Story Case

The Dalton Talking Machine Company made frequent shipments from its factory in Trenton, New Jersey, to New York City, over the New Jersey and Northern railway line. When the shipments reached New York City, they were placed in the railroad company's freight house and were usually carried away by the talking machine firm on the day following their arrival. The Dalton company had in its employ, an express company that called each day at the freight station, and hauled away its shipments. Ten talking machines were shipped on June 1, 1915, arriving in New York on the afternoon of June 2. They were put into the freight house, and the railroad company expected that they would be taken away in due course of time. The expressman learned of the shipment the afternoon of its arrival, and arranged to take the property away on the following afternoon. However, at noon on June 3, the warehouse and its contents were entirely destroyed by fire, from unknown causes. The bill of lading to the Dalton company contained no stipulation freeing the railroad company of its Common Law liability, and action was brought to recover the loss. The railroad company defended, on the ground that its liability as a carrier had ceased. What should the court do?

Massachusetts Rule Ruling Court Case No. 1. Norway Plains Company Vs. Boston And Maine Railroad Company, Vol. 1 Gray, Massachusetts Reports, Page 263

The Norway Plains Company shipped two parcels of merchandise from Rochester, New York, to Boston, in the cars of the railroad company. The goods arrived in Boston on Saturday and were taken from the cars and placed in the depot of the company. No special notice was given to the Norway company of the arrival of the goods, but the fact was known to Ames, a truckman, who was its authorized agent, employed to receive and remove the goods. These goods were ready for delivery as early as the following Monday morning. Another shipment of goods arrived Monday, of which fact Ames was aware, but they arrived too late to be removed that day. During that night the depot burned, without any fault on the part of the railroad company. This was an action by the owner of the goods to recover the value thereof. The railroad company contended that the transit was at an end, and that its liability, as common carrier, had ceased; that it was liable only for due care, which it had exercised.

Mr. Chief Justice Shaw said: "If, at the time of the loss, it was liable as a common carrier, it must abide by the loss. If, on the contrary, the transit was at an end, if the railroad company had ceased to have possession of the goods as a common carrier, and held them in another capacity, as ordinary bailee, then it was responsible only for care and diligence which the law attaches to that relation."

The court was of the opinion that a railroad company is not obliged to give notice to the consignee of the arrival of the goods, in order that it may be relieved of liability as carrier; that its duty as carrier ceases when the goods are stored in the warehouse. So in this case, the railroad company was bound to exercise reasonable care. Having done this, it was not liable. Judgment was given for the Boston and Maine Railroad Company.