Browne v. Union Pac Co

• Court: U.S. Supreme Court
• Writing for the Court: McREYNOLDS
• Citation: Browne v. Union Pac Co, 267 U.S. 255, 45 S.Ct. 315, 69 L.Ed. 601 (1925)
• Decision Date: 02 March 1925
• Docket Number: No. 194,194
• Parties: BROWNE v. UNION PAC. R. CO

267 U.S. 255

45 S.Ct. 315

69 L.Ed. 601

BROWNE

v UNION PAC. R. CO.

No. 194.

Argued Jan. 19, 1925.

Decided March 2, 1925.

Mr. Ray Campbell, of Wichita, Kan., for petitioner.

Mr. Nelson H. Loomis, of Omaha, Neb., for respondent.

Mr. Justice McREYNOLDS delivered the opinion of the Court.

This action was begun in the district court, Shawnee county, Kansas, to recover damages resulting from false recitals of dates contained in substituted order bills of lading for four cars of wheat. These bills were issued by respondent's agent at Denver and stated, contrary to the facts, that they were given in lieu of others issued at points of origin on specified dates prior to November 9, 1920.

Petitioner agreed to buy a quantity of wheat from the Ed. Past Grain Company, of Denver, at a stipulated price, shipments to be made before November 9th, and then contracted to resell at a favorable price contingent upon like shipments. He alleged that, relying on the false recitals in the substituted bills, he paid drafts drawn on himself by the Past Company for the purchase price, but was unable to use the wheat, when received, to fulfill his contract for resale because original shipments were too late, and that he was compelled to dispose of it on a declining market at considerable loss. Also:

'That according to the usage and custom of the grain business, well known to defendant, * * * time of shipment of grain in car lots is determined by the date appearing on the bills of lading on which the carrier received such car of grain for transportation and grain on contract is delivered by tendering a properly indorsed order bill of lading attached to the seller's draft on the buyer for the estimated price of such car of grain, such order bill of lading being delivered to the buyer upon payment of such draft.'

Answering, respondent denied every allegation of the petition not specifically admitted. It acknowledged purchase of the wheat by petitioner from the Past Company, but alleged that, having failed to cancel the contract because of delay, as permitted, he was bound to accept the wheat on arrival; also, that it had no notice of the contract for resale, and was not liable for any special damages consequent upon failure to comply therewith. It further stated that the substituted bills were prepared by the Past Company and the signature of its Denver agent obtained by fraud; that the agent had no authority to sign bills containing false or erroneous statements; that petitioner could have disposed of the wheat without loss if he had acted promptly and prudently upon receipt of the same; and (paragraph 5):

'Defendant denies specifically that plaintiff used every effort to ascertain the dates said shipments were made, and this defendant alleges that the freight bills which plaintiff alleges were paid by him, show fully the points where different parts of said shipments originated in less than carload lots, and show the transit point where the same were consolidated into the four carload shipments involved in this action; that, had plaintiff awaited the arrival of said shipments at McKinney, Tex., before paying the drafts attached to the bills of lading he could, by inquiring of the delivering carrier, have ascertained all of the facts relative to the dates and points of origin of said shipments, and defendant alleges this...