Lucien Piccard Watch Corp. v. American Airlines, Inc.

• Decision Date: 10 January 1972
• Citation: 68 Misc.2d 664,328 N.Y.S.2d 74
• Parties: LUCIEN PICCARD WATCH CORP., Plaintiff, v. AMERICAN AIRLINES, INC. and Allied Aviation Services, Inc., Defendants.
• Court: New York Supreme Court

Page 74

328 N.Y.S.2d 74

68 Misc.2d 664

LUCIEN PICCARD WATCH CORP., Plaintiff, v. AMERICAN AIRLINES, INC. and Allied Aviation Services, Inc. Defendants.

Supreme Court, New York County, Part X.

Jan. 10, 1972.

Rein, Mound & Cotton, New York City, for plaintiff.

Bigham, Englar, Jones & Houston, New York City, for defendant American Airlines.

Haight, Gardner, Poor & Havens, New York City, for defendant Allied Aviation Services Inc.

ARNOLD GUY FRAIMAN, Justice:

This is a motion by defendant American Airlines, Inc. (American) for summary judgment in favor of plaintiff in the sum of $500. Defendant Allied Aviation Services, Inc. (Allied) also moves for summary judgment dismissing the complaint or, in the alternative, it joins in American's motion limiting plaintiff's recovery to $500. Finally, plaintiff cross-moves for summary judgment in its favor for the full amount contained in its complaint wherein it seeks to recover $43,608, representing the alleged value of a sample case lost by defendants.

Allied provides skycaps who handle passenger baggage for American Airlines. On August 11, 1967, plaintiff's salesman, Bernard Goldman, checked a two-piece sample case at La Guardian Airport with a skycap employed by Allied. The sample case contained watches and other jewelry. Goldman was on his way to Chicago on an American Airlines flight. He was employed as a commission salesman for plaintiff, covering a territory in the west and southwest. He had been to New York for a trade show and was returning to an office he maintained in Chicago. For the purpose of this motion, American has conceded that the sample case was checked with it. Upon receiving the case, the skycap gave Goldman two baggage claim checks. When these were presented in Chicago, the sample case was not produced and American concedes it has been unable to ascertain what happened to it.

The claim checks given to Goldman bore the following printed legend: 'Gaggage liability limit $500 per passenger unless excess value declared and additional charges paid. Different limit for international carriage. See Tariffs.' No excess value was declared or additional charges paid by Goldman. The principal issue on these motions is whether this purported limitation of liability restricts plaintiff's recovery to $500. American contends that it does. The sole defense raised by plaintiff in opposition to the motion is that Goldman was not authorized by plaintiff to enter into any agreement on its behalf limiting American's liability for loss of the sample case. Allied's motion for summary judgment dismissing the complaint against it is on the ground that the case was not in its possession or control at the time of the loss. It joins, it the alternative, in American's motion limiting plaintiff's recovery to $500 on the theory that any liability on its part arose as American's agent and it would thus also be entitled to the limitation of liability contained in the claim checks.

Goldman had been a salesman for plaintiff for at least 12 years prior to this incident. He was paid on a commission basis and received no salary or allowance for travel expenses. plaintiff provided him with the sample case in question and also furnished him with a line of watches and jewelry which were to be used solely for display to potential customers. The sample case and its contents belonged to plaintiff. The watches and jewelry, which were to be returned at plaintiff's request, were retained by Goldman during most of the year and were taken with him on various trips throughout his assigned territory. At his examination before trial, Goldman testified that he takes 20 to 25...