Berger v. Dynamic Imports, Inc.

51 Misc. 2d 988, 274 N.Y.S.2d 537, 1966 N.Y. Misc. LEXIS 2178
CourtCivil Court of the City of New York
DecidedFebruary 18, 1966
StatusPublished
Cited by6 cases

This text of 51 Misc. 2d 988 (Berger v. Dynamic Imports, Inc.) is published on Counsel Stack Legal Research, covering Civil Court of the City of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Berger v. Dynamic Imports, Inc., 51 Misc. 2d 988, 274 N.Y.S.2d 537, 1966 N.Y. Misc. LEXIS 2178 (N.Y. Super. Ct. 1966).

Opinion

Alexander Salottolo, J.

This is an action brought to recover the sum of $2,457.32 in cartage charges for three separate shipments of defendant’s merchandise from New York to California, which shipments were made and which sum in payment therefor was duly demanded by plaintiff and refused by defendant. [989]*989Defendant’s refusal of payment is based upon several grounds, only one of which merits any lengthy consideration in this opinion.

In the main, the question raised by defendant as an affirmative defense is whether plaintiff has acted in violation of the Interstate Commerce Act (U. S. Code, tit. 49, § 1 et seq.) with respect to these three shipments and, if so, whether such conduct on his part renders the respective contracts void and unenforcible at plaintiff’s instance.

The resolution of this question has not been an easy matter because of the paucity of case law on the subject and because of the lack of clarity in the language of the Federal statutes in point with regard to the consequences of their violation. In spite of this difficulty, a decision had to be made, and in arriving at it, the court has relied solely upon the testimony and evidence presented in the case with due regard for the Federal legislation involved and with a desire to serve the interests of justice.

The court declines to take judicial notice, as was requested by defendant, of the fact that a proceeding is pending now in the United States District Court for the District of New Jersey wherein the Interstate Commerce Commission is plaintiff and Stanley Berger, the plaintiff here, as well as Dependable Shippers Association, among others, are defendants. While a court in New York will take judicial notice of its own record of the proceeding of the case before it (Matter of Williams v. Kauderer, 5 Misc 2d 152), as well as of its own records, not only of the case before it but also of cases involving one or more of the same parties or even totally different parties (Newitt v. Newitt, 282 App. Div. 81), a court need not take judicial notice of records of proceedings in other actions in other courts (Matter of Currier [Woodlawn Cemetery], 300 N. Y. 162). Formal proof therof is required and, as such, the records in the other court must be introduced as evidence. Even so, there is nothing to judicially notice here except the fact that an action is pending elsewhere against this plaintiff for the same alleged conduct which is the basis of defendant’s affirmative defense. Under our system of jurisprudence, one’s innocence is presumed until guilt is established, and, therefore, the other proceeding can bear no weight upon the decision of the court in this matter.

The court is of the opinion that plaintiff has violated Federal law in at least two respects with regard to the shipments made here in that he acted as (1) a broker for shipment in interstate commerce without possessing the permit or license required by subdivision (a) of section 311 of title 49 of the United States Code, and as (2) a freight forwarder in interstate commerce [990]*990within the meaning of paragraph (5) of subdivision (a) of section 1002 (U. S. Code, tit. 49, § 1002, subd. [a], par. [5]), without possessing the permit or license required by section 1010 of title 49 (Shippers Co-op. v. Interstate Commerce Comm., 308 F. 2d 888). Implicit within such determinations is the finding that plaintiff’s conduct with respect to the three shipments effected here has been more than “ casual” or “ occasional”, and therefore plaintiff is not specifically exempted from the scope of paragraph (9) of subdivision (b) of section 303.

However, the record is devoid of sufficient evidence from which it may be inferred reasonably that plaintiff falls within the definition of a “ common carrier by motor vehicle ” under paragraph (14) of subdivision (a) of section 303. Thus, the court declines to hold that plaintiff has held himself out “ to the general public to engage in the transportation by motor vehicle in interstate * * * commerce of # * * property * * * for compensation ” (emphasis added).

Having found at least two violations of Federal law with respect to the shipments made here, the question put to the court for resolution is whether such conduct on plaintiff’s part renders the contracts void and unenforcible at its instance.

Title 49 of the United States Code was enacted not only to preserve existing arrangements or competitive practices in interstate commerce but also to be a significant aid in the development of a national transportation policy. (McLean Trucking Co. v. United States, 321 U. S. 67.) The purpose of this legislation was to promote public service, dependability and efficiency in the field of interstate motor transportation for hire and to regulate motor carriers in order to attain order and responsibility within the field of motor transportation. Therefore, the Interstate Commerce Act must express sound public policy. (Gregg Cartage Co. v. United States, 42 F. Supp. 266, affd. 316 U. S. 74; Byers Transp. Co. v. United States, 49 F. Supp. 828; Interstate Commerce Comm. v. Consolidated Freightways, 41 F. Supp. 651.)

The contracts sued upon here are violative of Federal law. Courts in the past have enforced agreements made illegal by statute (Hayes v. Magnus-Cutler, 41 Misc 2d 420; Holmes v. Nationwide Mut. Ins. Co., 40 Misc 2d 894, affd. 19 A D 2d 947.) Even in these instances, however, the courts have acknowleged that recovery will not be had on such contracts where public policy, as expressed by statute or case law, decrees their unenforcibility. (Hayes v. Magnus-Cutler, supra; Holmes v. Nationwide Mut. Ins. Co., supra.) As a final word on the matter, the Supreme Court of the United States in Twin City Co. v. Harding [991]*991Glass Co. (283 U. S. 353, 356-357) stated that “ the principle that contracts in contravention of public policy are not enforceable should be applied with caution and only in cases plainly within the reasons on which that doctrine rests.”

Even with this caution in mind, in the light of the cases cited and in the light of the facts of this ease, the court must conclude that the contracts being sued upon here are unenforcible because they were made in contravention of the public policy of the United States with regard to interstate commerce as expressed in the Interstate Commerce Act.

This does not mean to say that the plaintiff is not entitled to reasonable compensation for services. The fact remains that plaintiff has performed his part of the agreement and that defendant has obtained the benefit of this performance without paying for it.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Matter of National Fuel Gas Supply Corp. v. Schueckler
2018 NY Slip Op 7550 (Appellate Division of the Supreme Court of New York, 2018)
Beaver v. Mulholland
93 Misc. 2d 1117 (New York Surrogate's Court, 1978)
Parsky Funeral Home, Inc. v. Shapiro
83 Misc. 2d 566 (City of New York Municipal Court, 1975)
In re the Estate of Bach
81 Misc. 2d 479 (New York Surrogate's Court, 1975)
East Coast Moving & Storage, Inc. v. Flappin
78 Misc. 2d 140 (Civil Court of the City of New York, 1974)

Cite This Page — Counsel Stack

Bluebook (online)
51 Misc. 2d 988, 274 N.Y.S.2d 537, 1966 N.Y. Misc. LEXIS 2178, Counsel Stack Legal Research, https://law.counselstack.com/opinion/berger-v-dynamic-imports-inc-nycivct-1966.