St. Louis, I. M. & S. Ry. Co. v. Wallace

176 S.W. 764, 1915 Tex. App. LEXIS 564
CourtCourt of Appeals of Texas
DecidedMay 8, 1915
DocketNo. 784.
StatusPublished
Cited by4 cases

This text of 176 S.W. 764 (St. Louis, I. M. & S. Ry. Co. v. Wallace) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
St. Louis, I. M. & S. Ry. Co. v. Wallace, 176 S.W. 764, 1915 Tex. App. LEXIS 564 (Tex. Ct. App. 1915).

Opinion

HENDRICKS, J.

The appellee Wallace sued the appellant, the St. Louis, Iron Mountain & Southern Railway Company, also the Tesas & Pacific Railway Company and the Ft. Worth & Denver City Railway Company, for damages alleged to represent the value of a certain box of household goods, charging conversion of such box by the Iron Mountain. The trial court peremptorily instructed the jury in favor of the Texas & Pacific and the Ft. Worth & Denver City Railway Companies ; and, upon issues submitted, the jury found against the Iron Mountain & Southern Railway Company in the sum of $460. The bill of lading issued for the shipment of the box of household goods was indorsed, “Rel. $10. val.,” which indorsement, in connection with another stipulation, the appellant contends constitutes an agreed value, by virtue of which the appellee is bound.

A -witness for the railway company testified that the above notation meant that the goods were released at a valuation of $10 per hundredweight, and also said that, on account of the release clause notation on the bill of lading, the particular box of goods took a lower freight rate than it otherwise would have taken without the same being noted upon the contract; said witness testifying to the two rates (the lower and the higher) prescribed by the Interstate Commerce Commission.

The trial court charged the jury, if the Iron Mountain & Southern Railway Company converted the goods to its own use and benefit, to find for the value of the goods as shown by the evidence. They were also instructed that, if they failed to find from a preponderance of the evidence that appellant converted the goods, they were charged that appellant merely failed to deliver the box of goods as it had contracted to do, and, in that event, to find for the plaintiff for the sum of $36.31, with interest; said amount being the result of $10 per hundredweight, with the amount of prepaid freight added. The box of household goods was delivered by appellee to appellant at Newport, Ark., to be delivered to him, as consignee, at Memphis, Tex. The box was never delivered; appellee contending that the evidence shows that it was shipped to Memphis, Tenn., a destination in an opposite direction, and was there sold as unclaimed freight.

[I] Justice Lumpkin, of the Supreme Court of Georgia, held that the delivery of goods by a railway company, at a station and to a person to whom the same were not consigned, constituted a conversion, and made the company liable for the full value of the goods. He said:

“Although it (the contract of shipment) fixes upon the goods a valuation less than their real * * * value, which stipulation the shipper agreed to in consideration of the rate of freight being reduced, there is nothing in its terms which would relieve the carrier from damages occasioned by its own negligence in making a wrong delivery.” Savannah, F. & W. Ry. Co. v. Sloat et al., 93 Ga. 803, 807, 20 S. E. 219-221.

The case of Great Northern Railroad Co. v. O’Connor, 232 U. S. 508, 34 Sup. Ct. 381, 58 L. Ed. 703, decided by Justice Lamar of the Supreme Court of the United States, involved an interstate shipment of household goods, with a notation indorsed upon the bill of lading: “Released to $10 per cwt.” The household goods were lost en route, and the trial court, as well as the Supreme Court of Minnesota, held that the plaintiff was entitled to recover the full value of the goods shipped. The goods were shipped upon a lower freight rate, and Justice Lamar held that the valuation named was the agreed valuation, and that the liability should go to that extent, and no further, citing the familiar cases previously decided by the Supreme Court of the United States. Neither does the opinion by Justice Lamar, nor the opinion by the Supreme Court of Minnesota (O’Connor v. Great Northern R. Co., 118 Minn. 223, 136 N. W. 743), disclose how the goods were lost, nor what became of them.

The Supreme Court of New York said, in the case of Magnin v. Dinsmore, 70 N. Y. 411, 26 Am. Rep. 608:

“The act which will deprive the carrier of the benefit of the contract for a limited liability fairly made must be an affirmative act of wrongdoing, not merely ordinary neglect in the course of the bailment. It need not necessarily be intentional wrongdoing, but the mere omission of ordinary care in the safe-keeping and carriage of the goods is not the misfeasance intended by the authorities.”

Justice Lamar, who rendered the opinion of the Supreme Court of the United States, in *766 the case of Railway Co. v. O’Connor, supra, had previously announced in the case of Railway Co. v. Johnson, King & Co., 121 Ga. 231, 48 S. E. 807, while on the Supreme bench of Georgia, that:

“In an action of trover or damages for conversion, the tort-feasor could not take advantage of his * * * wrong, nor lessen the measure of his liability, by invoking an agreed valuation which the plaintiff may have made for the purpose of reducing the freight rate or securing like collateral advantage” — citing the Sloat Case, supra, decided by Justice Lumpkin of that court.

See, on the question, Rosenthal et al. v. Weir, 170 N. Y. 148, 63 N. E. 65, 57 L. R. A. 527; Railway Co. v. Blish Milling Co. (Ga. App.) 82 S. E. 786; Railway Co. v. Bank, 26 Ind. App. 600, 59 N. E. 43.

Hutchinson says:

“ # * * Where the carrier has converted the goods, he will be deemed to have thereby abandoned the contract of shipment, and he cannot thereafter insist on a stipulation that his liability shall be limited to a certain sum at which the goods are valued,” etc. Carriers, vol. 1 (3d Ed.) § 432, p. 435.

There is a sound public policy, in preventing a common carrier, who has not shipped under the contract, from maintaining a defense of a lesser agreed value for goods, and in allowing the shipper to recover a greater market value, after the carrier has been guilty of converting the goods. The consequence of such a doctrine, if permitted, can be readily discerned; and though the eon-tract, with the agreed valuation, calls for an interstate shipment, the federal Supreme Court has not held, nor tended to hold, the contract applies to conversion. The appellant, however, insists that there is no sufficient proof in this record that it converted the goods of appellee; the only proof on the question being hearsay.

[2] Appellant admits in its answer that it lost the goods, and, of course, if the proof went no further, this case would come within the purview of the decision of Justice Lamar, in Railway Co. v. O’Connor, supra.

The record shows that the appellee Wallace made complaint to the station agent at Memphis, Tex., on account of the nondelivery of the goods. The freight claim agent of the Missouri Pacific Railway Company and the appellant, St. Louis, Iron Mountain & Southern, testified as follows:

“That this box of goods in question was consigned Newport, Ark., to Memphis, Tex. That they traced for it over the main line, Newport, Ark., to Texarkana, as well as over the Texas line and found eventually the box had strayed to Memphis, Tenn., and had been sold as unclaimed goods. That all efforts to trace this box were fruitless.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Mitchell v. Union Pacific Railroad Co.
188 F. Supp. 869 (S.D. California, 1960)
Jester v. Lancaster
266 S.W. 1103 (Court of Appeals of Texas, 1924)
Sands v. American Railway Express Co.
193 N.W. 721 (Supreme Court of Minnesota, 1923)
Henderson v. Wells Fargo & Co. Express
217 S.W. 962 (Court of Appeals of Texas, 1919)

Cite This Page — Counsel Stack

Bluebook (online)
176 S.W. 764, 1915 Tex. App. LEXIS 564, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-louis-i-m-s-ry-co-v-wallace-texapp-1915.