Opinion ID: 499725
Heading Depth: 2
Heading Rank: 1

Heading: Was Intech excused?

Text: 21 Intech urges this court to disallow CF's contractual defense for two reasons. First, Intech alleges that CF had actual knowledge of the damage to the machinery. At issue here is the relevance of the March 16, 1986 discovery that the machinery was damaged. Second, it claims that CF's conduct in refusing to unload misled Intech into believing a timely written claim was unnecessary. 22 We must keep in mind that the main purpose of Sec. 2(b) of the bill of lading is to facilitate a prompt investigation by the carrier of a claim against it. Blish Milling Co., 241 U.S. at 196, 36 S.Ct. at 544. One court has suggested that, if the carrier had actual knowledge of all the facts surrounding the claim, the filing of a formal notice could not have accomplished anything more, and is, therefore, excused. Hopper Paper Co. v. Baltimore O.R. Co., 178 F.2d 179 (7th Cir.1949), cert. denied, 339 U.S. 943, 70 S.Ct. 797, 94 L.Ed. 1359 (1950). 2 23 Most courts, however, have declined to find an excuse for formal notice on the basis of actual knowledge alone. The courts have focused instead on the carrier's conduct as the basis for applying the theory of waiver or estoppel. See Wisconsin Packing Co., Inc. v. Indiana Refrigerator Lines, Inc., 618 F.2d 441, 446-47 (7th Cir.) (en banc), cert. denied, 449 U.S. 837, 101 S.Ct. 112, 66 L.Ed.2d 44 (1980) (without deciding whether actual knowledge might be sufficient, the court cursorily stated in dicta defendant's conduct would seem sufficient to invoke the doctrine of estoppel); Perini-North River Associates v. Chesapeake & O. Ry. Co., 562 F.2d 269, 273 (3d Cir.1977) (the carrier's departure from its claims procedure, in addition to having told the shipper a formal claim was unnecessary, misled the shipper); Union Carbide Corp. v. Consolidated Rail Corp., 517 F.Supp. 1094, 1097-98 (N.D.Ill.1981) (in addition to having actual knowledge, the carrier falsely told the shipper there had been no damage to the goods while in transit and the carrier's conduct prevented the shipper from filing a timely claim); Hicks v. BHY Trucking, Inc., 665 P.2d 253, 254-55 (Nev.1983) (carrier waived or was estopped from asserting the defense since the shipper would have filed a formal claim but for the carrier's unfulfilled promises to investigate the damage). 24 CF responds that Sec. 2(b) of the bill of lading is mandatory and not subject to waiver or estoppel. See B.A. Walterman v. Pennsylvania R. Co., 295 F.2d 627 (6th Cir.1961); see also Blish Milling Co., 241 U.S. at 197, 36 S.Ct. at 544 (in dictum); Chesapeake & O. Ry. Co., 283 U.S. at 222, 51 S.Ct. at 458 (leaving the issue open). The Walterman court reasoned that an estoppel or waiver theory would violate the Interstate Commerce Act since a carrier could discriminate by paying untimely or informal claims of preferred shippers while disallowing those of others similarly situated. 25 Assuming, without deciding, that actual knowledge of damage on the part of the carrier could be enough to justify an insufficient or untimely claim, the record on summary judgment is barren of any evidence that CF acquired actual knowledge of damage to the machine prior to the time in which the damage was actually discovered on March 16, 1986. Furthermore, CF had no knowledge beyond the mere fact of the damage. Were we to adopt the extreme position of Hopper Paper, we would need to find that CF knew of the damage, its causes, circumstances and extent. See Hopper Paper, 179 F.2d at 182 ([I]t is undisputed that defendant and its agents were fully aware and cognizant of the existence of all the facts concerning the wreck and destruction of the carload of paper.). Cf. Wisconsin Packing Co. v. Indiana Refrigerator Lines, 618 F.2d 441, 448 n. 7 (7th Cir.1980) (Hopper distinguishable where carriers do not have the kind of actual knowledge available in Hopper ). We therefore find that the issue of excuse based on full awareness by the defendants is not present in this case. 26 Intech avers that CF deliberately delayed delivery to put Intech, Inc. in default. Such a conclusory allegation, without specific facts to support it, is insufficient to oppose a summary judgment motion. See Celotex Corp. v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 2553, 91 L.Ed.2d 265 (1986). Nonetheless, Intech argues that the unloading dispute induced it to file an untimely claim. That argument, however, shows no genuine issue of material fact. Intech has not alleged any facts which could have evidenced a genuine reliance, such as the carrier's breach of a promise to investigate and process the claim, Hicks, 665 P.2d at 254-55, or the carrier's misleading representation that a written claim was unnecessary, Perini-North River Associates, 562 F.2d at 273, or that the carrier's conduct had obscured the discovery of any damage, Union Carbide Corp., 517 F.Supp. at 1097-98. 27 To the contrary, the container remained at Intech's yard for about six months, during which time Intech could have discovered the damage. CF's conduct did not prevent Intech from examining the machine at any time before March 1986. Without deciding whether a theory of waiver or estoppel applies to a Sec. 2(b) defense, we hold there is no evidentiary foundation in this case to create a triable issue of fact since the plaintiff had sufficient time to inspect the container, discover any damage, and file a claim. Pathway Bellows, Inc. v. Blanchette, 630 F.2d 900, 905 n. 10 (2d Cir.1980), cert. denied, 450 U.S. 915, 101 S.Ct. 1357, 67 L.Ed.2d 340 (1981); Insurance Co. of North America v. Newtowne Mfg. Co., 187 F.2d 675, 680 (1st Cir.1951); Calpro Co. v. Consol. Engineering Co. of Georgia, 502 F.Supp. 707, 711, 715 (N.D.Ga.1980). 3 28