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United Fruit Company v. J. A. Folger & Company
270 F.2d 666
5th Cir.
1959
Check Treatment

*2 HUTCHESON, Bеfore TUTTLE Judges. WISDOM, Circuit Judge. WISDOM, Circuit decision, question al The for though narrow, im is of considerable industry. portance shipping to the a carrier decide ‍‌​​​​‌​‌‌​‌​‌​‌‌‌‌‌​‌‌‌‌​‌​​‌​‌​​‌‌​‌​‌‌‌​‌​‌​‌​‍effect of asked sixty granting shipper extension cargo days, within which sue Judge, Hutcheson, dissented. Circuit beyond one-year pe claim, limitation Carriage provided riod Goods

By Sea Act. stipulation of case tried on that the

facts. The district court held carrier year one- had waived the although suit, the libel for expiration after the extension filed majority period. holds A Court judgment reversed. must be Carriage By Act, 46 of Goods Sea 1303(6), provides: U.S.C.A. § “In event the carrier discharged ship li- all shall be damage ability respect of loss or brought within one unless goods year delivery or goods should have the date when been delivered.” libellant, Folger Company, sued shortage admiralty for to recover damage slackage of, to, a certain cargo shipped one of the coffee aboard belonging Fruit the United vessels respondent. Company, ar- The vessel February 14, Orleans New rived Folger later, proctors for Several weeks ‍‌​​​​‌​‌‌​‌​‌​‌‌‌‌‌​‌‌‌‌​‌​​‌​‌​​‌‌​‌​‌‌‌​‌​‌​‌​‍Fruit’s claim with United conferred agent agreed agent. to recom- The clаim payment in settlement of the claim mend contingent shortage up- slackage, damages. of the claim for no settlement agreement could be reached with re- No damages. Folger agreed spect to fur- additional information on as- nish III, Dunbar, Orleans, E. New Charles case. pect Dunbar, La., Phelps, Marks, Claverie La., Folger Orleans, counsel, January Sims, proctors New stating: Fruit, appellant. wrote United “* * * agent appreciatе require addi- we shall stated he would damage. proof alleged your granting tional extension us an up bring suit, Thereafter, proctors for did time within attempt including April J, reach Fruit until the 1950. We *3 4, day period, April may dispose last of the еxtension to trust we able that be day, P.M., 1950. On that 4:45 one of this that time. at matter within proctors Folger telephoned your appreciate shall “We also arrange Company United Fruit for an to by confirming the above extension appointment damages al- discuss to and letter, your earliest convenience.” at so to obtain an additional extension. replied Company Fruit freight claim office Fruit of the United Folger’s February granting 1, re- 1950 Compаny P.M., had it closed at 4:30 quest an extension: many years has for in New Orleans. request in “In with accordance morning 5, 1950, April On the your 1950, January 30th, letter of Folger’s proctors telephoned respondent’s granting you pleasure we in ex- take agents claim additional asked for an in which sue tension to time respect With this con- extension. through April 4th, account 1950 for versation, stipulation states: Mayari. S.S. through respondent, “The its as- advising pleasure in “We also tаke freight agent, sistant claim declined we have received the file now grant an additional extension of glad principals we shall be our time declined settle- to discuss you adjustment some discuss with ment The as- claim further. week, you if will contact next agent explained sistant claim that by telephone appointment. us for an additional been dis- extension had given you full “The is with above prior expiration cussed rights of all other accru- resеrvation original extension; it not that was ing through lading con- bill company’s grant policy exten- otherwise.” tract and/or of time suit sions to file exchange par- letters, the After this preceding expired; extension had negotiаtions: ‍‌​​​​‌​‌‌​‌​‌​‌‌‌‌‌​‌‌‌‌​‌​​‌​‌​​‌‌​‌​‌‌‌​‌​‌​‌​‍engaged ties in further that was not authorized 17, February there was a conference on grant any extension.” such Folger 1950; 1950, 2, stat- March wrote Folger then libel the afternoon filed a ing “discrepancies been resolv- thаt had April 5, “again ed” to resume desired negotiations looking settlement”; prin question toward We do 1950, 7, bring ciple statutory period were March there discussions on ing may Company’s Baskin, claim United Fruit be Noel waived.1 depend Nеvertheless, 1. “The effect of a ‘waiver’ will similar treatment. there largely problem present estoppel time when was made. it is a —not original precise A contract waiver out cases —as to the duration of thе liability may period. Thus, although in which the arises be held waiver an indefi valid, generally for it is the result of an nite waiver be held void as superior bargain public policy, undesirable exertion of for a waiver definite time ing power. subsequent generally aBut waiver will will be enforced on its terms. ordinarily freely given by be the defend And even an indefinite waiver will often ant, upheld, upheld already and therefore should be since as to the time ex pired made, оften be the interests of both when the waiver is so that parties postpone period suit. The view that starts to run anew at personal Comment, Developments the statute of limitations is a time.” —Stat pervades Limitations, defеnse much of the law —for utes of 63 Harv.L.Rev. example, permitted (1950). Dawson, Estoppel, defendant to re 1233 See also by acknowledging debt; Limitation, move the bar and Statutes 34 Mich.L. voluntary relinquishment (1935). of the statu Rev. 1 The cases аre collected tory by express promise benefit supplementing in 24 A.L.R.2d 1413 130 plead the statute seems to warrant A.L.R. 8.

669 July 27, 1938, and it was F.2d 231. not until 1942, U.S.App.D.C. finally rejected. In the the meantime, principle claim was question the we Nor do by may, pointed out: respondent as the cаse, court proper in a conduct, representations, promises, or parties “Both their conduct Glus estopped statute. during assert ‍‌​​​​‌​‌‌​‌​‌​‌‌‌‌‌​‌‌‌‌​‌​​‌​‌​​‌‌​‌​‌‌‌​‌​‌​‌​‍next [after months few Terminal, Brooklyn District recognized Eastern the ex- March 1938] 760, L.Ed. Respond- 359 U.S. istence of such extension. through agents 2d ent its in- still vestigating considering the waiver was ease, however, the were claim. Offers of settlement only. period There for a definite *4 sixty- thereafter discussed. made and filed the аfter waiver as suit no to * * * July and it not until was day period. extension reject- 27, 1938, finally was that it Folger’s requesting extension an letter ed.” acknowledgment carri- the of is itself an pub- no right The Court ex- held there plead after that to statute er’s the answering against policy lic one-year the piration the extension of In of the extension. gave no- U.S.C.A. Folger, Company 46 clause of United Fruit 1303(6); pre- to an issue of fact not waive intended tice that the carrier sented as to carrier was statutory whether the period to the as estopped brought 4, to assert the time limitation. April We read after holding. agree Argentino together constituting with the as a both letters Expressеd waiver, in the carri- in terms parties, of contract between the agreed period er to extend the limitation considera- is the essence. time of negotiate necessary ‍‌​​​​‌​‌‌​‌​‌​‌‌‌‌‌​‌‌‌‌​‌​​‌​‌​​‌‌​‌​‌‌‌​‌​‌​‌​‍party a of the time to set- ex- tion is each the to benefit reject tending reach a tlement the claim. period in order or conclude to to the Expressed estoppel, satisfactory it is a of settlement. terms question of whether the con- fаct as to agreement why We see no reason the during the the course duct of carrier according to its should not be enforced negotiations shipper into the the misled statutory lim- terms. the A waiver of a detrimental reliance agreement the carrier’s against a itation is enforced defendant extend the time-for-suit to attempts plead when to the the defendant period. contrary waiv- to terms of the statute the Baking agreement Argentino, Campbell the J. v. Holsum Unlike the er. Co. A. 333; agreement Co., 1942, 239, pe- for a 15 130 P.2d the here was fixed Wash.2d Co., Argentino, Aeroplane facts in v. Curtiss riod. Unlike the the States Cir., Correspond- 1945, stipulation in 2 the the instant case shows 147 F.2d 639. ingly, shippеr there for the the end-date of a for a waiver no basis argue against recognized estoppel the fixed carrier. time should be plaintiff escape attempting a terms the acting Here, shipper it who is is the аgreement. unconscionably. By inducing the carri days er, running just In Argentino, D.C.S.D.N.Y.1939, the four before grant extension, F.Supp. 440, statute, 441, 815, 28 the the the A.M.C. shipper put posture request in the claimant made written the carrier a for an original being plead including “up April extension able to stat 1938”, utory shippers request period. Now a similar seek to verbal very thing destroy March the effect 1938. The no carrier made brought about, agreeing reply specific written the cаrrier a has end- changed adjuster position Instead, in detrimental re date. March an for shipper’s request. company steamship verbally “No liance on the man stated advantage wrong.” that “the be take of his own time to sue would extended during investigation Brooklyn Eastern District Termi claim and Glus negotiations Nego- nal, 1959, for its U.S. settlement”. 8 L. parties between the tiations continued Ed.2d shippers parties of all Here It is the interests waived the statute sо steamship longer operative that it when was no as a all carriers that a bar company grants attempted extension therefor an an substitute running months, suit, writing, period before ineffective contract two statute, sрecifically to a limited with the result waiver of while the time, parties effective, statute the at- fixedand reasonable is valid and tempt rely impose of their on the terms month limitation able to two agreement. right bring shippеr dishonor on the suit was If libellant’s agreement, unambiguous short, invalid extension and ineffective. when penalized respondent stipulated if it had a carrier is being limitation, shipper re- in not waived bar liberal toward rigid stipulated quiring to the statute— adherence its limitation defense pletely not, And there will be more extensions. out court and whether or appellee held, extensions there is much doubt that seems to think the court usually stipulated estopрed the defend- statute of limitations facts of a pleading ant is immaterial the interest of claimants. bar agreement to waive the statute *5 Judgment is reversed. had made the of limitation defense respondent. pletely unavailable to Judge (dis- HUTCHESON, Circuit right judgment think I was senting) . should be affirmed. opinion appears As from the judge,1 majority the district and that of compass. Sub case is the briefest judge stipulation which the mitted on a findings fact, presents made single law, whеther under the issue

undisputed time-barred suit was facts the year period con limitation the one Carriage By Sea Goods tained in the Act, Margaret BEHRINGER and Lewis 1303(6). The dis U.S.C.A. Sec. Behringer, Appellants, holding that, judge, settled under trict law, year period one MORGAN, Appellees. LYBRAND bringing and that it waived stipu waived, on the INC., concluded BEHRINGER’S, the Matter of corporation, Bankrupt. timely facts, filed. the libel lated judge, and, agree with the district Margaret I Lewis BEHRINGER Behringer, Appellаnts, opinion of the dissent from the therefore majority reversing judgment. Harry PRIEST, Attorney Trustee, W. me law clear to It seems Appellee. judge district settled acted which Nos. 6023. by the authorities in favor of his action cited, a ref- added Appeals Court of United States Am.Jur., “Limitation of Ac- to 34 erence Tenth Circuit. Estop- tions”, Subdiv. “Waiver Sept. 1959. pp. pel”, 405 to 318-325. 46 Secs. “Carriage 1303(6) of Goods U.S.C.A. year By as the Act” fixes one Sea for suit and under settled law period can be contracted for. no shorter Argentino, D.C., F.Supp. 440. Co., F.Supp. & v. United Fruit Co.

Case Details

Case Name: United Fruit Company v. J. A. Folger & Company
Court Name: Court of Appeals for the Fifth Circuit
Date Published: Dec 17, 1959
Citation: 270 F.2d 666
Docket Number: 17669_1
Court Abbreviation: 5th Cir.
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