The Video Station v. Frey’s Motor Exp., Inc., 188 N.J.Super. 494, 457 A.2d 1217 (App. Div. 1983)
Practice Areas: Trucking & Transportation Liability
Shipper brought action against contracting carrier and carrier to whom contracting carrier had delegated duty to deliver goods and accept check to recover payment for goods delivered after delegated carrier had accepted a forged check. The Warren County District Court entered judgment for shipper and declared that contracting carrier was entitled to be indemnified by delegated carrier for all sums paid to shipper by reason of the judgment, and delegated carrier appealed. The Superior Court, Appellate Division, Michels, P.J.A.D., held that: (1) effect of contract was to create agency in contracting carrier which was subsequently delegated to delegated carrier to collect a debt for shipper; (2) delegated carrier was negligent in accepting a check which it should have discovered was forged; and (3) contracting carrier was entitled to be indemnified by delegated carrier.