Pennsylvania Railroad Company v. Olivit Brothers

• Decision Date: 30 April 1917
• Docket Number: No. 577,577
• Citation: 37 S.Ct. 468,243 U.S. 574,61 L.Ed. 908
• Parties: PENNSYLVANIA RAILROAD COMPANY, Plff. in Err., v. OLIVIT BROTHERS
• Court: U.S. Supreme Court

243 U.S. 574

37 S.Ct. 468

61 L.Ed. 908

PENNSYLVANIA RAILROAD COMPANY, Plff. in Err.,

v OLIVIT BROTHERS.

No. 577.

Argued April 9 and 10, 1917.

Decided April 30, 1917.

Messrs. Frederic D. McKenney, John Spalding Flannery, Albert C. Wall, and John A. Hartpence for plaintiff in error.

[Argument of Counsel from pages 575-576 intentionally omitted] Messrs. Edward P. Stout and George S. Hobart for defendant in error.

Mr. Justice McKenna delivered the opinion of the court:

This is a consolidation of actions, each action expressed in a number of counts, and each count praying for the re- covery of the sum of $500 for a carload of watermelons received, as it is alleged, and accepted by the railroad company to be transported and delivered within a reasonable time to plaintiff at Jersey City, New Jersey, and alleging that by reason of the failure so to transport and deliver, a large number of the melons were wholly lost and the remainder delivered in a bad and damaged condition.

The car numbers are given, the places of receipt, all of which were in North Carolina, and the dates, all between July 26 and August 2, 1912, both dates inclusive.

The answers of defendant denied the allegations of the complaint and set up, besides, the following defenses: If the property came into the hands of defendant for the purpose of transportation, it did so as to each and every count of the complaint under the terms and conditions of a certain bill of lading issued to plaintiff by the initial carrier of the property, pursuant to the provisions of the Interstate Commerce Act, constituting an express agreement whereby the defendant was to be relieved from any and all liability for damage to the property resulting from delay in transportation and delivery if the delay was caused by (a) a strike or strikes among defendant's employees; (b) an accumulation of freight at any point; (c) or by any other cause or causes over which defendant had no control.

It is alleged that a strike did take place among defendant's employees and continued from July 9, 1912, to the 21st of that month, which strike was the cause of the alleged delay; also that an accumulation of freight did occur at Jersey City, which continued from July 9 to August 15 and beyond.

It is further alleged as a defense that no claim for the loss or damage to the property was made in writing, as required by the respective bills of lading of defendant at the point of delivery of the property within ten days after its delivery, or after due time for its delivery to plaintiff though it was agreed between plaintiff and defendant that such claim should be made at the time, place, and in the manner mentioned.

Nor was there any claim for such loss or damage made in writing to defendant at the point of delivery or point of origin within four months after the delivery of the property, or after a reasonable time for delivery, though it was expressly agreed that such claim should be made at the time, place, and in the manner mentioned, and, if not so made, defendant should not be liable.

It will be observed, therefore, that the basis of the action is that certain carloads of watermelons were received for shipment by defendant at certain places in North Carolina for transportation to and delivery at Jersey City, New Jersey, and that defendant failed to transport and deliver the same within a reasonable time, in consequence of which a large number of the melons were lost and the others delivered in a bad condition.

In point of fact the melons were not delivered to defendant in North Carolina, but in such state to a carrier with which defendant had connections, and were delivered to defendant at Edgemoor, Delaware, to be transported from there to Jersey City, and were so transported.

The melons were transported on through bills of lading issued by the initial carrier, which contained the stipulations upon which the defenses are based, to wit: (1) That the delay in transportation and delivery was caused by a strike, accompanied by demonstrations of violence over which defendant had no control and against which it could not contend; (2) that there was a congestion of freight, due to causes beyond its control; and (3) that claims for damages were not made within the time required by the bills of lading,—that is, within ten days in some cases, thirty days in others, and four months in others.

The ultimate basis of these defenses is the Carmack Amendment to the Interstate Commerce Act. What this amendment requires of shipper and carrier becomes the question in the case.

The case involves, as we have said, a number of actions tried together and submitted to one jury. Plaintiff was plaintiff in all of them and obtained judgment which was affirmed by the court of errors and appeals on the authority of another case of like kind.

There was a stipulation which concentrated the issues and removed from controversy the amounts involved. For instance, as to the latter it was stipulated that the value of the melons at the time and place of shipment was $13,465, and that they were sold at the place of delivery for $8,895, being the best price which could be obtained for them, owing to their damaged condition. And it was further stipulated that the freight charges paid by plaintiff amounted to the sum of $5,484.59.

As to the other elements, it was stipulated that the melons were received and accepted by defendant at Edgemoor, Delaware, for transportation to Jersey City, New Jersey, in accordance with the bills of lading; that the usual and customary time for transportation was about seven hours, under the most favorable circumstances; that plaintiff was, at the time of bringing the actions, and is now, the lawful holder of the bills of lading; that the melons were received at Edgemoor by defendant in apparently good order, but were in a damaged condition when delivered to plaintiff at defendant's delivery yard at Jersey City, and that claims for damages were duly made in writing, as required by the bills of lading.

The cases are designated as the '64-count case,' the '13-count case,' and the '11-count case.' All of the bills of lading in the '64-count case,' one in the '13-count case,' and four in the '11-count case,' contain a provision exempting the carrier from liability for loss or damage resulting 'from riots or strikes.' Twelve of the bills of lading in the '13-count case' and seven in the '11-count case' provide that the carriers should 'not be liable for any injury to or decay of fruits or vegetables, or other perishable freight due to detention or delay occasioned by an accumulation of freight at any point . . . or to any other causes over which the carriers have no control.' And there is difference in times of demands.

A motion is made to dismiss on the ground that no Federal question appears in the record, or alternatively, if one appears, it is without merit. In support of the contentions it is said the questions in the case are (1) whether, it being stipulated that plaintiff was the holder of the bills of lading, it was the owner of the melons at the time the shipments were made; (2) whether there was any evidence of negligence of defendant which should have been submitted to the jury; and (3) whether plaintiff was entitled to recover the freight paid by it.

The first question involves the Carmack Amendment; and, considering it, the court of errors and appeals decided that 'any lawful holder of a bill of lading issued by the initial carrier pursuant to the Carmack Amendment . . . upon receiving property for interstate...