence between it and the legal right in controversy.

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Cite This Page — Counsel Stack

Bluebook (online)
52 So. 899, 167 Ala. 575, 1910 Ala. LEXIS 491, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-railway-co-v-jones-cotton-co-ala-1910.