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Contracts Keyed to Fuller
Hector Martinez and Co. v. Southern Pacific Transportation Co.
Citation:
606 F.2d 106 (1979)Facts
Martinez’s agent delivered a 2400 Lima Dragline to Penn Central Railroad for shipment from Ohio to Texas on February 11, 1974. The dragline was loaded onto five separate railroad cars with a single bill of lading describing it as “used strip mining machinery and parts.” The last car arrived at the destination on April 2, 1974, approximately one month later than Martinez claimed it should have arrived (March 1). The dragline was damaged during transit, requiring repairs costing $14,467, which were not completed until June 20, 1974. Martinez sought damages for the repair costs, refund of demurrage charges, and $117,600 for loss of use during both the delay period (March 1 to April 2) and repair period (April 2 to June 20), representing the dragline’s fair rental value. The first two claims were settled, but Southern Pacific moved to dismiss the loss of use claim, arguing such damages were special and required prior notice.
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