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PRESLEY FRUIT COMPANY v. ST. LOUIS, IRON MOUNTAIN & SOUTHERN RAILWAY COMPANY

Minnesota Supreme Court1915-06-18No. Nos. 19,259—(174)
130 Minn. 121

Summary

Holding. The judgment is reversed and a new trial is granted because the trial court erroneously instructed the jury that deterioration of highly perishable strawberries in transit constitutes strong presumptive evidence of carrier negligence, when such facts raise only a weak presumption at most and the question of negligence should be left to the jury without improper legal guidance.

Presley Fruit Company sued the railroad to recover damages for a carload of strawberries that deteriorated during transit from Arkansas to Minnesota in May 1913. Although the company won at trial, the railroad appealed, challenging both the verdict and the jury instructions. The court identified a critical error in how the trial judge instructed the jury about presumptions of negligence.

While common carriers are generally insurers against loss of goods in transit, this absolute liability has an important exception: when goods are inherently perishable and prone to natural decay, the carrier's liability depends on whether the carrier's own negligence caused or contributed to the damage. Strawberries shipped long distances in May are highly susceptible to deterioration. The trial court improperly instructed the jury that the berries' arrival in a decayed condition constituted strong presumptive evidence of carrier negligence. For such perishable goods, any presumption of negligence arising from decay in transit should be considered weak, not strong, and the matter should be left to the jury's determination without such a misleading legal standard.

The court also affirmed that Presley Fruit Company was the rightful owner of the berries during shipment, rejecting the railroad's argument that the shipper's retention of the bill of lading and use of a draft payment arrangement demonstrated retained title. The evidence showed the company had prepaid through its bank, which was economically equivalent to advance payment.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Scope of common carrier liability for perishable goods
  • Proper jury instructions regarding presumptions of negligence for inherent decay
  • Title to goods in transit under bill of lading and draft payment arrangements

Procedural posture

The defendant railroad appealed from a jury verdict entered in favor of the plaintiff shipper in a damages action for negligent transport of strawberries.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Hallam, J.

This action is brought to recover damages claimed to have been suffered by reason of the negligence of defendant in carrying a carload of strawberries from Bald Knob, Arkansas, to St. Paul, Minnesota, in May, 1913. Plaintiff had a verdict. Defendant appeals.

1. Defendant is a common carrier. The general rule is that a common carrier is an insurer of the safe delivery at destination of goods committed to it for transportation, and it is liable for their loss in transit, whether the loss results from its fault or negligence or not. The Maggie Hammond, 9 Wall. 435, 19 L. ed. 772; Agnew v. Steamer Contra Costa, 27 Cal. 426, 87 Am. Dec. 87; Mershon v. Hobensack, 22 N. J. Law, 372. This is true whatever may be the nature of the goods, whether they be strawberries or cobble stones.

The rule, however, is subject to some exceptions. This absolute liability is in all cases qualified, where loss or damage results from the nature and inherent tendencies of the thing carried. Baltimore & Ohio R. Co. v. Dever, 112 Md. 296, 75 Atl. 352; White v. Minneapolis & R. R. Ry. Co. 111 Minn. 167, 126 N. W. 533. In undertaking to carry strawberries the carrier assumes the obligation to deliver safely, having due respect to the tendency of strawberries to deteriorate and decay. The carrier is not liable for deterioration or decay of the property transported, resulting from natural causes, merely because the goods are being carried upon its cars. Where goods shipped suffer injury of a character arising out of their inherent nature, the liability of the carrier depends upon negligence, and the carrier is not liable, if his own negligence did not occasion or contribute to the injury. 6 Cyc. 381 (35); Rixford v. Smith, 52 N. H. 355, 13 Am. Rep. 42; Brown, Shipley & Co. v. Clayton, 12 Ga. 564; Janney v. The Tudor Co. 3 Fed. 814; Brandeis v. Chicago, B. & Q. Ry. Co. 164 Iowa, 702, 146 N. W. 825.

2. The evidence in this case is conflicting, but there is evidence which we believe sufficient to submit to a jury that the berries were delivered to defendant at Bald Knob in good condition and that they arrived in St. Paul, heated, moldy and decayed. The learned trial court charged the jury that they would “be justified in finding that such condition is strong presumptive evidence that the defendant company was negligent.” Exception was taken to this portion of the charge. We consider this instruction erroneous. The facts stated do raise a presumption of negligence (Fockens v. United States Express Co. 99 Minn. 404, 109 N. W. 834; Brennisen v. Pennsylvania R. Co. 101 Minn. 120, 111 N. W. 945; Whitaker v. Chicago, St. P. M. & O. Ry. Co. 115 Minn. 140, 131 N. W. 1061; Ammon v. Illinois Cent. R. Co. 120 Minn. 438, 139 N. W. 819), but, when the articles transported are as prone to decay as are strawberries shipped for long distances in the month of May, we are of the opinion that it is error to instruct the jury as a rule of law that their decay in transit furnishes a strong presumption of negligence of the carrier. These facts raise only a prima facie presumption of negligence, and in the case of such highly perishable goods, if the presumption were to be char acterized at all, we should consider it weak rather than strong. This instruction gave to the jury an improper rule of evidence, and it was error for which a new trial must be granted. See Westbrook v. Howell, 34 Ill. App. 571, 574; Weisinger v. Bank, 18 Tenn. 330, 337.

3. An-expression of opinion by the court upon disputed questions of fact is not reversible error, if the issues of fact are nevertheless clearly submitted to the jury for its determination. Ames v. Cannon River Mnfg. Co. 27 Minn. 245, 6 N. W. 787; First National Bank of Decorah v. Holan, 63 Minn. 525, 529, 65 N. W. 952; Bonness v. Felsing, 97 Minn. 227, 106 N. W. 909, 114 Am. St. 707; Dobsloff v. Nichols-Chisholm Lumber Co. 101 Minn. 267, 270, 112 N. W. 218; Larson v. Barlow, 112 Minn. 246, 249, 127 N. W. 924. But the court may not give to- the jury an improper rule of law for their guidance in determining the facts. Dobsloff v. Nichols-Chisholm Lumber Co. 101 Minn. 267, 112 N. W. 218. This we conceive was the effect of the instruction given.

4. For purposes of, a new trial we may say that we approve the ruling of the court that the proof was conclusive that plaintiff was the owner of the berries during transit. This was the common case of purchase of goods not specific which were to be appropriated to the contract by the seller. The seller selected and shipped the goods, taking a bill of lading to plaintiff as consignee. If this fact stood alone, plaintiff’s title would have been clear. The consignee of a shipment is presumed to be the owner of it. Benjamin v. Levy, 39 Minn. 11, 38 N. W. 702; Dyer v. Great Northern Ry. Co. 51 Minn. 345, 53 N. W. 714, 38 Am. St. 506; Ammon v. Illinois Cent. R. Co. 120 Minn. 438, 139 N. W. 819. But the presumption is not absolute. It may be rebutted by proof that the consignor retained title in himself. It is urged that, since the shipper retained the bill of lading and forwarded through the banks a draft for the price of the goods, with the bill of lading attached, with instructions to deliver the bill of lading on payment of the draft, the presumption that title passed to plaintiff was thereby rebutted. If this fact stood alone the contention would be well taken,, for prima facie the conduct of the shipper in reserving possession of the bill of lading and for warding a draft with the bill of lading attached, with instructions to deliver the bill of lading only on payment of the draft, constitutes a reservation of title in the shipper. Freeman v. Kraemer, 63 Minn. 242, 65 N. W. 455. But this fact does not stand alone. The further evidence is as follows: One of plaintiff’s witnesses testified that plaintiff owned the ear of berries, that it bought them from the vendor’s broker f. o. b. shipping point. Plaintiff’s secretary» testified that plaintiff paid for the berries “by bank guaranty.” As stated in his own words: “We had to go to our bank and have them wire guaranty as soon as the carload of strawberries was loaded, that’ they can draw on the bank down there on us, and that holds us,” and “we have to deposit our check with the bank before they will send the bank guaranty.” In other words, plaintiff had deposited the price with the guaranteeing bank to await the arrival of the goods. We think the situation is not different in principle from what it would be if plaintiff had paid for the goods in advance to the vendor, in which case plainly the title would have passed to the purchaser upon delivery to the carrier. Merchants’ Exchange Bank v. McGraw, 59 Fed. 972, 8 C. C. A. 420, while differing from this case in its facts, in the principle it follows tends to sustain this view.

Order reversed and new trial granted.