Teller & Co. v. American Railway Express Co.

78 Pa. Super. 300, 1922 Pa. Super. LEXIS 104
CourtSuperior Court of Pennsylvania
DecidedMarch 3, 1922
DocketAppeal, No. 139
StatusPublished
Cited by3 cases

This text of 78 Pa. Super. 300 (Teller & Co. v. American Railway Express Co.) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Teller & Co. v. American Railway Express Co., 78 Pa. Super. 300, 1922 Pa. Super. LEXIS 104 (Pa. Ct. App. 1922).

Opinion

Opinion by

Keller, J.,

Defendant filed an affidavit of defense raising a question of law, under section 20 of the Practice Act of 1915, (P. L. 483), and the court below entered judgment for the defendant. To sustain the judgment it must appear that the averments in the plaintiffs’ statement, if proven on the trial, would not make out a case against the defendant and a compulsory nonsuit would have to be entered: Jackson v. Myers, 260 Pa. 488; Bovaird v. Barrett, 78 Pa. Superior Ct. 68.

From the statement it appears that the plaintiffs who are engaged in business in Philadelphia, on November 17, 1920, delivered to the defendant for shipment to Abe Bosenberg, at Chicago, Illinois, five packages valued at $725, which the defendant accepted and gave plaintiffs its receipt therefor agreeing to carry and deliver the same upon the terms and conditions therein stated. The next day plaintiffs learned that the consignee, Bosenberg, was insolvent and they thereupon exercised their ' right of stoppage in transitu and notified the defendant company by letter delivered at its office, Eighteenth and Market streets, Philadelphia, the same day, to wit, November 18, 1920, to wire its agent at Chicago to hold said shipment and not deliver the same to the consignee. The defendant acknowledged receipt of said notice by postal card and later sent plaintiffs a bill for $1.92, charges in connection with said stoppage order, which plaintiffs paid. On November 20th, plaintiffs again wrote defendant asking it to recall said shipment and send the goods back to them, to which defendant replied on December 11th that the shipment had been delivered [303]*303to the consignee on November 22d; and on January 6, 1921, its representative wrote at more length: “I have, received information from our Chicago Representative to the effect that the shipment was delivered to the consignee, Nov. 23d, 1920. The instructions you, gave this Company to stop this shipment in transit were complied with — but circumstances were such that we could not intercept the shipment before a delivery was made to the consignee.” Plaintiffs averred a loss of $724.50 by reason of the failure of defendant to stop delivery of said merchandise in accordance with said order.

The court below entered judgment in favor of the defendant because the notice to it (a copy of which was set forth in the statement), failed to state, as required by section 59 of the Sales Act of 1915 (P. L. 543, 559), that the buyer was insolvent and had hot paid the seller of the goods. The appellant urges that these requirements of notice are lacking in the Uniform Sales Acts of other states, with which our act for the most part corresponds, and should be disregarded; but our legislature has the right, if it sees fit, to make such changes or alterations in the form of statutes as it deems best, (provided they are not in contravention of the Constitution of the United States or of this Commonwealth), and there is nothing in the section prescribing the requisites of notice for stoppage in transitu which is unreasonable or inconsistent with the rest of the act. The right of stoppage in transitu can only be exercised by one who has sold goods on credit to a buyer who is or becomes insolvent and it would seem not unreasonable that a carrier before it undertakes to obey such an order should have notice that the sale was on credit, that is, that the goods had not been paid for, and that the buyer was insolvent. Both conditions are necessary to justify a stoppage of goods in transitu, (section 57 of Sales Act; Hays & Black v. Mouille & Co., 14 Pa. 48, 50; 2 Kent Comm. 540; 35 Cyc. 493), and it is not unreasonable that the notice of the seller’s claim to exercise his right should [304]*304set them forth. But the provisions of the act relating to such notice are for the protection of the carrier, not of the buyer, and if without express notice in compliance therewith, it is satisfied that a right of stoppage in transitu exists — and it can only exist where an unpaid seller has parted with the possession of goods and the buyer of them is or becomes insolvent — it may upon request of the shipper refuse delivery to the consignee and return the goods to the seller. Certainly the buyer, who is insolvent, or has become so before delivery of the goods, has no right to complain thereat, for in a sale upon credit, it is always an implied condition of such sale that the buyer shall continue in good credit until the goods shall come into his actual possession, and if while the goods are in the hands of thé carrier, in transit, or in store at the end of the journey, with no intervening right in the way, the buyer becomes insolvent, the implied condition on which credit was given is broken and the vendor may resume the possession of the goods: Penna. R. R. Co. v. American Oil Works, 126 Pa. 485, 493. He has a right to refuse or countermand the final delivery if the vendee be in failing circumstances: White et al. v. Welsh et al., 38 Pa. 396, p. 420. The term “stoppage in transitu” is so common and its legal meaning and qualities are so well known, that its use almost necessarily implies a sale on credit to a buyer who is or has become insolvent, and is generally so received and acted upon. The letter from defendant’s representative of January 6,1921, apparently recognizes that this was a case of stoppage in transitu, that the company had so regarded it and acted upon it as instructed, and (in connection with the charge of $1.92), had telegraphed its representative at Chicago not to deliver the goods to the consignee, but, by reason of “circumstances” undisclosed, the delivery had nevertheless been made on November 23d, five days after the telegram should have been sent. Without considering the interstate character of the shipment, as later referred to, the carrier might [305]*305have refused to obey such a notice in the absence of definite information that the facts in the case were such as to justify the seller’s stoppage of the goods in transitu, but if it assumed to act in pursuance of a notice lacking such definite information, and the facts actually justified such stoppage, that is, the sale was on credit and the buyer insolvent, it cannot thereafter justify a delivery in contravention of such order on the ground that the notice under which it acted was not such as it might have required: 10 Corpus Juris, 230.

There is another feature of the case, however, which, in our opinion, calls for a reversal of this judgment.

The shipment was interstate in character and is therefore governed by the federal laws regulating interstate commerce. “It is not disputable that what is known as the Carmack amendment to the act to regulate commerce (Act of June 29, 1906, Chap. 3591, section 7, 31 Stat. at L. 593, Comp. Stat. 1913, section 8592), was an assertion of the power of Congress over the subject of interstate shipment, the duty to issue bills of lading, and the responsibilities thereunder, which in the nature of things, excluded state action. Adams Exp. Co. v. Croninger, 226 U. S. 191, 505, 506;......its [the Carmack amendment’s] prime object was to bring about a uniform rule of responsibility as to interstate commerce and interstate commerce bills of lading”: Atchison T. & S. F. R. Co. v. Harold, 211 U. S. 371, 378. Shortly after the decision of that case Congress passed the Act of August 29,1916, Chap. 115, 39 Stat. at L. 538, Barnes Fed. Code, sections 7978-8022, U. S. Comp. Stat. 8604aaa-8604w., governing bills of lading in interstate commerce.

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Bluebook (online)
78 Pa. Super. 300, 1922 Pa. Super. LEXIS 104, Counsel Stack Legal Research, https://law.counselstack.com/opinion/teller-co-v-american-railway-express-co-pasuperct-1922.