Bodine & Clark Livestock Commission Co. v. Great Northern Ry. Co.

63 F.2d 472, 1933 U.S. App. LEXIS 3467
CourtCourt of Appeals for the Ninth Circuit
DecidedFebruary 13, 1933
DocketNo. 6824
StatusPublished
Cited by6 cases

This text of 63 F.2d 472 (Bodine & Clark Livestock Commission Co. v. Great Northern Ry. Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bodine & Clark Livestock Commission Co. v. Great Northern Ry. Co., 63 F.2d 472, 1933 U.S. App. LEXIS 3467 (9th Cir. 1933).

Opinion

SAWTELLE, Circuit Judge.

Based upon a sole assignment of error, this is an appeal from a judgment of the District Court in favor of the appellee, the defendant below. The judgment recites that' the plaintiff-appellant' filed its demurrer to the further and separate answer of the defendant-appellee, contained in the amended answer to the second amended complaint of the plaintiff; that the demurrer was overruled; and that the plaintiff stated in open court that it did not desire to plead further, but would rely upon its demurrer. The ease accordingly comes here on the judgment roll.

The appellant alleged in its complaint that on August 31, 1926, its assignor was the owner of eight earloads of cattle, consisting of 224 steers, at Foil Browning, [473]*473Mont. The plaintiff-appellant and assignee is the commission firm that purchased the cattle for the shipper.

The appellant further alleged in its complaint that on Augnst 31, 1926, the shipper requested the appellee to bill the eight carloads of cattle to San Francisco, Cal., via Portland, Or., “feed in transit at Gazelle, California,” and that the shipper was ready to pay all charges in the appellee’s duly filed tariff'; that upon this tender it was informed for the first time by the appellee that the latter would not move the cattle via the requested route until Saturday, September 4, 1926; and that this refusal on the appellee’s part was in violation of its duty as a common carrier, and in violation of the Interstate Commerce Act, and the appellee’s duly filed tariff.

The appellant then alleged that, in order to minimize the loss, the shipper was forced to ship the cattle via a more expensive and circuitous route, and had to pay in freight charges $414.50 per ear instead of $271.35 per ear. As a result, according to the complaint, the cattle arrived at Gazelle on or about September 10, instead of on or about September 6, the time they should have arrived if they had been transported via Portland, with reasonable dispatch, with the result that they were “seriously injured and damaged.”

The separate answer, to which the demurrer was interposed, alleged that the appellee’s actions were in accordance with an established operating practice of the appellee; namely, that of limiting west-bound movements of live stock to a weekly train operated on Saturday of each week and that during the pend-ency of this suit the 'Interstate Commerce Commission, upon eomplaint of the appellant, determined that the operating rule was not unreasonable. The answer further sets forth that the operating rule was not included in any tariff published or filed, but was put into effect through the distribution to station agents of a circular specifying the schedule adopted, by posting notices to the public at the stations affected, and by oral notice to shippers given by the station agents of the appellee.

The answer also alleges that the shipper tendered its shipment to the appellee for west-bound transportation on a day other than Saturday, and directed the appellee not to route the said shipment west bound to its destination, but to route it east bound to Butte, Mont., and thence over the lines of the Oregon Short Line and the Southern Pacifie Company; that the shipper made no request for immediate movement west bound, but, on the contrary, directed the appellee’s agent to bill the shipment east bound; that the appellee was at all times willing to accept and transport the shipment on its regular stock loading day, which was three days following the time when the shipper first tendered its shipment for transportation; and that the appellee was willing to accept the shipment as a, special movement upon request of the shipper and upon a showing indicating necessity for such special movement; but the shipper made no such request.

One ground specified for the demurrer was that the above operating rule restricting cattle shipments to Saturday of each week “was null and void * * * because not published in a duly filed tariff as required by the 1920 Transportation Act.” Other grounds alleged were that the rule was “unjustly discriminatory and unduly prejudicial”; that it was of “indefinite terms,” all of which was in violation of either the 1920 Transportation Act (41 Stat. 456) or the Interstate Commerce Act (49 USCA § 1 et seq.); and that, “although not included in a tariff,” the rule constituted an attempt by the appellee “to restrict routing in violation of the published tariff.”

During the pendency of this action in the District Court, on motion to strike defendant’s further and separate answer, the late Judge Robert S. Bean held that: “This regulation is an administrative regulation, and it seems to me under the ruling laid down in Northern Pacific Ry. v. Solum (247 U. S. 477 [38 S. Ct. 550, 62 L. Ed. 1221]) its reasonableness is for the Interstate Commerce Commission and not the court, ánd as long a,s it stands unrevoked by the Commission, the court must give it validity. I do not understand that it is in violation of the Interstate Commerce Act or of the tariff.”

In the Solum Case, relied upon by Judge Bean, the court said, at page 483 of 247 U. S., 38 S. Ct. 550, 553: “The railway contends that, since the administrative question upon which its liability depends involves the reasonableness of a practice in interstate commerce and the traffic actually moved in interstate commerce, the court had no jurisdiction to adjudicate the controversy until that administrative question had been determined by the Interstate Commerce Commission. The shipper, on the other hand, urges that the rule which requires such preliminary determination of administrative questions by the Commission applies only to those eases where [474]*474the question involved is whether a particular rate is unreasonable or whether a particular practice is discriminatory. But the rule is not so limited. It applies, likewise, to any practice of the carrier which gives rise to the application of a rate. [Several cases cited.]”

See, also, the Abilene Cotton Oil Company Case, infra, at pages 440, 441 of 204 U. S., 27 S. Ct. 350, 51 L. Ed. 553, 9 Ann. Cas. 1075.

As a result of Judge Bean’s ruling, the appellant obtained a suspension of the action in the District Court while it presented the rule of practice in question to the Interstate Commerce Commission for determination as to its reasonableness and validity.

In the first report, a division of the Commission held: “Manifestly, observance by defendant [appellee] of the operating rule assailed, which lacked tariff force because not published and filed in the manner prescribed in the act, did affect the cost to complainant [appellant] of the transportation described. Defendant by publication of a rate therefor held itself out to accept and transport shipments of livestock over the route specified by complainant. In the absence of tariff authority its refusal to accept complainant’s shipments when tendered for transportation over the route via which its published rate applied constituted an unlawful practice.” 167 I. C. C. 582, 583.

The ease was reconsidered by the full Commission, and was decided on May 4,1931. The majority report found in favor of the appellee, with four of the Commissioners dissenting. Id., 174 I. C. C. 363. At page 364 the report says: “It is customary to transport certain traffic only on trains assigned to that traffic, and the rule in question is not unique as will hereinafter be shown.

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63 F.2d 472, 1933 U.S. App. LEXIS 3467, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bodine-clark-livestock-commission-co-v-great-northern-ry-co-ca9-1933.