Virginia-Carolina Peanut Co. v. Atlantic Coast Line Railroad

155 N.C. 148
CourtSupreme Court of North Carolina
DecidedMay 3, 1911
StatusPublished
Cited by11 cases

This text of 155 N.C. 148 (Virginia-Carolina Peanut Co. v. Atlantic Coast Line Railroad) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Virginia-Carolina Peanut Co. v. Atlantic Coast Line Railroad, 155 N.C. 148 (N.C. 1911).

Opinions

Horas, J.,

after stating the case. In Harper v. Express Co., 148 N. C., pp. 87-90, tbe Court, in speaking to the question of damages, recoverable by reason of wrongful delay in shipment of goods, said: “Where the goods shipped have a market value, and there is nothing to indicate the specific purpose for which they were ordered, these damages are irsually the difference in tbe market value of tbe goods at the time for delivery, and that when they were in fact delivered. We have so held in the case of Davidson Development Co. v. R. R., 147 N. C., 503, and Lee v. R. R., 136 N. C., 533, is to the same effect. When, however, the goods are ordered for a special purpose or for present use in a given way, and these facts are known to the carrier, he is responsible 'for the damages fairly attributable to the delay and in reference to the purpose or the use indicated. And it is [151]*151not necessary always that those facts should be mentioned in the negotiations, or in express terms made a part of the contract, but when they are known to the carrier under such circumstances, or they are of such a character that the parties may be fairly supposed to have them in contemplation in making the contract, such special facts become relevant in determining the question of damages,” citing Moore on Carriers, p. 425, and Hutchinson on Carriers, sec. 1367. The modification of the general rule, suggested in this excerpt, is not infrequently called for in shipments of machinery, and, under several decisions of our Court on this subject, it may be that the facts now in evidence require that the question of substantial compensatory damages, arising by reason of notice or knowledge of special circumstances had at the time of shipment, should be submitted to the jury. Lumber Co. v. R. R., 151 N. C., p. 23; Sharpe v. R. R., 130 N. C., p. 613; Rocky Mount Mills v. R. R., 119 N. C., p. 693. Without final determination of this matter, however, we are of opinion that there was error in excluding the testimony offered by plaintiff to show definite notice of special circumstances given after shipment made. True, the bill of lading was issued to the witness, Gurganus, but it is also true that he had no personal interest in the goods or their shipment, but was acting, at the time, for the plaintiff company, “which had purchased the machinery, paid for it, received it upon arrival at Williamston and there paid the freight charges thereon and installed same in its plant.” From these facts we see no reason why the plaintiff company, as undisclosed principal, did not acquire and hold the general business rights and interests arising from the contract and under the general principles obtaining in case of such a relationship. Nicholson v. Dover, 145 N. C., p. 20; Barham & Owens v. Bell, 112 N. C., p. 131; Clark & Skyles on Agency, p. 1155; Tiffany on Agency, pp. 304, 305. In case of Barham v. Bell, supra, it was held: “Where a contract, not under seal, is made with an agent in his own name for an undisclosed principal, either the agent or principal may sue upon it; the defendant, in the latter case, being entitled to be placed in the same position, at the time of the disclosure of the real principal, as if the agent had been the real con[152]*152tracting party,” and in more general terms in Clark & Skyle, supra, it is said: “It is held, therefore, that where a person enters into a simple contract, other than a negotiable instrument, in his own name, but in fact as agent for an undisclosed principal, the principal may come in and sue the third party on the contract, and that this is true, not only where the agent disclosed the existence, but not the name of the principal, but also where he does not even disclose the existence of the principal.” A principle undoubtedly correct, where, as in this case, neither the personality of the agent nor the claims of the third party against him, personally, require consideration. This then being the position of the parties, if the nominal consignee and the president of the plaintiff company gave the notice embodied in the proposed evidence, and there was negligent delay on the part of the defendant, after being afforded full and reasonable opportunity to correct the wrong, such negligence would constitute a tort, giving the plaintiff right to recover damages on facts as they then appeared. This is one principal difference in the elements' of damages, obtaining in breach of contract and consequential damages arising from a tort. In the one case damages are recovered, as a rule, on relevant facts in the reasonable contemplation of the parties at the time the contract is made, and in the other on the facts existent or as they reasonably appeared to the parties at the time of the tort committed. The obligation of diligence imposed by the law on common carriers is continuous during the entire course of the carriage, and a negligent failure to perform such duty, causing special damage to a passenger or shipper of freight, is a tort arising whenever the same occurs. "We must not be understood as holding that this consequential damages, to arise by reason of special circumstances, would commence at the very instant the notice was given to some local agent of the company. The notice, as indicated, must be such as to afford fair and reasonable opportunity to avoid further delay under conditions as they existed when the notice was received, and damages arising thereafter might then be properly estimated under the circumstances which the notice discloses. There is suggestion, from authoritative sources, that in these continuous contracts of carriage, notice of special cir[153]*153cumstances, given during tlie course of performance would be relevant as affecting tbe question of tbe amount of damages even wben tbe action could only be considered as one for a breach of contract. Tbis was made by Bramwell Baron in the case of Gee v. R. R., H. & N., p. 2116 (Exch.), and referred to in Woods Mayn on Damages, p. 35.- Tbis suggestion was applied by a Texas court, in tbe ease of R. R. v. Gilbert, and was at first affirmed on appeal, but was afterwards rejected, tbe Court of Civil Appeals bolding, on a rehearing, that notice given, after contract, of shipment made should not be allowed to affect tbe question. R. R. v. Gilbert, 4 Texas-Civil Appeals, p. 366. In a subsequent case, however, and on a different state of facts tbe Supreme Court of Texas seems to have modified this ruling. Bourland v. R. R., 99 Texas, p. 407. Tbe digest of tbis case as it appears in 122 Anno. State Reports, being in part as follows: “Tbe rule that damages of a special or exceptional kind for delay in tbe shipment of goods cannot be recovered in tbe absence of notice to tbe carrier at tbe time of making tbe contract of carriage of tbe particular conditions under which tbe damages are likely to arise as tbe result of tbe delay is not unbending nor applicable to every case.” Tbe question is not free from difficulty, nor is it necessary to determine it on tbe present appeal, for numerous and well considered decisions in tbis jurisdiction are to tbe effect that for breach of duty in reference to a contract of carriage, on tbe part of common carrier doing business under a corporate franchise, one having a right by contract to enforce performance, may recover damages for a tort and have tbe relief administered and bis rights determined as in that class of actions. Williams v. R. R., 144 N. C., pp. 498-505; Purcell v. R. R., 108 N. C., p. 414; Bowers v. R. R., 107 N. C., p. 721. In Purcell’s case, and on tbis question, it was held: “1.

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Bluebook (online)
155 N.C. 148, Counsel Stack Legal Research, https://law.counselstack.com/opinion/virginia-carolina-peanut-co-v-atlantic-coast-line-railroad-nc-1911.