CONSTITUTIONAL LAW--EQUAL PROTECTION OF THE LAWS--IMPOSITION OF PENALTIES ON COMMON CARRIERS FOR FIALURE TO SETTLE CLAIMS

Authors

Abstract

A Nebraska statute provided that common carriers should settle properly presented claims for loss of and damage to freight within sixty days from the presentation thereof, and in case such settlement was not made and more was recovered in a subsequent suit than had been tendered by the carrier, the amount found due should carry as a penalty seven per cent interest from the presentation of the claim and reasonable attorney's fees. In case of appeal, an additional attorney's fee might be included if the plaintiff succeeded. The plaintiff company presented a large number of freight claims, which were all refused by the defendant railroad company. Recovery of forty per cent of the amount of the claims was had by the plaintiff in the trial court, and allowance was made for attorney's fees and interest. On appeal by the railroad company, the state supreme court substantially reduced the amount recovered and the attorney's fees, but assessed an attorney's fee on the railroad company for the appeal. On appeal to the United States Supreme Court, it was held that such a statute providing for settlements was constitutional in allowing interest and reasonable attorney's fees in the trial court, but no allowance should be made for attorney's fees on the appeal, since a substantial reduction in the amount recovered was ordered, and to charge the defendant railroad company for the costs of the plaintiff incurred in opposing the appeal which resulted in reduction of the recovery was contrary to the spirit of the Fourteenth Amendment. Chicago & Northwestern Ry. Co. v. Nye-Schneider-Fowler Co. (U. S., 1922), Adv. Ops. 46.

Recommended Citation

CONSTITUTIONAL LAW--EQUAL PROTECTION OF THE LAWS--IMPOSITION OF PENALTIES ON COMMON CARRIERS FOR FIALURE TO SETTLE CLAIMS, 21 Mich. L. Rev. 686 (1923).
Available at: https://repository.law.umich.edu/mlr/vol21/iss6/6