Stehli v. Southern Express Co.
Stehli v. Southern Express Co.
Opinion of the Court
It is doubtful if the record presents any question requiring a consideration of the act to regulate interstate com
We find no error.
No error.
Dissenting Opinion
dissenting: This was an action to recover tbe value of goods delivered to tbe defendant for shipment, and lost or destroyed. There was a verdict for tbe plaintiff and judgment rendered for tbe full amount claimed, from which judgment tbe defendant has appealed.
Tbe plaintiff sets out two causes of action, one for breach of contract and tbe other in tort, for tbe failure to deliver goods shipped from High Point, N. 0., to New York, and alleged tbe value of tbe goods to be $1,999, and j>rayed judgment for that amount.
Tbe defendant answered, alleging that tbe goods were shipped on a bill of lading or receipt providing that tbe defendant should not be liable unless tbe claim should be presented in tbe time and manner prescribed, and that tbe claim bad not thus been presented; that tbe contract or receipt provided that if tbe value of tbe property was not stated by tbe shipper, tbe carrier should not be liable for more than $50 for loss or damage; and that tbe shipper filled out tbe blank on which tbe contract was entered and tendered tbe same to tbe defendant for execution, and it was executed in tbe form tendered. Tbe defendant further alleged that it was a common carrier engaged in interstate commerce, and that its rates for interstate transportation were duly posted and filed with tbe Interstate Commerce Commission; that tbe schedule of rates increased according to tbe valuation of tbe property shipped, and that tbe rates applicable to a package of tbe value of $1,999 would bave been higher than to one of $50; that tbe shipper was charged with knowledge of such schedule of rates, and bad actual knowledge of the fact that tbe rate charged was applicable to a package of tbe valuation of
The defendant further alleged that the purpose of the shipper was to obtain, knowingly and willfully, by false billing or false classification, the transportation at less than the regular rates then established and in force, contrary to the provisions of the interstate commerce act and the Elkins act and their amendments; that the shipment was to be transported from High Point, N. C., to New York City, and therefore to be carried in interstate commerce; that the rates, rules, regulations, and classification applicable to interstate shipments were applicable to it; that the acts and doings of the shipper were contrary to law, and that the plaintiffs are not entitled to recover.
The court submitted the following issues to the jury, who made the answers stated:
1. Did the plaintiff, on 11 July, 1908, deliver unto the defendant the four bales of silk described in the complaint, to be safely transported from High Point, N. 0., and delivered to the plaintiff in New York? Answer: Yes (by consent).
2. Did the defendant negligently fail to transport and deliver unto the plaintiff, the consignee, in the city of New York, or elsewhere, the four bales of silk described in the complaint? Answer: Yes.
3. Did the plaintiff present’ to the defendant at its office in High Point, N. O., a claim for damages for the loss of the goods, 'in writing, within ninety days after 11 July, 1908, with the original receipt annexed ? Answer: Yes.
4. "What amount, if any, are the plaintiffs entitled to recover of the defendant on account of the four bales of silk mentioned in the complaint? Answer: $1,999, with’interest.
The defendant, in apt time, tendered the following issues, which the court refused to submit:
“Is the plaintiff estopped from denying the contract or receipt entered into and given by the defendant to the plaintiff on 11 July, 1908? Answer:.
Tbe plaintiff’s evidence showed the following facts: On 11 July, 1908, tbe -plaintiffs delivered to tbe defendant four bales of silk for shipment to New York. Tbe goods were delivered by tbe shipper to a driver of an express wagon at tbe door of tbe shipper’s office, and tbe driver signed tbe receipt and banded it back. Tbe receipt for this shipment was filled out by tbe clerk of tbe shipper, who inserted tbe words, “Value asked, but not given.” Tbe receipt was for tbe four bales. It appears from tbe testimony of tbe superintendent of tbe factory, who bad charge of this part of the plaintiffs’ business and who testified for the plaintiffs, that tbe plaintiffs knew that tbe rate they were paying was not tbe legal rate for tbe class of goods shipped. He testified as follows: “We did get a less rate by putting in tbe words, ‘Value asked, but not given,’ than we would have gotten if we bad stated tbe actual value of tbe goods in tbe receipt. When we inserted tbe words, ‘Value asked, but not given,’ we only paid tbe rate as to pounds, and not as to value. We bad been doing this for a number of years.” Tbe witness bad previously testified that be bad been filling out such receipts or contracts, “Value asked, but not given,” for five years. An employee of tbe plaintiffs testified that she was working for them on tbe date of this shipment, and then said: “I was in tbe habit of filling out these receipts in tbe office, ‘Value asked, but not given,’ prior to that time, since I bad been there.”
Tbe bill of lading or express receipt was read in evidence by tbe plaintiff, and in part provides: “If tbe value of tbe property above described is not stated by tbe shipper at tbe time of tbe shipment and specified in this receipt, tbe bolder thereof will not demand of tbe Southern Express Company a sum exceeding $50 for tbe loss or damage to tbe shipment herein receipted for.” Tbe defendant’s evidence shows that tbe goods were delivered to a driver, who receipted for them, and were then carried to an express car, in charge of an express agent or messenger. Tbe agent of tbe defendant at High Point testified
Tbe exceptions and assignments of error relied on by tbe appellant are grouped and discussed under tbe following beads:
First. Tbe court erred in excluding tbe book of classification and rates.
Second. As the motions to nonsuit were. denied, tbe court erred in refusing to charge tbe jury tbat tbe plaintiffs’ recovery should be limited to $50.
Third. Tbe court erred in overruling tbe motions to nonsuit.
Tbe fifth assignment of error ,is taken to tbe refusal of tbe court to allow tbe introduction in evidence of a book of rates and classifications which tbe witness bad in bis band in tbe courtroom, and which was on file in the office of tbe Southern Express Company at High Point, N. 0., on 11 July, 1908. Tbe agent of tbe defendant at High Point bad testified tbat tbe tariff rates of tbe express company were in tbe office on tbe billing counter, and open to tbe inspection of anybody; tbat they were filed with tbe Interstate Commerce Commission. It appears tbat tbe book of rates and classification from tbe High Point office, in possession of tbe agent, the witness, was offered in evidence, and tbe court took tbe matter under advisement. When tbe question was again brought up, the court refused to admit tbe book.
The above assignments of error present the points that the book of rates and classifications testified to by the agent as being in use in the express office should have been admitted in evidence by the court as the proper record of the alleged rates and classifications in force, and that the questions ruled out were admissible to identify the book excluded. Upon the testimony of the agent, it was urged by the defendant that the book should have been received under the acts of Congress making it the duty of the carrier to file copies of the schedules and rates with the Interstate Commerce Commission and post them in the local offices; making it a misdemeanor for a carrier to fail to file them; declaring that a carrier shall not engage in the transportation of goods unless the rates have been filed; and declaring that a carrier willfully permitting anything to be done declared unlawful by the act shall be deemed guilty of a misdemeanor. The following are the material parts of the acts of Congress which are considered applicable to this question:
“'Every common carrier shall file with the Commission schedules showing all the rates, fares, and charges for transportation. Such schedules shall be plainly printed in large type, and' copies for the use of the public shall be kept posted in two public and conspicuous places in every depot, station, or office of such carrier.” Act of 1881, sec. 6, as amended by Act of 1906, sec. 2.
“The willful failure upon the part of a carrier subject to said acts to file and publish the tariffs or rates and charges as required by said acts, shall be a misdemeanor.” Act of 1903, see. 1, as amended by Act of 1906, sec. 2.
“No carrier, unless otherwise provided by this act, shall engage or participate in the transportation of passengers or prop
It is argued by the defendant, under the above statutory provisions, that when a custodian of a book of classifications and rates identifies such book as in use in his department, it must be presumed that the requirements of the law have been fully complied with in the matter of filing and posting the schedules of the rates and classifications. As this is the legal duty of the defendant, and especially as the failure to comply with the law is declared to be a crime, the burden cannot be cast, even in a civil case, upon the carrier to show that it is innocent of crime. The burden was upon the plaintiffs to show, if such was the fact, that the defendant had not duly filed the rates and classifications with the Interstate Commerce Commission, and that therefore the book offered and excluded did not show the established and legal rates and classifications. “The presumption in favor of innocence of crime is not restricted to proceedings instituted for the purpose of punishing the supposed offense, but applies equally in all proceedings, for whatever purpose, whether the guilt of the person comes in question directly or collaterally.” 22 Am. and Eng. Enc. of Law, title “Presumptions,” page .1282. “The general maxim, that all things are presumed to have been rightly done, is applied in many ways, in the form of variously expressed presumptions, all in effect amounting to the same
It will be presumed, in the absence of evidence to the contrary, that every common carrier engaged /n interstate commerce has complied with the statute establishing rates and of printing, filing, publishing, and posting them. Meeker v. Lehigh Valley R. R. Co., 163 Fed., 354, and Adams Express Co. v. Carnahan, supra. The book of rates should have been admitted.
Second. The fourteenth assignment of error is taken to the following part of the charge of the court: “Now, as to the third issue, if you answer the second issue ‘Yes/ that defendant negligently failed to transport and deliver to the plaintiffs, the'consignees, in the city of New York or elsewhere, the four bales of silk described in the complaint, the court instructs you to answer the fourth issue. ‘$1,999.99.’ If you answer the second issue ‘No/ then you will answer the fourth issue ‘$50.’ ” The fifteenth assignment is taken to the following part of the charge: “A man cannot limit his liability upon a contract against the consequences that result from a tort, and negligence is a tort; and he cannot contract against liability for the damages that a man would be entitled to recover for the loss of his property,
The defendant argued that, as the court had overruled the motions to nonsuit, which are discussed hereafter, it properly presents, by the above assignments of error, the point that if the plaintiffs are entitled to recover anything, the recovery cannot exceed the contractual limitation of $50, because it appears conclusively from the testimony of the plaintiffs’ superintendent that the plaintiffs knew that they were shipping the goods under a false classification, and thereby obtaining an illegal rate. In this cáse, the evidence is undisputed, and in fact it conclusively appears from the testimony of the plaintiffs’ own witness that they knew that they were obtaining an illegal rate. This evidence is considered in the discussion of the motions to nonsuit.
Third. The defendant submitted motions to nonsuit, at the close of the plaintiffs’ evidence and when all the evidence on both sides was in, and excepted to the rulings of the court overruling the motions, and the fourth and eighth assignments of error are based on these exceptions. It is argued, on this branch of the case and upon the facts disclosed, that the plaintiffs knowingly received a rebate, concession, or discrimination by reason of the false classification of the goods shipped, that they thereby brought the shipment and themselves under the prohibitive and criminal provisions of the acts of Congress of 1887, 1889, 1903,
“It shall be unlawful for any person, persons, or corporation to offer, grant, or give, or to solicit, accept, or receive any rebate, concession, or discrimination in respect to tbe transportation of any property in interstate or foreign commerce by any common carrier subject to said act to regulate commerce and tbe acts amendatory thereof, whereby any - such property shall by any device whatever be transported at a less rate than that named in the tariffs published and filed by such carrier, as is required by said act to regulate commerce and the acts amend-atory thereof, or whereby any other advantage is given or discrimination practiced. Every person or corporation, whether carrier or shipper, who shall knowingly offer, grant, or give or solicit, accept, or receive any such rebate, concession, or discrimination shall be deemed guilty of a misdemeanor, and on conviction thereof shall be punished by a fine of not less than $1,000 nor more than $20,000: Provided, that any person, or any officer or director of any corporation subject to the provisions of this act, or the act to regulate commerce and the acts amendatory thereof, or any receiver, trustee, lessee, agent, or person acting for or employed by any such corporation, who shall be convicted as aforesaid, shall, in addition to the fine herein provided for, be liable to imprisonment in the penitentiary for a term of not exceeding two years, or both such fine and imprisonment, in the discretion of the court.” Act of 1903, sec. 1, as amended by Act of 1906, sec. 2. “Any person and any officer or agent of any corporation or company who shall deliver property for transportation to any common carrier, and who 'shall knowingly and willfully, by false billing, false classification, whether with or without the consent or connivance of the carrier, its agent or agents, obtain transportation for such property at less than the regular rates then established and in force on the line of transportation, shall be deemed guilty of fraud, which is hereby declared to be a misdemeanor.” Act of 1887, sec. 10, as amended by Act of Í889, sec. 2. “In construing ¿and enforcing the provisions of this section, the act, omission,
Under the foregoing statutory provisions, the defendant contends :
1. That an agreement to ship goods at less than the published rate is illegal.
2. That when a rate is given and obtained at a lower rate than the legal rate, and the shipper knows that it is less than the legal rate, a criminal offense has been committed.
3. That when a contract has been entered into which is void, the aid of the courts cannot be invoked by a party in pari de-licio, especially when the terms of the contract involved the commission of a crime.
As to the first of the above propositions, reliance is laid on the statutory provisions. As showing how strictly both the shipper and the carrier are held to account for a violation of the statute, the case of Chicago and Alton Ry. Co. v. Kirby, 32 S. C. Rep., 648, holds that a shipper cannot recover damages for a breach of the carrier’s special agreement by which, contrary to the Act of 4 February, 1887, .sections 3, 6, and the Act of 19 February, 1903, it undertook, for the regularly established joint through rate, to expedite a car-load shipment of horses over its lines so that it would reach the point of connection with the next carrier in time to be carried by a special and fast stock train, although the shipper did not see or know that the established rates and schedules made no provision for such special service. It has been held that a contract for less than the schedule rates, induced by mistake, is unlawful and cannot be enforced, and there cannot be a recovery of an amount collected in excess of the contract rate. Houston, etc., Ry. Co. v. Dumas, 43 S. W., 609.
As to the second proposition, defendant relied on the case of Armour Packing Co. v. U. S., 209 U. S., 56. In that case it was held that a device or contrivance, secret or fraudulent in its nature, is not essential to sustain the conviction of a shipper
On the third point, it was especially insisted that the motions to nonsuit should have been granted, and that the court erred in overruling them, the evidence conclusively showing that the plaintiffs knew the goods were being shipped under a false classification and that an illegal rate was being received. The plaintiffs’ own witness, who was superintendent of the factory, testified that, “I have been filling out the contracts or receipts ‘Value asked and not given’ for five years. We did get a less rate by putting in the words ‘Value asked and not given’ than we would have gotten if we had stated the actual value of the goods in the receipt. When wé put ‘Value asked and not given’ we only paid the rate as to pounds, and not as to value.”
In Ellison v. Adams Express Co., 245 Ill., 410, it was decided that a contract knowingly made in violation of a statute is void, and there can be no legal remedy for its breach where there is
“No principle of law is better settled than that a party to an illegal contract cannot come into a court of law and ask to have his illegal objects carried out; nor can he set up a case in which he must necessarily disclose an illegal purpose as the groundwork of his claim.” 9 Cyc., p. 546. This rule is well established in this Court, and has recently been recognized. Smathers v. Insurance Co., 151 N. C., 98; Edwards v. Goldsboro, 141 N. C., 60; King v. R. R., 147 N. C., 263.
It cannot be successfully contended that there was not par delictum on the part of the shipper. The history of the statutes, the evils they were intended to remedy, and the amendments to
As it appears, in any view of the facts testified to by the plaintiffs’ own witnesses, that the plaintiffs have no cause of action, and that further proofs of a character to change the result are not possible, this Court, on sustaining the nonsuit, should direct judgment to be entered in the court below. Mansfield v. New York, 165 N. Y., 208; Coffman v. Costner, 87 Fed., 457; Stover Mfg. Co. v. Mast, 89 Fed., 333. “Where, on appeal from a judgment in favor of the plaintiff below, the appellate court decides that plaintiff has not a cause of action and cannot succeed on another trial, it will not order a new trial on reversing the judgment, but will itself render the proper judgment, or order it rendered in the lower court. Thus, where it is apparent that there can be no new evidence introduced by the party against whom a reversal is pronounced, to change the aspect of the ease, a new trial will not be ordered.” 3 Cyc. (title “Appeal and Error”), 452. ,
The above is a résumé of the position taken by defendant in the court below and of the reasoning by which it was sustained. We have followed somewhat closely the outline of the argument submitted by defendant’s counsel, so as to show how the case proceeded in the court, and it appears therefrom, among other adverse rulings, that defendant was deprived of the proof offered
I will direct my attention more particularly to the validity of the stipulation itself. It is not an agreement for exemption from negligence, but has been regarded by the great weight of authority as a proper method by which to measure the amount of loss; to apprise the carrier of the nature of the duty he is undertaking and of the degree of care to be used by him in its performance; to guard the carrier against imposition or fraud; to secure a due proportion between the amount for which the carrier may be responsible and the freight he receives, and to protect him against extravagant and fanciful valuations. Hart v. R. R., 112 U. S., 331. In that case the Court said, in support of the rule: “If the shipper is guilty of fraud or imposi
Judge Emlin McLain has considered the authorities and summed up the law and stated the clear result, as follows, in 6 Cyc., p. 400: “Although there has been difficulty in distinguishing between a bona fide agreed valuation, which is made the basis of the assumption of the duty to transport, on the one
Applying this principle to the admitted facts of this case, the judgment, in my opinion, is not in accordance with the well-settled law in this country, as the great majority of decisions are contrary to what we are about to hold. The plaintiffs entered the words in the receipt, “Value asked, but not given,” well knowing what the package contained and that its value was far in excess of the amount they had named in the receipt, and, further, that defendant was ignorant as to the true contents of the package or its value. Plaintiffs also knew that a much
The facts of our case are stronger for the defendant than were those in the two eases mentioned for the defendants in them, for here there was an active and not merely a passive representation — a misrepresentation in fact and in law. I will not attempt to vindicate the absolute fairness and justness of the rule, thus laid down in England and in this country, and sustained by the very greatest weight of judicial opinion, as the question is fully, ably, and learnedly discussed in the two cases cited, and the authorities by which it is supported are extensively noted and considered.
I therefore conclude: (1) That the question involved is one of Federal law, and the decision of the Federal court of last resort is controlling upon us. Hart v. R. R., supra. (2) That as plaintiffs’ act in concealing the true value and, thereby obtaining not only a lower and preferential rate, but one not prescribed in the tariff or schedule of rates, was contrary to the express provisions of the interstate commerce act, and being prohibited by law, no recovery can be had for the real value .of the goods. It is a tainted transaction and condemned by the law. (3) That plaintiffs are estopped to allege negligence and recover the actual value of the silks, because of the estoppel arising out of the fraud he practiced upon the defendant, and which prevented him from bestowing proper and adequate care for the safety of the goods. (4) Plaintiffs fixed the value of the package themselves, without any suggestion or participation of defendant. It was their own value, fairly and voluntarily put upon the package, and they should not now be heard to allege that they falsely represented it, when they have had the benefit of the carriage at a much lower rate, and in order to recover the real value, which they fraudulently concealed. If such a recovery is permitted, plaintiffs will have successfully
Reference
- Full Case Name
- EMIL J. STEHLI v. SOUTHERN EXPRESS COMPANY
- Status
- Published