143 N.Y.S. 420 | N.Y. App. Div. | 1913
Lead Opinion
The complaint alleges that the plaintiff is a domestic corporation engaged in business in the city of Troy; that the defendant is a domestic railroad corporation engaged in domestic and interstate commerce, and that on the 28th day of February, 1910, the plaintiff caused to be shipped by the defendant to Covington, Ky., twenty-four bales of gunny bagging, containing 20,402 pounds, and prepaid the freight thereon amounting to $34.68; that said merchandise was rejected by the consignee at Covington, Ky., and that thereupon and immediately directions and orders were given to the defendant by both the consignee and this plaintiff to reship and return said merchandise to Troy, N. Y.; that said merchandise was reshipped and returned and conveyed by the defendant to Troy, N. Y., and the plaintiff was notified that said merchandise had been reshipped and was at a depot of the defendant at Green Island; that the plaintiff then and thereupon offered to pay to the defendant the freight charges from Covington, Ky., to the city of Troy, N. Y., amounting to $41.82, and demanded of said defendant that said merchandise be delivered to this plaintiff, but the defendant unlawfully refused to accept said freight charges and unlawfully refused to deliver said merchandise to plaintiff and unlawfully refused to allow and permit plaintiff to take said merchandise from its depot and station at Green Island aforesaid, all to the damage of this plaintiff of $174.44. It is then alleged that the plaintiff is the owner of the merchandise, and is entitled to
The defendant’s answer admits the corporate capacity of the defendant and the fact of its carrying on the business of a common carrier. It likewise admits that on or about the twenty-eighth day of February it received certain property at its Green Island depot consigned to Overman & Schrader Co., Covington, Ky.; that said merchandise was duly transported to destination over the lines of defendant and its connecting carriers, and upon arrival at .destination was tendered to the consignee and that the said consignee thereafter refused to accept the same; that thereafter, in pursuance of orders from the plaintiff so to do, the said property was returned to the defendant at Troy, 3ST. Y. It also admits that the plaintiff paid the charges for the transportation of the said property from Green Island to Covington, Ky., and on the return of said property offered to pay defendant the transportation charges from Covington to Troy, amounting to forty-one dollars and eighty-two cents, and demanded delivery of said property upon payment of said freight charges. After denying knowledge or information as to the value of the property, the answer “upon information and belief, denies the allegations of the complaint and each and every of them not hereinbefore controverted or admitted.”
The evidence submitted upon the trial of the action clearly established the facts alleged in the complaint which were thus denied, so that it cannot be fairly questioned that the plaintiff established the cause of action alleged, and the only questions
“Sec. 5. ' Property not removed by the party entitled, to receive it within forty-eight hours (exclusive of legal holidays) after notice of its arrival has been duly sent or given may be kept in car, depot or place of delivery of the carrier, or warehouse, subject to a reasonable charge for storage and to carrier’s responsibility as warehouseman only, or may be, at the option of the carrier, removed to and stored in a public or licensed warehouse at the cost of the owner and there held at the owner’s risk and without liability on the part of the carrier, and subject to a lien for all freight and other lawful charges, including a reasonable charge for storage. * * * ’
‘ ‘ Sec. 8. ' The owner or consignee shall pay the freight and all other lawful charges accruing on said property, and if required, shall pay the same before delivery. If, upon inspection it is ascertained that the articles shipped are not those described in this bill of lading, the freight charges must be paid upon the articles actually shipped.’ ”
This so-called counterclaim then alleges that Covington is is not upon the line of the defendant’s railroad, but is upon the line of the Chesapeake and Ohio Railway Company; that the defendant duly transported the said property over its road and delivered the same to its connecting carrier on the route to destination; that after the arrival of said property at destination the Chesapeake and Ohio Railway Company duly notified consignee of the arrival thereof; that thirty-eight days, exclusive of Sundays and holidays, elapsed between the date of the said notice of arrival to consignee of said property and the
The judgment dismisses the counterclaim and gives the plaintiff the relief demanded in the complaint, the defendant appealing from the judgment.
Having before us only the portion of the alleged written contract set out in the answer, it may be assumed that the provisions quoted are most favorable to the defendant’s counterclaim, and it is worth while to look into the pleadings to see if there is a counterclaim pleaded. The provision of section 5 of this alleged contract is that if the property is not removed within forty-eight hours by the party entitled to receive it, after notice of its arrival has been duly sent, it “ may be kept in car, depot or place of delivery of the carrier, or warehouse, subject to a reasonable charge for storage and to carrier’s responsibility as warehouseman only, or may be, at the option of the carrier, removed to and stored in a public or licensed warehouse at the cost of the owner and there held at the owner’s risk and without liability on the part of the carrier, and subject to a lien for all freight and other lawful
Section 8 of the alleged contract is set forth in the counterclaim, but this does not pretend to give the defendant a lien. It provides that the “owner or consignee shall pay the freight and all other lawful charges accruing on said property, and, if required, shall pay the same before delivery.” Ooncededly the plaintiff had paid the freight upon this shipment from Troy to Covington, and it does not appear that there were any other lawful charges against the property, and the contract, as we have already pointed out, merely provided methods of substi
If we are right in this position, and if the plaintiff was entitled to the delivery of its goods upon the payment of the freight charges from Covington to Troy, it follows, of course, that the subsequent claim for demurrage, arising from the failure of the plaintiff to take the goods and pay the demand of the defendant for the thirty-eight dollars storage charges, is without merit, and gives the defendant no rights. It might be, of course, that the defendant, as the assignee of a “ reasonable charge for storage,” could have interposed such claim as a counterclaim in the present action, but it does not allege any such condition; it stands upon the proposition that it had a right to demand the payment of demurrage charges as a condition of the delivery of the goods, and its claim for the substantial part of its alleged counterclaim is based upon demur-rage said to have accrued after the plaintiff had refused to pay the charge of thirty-eight dollars for demurrage while the goods were stored in Covington, and which can have no basis unless the defendant was justified in holding the goods pending the payment of such charge. Demurrage contemplates payment for the use of cars or vessels while being discharged of their freight, and not for their use as warehouses under a contract for a substituted delivery. “ Demurrage, in the proper sense of the term,” say the American and English Encyclopaedia of Law (Vol. 9 [2d ed.], p. 221), “is an allowance or compensation for the delay or detention of a vessel, expressly provided for in a charter party or bill of lading,” and the same
The case last above cited does not appear to have been questioned in the later decisions, and it certainly presents as strong a case for the assertion of a lien as that in the matter now before us, where the contract was clearly for a modification of the common-law obligation of the carrier in respect to the delivery of the goods at Covington, and the defendant having no lawful’ right to detain the plaintiff’s goods, after a tender of the freight, and the claim for reasonable storage charges not having been presented as such by the pleadings, we see no escape from the conclusion that the counterclaim was properly disallowed.
The judgment appealed from should be affirmed, with costs.
All concurred, Smith, P. J., in result, except Kellogg, J., dissenting in opinion, in which Lyon, J., concurred.
Dissenting Opinion
By the bill of lading under which the defendant at Green Island, N. Y., received the carload of gunny bagging from the plaintiff for shipment to Covington, Ky., the defendant was to deliver it to the connecting carrier on the route to its destination, and it was agreed as to each carrier over any of the routes that if the property was not taken by the consignee within forty-eight hours (holidays excepted) after notice of its arrival, it might be stored and the storage charges and freight should be a lien thereon, and that a reasonable charge might be made for use of tracks, or for detention of car, after the car
The car arrived at the Covington yards of the Chesapeake and Ohio Bailway Company March sixteenth, and notice to the consignee of the arrival was given the seventeenth, although the car was not actually upon the siding of the consignee ready for unloading until the morning of the twenty-first. On the twenty-second the Chesapeake and Ohio Eailway Company’s agent told the shipping and receiving clerk of the consignee that he better unload the car and save demurrage. He replied he did not know'whether they would accept it or not. The reply was, “if you don’t, give me notice.” On the twenty, fourth the consignee notified the consignor by wire, and confirmed it by letter the following day, that it would not receive the bagging but would return it, and a correspondence ensued, the plaintiff seeking to induce the consignee to accept-the property. April first formal notice of the rejection of the bagging was given by the consignee to the Chesapeake and Ohio Eailway Company, which notice also stated, “and will thank you to return same at the expense of the shipper over the same routing as received.” But the consignee had no authority to charge the expense of the return to the plaintiff, and evidently the return would not be made on such a notice.
April twentieth the plaintiff delivered to defendant an indemnity agreement requesting it to stop the bagging for it before delivery to the consignee and have it returned, in consideration of which it agreed to indemnify defendant and save it harmless from any suit, legal proceedings, loss, damage, expense, counsel fee, costs and charges arising from or caused by its attempting to comply with the request. It concluded: “The full meaning and intent of this agreement being that you are to act as agent in this transaction.” Pursuant to that agreement, at defendant’s request, the Chesapeake and Ohio Eailway Company, on the eighteenth day of June, shipped the goods over its line and the defendant’s line to the plaintiff at Green
In response to the defendant’s request that the Chesapeake and Ohio Railway Company permit a delivery of the goods without a payment of the demurrage charges, it notified the defendant that it could not legally authorize the delivery without payment, but would recommend to the Car Service Association a refund of that portion which should be refunded, and asked if a delivery could not be effected in that way. This suggestion was communicated to the plaintiff, but it preferred to sell its bagging to the defendant rather than to make this reasonable adjustment, and brought this action. If the plaintiff had paid the demurrage it might have obtained a refund of any excess charges through the Car Service Association or by application to the Interstate Commerce Commission.
The defendant might well have rested its case upon the indemnity agreement. As plaintiff’s agent it was justified in accepting a conditional delivery of the property, and agreeing that an absolute delivery to the plaintiff should not be given until the thirty-eight dollars demurrage was paid. The plaintiff cannot repudiate the acts of its agent and recover the property or its value without payment of the charges.
Independent of that agreement the defendant was well within its rights in refusing delivery until the demurrage was paid. A common carrier must accept property delivered to it by a connecting carrier in the usual course of business, and forward it towards its destination, and must receive it upon the usual terms on which such shipments are made. If charges connected with the transportation follow the property, if required it must collect them before delivery to the consignee. The shipment of the property, the possession by the defendant and its authority to deliver it to the consignee are subject to such condition. The terminal carrier cannot know
If the plaintiff’s position is right the defendant would be liable if it refused to receive the property subject to the collection of the charges, and would be liable if it refused to deliver the property without payment of the charges.^ We need not, therefore, inquire whether or not the demurrage charges of thirty-eight dollars were valid in all respects. It was the duty of the defendant to refuse to deliver until payment unless the connecting carrier otherwise directed. A carrier in interstate commerce has a lien for the freight and any charges attending the transportation. (Wabash Railroad Co. v. Pearce, 192 U. S. 179.)
The Chesapeake and Ohio Railway Company had the right to charge demurrage and hold the freight until payment thereof according to its rules which were filed with the Interstate Commerce Commission, and it would be illegal for it not to collect proper demurrage as a condition of delivery; it must observe its rules and treat all shippers alike.
The plaintiff knew the bagging was rejected. It also knew that the consignee was not paying the return freight and that it had given no directions which made it hable therefor. It, therefore, knew that the bagging remained at Covington subject to its order. It elected not to ask a return, but was evidently trying to induce the consignee to- reconsider its position. , Notice by the railway company to it of the rejection would havagiven it.no additional information. It had knowl
The car was not placed for delivery on the siding of the consignee until March twenty-first, and demurrage should, therefore, have been computed from the twenty-second or twenty-third. The evidence indicates that it was computed from the eighteenth. It is clear that the railroad company was entitled to charge demurrage. Apparently the charge is about four or five dollars too much. But the plaintiff will not lose the money if it pays the charge. A tribunal exists which will informally hear its complaint and grant relief.
The defendant has acted strictly within its rights and no cause of action has been shown. The plaintiff, by refusing to receive the freight after due notice, according to the defendant’s rules on file with the Interstate Commerce Commission, is liable for demurrage at Green Island. The defendant has established its counterclaim and is entitled to judgment thereon.
The judgment should, therefore, be reversed, with costs, and the defendant should have judgment for its counterclaim, with interest and costs at the Trial Term.
Lyon, J., concurred.
Judgment affirmed, with costs.