Story Case

The Alton Wagon Company delivered a consignment of wagons to Monroe City, Indiana. The Mississippi Valley Company provided a clause in all of its bills of lading, freeing the company from liability, in case of fire caused other than by the company's own negligence. The shipment of wagons was carried by the Mississippi Valley Company to Princeton, Indiana, and there delivered to the freight station of the Southern Indiana Interurban Line, the only means of shipment to Monroe City. Before the interurban company removed the wagons, they were destroyed during the night by a fire, which consumed the freight house. The cause of the fire remained a mystery. The interurban company refused to account for the wagons, on the ground that it came within the protection of the clause in the bill of lading. Is this correct?

Ruling Court Case. Harris Vs. The Adams Express Company, Volume 120 Indiana Reports, Page 73

Harris was a nurseryman, carrying on his business at Champaign, Illinois. At Champaign, he delivered a lot of fruit trees to the United States Express company, to be transported to Mooresville, Indiana. The shipment contemplated that the United States company should deliver the fruit trees to a connecting carrier at Indianapolis. But in their written contract, nothing was said as to which company should be selected. Furthermore, it was expressly agreed that the connecting carrier should be considered the agent of Harris and not the agent of the United States company. They also agreed that the United States company would be liable, only to the amount of fifty dollars. The United States company delivered the trees to the Adams Express company at Indianapolis, and it carried them on to Mooresville. An agent of Harris visited the office of the company several times to receive the trees, but each time he was told that they had not arrived. At length they were delivered, but the delay had rendered the trees worthless. Harris sues for the loss.

The Adams company contends that it is entitled to the benefit of the contract made between Harris and the United States Express Company, and, consequently, not liable beyond $50.

Mr. Chief Justice Elliott said: "If the Adams Express Company had been designated in the contract with the first carrier, as one of the intermediate carriers, or if the contract had provided that its stipulation should enure to the benefit of all carriers, then the contention of the Adams company would find strong support from the authorities.

"But the contract does not provide that its stipulations shall enure to the benefit of any other carrier than the one with whom it is made, nor does it designate any other carrier along the line. Its provisions apply only to the carrier with whom the contract was directly made, and it is given authority to select the carrier from the termination of its line to the end of the route. The authorities all substantially agreed that, in such a case, the intermediate carrier cannot successfully claim the benefit of the provisions of the original contract." Judgment was given for Harris for the full loss.

Exiling Law. Story Case Answer

Frequently, a carrier enters into a contract with the shipper, whereby he limits his liability in certain respects, for loss caused during the transportation. As a general rule, the benefit of such a contract does not enure to the benefit of a connecting carrier, unless the contract with the first carrier states that the contract shall enure to the benefit of all connecting carriers, or unless the name of the second carrier is in the contract of carriage, as being the second carrier by which the goods are to be carried to their final destination.

Apparently this is not true in the Story Case, and therefore, the interurban company is liable for the loss of the wagons, although the loss was not caused by its own negligence.