Louisiana Co v. Gardiner

• Decision Date: 21 February 1927
• Docket Number: No. 120,120
• Citation: 71 L.Ed. 644,47 S.Ct. 386,273 U.S. 280
• Parties: LOUISIANA & W. R. CO. v. GARDINER
• Court: U.S. Supreme Court

273 U.S. 280

47 S.Ct. 386

71 L.Ed. 644

LOUISIANA & W. R. CO.

v GARDINER.

No. 120.

Argued Jan. 12, 1927.

Decided Feb. 21, 1927.

Messrs. Harry McCall, of New Orleans, La., Philip S. Pugh, of Crowley, La., and George Denegre, Victor Leovy, Henry H. Chaffe, and James Hy. Bruns, all of New Orleans, La., for plaintiff in error.

Mr. Justice McREYNOLDS delivered the opinion of the Court.

After the record came here under writ of error the railroad company presented a petition for certiorari. The cause is reviewable by certiorari, and the application therefor is granted. The writ of error will be dismissed.

April 3, 1920, the petitioner received from respondent Gardiner at Crowley, La., various articles consigned to himself at Murray, Ky., and issued to him two bills of lading which contained this clause:

'Suits for loss, damage or delay shall be instituted only within two years and one day after delivery of the property.'

The goods were delivered at Murray in bad condition April 15, 1920. He sued to recover for the damage in a Louisiana state court, April 12, 1922. The company success- fully relied upon the local statute of limitation:

'All actions for loss of or damage to shipments of freight shall be prescribed by two years, said prescription to run from the date of shipment.' Act No. 223 of 1914.

The Court of Appeal declared:

'The liability sought to be enforced is the 'liability' of an interstate carrier for loss or damages under an interstate contract of shipment. * * * The validity of any stipulation in such a contract which involves the construction of the statute and the validity of the limitation thereby imposed, is a federal question, to be determined under the general law, and as such is withdrawn from the field of state law or legislation. * * * State laws limiting time for bringing suit on interstate shipments are superseded by Carmark Amendment.'

And it accordingly held the plea of prescription insufficient, reversed the judgment of the trial court, and remanded the cause for further proceedings.

On the second trial judgment went for respondent for the full amount claimed. The Court of Appeal reduced this by the amount of the company's claim for an undercharge and the war tax. The Supreme Court refused a writ of certiorari.

Petitioner maintains that the federal statutes prescribe no limitation and that the state law controls. We think this is the correct view. The court below wrongly construed the federal statutes.

The Carmack Amendment to the Hepburn Act of June 29, 1906, c. 3591, § 7, 34 Stat. 584, 595, added the following provision to section 20, Act to Regulate Commerce Feb. 4, 1887, c. 104, 24 Stat. 379, 386:

'That any common carrier, railroad, or transportation company receiving property for transportation from a point in one state to a point in another state shall issue a receipt or bill of lading therefor and shall be liable to the lawful holder thereof for any loss, damage, or injury to such property caused by it or by any common carrier railroad, or transportation company to which such property may be delivered or over whose line or lines such property may pass, and no contract, receipt, rule, or regulation shall exempt such common carrier, railroad, or transportation company from the liability hereby imposed: Provided, that nothing in this section shall deprive any holder of such receipt or bill of lading of any remedy or right of action which he has under existing law.' Comp. St. § 8604a.

This court held that bills of lading for interstates shipments issued after the Carmack Amendment must be construed according to rules approved by the federal courts and upheld provisions therein which required claims to be filed within any specified time if reasonable. Adams Express Co. v. Croninger, 226 U. S. 491, 505, 33 S. Ct. 148, 57 L. Ed. 314, 44 L. R. A. (N. S.) 257; Missouri, Kansas & Texas R. Co. v. Harriman, 227 U. S. 657, 672, 33 S. Ct. 397, 57 L. Ed. 690; Missouri, Kansas & Texas Ry. v. Harris, 234 U. S. 412, 420, 34 S. Ct. 790, 58 L. Ed. 1377, L. R. A. 1915E, 942; Atchison, T. & S. F. R. Co. v. Harold, 241 U. S. 371, 377, 378, 36 S. Ct. 665, 60 L. Ed. 1050; St. Louis, I. M. & S. R. Co. v. Starbird, 243 U. S. 592, 604, 37 S. Ct. 462, 61 L. Ed. 917; Erie R. Co. v. Shuart, 250 U. S....