Bowman Transportation, Inc. v. Evergreen America Corp.

806 F. Supp. 264, 1992 U.S. Dist. LEXIS 17076, 1992 WL 321256
CourtDistrict Court, N.D. Georgia
DecidedOctober 27, 1992
DocketNo. 1:92-cv-1473-RHH
StatusPublished

This text of 806 F. Supp. 264 (Bowman Transportation, Inc. v. Evergreen America Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bowman Transportation, Inc. v. Evergreen America Corp., 806 F. Supp. 264, 1992 U.S. Dist. LEXIS 17076, 1992 WL 321256 (N.D. Ga. 1992).

Opinion

ORDER

ROBERT H. HALL, District Judge.

This case is before the Court on Defendant’s Motion to Refer to the Interstate Commerce Commission and to Stay Proceedings in this Court. The Court GRANTS Defendant’s Motions.

BACKGROUND

Both Plaintiff (“Bowman”) and Defendant (“Evergreen”) are common carriers, as defined by the Interstate Commerce Act (“the Act”). Throughout 1989, Bowman provided transportation services to Evergreen on numerous occasions. In the parlance of the trade, Bowman was a “carrier”, and Evergreen was a “shipper”. As a carrier, Bowman is regulated by the Interstate Commerce Commission (“the ICC”). The Act requires carriers to publish their rates in tariffs filed with the ICC, 49 U.S.C. § 10762 (1992), and prohibits carriers from deviating from those rates, id. § 10761, even if both the carrier and shipper contract to do so. Maislin Indus. U.S., Inc. v. Primary Steel, Inc., 497 U.S. 116, 130-31, 110 S.Ct. 2759, 2768, 111 L.Ed.2d 94 (1990). The Act also requires that filed rates be reasonable. 49 U.S.C. § 10701(a). A shipper may contest the reasonableness of a filed rate by initiating an action before the ICC. Id. §§ 11705(b)(3), (c)(2). See also Maislin Indus., 497 U.S. at 123-24, 110 S.Ct. at 2764.

Evergreen alleges that it had contracted with Bowman for Bowman to provide transportation services at a rate below that filed by Bowman with the ICC. Evergreen alleges further that it paid the contracted-for amount to Bowman for its services. When Bowman later demanded payment from Evergreen of the difference between the contracted-for rate and the filed rate— commonly referred to as the “undercharge”—Evergreen refused, and initiated a complaint against Bowman before the ICC, seeking a determination of the validity and reasonableness of Bowman’s filed rate. See Evergreen American Corp. v. Bowman Transp., Inc., Interstate Commerce Commission, Docket No. NOM 40759 (filed March 2, 1992). Evergreen’s complaint remains pending.

On May 21, 1992—subsequent to Evergreen’s ICC complaint—Bowman filed this suit against Evergreen in Georgia state court, demanding payment of the undercharge. Evergreen removed Bowman’s suit to this Court on June 17, 1992. Evergreen now moves the Court to refer Bowman’s Complaint to the ICC, and to stay proceedings in this Court pending the ICC’s decision. Defendant’s Motion, p. 1.

In support of its motion, Evergreen argues that the ICC has primary jurisdiction over this dispute, and that the Court’s deferral to the ICC’s primary jurisdiction is especially appropriate because of Evergreen’s already-pending suit against Bowman before the ICC concerning the disputed rates. Defendant’s Motion, p. 2; Defendant’s Reply, pp. 2-5. Bowman contends that the Court should deny Evergreen’s motion, arguing that the ICC does not have primary jurisdiction, and, in the alternative, that Evergreen has failed to make out a prima facie showing to support referral to the ICC. Plaintiff’s Reply, pp. 3-5.

DISCUSSION

A. ICC’s Primary Jurisdiction.

In its Motion to Refer, Evergreen argues that because its dispute with Bowman concerns the reasonableness of Bowman’s filed rate, the Court should stay its consideration of Bowman’s suit against Evergreen, and refer the matter to the ICC. Evergreen bases its argument on the contention that the ICC has ‘primary jurisdiction’ over disputes concerning transportation regulations.

[266]*266In response, Bowman alerts the Court to the fact that all of the cases cited by Evergreen involved suits brought by carriers’ trustees in bankruptcy to collect alleged undercharges owed to the bankrupt carriers. Bowman then argues that ICC’s primary jurisdiction to determine rate reasonableness is confined only to cases in which the carrier has filed for bankruptcy. To support this argument, Bowman quotes from a policy statement issued by the ICC concerning its handling of rate reasonableness challenges. See Petitions for Issuance of Rate Reasonableness and Unreasonable Practices Policy Statement, 8 I.C.C.2d 61 (August 15, 1991). The material Bowman quotes reads as follows:

Where the motor carrier is insolvent and hence unable to satisfy any subsequent reparation order, enforcement of the filed tariff without referral to the ICC would undermine the meaningful exercise of our unreasonable-rate jurisdiction and would deny the shipper an adequate remedy. For its part, the carrier can assert no offsetting reason for insisting upon immediate payment of rates that the shipper claims are unreasonably high where the carrier could not reimburse the shipper should the shipper prevail on its rate reasonableness claim.

Id. at 67-68.

The primary jurisdiction doctrine serves as a guide to the court in determining whether the court should refrain from exercising its jurisdiction until after an administrative agency has determined a regulatory issue that arises out of the proceeding before the court. United States v. Western Pac. R.R. Co., 352 U.S. 59, 63-64, 77 S.Ct. 161, 164-65, 1 L.Ed.2d 126 (1956). In cases involving determinations of rate reasonableness, “ ‘the primary jurisdiction doctrine requires initial submission to the [Interstate Commerce] Commission of questions that raise “issues of transportation policy which ought to be considered by the Commission in the interests of a uniform and expert administration of the regulatory scheme laid down by [the] Act.” ' ” Advance-United Expressways, Inc. v. C.R. Bard, Inc., 731 F.Supp. 499, 502 (N.D.Ga.1990) (Evans, J.) (citations omitted).

Although agency jurisdiction is concurrent with that of the federal courts, initial agency resolution has long been the favored course in cases dealing with challenges to the reasonableness of a rate. See Texas & Pacific Ry. v. Abilene Cotton Oil Co., 204 U.S. 426, 448, 27 S.Ct. 350, 358, 51 L.Ed. 553 (1907). A court may refer a case to the ICC where the administrative expertise gained thereby is a “material aid” in deciding the issue posed, even though the expertise might not be strictly necessary for the resolution of the controversy. Mississippi Power & Light Co. v. United Gas Pipe Line Co., 532 F.2d 412, 418-19 (5th Cir.1976), cert den., 429 U.S. 1094, 97 S.Ct. 1109, 51 L.Ed.2d 541 (1977).

The passage quoted by Bowman suggests convincingly that a federal district court should refer cases such as the instant one to the ICC for a reasonableness determination whenever the carrier demanding payment of the undercharged amount is insolvent. Otherwise, a district court may order a shipper to make the additional payment, only to have the ICC declare that the shipper was not obligated to do so because the carrier’s filed rate was unreasonable.

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806 F. Supp. 264, 1992 U.S. Dist. LEXIS 17076, 1992 WL 321256, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bowman-transportation-inc-v-evergreen-america-corp-gand-1992.