Zimmerman's Estate

33 Pa. D. & C. 475, 1938 Pa. Dist. & Cnty. Dec. LEXIS 146
CourtPennsylvania Orphans' Court, Philadelphia County
DecidedSeptember 23, 1938
Docketno. 3637 of 1935
StatusPublished

This text of 33 Pa. D. & C. 475 (Zimmerman's Estate) is published on Counsel Stack Legal Research, covering Pennsylvania Orphans' Court, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zimmerman's Estate, 33 Pa. D. & C. 475, 1938 Pa. Dist. & Cnty. Dec. LEXIS 146 (Pa. Super. Ct. 1938).

Opinion

Klein, J.,

— Exceptions were taken to the allowance by the auditing judge of the claim of the Pennsylvania Railroad for freight charges incurred on the shipment of seven cars of grapes, originating in California, and diverted at Philadelphia by decedent, a commission merchant, to a firm in Newark, N. J., from whom, by reason of bankruptcy, the railroad company was unable to collect the balance here claimed.

There is no dispute as to any of the facts which are all contained in a stipulation. Our decision depends entirely upon the sufficiency of the disclosure by decedent of the fact that he was acting as an agent for a named principal.

[476]*476After a careful study of the problem, which is a novel one to be presented to a probate court, we are of opinion that the allowance of the Pennsylvania Railroad’s claim, as ultimate carrier, in the sum of $4,344.11, with interest to the date of decedent’s death, was proper.

The question of a consignee’s liability for freight charges has been the subject of much litigation. The authorities are agreed that a consignee who either receives or exercises dominion over the goods by ordering a reconsignment becomes responsible for the freight charges thereon: Pa. R. R. v. Rothstein & Sons, 109 Pa. Superior Ct. 96 (1933); West Jersey & Seashore R. R. Co. v. Whiting Lumber Co., 71 Pa. Superior Ct. 161, 164 (1919); Philadelphia & Reading Ry. Co. v. International Motor Co., 84 Pa. Superior Ct. 582, 587 (1925); Philadelphia & Reading Ry. Co. v. Taylor et al., 102 Pa. Superior Ct. 31 (1930); Pa. R. R. Co. v. Lord & Spencer, Inc. (Mass. 1936), 3 N. E. (2d) 231.

It also seems clear that the consignee can avoid liability for the tariff charges if in the written diversion order he discloses the fact that he is acting as an agent for a named principal. But even written notice of such nonbeneficial interest is not in all cases sufficient. If this disclosure does not accompany the written diversion order, but has been given prior thereto, the consignee remains liable. Title may change in the interim and the company is upon no duty of inquiry to dispel the implication of ownership contained in the diversion order.

The leading case in Pennsylvania on the subject is Pa. R. R. Co. v. Rothstein et al., 116 Pa. Superior Ct. 156 (1935). In this case the carrier, prior to the written order of diversion, had upon arrival of the goods some 10 days previous admittedly received notice of nonbeneficial interest, but the notice of diversion upon which it subsequently acted contained no such notice. The defendant was held liable, Judge Cunningham stating at page 161:

“In order to crystallize the rulings of our earlier cases, we now state the definite rule that a diversion or reeon[477]*477signment order obligates the one signing it for the payment of freight charges, unless he states, in the order itself, not only the fact that he is acting as agent for another, but also the name of his principal. When this is done, the carrier will know for whom it is acting and so be able to determine whether it is willing to undertake the contract.” (Italics supplied.)

The auditing judge held that the entire claim was squarely controlled by this rule and that since liability was contracted by the written diversion orders, which admittedly contained no disclosure of agency, any nonbenefieial notices, verbal or written, either prior or subsequent to the actual written diversion orders, were immaterial and insufficient to relieve decedent from liability.

We are not prepared to accept this general rule as literally as the learned auditing judge because of the factual differences existing between the instant case and the case in which the rule was enunciated. In Schuetz’s Estate, 315 Pa. 105 (1934), Mr. Justice Simpson said at page 109 :

“. . . as has often been said, ‘in every ease what is actually decided is the law applicable to the particular facts; all other legal conclusions therein are but obiter dicta’: Cohens v. Virginia, 6 Wheaton, 264,399; Weyerhaeuser v. Hoyt, 219 U. S. 380, 394; Erie City’s Appeal, 297 Pa. 260, 266; Welsch v. Pittsburgh Terminal Coal Co., 303 Pa. 405, 408.”

We must therefore study the facts in the present case more closely.

Two of the cars, nos. 14898 and 18403, emanated from Modesto, Calif., containing merchandise consigned to James Tozzi & Co. at Philadelphia. After arrival in Philadelphia, the contents of the cars were sold on October 28, 1932, at auction, to decedent. On October 20th, which was eight days before decedent purchased the merchandise, Wolf & Cohen, another firm of commission brokers, sent notices to the railroad that they, Wolf & [478]*478Cohen, were acting as agents and that the beneficial owners of the property were James Tozzi & Co. Surely these notices given by another broker, prior to the purchase of the grapes by decedent, can have no relevancy to the question of decedent’s liability. He was, admittedly, the owner of the merchandise and gave no notice at any time, either written or verbal, to the railroad that he was not the beneficial owner or that he was acting as agent for a named principal. It is therefore clear that the estate is liable for the freight charges on these two cars.

The factual situation with respect to the other five cars presents a different picture. All of these cars originated in California, and after prior diversions were consigned to decedent and delivered to the B. & 0. produce terminal in Philadelphia. Decedent verbally ordered all of them diverted to the Newark firm sometime on October 27 or 28,1932; verbal notices of nonbeneficial ownership were filed with the B. & 0. Railroad, either on the same day that the verbal diversion orders were given or on the following day. The cars were then moved from the B. & 0. produce terminal and delivered to the tracks of the Pennsylvania Railroad, the ultimate carrier and the claimant here. In every case a written diversion order was filed with the B. & 0. after the car was received by the Pennsylvania Railroad. None of these diversion orders contained a statement that decedent was acting as an agent for a disclosed principal. The order for car no. 10371, however, bore the following notation: “Beneficiary Notice filed today. Urick & Hollis. Fresno, Calif.” A written nonbeneficiary notice, disclosing decedent’s agency and naming the principal, was filed with the B. & 0. Railroad for this car on October 29th, after the written diversion order had been filed. At the same time, and also after the movement of the cars, but before the delivery of the written diversion orders, similar non-beneficiary notices were filed for cars nos. 14035, 13584, 12104. The only written notice affecting car no. 14425, disclosing that decedent was acting as an agent for a dis[479]*479closed principal, was filed with the B. & 0. Railroad on October 20, 1932, seven days prior to the verbal diversion order.

We know of no statute, State or Federal, or of any rule or regulation prescribed by the Interstate Commerce Commission or the carriers which requires a contract for the diversion of freight to be in writing. The written diversion order is usually the contract which embodies the entire agreement of the parties and immutably fixes their contractual rights and liabilities. This, however, is not always so.

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Related

Cohens v. Virginia
19 U.S. 264 (Supreme Court, 1821)
Weyerhaeuser v. Hoyt
219 U.S. 380 (Supreme Court, 1911)
Welsch v. Pittsburgh Terminal Coal Corp.
154 A. 716 (Supreme Court of Pennsylvania, 1931)
Erie City's Appeal
147 A. 58 (Supreme Court of Pennsylvania, 1929)
Schuetz's Estate
172 A. 865 (Supreme Court of Pennsylvania, 1934)
Pennsylvania Railroad v. Rothstein
176 A. 861 (Superior Court of Pennsylvania, 1934)
C. & N. Rwy. Co. v. Picard
98 Pa. Super. 134 (Superior Court of Pennsylvania, 1929)
Philadelphia & Reading Railway Co. v. International Motor Co.
84 Pa. Super. 582 (Superior Court of Pennsylvania, 1924)
Pa. Railroad v. Rothstein & Sons
165 A. 752 (Superior Court of Pennsylvania, 1932)
Philadelphia & Reading Railway Co. v. Taylor
156 A. 587 (Superior Court of Pennsylvania, 1930)
Sloan Corp. v. Linton
103 A. 1011 (Supreme Court of Pennsylvania, 1918)
West Jersey & Seashore R. R. v. Whiting Lumber Co.
71 Pa. Super. 161 (Superior Court of Pennsylvania, 1919)
Horan v. Hughes
129 F. 248 (S.D. New York, 1903)

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Bluebook (online)
33 Pa. D. & C. 475, 1938 Pa. Dist. & Cnty. Dec. LEXIS 146, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zimmermans-estate-paorphctphilad-1938.