ST. JOHNS N. F. SHIPPING CORPORATION, OWNER, &C.
v.
S. A. COMPANHIA GERAL COMMERCIAL DO RIO DE JANEIRO

U.S. | 1923-11-12
No. 43
263 U.S. 119 Supreme Court of the United States (1923) Negative Treatment
Also reported at: 68 L. Ed. 201 · 44 S. Ct. 30 · SCDB 1923-018 · 1923 U.S. LEXIS 2725
Cited by 208 cases

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Synopsis

A Brazilian company purchased rosin to be shipped from New York to Rio de Janeiro under a freight agreement that gave the carrier an option regarding whether to stow the cargo on or under deck, and the carrier subsequently issued a clean bill of lading without specifying the stowage location. The Supreme Court held that when a clean bill of lading is issued after a freight agreement containing a stowage option, the clean bill constitutes a representation that the carrier has exercised the option to stow under deck, and therefore the carrier breached its contract by placing the goods on deck where they were lost during a storm, making the carrier liable for the full value of the goods at destination despite the bill's limitation clauses.


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Opinion of the Court
Mr. Justice McRetnolds

Mr. Justice McRetnolds delivered the opinion of the Court.

The General Commercial Company, -Ltd., doing busi-s as commission merchant and exporting concern at New York, in May, 1918, sold 800 barrels of rosin e. i. f. to the respondent, a Brazilian corporation, and procured a written freight reservation or agreement from the agents of the schooner St. Johns N. F. to carry the goods to Rio de Janeiro, “ on or under deck, ship’s option,” and subject “ to terms of bills of lading in use by steamer’s agents.”

The. rosin was loaded on board June 11th and clean receipts — without endorsement concerning stowage— were given therefor. A day or two later, upon prepayment of freight, the ship issued a clean bill of lading in the usual form. It contained no reference to the prior freight agreement.. The goods were placed on deck, but neither the shipper nor the consignee knew this until after the loss occurred. There was no general custom at the port so to stow goods of this kind for such a voyage. The vessel was a general ship carrying many kinds of merchandise and no charter-party question is involved. She sailed from New York June 19th. Before reaching Rio de Janeiro she encountered a storm and for sufficient cause the master jettisoned the rosin in order to relieve her. The loss resulted directly from the ondeck stowage; the underdeck cargo was safely delivered.

Respondent libeled the schooner and demanded the. value of the goods at destination. It claims that by issuing the clean bill of lading the vessel in effect notified the shipper that she had exercised the option specified by the freight agreement and would stow under deck. Also, that the ship broke her contract as by deviation and thereby lost the benefit of limitation or relieving clauses in the-bill.

The owners maintain that as the freight agreement gave an option as to place of stowage it was unnecessary for the bill of lading to specify the action taken in respect thereto, and that silence did not amount to a promise to carry under deck. Moreover, that consent to deck stowage sufficiently appeared by the bill of lading read with the freight agreement and therefore there was no departure and no ground for assessing damages-.

The court below sustained the position of the respondent and decreed accordingly. 280 Fed. 553.

We find no conflict between the written original freight contract and the bill of lading. The former referred to a bill thereafter to be issued and made.the place of stowage optional with the ship. When issued under such circumstances the bill amounted to a declaration that the option had been exercised and the goods would go under deck. •

We are not dealing with á case arising under a general port custom permitting above deck stowage notwithstanding a clean bill, with notice of which all shippers are charged. When there is no such custom and no express contract in a form available as evidence, a clean bill of lading imports under deck stowage. The Delaware, 14 Wall. 579, 602, 604, 605. Upon this implication respondent had the right to rely. To say that the shipper assented to stowage on deck is not correct. It gave the vessel an option, and the clean bill of lading amounted to a positive representation by her that this had been exercised and that the goods would go under deck.

By stowing the goods on deck the vessel broke her contract, exposed them to greater risk than had been agreed and thereby directly caused the loss. She accordingly became liable as for a deviation, cannot escape by reason of the relieving clauses inserted in the bill of lading for her benefit,1 and must-- account for the value at destination. Generally, the measure of damages for loss of goods by a carrier when liable therefor is their value at the destination to which it undertook to carry them. Lawrence v. Minturn, 17 How. 100, 111; Mobile & Montgomery Ry. Co. v. Jurey, 111 U. S. 584, 596; New York, L. E. & W. R. R. Co. v. Estill, 147 U. S. 591, 616; Chicago, M. & St. P. Ry. Co. v. McCaull-Dinsmore Co., 253 U. S. 97, 100; Royal Exchange Shipping Co. v. Dixon, 12 A. C. 11; The Sarnia, 278 Fed. 459; Hutchinson on Carriers, vol. 3, § 1360; Carver on Carriage of Goods by Sea, 6th ed., § 287. .

The decree below is affirmed.

The bill of lading provides—

“ The carrier shall not be liable for loss or damage occasioned by, due to or arising from causes beyond the carrier’s control, by the act of God, vis major, by collision, stranding, jettison or wreck, perils of the sea or other waters, by fire from any cause or wheresoever occurring.”

“In computing any liability for negligence or otherwise, by the shipowner as carrier or otherwise, regarding any property hereby receipted for no value shall be placed on the said property higher than the invoice cost not exceeding $100 per package (or such other value as may be expressly stated herein), nor shall the shipowner be held liable for any profits or consequential or special damages, and the shipowner shall have the option of replacing any lost or damaged goods.”


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Citator

Cited By (55 total)

  • Steamship Willdomino v. Citro Chem. Co., 272 U.S. 718 (U.S. 1927)
    …, rightly held that the “Willdomino” made an inexcusable deviation from the permitted course when she went to North Sydney. Consequently, she became liable as an insurer for any damage suffered by the cargo. St. Johns Corp. v. Companhia Geral, etc., 263 U. S. 119, 124; The Citta di Messina, 169 Fed. 472, 474, 475; The Sarnia, 278 Fed. 459. Except as to inserted name of the consignee and number of casks the printed bills of lading were identical. They acknowledge receipt of “. . . casks citrate of lime ” “ f…
  • The Malcolm Baxter, Jr., 277 U.S. 323 (U.S. 1928)
    …eviation here is to be classed with voluntary deviations, respondent may not claim the benefit of the clauses of the bill of lading and is responsible for the cargo as insurer. The Willdomino, 272 U. S. 718; St. Johns Corp. v. Companhia Geral. etc., 263 U. S. 119; Mobile & Montgomery Ry. v. Jurey, 111 U. S. 584; Lawrence v. Minturn, 17 How. 100; and see The Indrapura, 171 Fed. 929. In any case it is contended that resoondent’s negligent failure to discover the unseaworthiness [*332] of the vessel resulted in…
  • …uit Court of Appeals affirmed the decree, 26 F. (2d) 1016, and this court denied certiorari, 278 U. S. 633. 3 F. Supp. 579. 73 F. (2d) 40. 293 U. S. 551. See Rule 38, 5 (b) of this court. St. Johns N. F. Shipping Corp. v. S. A. Companhia Geral, 263 U. S. 119, 125, and authorities cited. Clark v. Barnwell, 12 How. 272; York Co. v. Central Railroad, 3 Wall. 107; Bank of Kentucky v. Adams Express Co. 93 U. S. 174; Cau v. Texas & Pacific Ry. Co., 194 U. S. 427. Railroad Co. v. Lockwood, 17 Wall. 357, 384;…

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