United States Shipping Board Emergency Fleet Corp. v. Texas Star Flour Mills

12 F.2d 9, 1926 U.S. App. LEXIS 3144, 1926 A.M.C. 646
CourtCourt of Appeals for the Fifth Circuit
DecidedMarch 23, 1926
Docket4581
StatusPublished
Cited by12 cases

This text of 12 F.2d 9 (United States Shipping Board Emergency Fleet Corp. v. Texas Star Flour Mills) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States Shipping Board Emergency Fleet Corp. v. Texas Star Flour Mills, 12 F.2d 9, 1926 U.S. App. LEXIS 3144, 1926 A.M.C. 646 (5th Cir. 1926).

Opinion

WALKER, Circuit Judge.

This was an áetion by the defendant in error (herein call- ' ed the shipper), whose principal place of business is at Galveston, Tex., against the plaintiff in error, United States Shipping Board Emergency Fleet Corporation (herein called the carrier), to recover the alleged amount of damage to flour shipped on a vessel of the carrier. The petition contained allegations to the following effect:

The carrier 'through its agent on December 15, 1919, confirmed engagement of freight room for the shipper for 33 tons of flour, “shipment from ship side Galveston to Nuevitas via Havana or Santiago, to be delivered to suit steamer.” That instrument contained the following: “This contract is made upon the express condition that it is subject to all the clauses and conditions in the ocean bill of lading used by the vessel, which bill of lading is made a part of this contract and copy of same shall be furnished on application.”

By a similar instrument dated December 18, 1919, the carrier confirmed engagement of freight room for 50 tons of flour. Pursuant to those freight engagement contracts the shipper on December 18 and December 22, 1919, delivered to three ears 85 tons of flour in good order and condition, and the bills of lading evidencing the shipment of the flour from the shipper’s mill to the dock of the carrier’s agent were delivered to the carrier’s agent and were received by him on the dates of the issue of such bills of lading, and the cars containing the flour were in the exclusive possession and control of the carrier from those dates until delivery was made by the carrier to the steamship Gibara as stated below. One of those ears was unloaded at the carrier’s dock at Galveston on January 10.1920, and the other two ears were unloaded there on January 27, 1920, and on those dates the carrier delivered to the shipper bills of lading (copies of which were attached to the petition), covering the flour for shipment by the steamship Lake Sanford to Havana, or to Santiago, and then by connecting carrier to Nuevitas, Cuba. . The flour remained on the carrier’s dock at Galveston until February 25, 1920, when the flour left Galveston on the Lake Sanford. The flour arrived at Santiago on March 7, and was delivered by the carrier to the steamship Gibara on April 19, 1920, which transported it to Nuevitas, arriving at 'that place on May 18.1920. ■

The carrier was negligent in failing to remove the flour from the cars-with reasonable promptness, in allowing it to remain on the dock from the time it was unloaded from the cars until it was shipped from Galves *11 ton, and in delaying the transit of the flour from Galveston to Nuevitas. The reasonable time within which the carrier should have carried the flour after its receipt at Galveston was not more than two or three weeks. Said negligence of the carrier caused the flour to deteriorate, in that, by the unreasonable delay at Galveston and in transit, weevils operated in the flour and damaged it, and by being exposed to dampness for so long a period of time the flour became musty and badly decayed.

By written stipulation a jury was waived. The court, after overruling exceptions to the petition, made special findings of fact, and rendered judgment in favor of the shipper for the amount of the difference between the market value of the' flour when it should have arrived at Nuevitas and its value when it arrived at that place, with interest on that sum at 6 per centum per annum from January 15, 1920.

There is no merit in the contention that the liability asserted could not be enforced against the carrier because in the transaction in question it acted as agent of the United States. The record does not show that it acted as such agent in those transactions. Liability incurred by it as a carrier is subject to be enforced by suit against it. Sloan Shipyards v. U. S. Fleet Corp., 42 S. Ct. 386, 258 U. S. 549, 66 L. Ed. 762.

Each of the ship’s bills of lading contained the following: “No suit or proceeding to recover for or upon any claim or demand shall be maintained against the carrier or vessel or owners thereof, unless commenced within six months after delivery of the goods to the carrier, and the lapse of such period shall be deemed a complete bar to recovery in any such suit or proceeding not sooner commenced, notwithstanding the carrier may be a nonresident or a foreign corporation.”

By exception to the petition the carrier set up that provision as a bar to the suit, which was not brought within six months after the delivery of the flour to the carrier. The quoted provision should not be given the effect of ■ barring the suit unless under the circumstances of the ease the requirement was reasonable. The Queen of the Pacific, 180 U. S. 49, 21 S. Ct. 278, 45 L. Ed. 419; Green Star S. S. Co. v. Nanyang Bros. Tobacco Co. (C. C. A.) 3 F.(2d) 369. The flour was delivered at Nuevitas on May 18, 1920, five months after part of it was delivered to the carrier. The six months from the date of the delivery to the carrier of the flour expired one month after it reached Nuevitas. We have no hesitation in concluding that one month was less than a reasonable time to allow the shipper, located at Galveston, Tex., to ascertain the condition of the flour when it was delivered at Nuevitas, Cuba, to make investigation as to the cause of damage and liability therefor, and to bring suit. The exception in question was properly overruled.

The court found to the following effect: When the flour was loaded on the cars and came under the carrier’s control on December 18 and 22, 1919, it was as it was when it came from the mill, it had not been stored and was free from weevil. At that time there was present in the flour the germ of weevil, which infests all flour, especially in Southern climates. The ordinary peiiod for the germination of weevil in flour, under the conditions prevailing when the flour in question was placed on the cars at Galveston, is about 60 days. Weevil damage is not sudden, but is progressive after it has once begun. The germination of the weevil in the flour began between the time the carrier got control of it in December, 1919, and the arrival of it at Santiago on March 7, 1920. The carrier accepted the flour without notifying the shipper that any delay in the shipment and carrying of it was expected. The reasonable time for transporting eargo from Galveston to Santiago, Cuba, was about two weeks. The carrier’s delay set in motion the progressive cause of the damage, and it is responsible for that damage. The carrier invoked the following provisions of the bills of lading:

“The carrier’s responsibility in respect of the goods as a carrier shall not attach until the goods are actually loaded for transportation upon the vessel, and shall terminate, without notice, as soon as the goods leave the vessel’s tackles at destination or other place where the carrier is authorized to make delivery or end its responsibility.

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Bluebook (online)
12 F.2d 9, 1926 U.S. App. LEXIS 3144, 1926 A.M.C. 646, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-shipping-board-emergency-fleet-corp-v-texas-star-flour-ca5-1926.