Bethlehem Steel Corp. v. Artim Transp. System, Inc.
Citation | 430 N.E.2d 1185 |
Decision Date | 11 February 1982 |
Docket Number | No. 3-881A208,3-881A208 |
Parties | BETHLEHEM STEEL CORPORATION, Appellant (Plaintiff Below), v. ARTIM TRANSPORTATION SYSTEM, INC., Appellee (Defendant Below). |
Court | Court of Appeals of Indiana |
J. B. Smith, Randall J. Nye, Daniel W. Glavin, Hammond, for appellant; Beckman, Kelly & Smith, Hammond, of counsel.
Harold Abrahamson, Abrahamson, Reed & Tanasijevich, Hammond, for appellee.
Bethlehem Steel Corporation appeals the summary judgment entered in favor of Artim Transportation System, Inc. In essence, the sole issue raised is whether a provision contained in the bill of lading requiring notice of a claim within nine months of a loss may be circumvented under the circumstances of this case.
The facts are undisputed. On October 11, 1978 two coils of steel sheets were accepted for transport by Artim. The coils were accepted at the plant of Roll Coater, Inc. located in Kingsbury, Indiana. The coils were destined for the Ford Motor Company in Walton Hills, Ohio. A separate bill of lading was prepared for each coil. Each bill of lading contained the following provision:
" 1
Additionally, each bill of lading named Roll Coater as the shipper and contained a notation to forward the freight bill to Bethlehem.
The coils were delivered to Ford on October 12, 1978. One coil was unloaded and Artim's driver was instructed to return the next day to unload the second coil. Artim's truck and the coil were stolen during the night of October 12, 1978.
Artim notified the designated shipper, Roll Coater, of the theft on October 13, 1978. Bethlehem was not aware of the theft until November 29, 1979. Bethlehem filed its claim on December 14, 1979. The claim was denied and this action was filed. The trial court granted Artim's motion for summary judgment, holding that the claim was barred due to Bethlehem's untimely filing of its notice of claim.
Initially, Artim requests that the trial court's judgment be affirmed due to Bethlehem's failure to include a verbatim statement of the judgment in its brief as required by Ind.Rules of Procedure, Appellate Rule 8.3(A)(4). As noted by Artim, affirmance without consideration of the merits is not mandatory. Randolph v. Wolff (1978), Ind.App., 374 N.E.2d 533. When possible, it is preferable to decide cases on their merits. Artim's request for summary affirmance is therefore denied. This ruling should not be interpreted however as excusing noncompliance with the appellate rules. It remains within this Court's discretion to dismiss appeals or waive arguments for failure to follow these rules.
Bethlehem first asserts that the nine-month limitation provision contained in the bill of lading does not bar a claim filed beyond the nine-month period if, in fact, the carrier has actual knowledge of the loss. Bethlehem cites Hopper Paper Co. v. Baltimore & O. R. Co. (7th Cir. 1949) 178 F.2d 179 as the leading case in support of this proposition.
While it is true that Hopper Paper and its progeny 2 do hold that under some circumstances where a carrier has actual knowledge of a loss the nine-month limitation on the notice of claims need not be adhered to, this is by no means a universal rule of law. As noted in Perini-North River Associates v. Chesapeake & O. Ry. Co. (3rd Cir. 1977) 562 F.2d 269, at 273:
(Emphasis added.)
See generally East Texas Motor Freight Lines v. United States (5th Cir. 1956) 239 F.2d 417; Northern Pac. Ry. Co. v. Mackie (9th Cir. 1952) 195 F.2d 641; Delphi Frosted Foods Corp. v. Illinois Cent. R. Co. (6th Cir. 1951) 188 F.2d 343; Insurance Co. of North America v. Newtowne Mfg. Co. (1st Cir. 1951) 187 F.2d 675; Conagra, Inc. v. Burlington Northern, Inc. (D.Neb.1977) 438 F.Supp. 1266; Henry Pratt Co. v. Stor Dor Freight Systems, Inc. (N.D.Ill.1975) 416 F.Supp. 714; Penn State Laundry Co. v. Pennsylvania Railroad Co. (W.D.Pa.1955) 134 F.Supp. 955; Delaware, L. & W. R. Co. v. United States (S.D.N.Y.1954) 123 F.Supp. 579.
In order to resolve the conflict in the federal decisions it is necessary to examine early United States Supreme Court opinions. In Southern Pac. Co. v. Stewart (1919) 248 U.S. 446, 39 S.Ct. 139, 63 L.Ed. 350 it was held that where the bill of lading contained a provision that a demand or claim for a loss must be made in writing within ten days, the carrier did not waive such a written notice merely because it had full knowledge of the injuries sustained. A similar provision for written notice within thirty days was held valid in Gooch v. Oregon Short Line R. R. Co. (1922) 258 U.S. 22, 42 S.Ct. 192, 66 L.Ed. 443. There the Court stated:
(Emphasis added.)
Finally in Chesapeake & Ohio Ry. v. Martin (1931) 283 U.S. 209, 51 S.Ct. 453, 75 L.Ed. 983 where the issue involved a six-month time limitation with respect to a written notice of a claim the Court ruled:
"
It should be noted that in all of these cases the bills of lading provided for a time limitation which was authorized by the version of the Interstate Commerce Act then in effect. In light of these decisions, it cannot be said that as a matter of law, actual knowledge of damage or loss by the carrier dispenses with a shipper's contractual obligation to give written notice of claim within the period agreed upon in the bill of lading.
Bethlehem next asserts that Artim should be estopped from raising the nine-month time limitation as a defense in this case. In Perini-North River Associates v. Chesapeake & O. Ry. Co., supra, 562 F.2d at 273, the Court examined the applicability of an estoppel claim.
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