Vidal v. American Railroad

28 P.R. 190
Supreme Court of Puerto Rico·Decided March 26, 1920·No. No. 1920·Published

Opinions

Mr. Justice Aldrey

delivered the opinion of the court.

In the early morning of August 31, 1916, a fire occurred in a warehouse used by the American Railroad Company of Porto Rico in the city of Ponce in connection with its business of carrying passengers and freight by railroad. Several cars were standing on the tracks near the warehouse and between it and the station and the fire reached and destroyed three of them containing merchandise belonging to The Porto Rico Drug Company, Homar, Colón & Co., Ltd., and Vidal & Co., Ltd., who brought suits against the American Railroad Company of Porto Rico to recover the value of said merchandise, alleging that due to the defendant’s negligence the warehouse had burned and the fire had been communicated to the cars loaded with their merchandise. Judgment was rendered in each of the three actions against the defendant for a certain sum of money and in each case the party aggrieved by the judgment appealed. The appeals were heard together in this court, having been so tried in the lower court.

In a single opinion for the three cases the trial court held that each and all of the facts alleged in the complaint material to constitute the cause of action had- been proved, adding that the opinion was based on article 11 of the regulations and rates of the defendant company; on article 145 of the Police Law of Railroads, held to he in force; on articles 361, 362 and 363 of the Code of Commerce; on articles 138 and 139 of the Regulations for the Application of the Police Law of Railroads, and very especially on the judgment of the Supreme Court of Spain of October 7, 1899. The appellant now assigns the following as errors committed in rendering the judgments:

1st. Error of law in applying to an action for the recovery [192]*192of the value of merchandise destroyed by fire article 145 of the Regulations of the Police Law of Railroads, which refers limitedly and definitely to the disappearance and deterioration of goods delivered for transportation, whether the damage is due to acts of the employees of the company or of strangers who may come to its offices.

2nd. Error of law in considering.now in force and applying to this case provisions of the Regulations of the Police Law of Railroads which have been repealed.

3rd. Error of law in not applying to the case the regulations and rates for the transportation of passengers, freight and mail by the American Railroad Company of Porto Rico, approved by the Executive Council on May 5, 1907, article 16 of which exempts it from liability for all damages caused by fire.

4th. Error of law in violating a stipulation of the contract which exempts the company from liability for damages due to unforeseen or unavoidable accidents, this stipulation having been expressly accepted by the plaintiffs among the various stipulations printed on the back of each bill of lading signed by them.

5th. Error of law in holding the company liable because of the absence from the bills of lading of the letters O. R. or the phrase “at the owner’s risk” required by rule 11 of the freight classification, when the fact is that the letters- and phrase are required of shippers who are allowed a reduction in the rates.

6th. Error of law in applying to this case the, doctrine laid down in the judgment of the Supreme. Court of Spain of October 7, 1899, under laws which are not in force in this-Island.

7th. Error of fact in finding from the evidence that the fire of August, 1916, which was the immediate cause of the-damages sued for, was due to the negligence of the company.

[193]*1938th.. Error of fact in finding that on account of the negligence of the defendant the fire spread from the warehouse where it originated to the cars containing the merchandise destroyed.

Although the trial court cites article 145 of the Police'; Law of Eailroads, this was undoubtedly a mistake, for that law contains no such article and evidently the court refers-to article 145 of the Regulations for the Application of the-Police Law of Railroads.

In the first assignment of erior the appellant only maintains that article 145 cited by the court (an article of the regulations) has no relation to cases of destruction by fire, but refers to cases of liability for the disappearance or deterioration of merchandise.

Said article 145 (Comp. Stat. and Codes, 1911, section 9034) reads as follows:

"Article 145. — The companies shall always be liable for the loss and damage [disappearance and deterioration] of articles intrusted to their care, whether the damage is due to acts of the employees themselves or of strangers who may frequent the offices.”

The article cited is not applicable to this case in which the merchandise whose value is sued for was destroyed by fire, for it refers to cases of disappearance and that word carries with it the idea of loss by theft or robbery and is distinct from the idea of destruction by fire. There are other provisions in the same regulations for cases such as the one at bar.

The Code of Commerce of 1885, in treating of mercantile contracts for transportation by land, provides in article 355 that the liability of the carrier shall begin from the moment he receives the merchandise, and we find the same provision' in article 114 of the Regulations for the Application of the Police Law of Railroads, promulgated in 1888, Comp. Stat: [194]*194and Codes, 1911, p. 1336; and with respect to such liability the Code of Commerce provides as follows:

“Article 361. — Merchandise shall be transported at the risk of the shipper, unless the contrary was expressly stipulated.
“Therefore all damages and impairment suffered by the goods in transportation, by reason of accident, force majeure, or by virtue of the nature or defect of the articles, shall be for the account and risk of the shipper.
“The proof of these accidents is incumbent on the carrier.
“Article 362. — The carrier, however, shall be liable for the losses and damages arising from the' causes mentioned in the foregoing article if it is provéd that they occurred on account of his negligence or because he did not take the precautions usually adopted by careful persons, unless the shipper committed fraud in the bill of lading, stating that the goods were of a class or quality different from what they really were. * '*
“Article 363. — "With the exception of the cases prescribed [described] in the second paragraph of article 361, the carrier shall be obliged to deliver the goods transported in the same condition in which, according to the bill of lading, they were at the time of their receipt, without any detriment or impairment, and should he not do so, he shall be obliged to pay the value of the goods not delivered at the point where they should have been and at the time the delivery should have taken place. # '* ”

It will he seen from these statutes that although they apparently establish the rule that in the absence of a contrary agreement the shipper assumes the risk of transportation, nevertheless they actually provide to the contrary, that is, that the carrier is liable for the loss of or damage to the merchandise delivered to him for transportation unless he proves that the destruction or damage was due to a fortuitous event, vis

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Vidal v. American Railroad, 28 P.R. 190 (prsupreme 1920).

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