Source: https://m.openjurist.org/320/us/508
Timestamp: 2020-01-21 09:59:59
Document Index: 214772424

Matched Legal Cases: ['§ 3', '§ 3', '§ 3', '§ 3', '§ 3', '§ 3']

320 US 508 Illinois Steel Co v. Baltimore & or Co | OpenJurist
320 U.S. 508 - Illinois Steel Co v. Baltimore & or Co
320 US 508 Illinois Steel Co v. Baltimore & or Co
64 S.Ct. 322
88 L.Ed. 259
Section 7 of the conditions of the uniform bill of lading provides that the owner or consignee shall pay the freight and all other lawful charges upon the transported property, and except in those instances where it may be lawfully authorized to do so, that no railroad carrier shall deliver or relinquish, at destination, possession of the property covered by the bill of lading until all tariff rates and charges have been paid. Cf. § 3(2) of the Interstate Commerce Act, as amended, 49 U.S.C. § 3(2), 49 U.S.C.A. § 3(2). But it further provides that 'The consignor shall be liable for the freight and all other lawful charges, except that if the consignor stipulates, by signature, in the space provided for that purpose on the face of this bill of lading that the carrier shall not make delivery without requiring payment of such charges and the carrier, contrary to such stipulation, shall make delivery without requiring such payment, the consignor (except as hereinafter provided3) shall not be liable for such charges. * * * Nothing herein shall limit the right of the carrier to require at time of shipment the prepayment or guarantee of the charges. * * *' Under these provisions, if the non-recourse clause is not signed by the consignor, he remains liable to the carrier for all lawful charges. The carrier is free to demand payment in advance by the consignor, or it may decline to make delivery to the consignee until the freight charges are paid or guaranteed, or if delivery is amde to the consignee without payment, the consignee is also liable for all freight charges. But if the non-recourse clause is signed by the consignor and no provision is made for prepayment of freight, delivery of the shipment to the consignee relieves the consignor of liability, see Louisville & N.R.R. Co. v. Central Iron Co., supra, 265 U.S. 66, note 3, 44 S.Ct. 442, 68 L.Ed. 900, and acceptance of the delivery establishes the liability of the consignee to pay all freight charges. Pittsburgh, Cinc., C. & St. L. Ry. Co. v. Fink, supra; New York Central & H.R.R. Co. v. York & Whitney Co., supra.
Specimen forms of the uniform bills of lading, prescribed for interstate rail shipments during the period when the shipments concerned in this action were made, may be found in Consolidated Freight Classification No. 7 (1932) pp. 52—56.
Section 7 of the conditions of the bill of lading, so far as relevant, is set out at 64 S.Ct. page 512, infra. The parties have stipulated that the non-recourse clause contained in the bills of lading in this case were in the form quoted in the text. The form approved by the Commission varies slightly in details immaterial here. See Consolidated Freight Classification No. 7, supra, p. 52.
The exception, inapplicable here, is in the case where a consignee, other than the consignor, is an agent with no beneficial title in the goods, and has notified the carrier of these facts. In such a case the consignee is not 'liable for transportation charges * * * (beyond those billed against him at the time of delivery for which he is otherwise liable) which may be found to be due after the property has been delivered to him', but the consignor is liable for such charges. Cf. § 3(2) of the Interstate Commerce Act, as amended, 49 U.S.C. § 3(2), 49 U.S.C.A. § 3(2).