G.A.C. Commercial Corporation v. Wilson

271 F. Supp. 242 (1967)

Purchase the Printed Copy at bsmsphd.com

Nature of the Case

To access this section all you need to do is click here and register.

Facts

On October 17, 1963, P entered into an accounts receivable financing agreement with St. Lawrence Pulp & Paper Corp. (Paper). P was to make advances to Paper for the right, title, and interest in and to accounts receivable then owing' to Paper. P alleges that certain of the accounts receivable forwarded to P were false and fraudulent and that in reliance upon these accounts P advanced the sum of $254,173.42 which has not been repaid. Railroad (D) is charged with negligence in failing to require any inspection of the quantity of goods shipped before verifying the bills of lading and in permitting a situation to occur in which the fraudulent and non-existent accounts could be forwarded to P. The bills of lading from Railroad (D) showed that Paper had shipped as yet undelivered product to consignees. P was permitted to load freight at its spur track in preparation for shipments on Railroad's (D) line. The railroad cars were sealed by Paper with seals provided by Railroad (D). Paper also prepared the bills of lading on blanks furnished in quadruplicate by Railroad (D). Railroad's (D) agent signed the original and one copy without inspecting the contents of the cars. No notation such as 'contents of packages unknown' or 'shipper's weight, load, and count' was written on the bills. The signed copies were returned to Paper and forwarded with the invoices to P which made advances on the goods described, which, as it turned out, had not been shipped. Paper went bankrupt. P sued Railroad (D) in part for the value of the bills of lading. Railroad (D) moved for judgment on the pleadings.