City of New Orleans ex rel. Public Belt Railroad Commission v. Hansen & Tidemann, Inc.

391 F. Supp. 910, 1972 U.S. Dist. LEXIS 10588
CourtDistrict Court, E.D. Louisiana
DecidedDecember 21, 1972
DocketCiv. A. Nos. 67-639, 67-1526, 67-1537, 67-1538, 67-1539, 67-1554, 67-1555, 67-1564, 67-1565, 67-1573, 67-1574, 67-1575 and 67-1589
StatusPublished

This text of 391 F. Supp. 910 (City of New Orleans ex rel. Public Belt Railroad Commission v. Hansen & Tidemann, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of New Orleans ex rel. Public Belt Railroad Commission v. Hansen & Tidemann, Inc., 391 F. Supp. 910, 1972 U.S. Dist. LEXIS 10588 (E.D. La. 1972).

Opinion

BOYLE, District Judge:

Plaintiff, New Orleans Public Belt Railroad, sued defendants, various steamship lines, for demurrage accruing on railroad cars which had been placed on plaintiff’s line. On a record stipulated to be comprised of a stipulation of facts, exhibits attached to the complaints and amended complaints, and the depositions and affidavits of A. J. Rafferty and John T. Hunter, there have been presented for adjudication two issues:1 (1) plaintiff’s right to demur-rage under provisions of the average agreement between plaintiff and defendants and (2) plaintiff’s right to demur-rage outside of the coverage of the average agreement under Rule 9 of its tariff.

The matter was submitted on written memoranda and we took time to consider.

“The problems which gave rise to the present litigation came into being during the time preceding the longshoremen’s strike during January, 1965. For many years plaintiff’s tariff contained (and still contains) a provision which allows two days’ ‘free time’ after actual or constructive placement by plaintiff of a railroad car containing export freight during which time demurrage would not accrue. Commencing on February 1, 1964 the Interstate Commerce Commission began the promulgation of a series of Service Orders which severely restricted the free time allowed on cars containing export freight. The first of these orders, Service Order 953, allowed a combined total of seven days’ free time during the entire rail handling. Thus, if a shipper dispatched his shipment from the interi- or at an unduly early time so that it arrived at the port a week or more in advance of the arrival of the vessel aboard which its cargo was scheduled to be exported, the entire allowable free time would be exhausted while the car was being held by the line-haul rail carrier and prior to its delivery to the plaintiff. With the congestion before, during and after the longshoremen’s strike of January, 1965, the number of rail cars fitting into this category became quite large and by this litigation the plaintiff seeks to tax the demurrage charges for these cars against the steamship lines aboard which the cargo ultimately was transported. Subsequent developments have included the enactment by the Interstate Commerce Commission of Service Orders 976 and 979 during 1966 which served to further reduce the free time allowed on export cars to five days. The Service Orders have the further effect of eliminating certain classifications of freight cars entitled to treatment under average agreements such as that provided in Rule 10 of plaintiff’s tariff. Railroad cars containing export freight are subject to demurrage charges by the inbound rail carrier while the cars are held by it in New Orleans prior to their being received by plaintiff at the inbound rail carrier’s interchange with plaintiff.”

(See Stipulation and Submission, pp. 6-V).

All the cars involved in this case contained cargo shipped at a shipside rate, under which it was the duty of the line-haul carrier to deliver the cars to the wharf and unload the cargo to the public wharves in the Port of New Orleans as[912]*912signed to defendants, at which time and place the defendants accepted delivery of the cargo for loading aboard vessels.2

Rule 9 of plaintiff’s tariff provides:

“Cars containing export, coastwise or intereoastal freight for movement to wharves served by the NOPB RR will be accepted from connecting carriers only when orders released to the inbound line-haul carrier for placement of such cars for unloading contain the ‘O.K.’ of the steamship line for which the cars are intended. Exact copies of such orders must be furnished to the NOPB RR, this carrier reserving the right to regulate the receipt and movement of the cars to the wharves for the purpose of preventing accumulations and car delays.”

The stipulation of the parties indicates that the copy of the car placement order with the steamship line “O.K. for Delivery” notation thereon, was to be delivered to the line-haul carrier by the shipper/consignee or its forwarder.

The stipulation indicates also that plaintiff did not expressly waive the tariff requirement that it receive a copy of the order. Significantly, the tariff does not designate who had the obligation to furnish plaintiff with “exact copies of such orders”. We find no means by which the tariff can be. interpreted as placing the obligation on the steamship line to furnish such copies to plaintiff. The defendants’ contention that the tariff does not so place that obligation on them, but rather on “the line-haul rail carriers and/or the shippers/consignees and/or their agents” finds support in the stipulation statement that

“At no time did plaintiff communicate to any of the defendants a waiver of the requirement under Rule 9 of its tariff that an executed copy of the placement order—with the steamship lines’ ‘O.K. for Delivery’ notation, as delivered to inbound line-haul carriers by the shipper/eonsignee or its forwarder—be sent to the plaintiff.”

(See Stipulation and Submission, p. 10).

However, regardless of whose obligation it was, the practice developed over a number of years prior to accrual of the claimed demurrage, and was indulged in by plaintiff, (apparently because it did not interfere with its internal operations) that plaintiff would not be provided with the information, and plaintiff did not insist upon compliance with the tariff requirement with respect thereto. Stipulation and Submission, pp. 5, 10.

The line-haul rail carrier upon its receipt of the placement order would place on the car a tag, showing the name of the vessel and the wharf to which the car, then located in an interchange yard to which plaintiff had access, was to be sent. The plaintiff, accepting the implied representation that the line-haul carrier had received a placement order stamped with an “O.K. for Delivery” and without further documentation (than the tag), would move the car on its tracks to the designated wharf.

[913]*913In giving to the shipper/consignee the “O.K. for Delivery” form, the defendants would place thereon one of two types of stamps, both of which evidenced the defendants’ refusal to be responsible for demurrage.

Plaintiff claims to be entitled to demurrage under Rules 9 and 10-A of its tariff. Rule 9 states the requirement that the rail carrier obtain an “O.K.” from the steamship line and that the steamship line assumes responsibility for demurrage by giving the “O.K.” Rule 10-A is an average agreement entered into by plaintiff and defendants providing for the computation of demurrage. The Interstate Commerce Commission Service Orders (953, 976 and 979) had the effect of reducing free time on export cars and of eliminating cars entitled to the average agreement treatment and plaintiff thereafter billed defendants for demurrage under Rule 9.

Defendants have paid all demurrage which in their opinion was caused by their fault. Plaintiff, however, does not rely on any fault of the defendants as establishing their right to recovery. Rather, plaintiff contends it can recover from defendants even if the delay was caused by a shipper or line-haul rail carrier. At all events, plaintiff reserves the right to show that some of the delays were caused by the fault of the defendants.

“Demurrage can accrue on export cars being handled by the Public Belt for any one or more of the following reasons, among others:

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Bluebook (online)
391 F. Supp. 910, 1972 U.S. Dist. LEXIS 10588, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-new-orleans-ex-rel-public-belt-railroad-commission-v-hansen-laed-1972.