Cincinnati, New Orleans & Texas Pacific Railway Co. v. Chesapeake & Ohio Railway Co.

312 F. Supp. 972, 1970 U.S. Dist. LEXIS 11760
CourtDistrict Court, E.D. Virginia
DecidedMay 12, 1970
DocketCiv. A. Nos. 137-69-A to 139-69-A
StatusPublished
Cited by2 cases

This text of 312 F. Supp. 972 (Cincinnati, New Orleans & Texas Pacific Railway Co. v. Chesapeake & Ohio Railway Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cincinnati, New Orleans & Texas Pacific Railway Co. v. Chesapeake & Ohio Railway Co., 312 F. Supp. 972, 1970 U.S. Dist. LEXIS 11760 (E.D. Va. 1970).

Opinion

MEMORANDUM OPINION

OREN R. LEWIS, District Judge.

The question here is whether the plaintiff’s published tariff or the pre-existing agreement between the involved railroads governs the charge for “no bill” cars at the Cincinnati interchange.

[974]*974The plaintiff, The Cincinnati, New Orleans & Texas Pacific Railway Company, a subsidiary of the Southern Railway System, operates the interchange facility in Cincinnati, Ohio, at which railroad freight cars of plaintiff’s and defendants’ lines are interchanged. The defendants are The Chesapeake and Ohio, The Baltimore and Ohio, and Penn Central Transportation railroads. All are members of the Association of American Railroads and the Cincinnati Superintendents Committee, both of which have promulgated and published rules and regulations governing the interchange of railroad cars between connecting carriers.

The pertinent portion of Rule 7 of the Code of Car Service Rules — Freight, of the Car Service and Per Diem Agreement, of the Association of American Railroads, reads as follows:

“(A) Cars shall be considered as having been delivered to a connecting railroad when placed upon the track agreed upon and designated as the interchange track for such deliveries, accompanied or preceded by necessary data for forwarding and to insure delivery, and accepted by the car inspector of the receiving road.
“Notwithstanding the foregoing paragraph, the receiving road shall be responsible for the cars, contents and per diem after receipt of the proper data for forwarding and to insure delivery. This responsibility shall continue as respects cars rejected by the car inspector of the receiving road until such cars have been returned to the delivering road. The effect of this paragraph may be altered by special arrangements made between the roads concerned.”

Rule 4 of the Cincinnati Superintendents Agreement reads as follows:

“No charge will be made between railroads in Cincinnati for cars switched to them in error where the error is chargeable to railroad companies.”

All of the railroads using the Cincinnati interchange have lived by these rules until November 23, 1968, at which time the plaintiff published a tariff which then went into effect. This tariff reads:

“When cars, empty or loaded, are received by the [plaintiff railroad] from its connections at Cincinnati, Ohio, without billing (See Note), such cars will upon request of the delivering carrier be returned and the [plaintiff carrier] will assess a charge of $20.00 per car for returning the empty or loaded car to the connection of the carrier making the request.
“Note — When instructions are not received within twenty four (24) hours from time of receipt of car from connections, a hold charge of $5.00 per car will be assessed for each twenty four (24) hours or fraction thereof thereafter.”

Beginning with November 23, 1968 the plaintiff railroad billed the defendant railroads in accordance with this published tariff. The defendant railroads refused to pay the bill. This suit followed.

Jurisdiction is grounded on 49 U.S.C. § 1, et seq., and 28 U.S.C. § 1337.

The Association of American Railroads, a voluntary association, has been in existence for many years — The Cincinnati Superintendents Committee has been in existence since 1886 — Its present articles of association were adopted January 1, 1932.

All of the railroad parties to this suit have fully complied with Rule 7 and Rule 4, supra, in the interchange of cars at Cincinnati until April of 1968. The plaintiff railroad at that time attempted to modify or abolish Rule 4 on the ground that the number of erroneously routed freight cars received then exceeded over three hundred cars per month— To require the plaintiff railroad to hold them awaiting corrected instructions or to return them to delivering lines entailed considerable expense on its part.

The Cincinnati Superintendents Committee, after fully discussing the matter, voted to retain Rule 4 as written — the [975]*975plaintiff’s superintendent casting the only dissenting vote.

The plaintiff railroad did not then, and had not at the time of the hearing of this suit, resigned or withdrawn from the Cincinnati Superintendents Committee. Instead, it advised the defendant railroads it was going to publish the interchange tariff to cover the cost of handling the so-called “no bill” cars.

Thereafter the plaintiff did file a tariff publication with the Interstate Commerce Commission — The defendant railroads responded by petitioning the Interstate Commerce Commission’s Suspension Board to suspend the tariff charge from taking effect. The Suspension Board declined to take such action but stated:

“This action does not constitute approval of the protested schedules. They may be made subject to investigation through formal complaint filed in accordance with the Commission’s Rules of Practice.”

This ruling was affirmed by Division 2 of the Commission.

The defendant railroads admit the tariff in question was properly published in accordance with the applicable Interstate Commerce Commission rules but contend that it is not enforcible as to them because it violates the terms and conditions of Rule 7 of the Code of Car Service Rules and Per Diem Agreement of the Association of American Railroads and Rule 4 of the Cincinnati Superintendents Committee.

This Court agrees with that contention.

The plaintiff, relying upon the doctrine of primary jurisdiction, claims such defense must first be made before the Interstate Commerce Commission. The plaintiff misreads the doctrine — The doctrine applies when the reasonableness of the tariff is factually questioned. See Texas & Pacific Railway v. Abilene Cotton Oil Co., 204 U.S. 426, 27 S.Ct. 350, 51 L.Ed. 553 (1907), and Crain v. Blue Grass Stockyards Co., 399 F.2d 868 (6th Cir. 1968). When the only question presented is one of law it may be decided by the courts without prior referral to the administrative agency. See Great Northern Railway Company v. Merchants Elevator Co., 259 U.S. 285, 42 S.Ct. 477, 66 L.Ed. 943 (1922). Such is the case here. The defendant railroads do not question the reasonableness of the published tariff. They question only whether it supersedes or invalidates the existing agreements between the parties— namely, Rule 7 and Rule 4, supra.

Next, the plaintiff railroad attempts to bring its published tariff within the mandatory provisions of Section 6 of the Interstate Commerce Act by characterizing the defendant railroads as “shippers,” in the case of empty “no bill” cars.

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Bluebook (online)
312 F. Supp. 972, 1970 U.S. Dist. LEXIS 11760, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cincinnati-new-orleans-texas-pacific-railway-co-v-chesapeake-ohio-vaed-1970.