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G. A. C. Commercial Corp. v. Wilson

United States District Court for the Southern District of New York
271 F. Supp. 242 (1967)


The St. Lawrence Pulp & Paper Corporation (St. Lawrence) allegedly loaded paper products into railroad cars on lines run by Norwood & St. Lawrence Railroad (Norwood) (defendant) for shipment to various in-state and out-of-state consignees. St. Lawrence sealed the cars and prepared straight bills of lading on blank forms provided by Norwood. Norwood’s agent signed the bills without inspecting the cars and without writing a notation such as “shipper’s weight, load, and count” on the bills. Using the goods described in these straight bills of lading as collateral, G. A. C. Commercial Corporation (GAC) (plaintiff) made loans to St. Lawrence. The rail cars were later discovered to be empty, and no goods were ever loaded or shipped. St. Lawrence went bankrupt. GAC sued Norwood in an attempt to recover the loans that were made to St. Lawrence. Norwood moved for summary judgment.

Rule of Law


Holding and Reasoning (Bryan, J.)

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