Hamlet Grocery Co. v. Southern Railway Co.
Hamlet Grocery Co. v. Southern Railway Co.
Opinion of the Court
after stating the case: We will consider the case upon three questions:
First. Plaintiff was not the consignee named in the bill of lading, which contains the full contract with the carrier for the transportation and delivery of the tobacco. In the first place it is stated in the case that he had sold the goods to the Farmers Furnishing Company, and
Second. If he had been consignor or consignee, he has not presented his claim as required by the statute, which requires that it shall be filed with the agent of the company that lost the goods; if it is the last carrier in the course of the shipment, then with his agent at the point of destination,” and if an intermediate carrier, then with his agent at the point of his delivery to another carrier, or at the point of origin by the consignor, if he has retained the ownership of the goods. The claim was filed with the agent of the A. & R. R. Company at Eaeford, N. 0., the point of destination, but that company did not lose the goods, as the case states, but the defendant company. Nor is the A. & E. E. Company sued in this action. It was not filed with defendant’s agent at the point where it delivered the goods to the next carrier in the route, nor was it filed by the consignor “at the point of origin,” even if he had any right to file it at all, and certainly he did not have this right as consignor. It is familiar learning that penal statutes must be strictly construed, and the plaintiff, before he is entitled to recover the penalty, must bring his case strictly within the language and meaning of the statute. They must be construed sensibly, as all other instruments, but not liberally, so as to stretch their meaning beyond what the words will warrant. 36 Cyc., 1185, 1186, 1181; Sears v. Whitaker, 136 N. C.,
And in Cox v. R. R., 148 N. C., 459, 460, the Court said, in discussing the same subject: “It is a well-established principle of law, applicable to corporations and individuals alike, that penal statutes are strictly construed, and that he who sues to recover a penalty awarded by the law must bring his case clearly within the language and meaning of the law. Sears v. Whitaker, 136 N. C., 37; Appenheimer v. R. R., 64 Ark., 27; 26 Am. and Eng. Enc. (2 Ed.), p. 658.” So we see that, by this ancient rule of the law, which has ever been approved and sanctioned by the courts, even to the present time, as one that is reasonable and just, we must hold the plaintiff to the strictest construction, and not broaden the meaning of the statute in his favor to include a case not within the words and, therefore, not within its intention. It seems that he has failed, at every point, to show his right to the penalty he now claims. It is ’not necessary to decide whether a penalty, such as this one is, can be assigned, for it has not been transferred, but only the debt, using that word in its general and comprehensive sense as meaning a sum of money due from one to another without regard to the form of the obligation or the manner in which it accrued.
Third. It appears that plaintiff, if he had any cause of action, has not filed his claim in due and proper form. The defendant, as carrier, was not bound to pay a claim to anybody who might present it. but
It is suggested that defendant admitted the claim for damages, and therefore the right to recover the penalty followed as an incident. But this is not a logical, legal or just conclusion. The recovery of the claim for damages rests upon principles far different from those which entitle plaintiff to the penalty. The latter is governed by the provisions of the statute, and the former by the rules of the common law. It is admitted that the alleged right to the penalty was not assigned, and plaintiff does not sue as assignee, but as the “real consignor,” and as (therefore) the party aggrieved who is entitled to recover the penalty. But if he is the consignor, it was a condition precedent to his right to recover the penalty that he should have filed his claim at the place where the shipment originated, for the statute so provides. But the plaintiff was not the nominal or real consignor, who was the shipper, and, besides, as the goods were shipped on an open bill of lading the title passed, at once, on receipt of the goods by the carrier, to the consignee, and the consignor, even Eeynolds & Go., lost all interest in them, as much so as if they had sold and actually delivered them to the consignee, the Farmers Furnishing Company at Eaeford, N. C. It is not a fact which appears in the record, nor is it true according to plaintiff’s own showing, that the latter company gave to the plaintiff a statement of the consignee, which was attached to the claim- of loss filed with the railroad company (not this defendant) at Eaeford, showing that the plaintiff alone, by assignment, was interested in the loss, even if this would have availed the plaintiff so as to entitle it to recover the penalty.
The claim for damages contained only plaintiff’s own statement of certain matters upon which defendant, if the claim had been filed with
Justice Ilohe made this plain in Buggy Corporation v. R. R., supra, citing some of the above cases, when he said: “The principle indicated has of late been more frequently recognized and applied with us in actions against common carriers under the penalty statutes of the State in defining who is the ‘party aggrieved,’ designated in most of them as the person who may bring the suit, as in Stone v. R. R., 144 N. C., 220, but they are made to rest on the principle that where a vendor ships goods to a purchaser by a common carrier whose lines afford the usual route and ordinary method of shipment, and on a bill of lading of the kind described, the earner is considered the agent of the vendee, and on delivery to such carrier the title passes to such vendee, and thereafter, nothing else appearing, he is the real party interested in the
There is not tbe slightest evidence in this record that tbe plaintiff, as tbe seller of tbe goods, retained any interest whatever in them, but tbe entire property in them passed to tbe consignee, leaving to it only a cau.se of action for tbe price. Tbe buyer (consignee) bad no legal right to charge tbe goods back to tbe seller without bis consent, as tbe latter bad sold and delivered them to tbe carrier, and even with it be could not be made consignee, or restored to the position of consignor, if be ever held that relation to tbe shipment. There is no such alchemy known to tbe law.
We need not discuss tbe question as to tbe assignment of tbe penalty, as it was never assigned, as a fact, and besides if a penalty is generally assignable, this consignee could not assign tbe one claimed by tbe plaintiff, as it never bad any right to it, not having complied with tbe law which imposed it.
This case is not like Horton v. R. R., post, 883, for there tbe nominal consignee was tbe agent of bis wife, the real owner, and therefore tbe “consignee aggrieved,” within tbe words and meaning of tbe statute, and entitled to receive tbe goods and sue for tbe damage to them, as they bad been injured. We applied there tbe law of agency, and, as tbe plaintiff was acting through another as- agent, it was tbe same as if she bad been personally present and acting herself and in her own name (Qui facit per alium, facit per se). But here tbe Farmers Furnishing Company was not agent for plaintiff, but was nominally tbe consignee and really so, as it was acting for itself, being both legal and beneficial owner of tbe goods.
Tbe judgment is reversed as to tbe penalty, and judgment will be entered in tbe court below in favor of plaintiff for $34, with interest and costs to tbe date of tbe tender admitted.
Eeversed.
Concurring Opinion
concurs in this opinion upon tbe ground that as tbe plaintiff, if a consignor, has not filed bis claim at tbe place where tbe shipment originated, as required by tbe statute of consignors, be cannot recover.
Dissenting Opinion
dissenting: This action was begun before a justice of tbe peace to recover $34 for tbe loss of ten caddies of tobacco shipped
On 9 December, 1913, the plaintiff filed in writing with defendants claim for the loss, and the same not having been paid, after the lapse of more than six months, began this action on 29 June, 1914, to recover said sum of $34, with interest from 9 June, 1913, and the penalty of $50 for failure to adjust and pay said claim within the time allowed by law. A jury trial was waived, and the court having found the above facts, rendered judgment for said $34 and interest and for the $50 penalty and costs.
The defendants admitted the loss of the tobacco in transit, that the claim was filed by the plaintiff and failure to pay for ninety days, and in the Superior Court before trial tendered payment of the $34 and interest, but declined to pay the $50 penalty, on the ground that the plaintiff was not entitled to recover the penalty because .it was not assignable.
An action for a penalty is ex contractu, Katzenstein v. R. R., 84 N. C., 688, and citations thereto in Anno. Ed., and is therefore assignable. Petty v. Rousseau, 94 N. C., 355. An action for damages on account of a lost shipment and penalty for unreasonable delay in settlement of the claim can be joined in the same action, for both lie in contract. Robertson v. R. R., 148 N. C., 323; Jeans v. R. R., 164 N. C., 229; Laws 1911, ch. 139.
The plaintiff, however, does not sue as assignee, but as the real consignor and the “party aggrieved,” and therefore entitled to maintain this action for the loss and the penalty (which is an incident merely to the loss) under the general statute which requires an action to be brought “by the party in interest.” Revisal, 400; Petty v. Rousseau, 94 N. C., 355. The plaintiff bought the tobacco from the R. J. Reynolds Co. It was on its order that the shipment was made to the Farmers Furnishing Co., and it was therefore the real consignor, though the R. J. Reynolds Co. appeared in the bill of lading as the nominal consignor. The consignee charged back to the plaintiff the goods which it failed to receive and for which it had not paid, and gave to the plaintiff a statement of that fact. The plaintiff thereupon filed its claim for loss, attaching this statement from the defendant, showing that the plaintiff alone was interested in the loss.
The defendant did not object when the claim for loss was filed, that it
It is a matter of common knowledge that railroad companies were often neglectful in adjusting and settling claims for loss of goods in transit, whereby shippers and consignees were much prejudiced. A mere action to recover the loss entailed upon the party injured the expense of counsel fees and the annoyance of litigation. To remedy this public evil the statute which is now Eevisal, 2634, was enacted (chapter 330, Laws 1905) for the public benefit. It gives a penalty of $50 against any common carrier failing to adjust and make payment for such losses within ninety days. It having been held that a consignor was not “the party aggrieved” who is entitled to recover damages in such ease, Buggy Corp. v. R. R., 152 N. C., 119, the General Assembly thereupon amended the act to provide that the recovery could be made by the consignor “when it shall appear that the consignor was the owner of the shipment.” Laws 1911, ch. 139.
If the claim for the penalty had been assigned the assignment would have been valid. Petty v. Rousseau, supra,; but in fact the statement given to the plaintiff by the consignee was merely to show that the consignee had no interest in the loss and that the plaintiff was “the owner of the shipment,” Laws 1911, eh. 139. This case is therefore stronger than Horton v. R. R., post, 383, because in that case the nominal consignee had not given any such certificate, brought home to the defendant as here, that the plaintiff there was the real consignee.
In this case it appears, on the facts found by the judge, that the E. J. Beynolds Co., the nominal consignor, had no interest whatever in the shipment; that the nominal consignee had none; that the plaintiff was the actual owner of' the shipment and filed its notice with the certificate of the nominal consignee, and that the plaintiff was the real “owner of the shipment.” The defendants do not deny that the plaintiff was such owner and that it had neglected for more than the allotted ninety days to adjust the claim by tendering the $34 and interest in open court. If filing the claim at Baeford was a defect material to the plaintiff’s rights, it was waived by the defendants not giving the plaintiff notice of said objection, and was further waived in open court by tendering the amount of the loss, and is not now presented by any exception.
The Reynolds Tobacco Co., tbe nominal consignors, could not sue for loss of tbe goods, because they were merely tbe agents of tbe plaintiff' in shipping tbe goods, and therefore only nominal consignors. The-consignee could not .sue because it gave a certificate (or release) tbat the-goods belonged to tbe plaintiff. Tbe only party who could sue was tbe plaintiff, who, tbe defendant admits by tendering payment, was tbe “owner of tbe shipment,” in tbe language of tbe statute. Tbe defendant has not denied tbat tbe plaintiff gave notice in due time, and it has not objected tbat it did not receive such notice because it was filed at the-wrong place. Tbe record shows more than six months elapsed before-tbe plaintiff brought suit to recover bis loss. Tbe defendant, having dragged tbe plaintiff through three courts, now is willing to pay for tbe wrong be has done tbe plaintiff, after tbe lapse of two years, tbe $34, tbe value of tbe goods, wbicb ought to have been paid when the-loss occurred.
Tbe law requiring tbe penalty of $50 was to enforce upon these-great common carriers tbe necessity of paying proper attention in a reasonable time to tbe claims of shippers who sustain losses from tbe negligence of tbe railroad companies and to recoup tbe necessary cost forced on those who have to sue to recover their losses.
To turn tbe plaintiff off now, after paying counsel for representing them in all tbe courts, from the lowest to the highest, and to tax the-plaintiff with tbe costs of this appeal on tbe ground tbat tbe notice was filed at tbe wrong place (to which tbe defendant then made no objection! is to impose upon tbe plaintiff a loss far greater than tbe value of tbe goods. Tbe statute, instead- of being a protection, has proved to be a severe punishment to tbe plaintiff for tbe temerity of asking-tbat tbe courts make tbe defendant pay for tbe goods which the defendant has negligently lost and refused to pay for.
A statute ought to be construed according to its intent. Tbe old maxim tbat a penal statute is to be strictly construed, if it ever bad any justification, applies only in criminal cases. It certainly ought not to apply as to a civil remedy in regulation of tbe railroad companies when, without excuse, they fail to pay losses caused by tbeir negligence in tbe shipment of goods. In such cases tbe true maxim is tbat “A remedial statute should be construed so as to advance tbe remedy and. repress tbe evil.”
Reference
- Full Case Name
- HAMLET GROCERY COMPANY v. SOUTHERN RAILWAY COMPANY
- Cited By
- 5 cases
- Status
- Published