Southern Ry. Co. v. Mayer Myers Paper Co.

232 S.W.2d 20, 191 Tenn. 164, 27 Beeler 164, 1950 Tenn. LEXIS 561
CourtTennessee Supreme Court
DecidedJuly 15, 1950
StatusPublished
Cited by2 cases

This text of 232 S.W.2d 20 (Southern Ry. Co. v. Mayer Myers Paper Co.) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern Ry. Co. v. Mayer Myers Paper Co., 232 S.W.2d 20, 191 Tenn. 164, 27 Beeler 164, 1950 Tenn. LEXIS 561 (Tenn. 1950).

Opinion

Me. Justice Tomlinson

delivered the opinion of the Court.

This is a suit by the Southern Bailway Company, hereinafter identified as Carrier, to recover from the Mayer Myers Paper Company of Memphis the freight [166]*166charges on a car of paper shipped from Mechanicsville, New York to Memphis and there delivered to the Mayer Myers Paper Company. The Paper Company had contracted with the Kline Paper Stock Company of Me-chanicsville, New York for the purchase of a car of paper for a stipulated price. It was a part of the contract that the Kline Paper Company would pay the freight charges. This shipment was the result of that contract, but the Kline Paper Company had not prepaid the freight charges.

The Carrier (Southern Railway Company) did not demand payment of the freight when it delivered this merchandise to the Mayer Myers Paper Company. However, this paper company was on an approved credit list whereby under the regulations of the Interstate Commerce Commission the Carrier was authorized to extend it credit on freight charges for a period of not more than ninety-six hours.

The Carrier made no representation to the paper company as to whether the freight charges had been paid. Delivery without a precedent demand for payment of these charges was not, in any event, an implied representation that the charges had been paid since the paper company was on the approved credit list of this Carrier. However, the paper company accepted delivery under the belief that these charges had been paid. It is not disclosed by the record that the Carrier was aware of this erroneous belief.

Had Mayer Myers Paper Company been informed that the freight charges had not been paid it would either have refused delivery or paid these charges and deducted such payment from the purchase price in remitting to Kline Paper Company. Insofar as this case is con[167]*167cerned, it is sufficient to say that this erroneous belief upon the part of Mayer Myers Paper Company was due in the first instance to the fact that the Kline Paper Company sent to Mayer Myers an incomplete copy (purportedly complete) of its telegram to a connecting carrier at Mechanicsville,. New York, wherein the Carrier was directed to reship to Mayer Myers Paper Company this car of paper which had been originally shipped by a consignor from Ondawa, New York to the Kline Paper Company, as consignee, at Mechanicsville, New York. Had this telegram been correctly quoted it would have contained the words “all charges to follow car”. These words were omitted from the copy which Kline sent to its consignee, Mayer Myers Paper Company.

Approximately thirteen months after the delivery of this merchandise the Mayer Myers Paper Company received a bill from the Carrier for these freight charges, and thereby became informed of the fact, not previously known to it, that these freight charges had not been paid.

Mayer Myers immediately sought by letters to induce its seller consignor, Kline Paper Company to pay these freight charges as per their agreements. No reply to these letters was received, and the Kline Paper Company did not pay these charges. It is not shown by the record what the financial status of the Kline Paper Company was, if in existence, at this subsequent period. Mayer Myers P'aper Company, in turn, declined to pay the Carrier. Therefore, the Carrier brought this suit.

Mayer Myers Paper Company, hereinafter referred to as consignee, denied liability on the ground that the Bailroad had “negligently misled a (the) consignee as to prepayment by consignor of freight charges to consignee’s injury and detriment” and would not, there[168]*168fore, “be permitted some thirteen months thereafter, to collect those charges — using as a shield against its own negligence a Federal Statute which was enacted for another and different purpose”. The statute referred to is the Interstate Commerce Act enacted for the purpose of securing uniformity in charges for transportation of freight or passengers, and to prevent discrimination in such charges. The Act insofar as pertinent here is carried in the Federal Code under Title 49 U. S. C. A. Section 6(7).

The Circuit Court sustained this defense, presumably upon the authority of the holding of the United States Sixth Circuit Court of Appeals in the case of Davis v. Akron Feed & Milling Company, 296 F. 675. The Carrier has appealed directly to this Court because the facts were stipulated.

In the case of N. C. S St. L. Railway v. Commercial Nursery Co., 8 Tenn. App. 16, 21 (Certiorari denied), the Court, quoting from an opinion of the United States Supreme Court, L. & N. R. Co. v. Central Iron & Coal Co., 265 U. S. 59, 44 S. Ct. 441, 68 L. Ed. 900, held-that “if a shipment is accepted, the consignee becomes liable, as a matter of law, for the full amount of the freight charges whether they are demanded at the time of the delivery, or not until later”. This conclusion was in accord with the holding of this Court that the consignee by accepting the shipment “became bound for the payment of the freight”. Cleveland C. C. & St. L. R. Co. v. Southern Coal & Coke Co., 147 Tenn. 433, 449, 248 S. W. 297, 301. This is conceded by consignee to be an accurate' statement of the rule. It insists, however, that the Carrier is estopped from the collection of these freight charges because it, the Carrier, did not in[169]*169form this consignee at the time of delivery that the freight had not been paid. This is defined in the stipulation as being an “inadvertence on the part of” the Carrier.

Title 49 U. S. C. A. Section 6(7) provides: “. '. . nor shall any carrier charge or demand or collect or receive a greater or less or different compensation for süch transportation of passengers or property, or for any service in connection therewith, between the points named in such tariffs than the rates, fares, and charges which are specified in the tariff filed and in effect at the time; nor shall any carrier refund or remit in any manner or by any device any portion of the rates, fares, and charges so specified, nor extend to any shipper or person any privileges or facilities in the transportation of passengers or property, except such as are specified in such tariffs. ’ ’

The question then is whether the so called “inadvertence of the Carrier” in not informing consignee at the time of delivery and for thirteen months thereafter that the freight charges had not been paid makes this case an exception to the plain mandate of the above quoted statute. If such he the result, then there is necessarily applicable the observation made by this Court in Cleveland C. C. & St. L. R. Co. v. Southern Coal & Coke Co., supra, 147 Tenn. at page 447, 248 S. W. at page 301, as follows: “If the carrier could so estop himself, then it would lie within the carrier’s power, by purposely putting itself in a position where it could not exact the lawful rate .of a shipper it desired to favor, to render nugatory one of the main designs of the act, — the prevention of discrimination between shippers; and for the law to countenance the doctrine of estoppel in cases like this, is for the law to say, through the courts, that the carrier is [170]

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Bluebook (online)
232 S.W.2d 20, 191 Tenn. 164, 27 Beeler 164, 1950 Tenn. LEXIS 561, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-ry-co-v-mayer-myers-paper-co-tenn-1950.