Wells, Fargo & Co. v. Cutter

140 Ill. App. 324, 1908 Ill. App. LEXIS 856
CourtAppellate Court of Illinois
DecidedMarch 20, 1908
DocketGen. No. 13,765
StatusPublished
Cited by2 cases

This text of 140 Ill. App. 324 (Wells, Fargo & Co. v. Cutter) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wells, Fargo & Co. v. Cutter, 140 Ill. App. 324, 1908 Ill. App. LEXIS 856 (Ill. Ct. App. 1908).

Opinion

Mr. Justice Freeman

delivered the opinion of the court.

The defendant contends that the judgment of the lower court is erroneous; that a carrier may lawfully agree with a shipper that its liability in case of loss, even though resulting from its own negligence, shall not be greater than the value placed upon the goods by- the shipper upon which the carrier’s charges are based; that such an agreement does not operate as a waiver or limitation of any common law duty of the carrier, and that it may be effected by a notice contained in the carrier’s receipt to the shipper that it will not be liable beyond a stated amount unless a higher, value is disclosed by the shipper, if such notice is brought home to the knowledge of the shipper and no fraud, deceit or coercion is exercised by the carrier in connection with the shipment. It is argued that in the case at bar the plaintiffs’ shipping clerk admitted knowledge of the $50 valuation provision of the receipt and knew that there was a blank column in the receipt headed “Value asked and given as,” which was there to afford opportunity for inserting the value of the shipment if the parties" were so disposed. It is urged that such knowledge by the shippers was sufficient without any assent on their part, to bind plaintiffs to the terms of that provision. In support of these contentions defendant’s counsel cites among others the case of Oppenheimer v. U. S. Express Co., 69 Ill. 62-66. In that case it was urged in behalf of appellants “that it is incumbent upon the express company to show, not only that the consignors had knowledge of the contents of the receipt but also that they assented to the same and consented to be bound thereby.” The court says: “A distinction exists between the effect of those notices by a carrier which seek to discharge him from duties which the law has annexed to his employment, and those like the one in question, designed simply to insure good faith and fair dealing on the part of his employer; in the former case notice alone not being effectual without an assent to the attempted restriction; while in the latter case, notice alone, if brought home to the knowledge of the owner of the property delivered for carriage, will be sufficient.” In support of the views so expressed the court quotes from Orange Co. Bank v. Brown, 9 Wend. 115, in which it is said that where the notice is “designed simply to insure good faith and fair dealing” on the part of the shipper, if it is “brought home to the knowledge of the owner (and courts and juries are liberal in inferring such knowledge from the publication of the notice), is as effectual in qualifying the acceptance of the goods as a special agreement, and the owner at his peril must disclose the value and pay the premium. The carrier in such case is not bound to make the inquiry and if the owner omits to make known the value and does not therefore pay the premium at the time of delivery it is considered as dealing unfairly with the carrier, and he is liable only to the amount mentioned in his notice or not at all, according to the terms of his notice.” In the Oppenheim case the court “independent of the qualifying provision contained in the receipt” sustained the defendant’s claim of exemption from liability on the ground of a want of good faith in not disclosing the value of the goods. The court finds the value was not disclosed in order to avoid “the enhanced charges that would have been made had the value of the package been disclosed.” and that there was “a designed suppression of the value of the goods.”

In the case at bar we find no evidence of a want of good faith on the part of the shipper, nor was there any designed suppression of the value. There is evidence tending to show that the express company was in the habit of using a stamp reading “Value asked and not given,” when it desired to limit its liability where the value was not given. The shipping agent of the plaintiffs testifies he did not know “that the price we were paying for the carriage of a shipment was regulated to some extent by the value of the goods. I didn’t know that the price paid for sending packages would be greater if it was a valuable package than if it was simply a cheap package. I didn’t know that the rate would be regulated by the value of the package I was shipping. I knew that jewelry and such things as that had a higher rate for shipment, because jewelry did not go with the regular express, as I understood it. I went by the weight of our goods. We did not have any costly things. They gave the rate, so much a hundred pounds, as the rate for merchandise, and I shipped by that value.” This evidence is undisputed. There is evidence likewise undisputed to the effect that when the collector for the defendant brought the receipt in question to the plaintiff’s office to collect the express charges, which were $98.10, the plaintiffs’ credit man “figured * * * to see if the charges were correct.” He found the charges “lower than the tariff rate” and called the attention of defendant’s collector to that fact. He was told by the collector “that particular rate was made owing to the fact that five cases weigh more than a thousand pounds.” This evidence clearly tends to show not only that there was no attempt on plaintiffs’ part to suppress the value of the merchandise in order to secure a lower rate, but that plaintiffs’ shipping agent did not even know that charges were based on value of merchandise so shipped, that as a matter of fact they probably were not so based on merchandise of this character and that instead of trying to save a few dollars by suppressing the actual value of the shipment, plaintiffs’ credit man called defendant’s attention to what he thought was an error in plaintiffs’ favor, and thereupon defendant’s agent explained that a reduced rate was granted by defendant because of the weight of the shipment. Apparently there was good faith on both sides in giving and accepting the shipment, at the rates paid, and it is difficult to believe that defendant when fixing and collecting express charges of $98.10 on the shipment had any question whatever that its value must have exceeded $50, and it appears that it was accepted with that understanding and without inquiry. We are of opinion that so far as the notice under consideration is concerned defendant waived it as a limitation upon the value of the shipment in this case, and it was not assented to by plaintiffs. In Adams Express Co. v. Haynes, 42 Ill. 89-93-4, it was held that “the jury should be satisfied from the evidence that the person to whom it was given had full knowledge of the restrictions when the receipt was given; and to show that he was not so informed all of the circumstances attending the giving of the receipt may be admitted in evidence.” It was further said that the shipper’s assent to the limitation is necessary “and that is a question of fact for the jury.” The shipper’s agreement to the limitation “is not to be implied from the posting of notices or the simple delivery of one to the consignor, as this would be no more than limitation of his liability by ex parte action. Some evidence of assent to the terms of the notice is necessary from which a contract may be implied.” If, as said in Adams Exp. Co. v. Haynes, supra, the plaintiffs in the case at bar had received the “receipt with full knowledge of its terms and conditions and intended to assent to the restrictions it contained, then it undoubtedly” would have become their contract as fully as if they had signed it. But, as we have indicated, we think the jury were justified by the evidence in concluding that neither party intended the notice in question to be applicable when the receipt was given. In Boscowitz v. Adams Exp. Co., 93 Ill.

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Related

Cohen v. Wabash Railroad
156 Ill. App. 58 (Appellate Court of Illinois, 1910)
Ellison v. Adams Express Co.
152 Ill. App. 1 (Appellate Court of Illinois, 1909)

Cite This Page — Counsel Stack

Bluebook (online)
140 Ill. App. 324, 1908 Ill. App. LEXIS 856, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wells-fargo-co-v-cutter-illappct-1908.