Southern Railway Co. v. Strachan Shipping

624 F. Supp. 218, 1985 U.S. Dist. LEXIS 13490
District Court, D. South Carolina·Decided November 26, 1985·No. Civ. A. No. 2:84-2289-1·Published·Cited by 1 cases

Opinion

[219] ORDER AND JUDGMENT

HAWKINS, District Judge.

Southern Railway Company (“Southern”) brings this action against Strachan Shipping (“Strachan”) for detention and repair charges on three containers because of Strachan’s alleged use of the same. Southern contends that Strachan is responsible for these payments pursuant to certain “Trailer Use Agreements” between the two parties. Strachan answered the Complaint denied liability, asserting that it had no contractual relationship with Southern.

The case was heard without a jury on November 12, 1985. For the reasons stated below, this Court is of the opinion that Southern is not entitled to the detention and repair charges sought. Pursuant to F.R.C.P. 52(a), the Court makes the following findings of fact and conclusions of law.

FINDINGS OF FACT

1. Southern Railway Company is a corporation organized under the laws of the Commonwealth of Virginia, with its executive offices in Atlanta, Georgia.

2. Strachan Shipping Company is a corporation organized under the laws of the State of Georgia, with its principal place of business in Savannah, Georgia. The Defendant maintains an office and transacts business in Charleston, South Carolina.

3. Strachan serves as agent for various steamship lines. As agent, Strachan books cargo space on vessels for shippers and/or consignees of goods to be carried aboard ocean-going vessels.

4. In the present circumstances, Strachan was contacted by Coltex Disc Corporation of Charlotte, North Carolina, (“Coltex”) to reserve cargo space on an oceangoing vessel, the SS ISLA PUNA sailing for Guayaquil, Equador. Strachan was contacted by Coltex because it was acting as steamship agent for the vessel ISLA PUNA, and her operator, Transportes Navieros Equatorianois (“Trans Nave”). The space to be reserved was to be sufficient to accomodate three 40 ft. containers. The shipping instructions received from Coltex, Defendant’s Exhibits 1, 2, and 3, describe the containers which serve as the subject of this litigation being trailer numbers RRFX-294629, REAZ-251662, and REAZ255287. The instructions note the shipping destination as Guayaquil, Equador, and describe the consignee as Fabrica de Tejuidos de Punto Alfatez, S.A., Casilla 3866 Guayaquil, Equador. Additionally, the instructions provide that inland and ocean freight along with other incidental charges arising from the shipment were to be for Coltex’s account.

5. The trailers were carried from Charlotte to Charleston by Southern under three separate Way Bills of Lading. The Way Bills were prepared by Southern which named Strachan as consignee. The Way Bill under which trailer RRFZ-294629 was shipped noted as consignee “Strachan Shipping, Columbus Street Terminal for Steamship ‘Isla Puna’, Charleston, S.C.”

6. The containers arrived in Charleston at Southern’s piggyback yard in the north area, which yard was operated for Southern by its independent contractor. Upon the arrival of each container, Strachan Shipping was notified, consistent with Southern’s Way Bills issued as an incident to the carriage of these trailers from Charlotte to Charleston. For each container at such time as Strachan was notified, it engaged a drayman on behalf of the steamship line, to deliver the trailers by truck from the piggyback yard to the Columbus Street terminal of the South Carolina State Ports Authority for loading aboard the vessel ISLA PUNA.

7. It appears that the containers had been leased by Coltex from Southern or some other party. In any event, Strachan in no way contracted for or arranged for the use of these containers for the shipment of the goods therein contained. Coltex or someone acting on its behalf had made these arrangements.

8. Upon delivery of the trailers at the piggyback yard, the draymen receipted for the trailers on each occasion by virtue of a document entitled “Trailer Use Agree[220] ment”. These documents, offered as Plaintiffs Exhibits 13, 14, and 15 were printed by Southern and prepared by its contractor at the piggyback yard. On each of the documents receipting for the three trailers, Strachan was noted as the “user”. There were so noted by virtue of Strachan having been designated as consignee on Southern’s Way Bills of Lading under which the trailers were shipped from Charlotte to Charleston. Strachan had no role in preparing these Way Bills or “Trailer Use Agreements” or in providing input for their preparation. Each “Trailer Use Agreement” is signed by the individual driver on behalf of the drayman employed. Thus, for trailer number RRFZ-294629, John Ward, an employee of the drayman involved for that particular trailer, GFC, signed for it on behalf of GFC. Similarly, for containers number REAZ-2251662 and REAS-2552787, the driver signed for the trailers on behalf of the drayman responsible therefore, Mercury Motors.

9. It is upon these Trailer Use Agreements that Southern bottoms its claim against Strachan in this case, alleging that the documents created a contractual relationship between the parties. The Trailer Use Agreements contain the following provisions:

It is understood and agreed by and between the user designated above and the Southern Railway Company (hereinafter referred to as “Railroad”) that the use of the equipment described herein is made in accordance with, and is subject to, the terms and conditions printed on the reverse side of this sheet, and to the provisions of any applicable tariff on file either with the Interstate Commerce Commission or with any other regulatory agency having jurisdiction.

On the reverse side, the following is contained:

... (ii) The User shall pay rental for the use of the equipment described on the reverse side in accordance with the provisions of the applicable tariff or tarriffs on file with the Interstate Commerce Commission or other regulatory agency having jurisdiction in the premises, if any.

10. With reference to the Trailer Use Agreements in question, Strachan received only a xeroxed copy of the front portion thereof. It did not receive a copy of the reverse side until after instant litigation started.

11. The Trailer Use Agreement as to trailer number RRFX-294629 was dated December 18, 1983; with regard to Trailer numbers REAZ-251662 and REAZ2552787, the applicable “Trailer Use Agreements” were dated January 6, 1982.

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Southern Railway Co. v. Strachan Shipping, 624 F. Supp. 218, 1985 U.S. Dist. LEXIS 13490 (D.S.C. 1985).

624 F. Supp. 218 (Southern Railway Co. v. Strachan Shipping) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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