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Missouri Pacific Railroad v. Haverty Furniture Co.
Citations: 254 Ark. 12; 491 S.W.2d 379; 1973 Ark. LEXIS 1460Docket: 5-6201
Court: Supreme Court of Arkansas; March 12, 1973; Arkansas; State Supreme Court
Haverty Furniture Company sued Missouri Pacific Railroad Company for $862.74 worth of furniture stolen from an unguarded freight car on Haverty's private spur track. The trial court ruled in favor of Haverty, and the appellate court upheld this decision, finding substantial evidence supporting the trial court's judgment. Before the incident, Haverty had received damaged shipments from Broyhill Industries, with Missouri Pacific compensating for those losses. Missouri Pacific requested Haverty to notify them of any future damaged shipments for inspection. On May 26, 1971, a damaged shipment was spotted on Haverty's siding, and although the carrier's responsibility typically ended upon delivery, Haverty reported the damage on Friday morning after the shipment's arrival. Missouri Pacific assured Haverty that an inspection would occur that day, but later informed them it would be delayed until after the Memorial Day weekend. They instructed Haverty to reseal the car, which did not involve safeguarding the shipment. During the weekend, the car was broken into, leading to the loss. The central issue was whether Missouri Pacific had constructively reassumed possession of the freight car. The court concluded that the facts indicated the carrier had a responsibility to safeguard the shipment, as the proposed inspection benefited them and they had taken no steps to protect the car in the interim. The appellate court affirmed the trial court's ruling that Missouri Pacific should bear the loss.