318 Mass. 121 | Mass. | 1945
This is an action of contract or tort to recover damages for breakage and freezing alleged to have been sustained by thirteen carload shipments of string beans from Pompano, Florida, to Boston, in this Commonwealth, in January, February and March, 1934. The defendants are the trustees appointed by the District Court of the United States for the District of Connecticut upon a petition filed by the New York, New Haven and Hartford Railroad Company on October 23, 1935, under § 77 of the bankruptcy act, as amended by Act of August 27, 1935, c. 774, see U. S. C. (1934 ed.) Sup. IV, Title 11, § 205. Two of the present trustees were appointed on November 26, 1935. One of the three original trustees having ceased to act as such, a new trustee was appointed in April, 1937. The initial carrier issued a uniform straight bill of lading for each shipment in which the Hammon Development Company was named as shipper. The New York, New Haven and Hartford Railroad Company, hereinafter called the raihoad, was the terminal carrier. Each bill of lading provided that the filing of a claim for loss, damage or delay within nine months after delivery was a condition precedent to recovery, and that suits should be instituted only within two years and one day from the day when notice in writing was given by the carrier that it had disallowed the whole
We consider the first bill of exceptions.
In the writ the “plaintiff” ivas described as the “Hammon Development Company, a corporation duly organized and existing according to law and having an usual place of business in Pompano, Florida.” It having appeared at the hearings upon the first reference to the auditor that there was no such corporation as that mentioned in the writ, the plaintiff, on June 6, 1941, was allowed to amend by striking out the words quoted and substituting therefor the words “Horace P. Robinson and Wallace A. Robinson, Trustees doing business under the name and style of Hammon Development Company.” The exception to the allowance of this amendment is the subject matter of the first bill of exceptions. Upon a second reference to the auditor, he found that the Hammon Development Company was a trade name used by the plaintiffs Horace P. Robinson and Wallace A. Robinson, as trustees, in operating farmlands at Pompano, Florida, and in raising and shipping beans.
Our own statute, G. L. (Ter. Ed.) c. 231, § 51, authorizing the allowance of amendments, has been liberally construed, and the substitution of a new party plaintiff or a change in the capacity in which the original plaintiff brought the action has been frequently allowed. Lewis v. Austin, 144 Mass. 383, 384. Drew v. Farnsworth, 186 Mass. 365. Upson v. Boston & Maine Railroad, 211 Mass. 446. Phipps v. Little, 213 Mass. 414. Strout v. United Shoe Machinery Co. 215 Mass. 116, 119. Richardson v. Bartlett, 223 Mass.
The power of the Superior Court to allow the amendment cannot be determined solely by our own statute, ’ G. L. (Ter. Ed.) c. 231, § 51, nor by our rules of practice, where, as here, we are dealing with the rights of parties created by bills of lading issued in interstate shipments in accordance with an act of Congress. The construction of such bills of lading and the determination of the rights of the parties thereunder are Federal questions whose final decision rests with the Supreme Court of the United States. Aradalou v. New York, New Haven & Hartford Railroad, 225 Mass. 235. Metz Co. v. Boston & Maine Railroad, 227 Mass. 307. Fiske Rubber Co. v. New York, New Haven & Hartford Railroad, 240 Mass. 40. Lyon v. Canadian Pacific Railway, 264 Mass. 596. Georgia, Florida & Alabama Railway v. Blish Milling Co. 241 U. S. 190, Chesa
We now pass to the second bill of exceptions.
The defendants contend that the action was not brought within two years and a day after the claims were declined in writing. Doubtless, no action could be maintained after the period which was fixed by the bills of lading and was authorized by the interstate commerce act, U. S. C. (1934 ed.) Title 49, § 20 (11). Metz Co. v. Boston & Maine Railroad, 227 Mass. 307. Lyon v. Canadian Pacific Railway, 264 Mass. 596. Leigh Ellis & Co. v. Davis, 260 U. S. 682. Mellon v. Weiss, 270 U. S. 565. The defendants contend that the claims were disallowed in a letter dated March 1, 1935, to the consignee. But that letter stated that it was expected that the railroad would “be able to advise you definitely as to whether we have obtained any information which would enable us to set aside our former declinations” and that “. . . [we] trust that you will bear with us for a short time further and will then advise you in response to your request for further consideration of the claims.” That did not constitute a final declination of the claims. United States v. Memphis Cotton Oil Co. 288 U. S. 62. The railroad did not take a definite position but left the door open for further consideration of the claims. Moreover, the letter of March 1, 1935, was followed by other correspondence relative to the claims which continued until November 2, 1936. On May 27, 1935, the claim agent of the railroad notified the consignee that, in accordance with their agreement “to investigate the subject further if pos
The plaintiffs did not secure permission to bring this action from the court that appointed the defendant trustees. We assume that a plaintiff suing trustees appointed in reorganization proceedings under § 77 of the bankruptcy act is under the same restrictions, in so far as leave to sue is concerned, that he would be under if he were suing receivers. Vass v. Conron Bros. Co. 59 Fed. (2d) 969. Stephens v. Walker, 217 Ala. 466. McGreavey v. Straw, 90 N. H. 130.
The plaintiffs contend that their cause of action was not complete until declination of their claims at a time when the railroad was being operated by the trustees, and that leave to sue was not necessary because by § 66 of the Judicial Code, U. S. C. (1934 ed.) Title 28, § 125, a receiver or manager of any property appointed by a Federal court may be sued with respect to any act or transaction of his in carrying on the business connected with such property without the previous leave of the court that appointed him. McNulta v. Lochridge, 141 U. S. 327. Texas & Pacific Railway v. Cox, 145 U. S. 593. This section applies to a trustee in bankruptcy, and he is amenable as trustee to suit in a State court for negligence of his agents and servants in conducting the business. Erb v. Morasch, 177 U. S. 584. American Brake Shoe & Foundry Co. v. Interborough Rapid Transit Co. 76 Fed. (2d) 1002, certiorari denied sub nomine New York City v. Murray, 295 U. S. 760. Barber v. Powell, 135 Fed. (2d) 728, certiorari denied 320 U. S. 752. Wall v. Platt, 169 Mass. 398. Baldwin v. Neal, 190 Ark. 673. Denver & Rio Grande Railroad v. Gunning, 33 Colo. 280. Cline v. Powell, 141 Fla. 119. Smith v. Folsom, 190 Ga. 460. Rice v. Kelly, 226 Ky. 347. Snow v. Thompson, 178 S. W. (2d) 796. McGreavey v.
The damage to the plaintiffs’ goods could have been found to have arisen out of the operation of its trains , by the railroad, Erie Railroad v. William J. Pfeil, Inc. 256 App. Div. (N. Y.) 465; Liquid Carbonic Corp. v. Erie Railroad, 171 Misc. (N. Y.) 969; In re Chicago & Eastern Illinois Railway, 121 Fed. (2d) 785; and an action could have been commenced against the railroad, even after the petition for reorganization had been filed and approved by the Federal court, and without leave from that court, by virtue of § 77 (j) of the bankruptcy act, U. S. C. (1934 ed.) Sup. IV, Title 11, § 205 (j). Central Trust Co. v. Chicago Auditorium Association, 240 U. S. 581. Boston & Maine Railroad v. Sullivan, 275 Fed. 890. Chicago Title & Trust Co. v. Fox Theatres Corp. 69 Fed. (2d) 60. Ohio & Mississippi Railway v. Russell, 115 Ill. 52. McKnight v. Brozich, 164 Minn. 90. But the railroad is not a party to the present action at law, and we do not think the plaintiffs in bringing the action against the trustees alone came within this subsection (j).
The general rule prevailing alike in this Commonwealth and in the Federal courts is that one bringing an action against a receiver must first obtain from the court that appointed the receiver permission to sue him. Hills v. Parker, 111 Mass. 508. French v. Kemp, 253 Mass. 75. Wood v. Comins, 303 Mass. 367. Thompson v. Scott, 4 Dillon, 508. Davis v. Gray, 16 Wall. 203. Barton v. Barbour, 104 U. S. 126. The failure to obtain leave has been held in the Federal courts to be jurisdictional and this led to enactment of what is now § 66 of the Judicial Code, U. S. C. (1940 ed.) Title 28, § 125. It continues in those courts to be deemed a matter of jurisdiction. Porter v. Sabin, 149 U. S. 473. Merryweather v. United States, 12 Fed. (2d) 407. Vass v. Conron Bros. Co. 59 Fed. (2d) 969. The rule, however, in this Commonwealth is that the failure to obtain permission to bring an action to establish a debt or a liability that does not interfere with the prop-
Upon the approval by the District Court of the petition as properly filed, that court acquired exclusive jurisdiction of the debtor and its property and possessed all the powers that a Federal court would have in equity receivership proceedings, § 77 of the bankruptcy act as amended, see U. S. C. (1934 ed.) Sup. IV, Title 11, § 205 (a). The jurisdiction of the court and the rights and liabilities of creditors are the same as if a voluntary petition had been filed by the debtor and a decree of «adjudication had been entered thereon on the day that the petition for reorganization was filed, § 205 (b). The District Court was authorized by § 205 (c) (7) to fix the time within which claims against the debtor might be filed or evidenced and to determine the manner in which such claims might be filed or evidenced and allowed, and by § 205 (j) to enjoin or stay the commencement or continuation of suits against the debtor until after final decree except claims for damages caused by the operation of trains, buses or other means of transportation, which might be prosecuted to judgment in any courts of competent jurisdiction. Upon the approval of the petition, the District Court issued an order enjoining the maintenance or commencement of suits against the debtor except suits for damages of the character just mentioned. By an order dated January 4, 1936, the District Court fixed May 1, 1936, as the time for filing claims by creditors whose claims accrued prior to October 23, 1935. There is nothing in the record indicating that the plaintiffs filed any claim with the District Court.
Exceptions were taken by the defendants to the denial of certain requests for rulings. There was no error for reasons already stated in the denial of the first request that the action could not be maintained in the absence of leave to sue, or in the refusal to grant the second request that the plaintiffs could not recover on account of the provisions of § 77 of the bankruptcy law and the orders of the reorganization court. The denial of the remaining requests, which raised the question that the action was not begun seasonably and attacked the amendment changing the description of the plaintiffs, needs no further discussion. After the judge had made a general finding for the plaintiffs, the defendants filed an exception to this finding, and also ex-pepted to the ruling implied in that finding that the defend
Exceptions overruled.
Walker v. Taylor, 185 Ark. 980. Shedd v. Seefeld, 230 Ill. 118. Elkhart Car Works Co. v. Ellis, 113 Ind. 215. Manker v. Phoenix Loan Association, 124 Iowa, 341. Leuthold v. Young, 32 Minn. 122. Reed v. St. Louis & San Francisco Railroad, 277 Mo. 79. Flentham v. Steward, 45 Neb. 640. Wilson v. Rankin, 129 N. C. 447. Larson v. Baird, 60 N. D. 775. Hirshfeld v. Kalischer, 81 Hun, 606. Willis v. Aetna Life Ins. Co. 185 Okla. 647. Burke v. Ellis, 105 Tenn. 702. Goodale Phonograph Co. v. Valentine, 69 Wash. 263. Kinney v. Crocker, 18 Wis. 74. Alderson, Receivers, § 525. Clark, Receivers (2d ed.) § 549. High, Receivers (4th ed.) § 254 (a).
Oklahoma v. Texas, 265 U. S. 490. Ex parte Baldwin, 291 U. S. 610. Central Trust Co. v. East Tennessee, Virginia & Georgia Railway, 59 Fed. 523. Northern Pacific Railroad v. Heflin, 83 Fed. 93. Boston & Maine Railroad v. Sullivan, 275 Fed. 890. McDermott v. Crook, 20 App. D. C. 465. Pepper v. Seville, 100 Fla. 97. Godchaux v. Texas & Pacific Railway, 151 La. 955. Fountain v. Stickney, 145 Iowa, 167. Standard Oil Co. v. Sugar Products Co. 160 La. 763. Brunk v. Hamilton-Brown Shoe Co. 334 Mo. 517. Decker v. Gardner, 124 N. Y. 334. Sellers v. Carolina Railroad, 205 N. C, 149. Flynn v. Furth, 25 Wash. 105.