Perez v. Cintron
Perez v. Cintron
Opinion of the Court
This matter came on for hearing with plaintiff, J. Martinez Perez, represented by Almeric L. Christian, Esquire, his attorney in fact, and defendant, Clemente Cintron, represented by R. H. Amphlett Leader, Esquire.
Plaintiff, a commission agent of San Juan, Puerto Rico, sold to defendant merchant of Frederiksted, Saint Croix, on or about July 3, 1952, twenty-five (25) bags of rice and five (5) bags of beans amounting to a total cost of $479.46, including charges for insurance and cartage from warehouse of plaintiff to the dock. Plaintiff delivered these goods to a sailing vessel by the name of “Eudora Edwards” for transporting to defendant in Saint Croix. Defendant refused to accept the goods when he discovered, on arrival of the carrier, that his goods had been loaded
Plaintiff contends that the goods became the property of defendant when they left his warehouse since, under the terms of sale, defendant, was required to pay the costs of cartage from the warehouse to the carrier plus the cost of freight and insurance. Plaintiff points out that defendant did not specify shipment by any particular carrier and plaintiff, therefore, shipped by the first available vessel,
Plaintiff also asserts that because-of the refusal of defendant to pay for the shipment, he secured the release of the beans and sold them at the contract price for.the account of defendant and for the purpose of reducing defendant’s damages. Plaintiff points out that other buyers in Saint Croix received similar goods by the same carrier on the same trip, took delivery of them, and sold them without complaint.
Finally, plaintiff contends that defendant’s recourse for any damage that may have resulted to his goods is to the carrier, since the goods shipped were already defendant’s property at the time they were placed on board the carrier and it was understood that plaintiff would choose a carrier for the defendant. Therefore, plaintiff urges that defendant had no right to refuse to accept the goods and is liable for the contract price less the $65.00 received by plaintiff for the beans.
Defendant admits that under ordinary circumstances and customary business practice in sales of this kind, he as the buyer becomes liable for the goods the moment they are placed on board the carrier. But defendant contends that the instant case is different in that plaintiff failed to exercise good judgment and due care in his selection of a carrier and that when he chose the “Eudora Edwards” without the exercise of proper care and without the consent of defendant, the carrier became the agent of the seller and not the buyer. The carrier chosen by plaintiff was not a regular caller at Saint Croix and the line was not registered there, nor had it any agent in Saint-Croix. Said carrier was not a motor vessel and there were other reliable carriers available which made weekly calls at Christiansted and on which plaintiff was accustomed to ship defendant’s goods. Under these circumstances, defend
Defendant further contends that even if title passed to him when the goods were delivered to the carrier, title thereafter re-passed to the plaintiff when his agent came and repossessed the goods and resold them on his own account with full knowledge that defendant had refused to accept them and disclaimed any ownership in them whatsoever.
The determination of this case turns on two questions:
(1) Did the seller (plaintiff) exercise proper care in the selection of a carrier?
(2) When the seller stepped in and sold part of the goods, did he do so as the agent of the buyer or did he retake possession and title to the goods?
There is really no controversy as to the law applicable to the case. It is well established in the law of sales and recognized by both parties that when goods are to be shipped to the buyer, delivery by the seller to the carrier designated by the buyer is a delivery to the buyer, on the theory that the carrier is the agent of the buyer to accept delivery. 46 Am. Jur. 347, sec. 172. It is also well established that where the buyer does not designate any particular carrier, “a delivery to the carrier selected by the seller, if proper care is used in the selection, is a delivery to the buyer to the same extent as though the buyer had himself selected the carrier.” 46 Am. Jur. 348. sec. 172.
It is acknowledged by the parties that where the sale is F.O.B. point of departure, as in the case at bar, title ordinarily passes to the buyer on delivery to the carrier and that risk of injury in transit is on the buyer; that, however, title does not pass if the seller fails to exercise proper care in the choice of carrier. Plaintiff claims that there was no lack of care on his part while the defendant
Defendant, in this regard, points out (1) that the seller “left” the regular scheduled lines of motor vessels by which he was accustomed to ship and chose the “Eudora Edwards”; (2) that seller chose a vessel which is a “tramp”, i.e., does not have regular places of call; (3) that seller chose a vessel which had no agent in Saint Croix, therefore, no one with whom the buyer could make any claim or adjustment; (4) that seller chose a vessel which to buyer’s knowledge and that of persons in business on the waterfront was unknown in Saint Croix; and (5) that seller chose a vessel whose captain is inexperienced and irresponsible as demonstrated by the manner in which he loaded foodstuffs with fertilizer and also by his attitude to defendant when he asked him to sign a statement as to the condition of the goods.
Plaintiff, on the other hand, points out (1) that the vessel was known to these parts, making occasional calls to all of the islands and that in 1953 (after this case was filed) made some 8 calls to Saint Croix within 3 months; (2) that although the vessel is not a member of a line, it maintained an agent in San Juan; (3) that the seller had previously made shipments by that vessel to Saint Croix; (4) that the vessel is seaworthy and the fact that it does not carry a motor did not affect the goods in any way; and (5) that in the interest of the buyer, he chose the “Eudora Edwards” because it was the first available means of shipment.
Since the seller has the power to cause the carrier to become the agent of the buyer and as such accept title to the goods on behalf of the buyer, the seller must perform his duty of proper selection with strict care, unless he has the consent of the buyer to ship by the vessel he has
The case of Arkansas & Texas Grain Co. v. Young and Fresch Grain Co., 79 Ark. 603, 116 Am. St. Rep. 99, cited by the plaintiff as being in point, did not involve the question of the selection of a carrier at all but turned on whether the condition of the goods when delivered to the carrier was the quality contracted for. While it has been held, as argued by plaintiff, that delivery to a common carrier, in the absence of a designation of a specific carrier by the buyer, is a delivery to the buyer, the majority position is that the seller must have the- buyer’s consent to his particular selection of a carrier, the seller must notify the buyer of the carrier on which shipment is being made, or that the carrier selected by the seller -must be one usually employed in the transportation of goods from the place of the seller to that of the buyer: 77 C.J.S. 888, sec. 164(a); 22 L.R.A. 416 (noto).
This court is, therefore, of the opinion that under the circumstances obtaining in this ’ case, when the- seller decided to ship by a carrier other than that by which he had shipped to defendant before, he should have sought defendant’s consent in order to protect himself and place the risk on the buyer. Defendant had a right to expect that his consent would be asked if the seller were shipping by a new line.- The Court cannot say that the seller exercised proper care when he chose a vessel which was not a regular caller
In view of our holding on the first question, it is unnecessary to go into the second question, except as the actions of the parties have bearing on the first issue.
It seems clear from the seller’s actions that he recognized his responsibility for the shipment. He immediately sent over an agent to Saint Croix to see after the goods. His agent conferred with the buyer who maintained his position that he would not accept the goods in view of the condition in which they came by a carrier unknown to him and from whom he could get no satisfaction. With this knowledge of defendant’s flat refusal of acceptance and disclaimer of any title to the goods, plaintiff’s agent went ahead and repossessed such of the goods as he could obtain. He was able to secure the beans and hastened to resell them in order to reduce his own loss, and he attempted to obtain the rice from the customs and health authorities but its
It is, therefore, the decision of this court that the defendant is not liable on the contract of sale for the cost of the goods shipped by the “Eudora Edwards” on July 3, 1952, an unknown carrier chosen by plaintiff without the consent or notification of defendant.
Judgment may be drawn in accordance with this opinion.
Reference
- Full Case Name
- J. MARTINEZ PEREZ v. CLEMENTE CINTRON
- Status
- Published