Story Case

A swindler, operating in East St. Louis, Illinois, wrote to the United Candy Company in Chicago, for quotations on its chocolates in bulk. The swindler used the name of a well-known candy store in St. Louis, Missouri, the White Candy Company, but gave an East St. Louis address. He received an order for $200 worth of chocolate creams in bulk. The candy was packed and the box marked "The White Candy Company, East St. Louis, Illinois." Shipment was made over the line of the Chicago and St. Louis Railway Company, and the bill of lading was sent to the White Candy Company, 14 East River Street, East St. Louis, Illinois. The swindler received the bill of lading, offered it to the railway company's agent, and received the goods. Subsequently, he disappeared. The United Candy Company did not receive its money, and now attempts to hold the railway company liable for not delivering the goods to the White Candy Company. Can it do this?

Ruling Court Case. Hall Vs. Boston And Worcester Railway Company, Volume 14 Alabama Reports, Page 439

Hall had purchased and paid for fifty barrels of flour, which were consigned to him over the line of the Boston and Worcester Railway Company. Upon the arrival of the flour at its destination, the agent of the company delivered twenty-two barrels to one of Hall's draymen, and temporarily stored the remainder. A few days later, a stranger, posing as a drayman for Hall, presented a bogus order for the balance of the flour. The delivery clerk thought the order was genuine, and delivered the flour to the stranger. When the mis-delivery was discovered, Hall brought this action to recover the value of the twenty-eight barrels.

The company contended that it should not be held liable, for it exercised due care in its endeavor to deliver, but was mistaken.

Mr. Justice Foster said: "A mis-delivery of property by any bailee to a person unauthorized by the true owner, is of itself a conversion, rendering the bailee liable in trover, (for value of the goods) without regard to the question of due care or degree of negligence." The carrier is under a duty to deliver to the consignee, or to some authorized agent, and a carrier cannot escape liability if he makes a mis-delivery, however careful he was. Judgment was given for Hall.

Ruling Law. Story Case Answer

The carrier must deliver to the right consignee at his peril. If he delivers the goods to the wrong person, through mistake, or through fraud by a third person, he is liable for the value of the goods. But if a third person has perpetrated fraud upon a seller, and goods are consigned to that person, the carrier is not liable for delivery to the person perpetrating the fraud, for he has performed the duty assigned to him by the seller. Thus, in the Story Case, the carrier has, in fact, delivered the goods according to directions, and is not liable for the loss thereof.