192 A.D. 165 | N.Y. App. Div. | 1920
On July 31, 1916, the Ford Motor Company delivered to the United Fruit Company three automobiles, in the city of
The plaintiffs claim that the defendants, by delivering the automobiles to the consignee without the surrender of the bill of lading, became liable to them for the amount they had advanced. The crucial question is whether the bill of lading was negotiable, and a preliminary question is, by the law of what jurisdiction is the first question to be determined? The bill of lading provides that it “ shall be construed and the rights of the parties thereunder determined according to the law of the Commonwealth of Massachusetts subject to any laws of the United States inconsistent therewith.”
The contract of shipment was made and the bill of lading issued in the State of New York and shipment was made from the port of New York. If there was a conflict of the laws applicable to this subject in the two jurisdictions it would be necessary for us to determine which law should be applied. By amendment to the agreed statement of facts, it appears that both States prior to the delivery of the bill of lading had passed the Uniform Bills of Lading Act. (See Mass. Acts of 1910, chap. 214.) Hence we will consider the Bills of Lading Act of New York as applicable. (Pers. Prop. Law, § 187 et seq., as added by Laws of 1911, chap. 248.)
The bill of lading under consideration did not state that the goods were consigned to the order of any person, but it stated that the goods were consigned to a specified person, the “ Ford Motor Agency.” The addition of the words “ or assigns ” does not add anything which would change or qualify the effect of the specific designation of the consignee. Nonnegotiable bills may be assigned or transferred by delivery, and the transferee acquires against the transferor the title to the goods subject to the terms of any agreement between them. But as against the carrier, the transferee acquires the right to notify the carrier of the transfer of the bill and thereby secure to himself the rights that the transferor had immediately before such notification. (Pers. Prop. Law, § 219.) Until notification the transferee acquires no right against the carrier. This bill of lading was a non-negotiable or straight bill of lading. The carrier.was justified in delivering the goods to the consignee named in the bill of lading (Id. § 198, subd. b) as it had not received a notification that such delivery should not be made until the advance made by plaintiff had been paid. (Id. § 199.) The statute requires a non-negotiable bill to be marked on its face by the carrier issuing it “ non-negotiable ” or “ not negotiable.” (Id. § 194.) The failure to so mark a non-negotiable bill does not change its character and render it negotiable but makes the person who with intent to defraud issues or aids in the issuing of such a bill guilty of a crime. (Id. § 236.)
The agreed statement of facts does not show that the plaintiffs were misled by the absence of these words upon the face of the bill of lading into believing that the bill was a negotiable bill of lading. A negotiable bill can only be effectively transferred by indorsement. (Pers. Prop. Law, §§ 214, 215, 220.) The plaintiffs have never required the
Judgment for the defendants, with costs.
Clarke, P. J., Laughlin, Smith and Merrell, JJ., concur.
Judgment ordered for defendants, with costs. Settle order on notice.