Freightcor Services, Inc., Debtor-In-Possession v. Vitro Packaging, Inc.

969 F.2d 1563, 1992 WL 195841
CourtCourt of Appeals for the Fifth Circuit
DecidedAugust 14, 1992
Docket91-1507
StatusPublished
Cited by21 cases

This text of 969 F.2d 1563 (Freightcor Services, Inc., Debtor-In-Possession v. Vitro Packaging, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Freightcor Services, Inc., Debtor-In-Possession v. Vitro Packaging, Inc., 969 F.2d 1563, 1992 WL 195841 (5th Cir. 1992).

Opinion

ON PETITION FOR REHEARING *

Before GOLDBERG, JOLLY, and WIENER, Circuit Judges.

E. GRADY JOLLY, Circuit Judge:

In this suit a bankrupt interstate carrier, Freightcor, Inc., seeks undercharges 1 from a shipper, Vitro Packaging, Inc. The district court rejected Vitro’s defense that, under the “filed rate doctrine,” 2 Freightcor’s tariff was void because it referred to a mileage guide in which Freight-cor did not formally participate. The court therefore granted summary judgment for Freightcor. For the reasons below, we today hold that a mileage guide is a tariff and that a tariff that refers to another tariff without official participation in that tariff is void as a matter of law. Freight-cor therefore cannot collect undercharges against Vitro under the filed rate doctrine.

I

Freightcor, now in bankruptcy, is a common carrier operating in interstate commerce and subject to regulation by the ICC. From 1985 until 1987, Freightcor hauled glass bottles and containers for Vitro. Vi-tro paid rates between $.98 and $1.13 per mile. All of these charges were based upon rates that were not drawn from tariffs filed with the ICC, but instead were negotiated between Freightcor and Vitro.

During these years, Freightcor had two filed tariffs that are now material. Tariff ICC FSSI 282 applied to “Building Materials or Supplies.” Tariff ICC FTHS 275 *1565 applied to “Freight of all Kinds, except Class A and B Explosives, Household Goods and Materials in Bulk.” The rate for ICC FTHS 275 was $3.00 per mile, and the rate in FSSI 282 was considerably less.

Both FTHS 275 and FSSI 282 computed mileage for specific shipments according to the Household Goods Carriage Bureau (“HGCB”) MF-ICC 100-A Mileage Guide. The parties agree that Freightcor did not file a power of attorney or concurrence with the HGCB to “participate” in the mileage guide.

Freightcor declared bankruptcy and, as debtor-in-possession, sued Vitro in U.S. district court for undercharges, or the difference between the rate actually charged and the rate posted in a carrier’s applicable tariff on file with the ICC. Vitro answered alleging, among other defenses, that the proper forum for this dispute is the ICC, that the, tariffs Freightcor sought to apply were void because Freightcor had not participated in the mileage guide these tariffs referred to, that an attempt to collect filed rates after negotiating a lower rate was an unreasonable practice, and that the rates sought were unreasonable. Freightcor moved for summary judgment, arguing that, under the filed rate doctrine, the sole question for the court was whether Vitro had paid the amount of money required in the duly filed tariffs that governed Freight-cor’s shipments of Vitro’s cargo. The court initially denied the motion, noting that a factual dispute persisted concerning the applicability of FSSI 282: whether glass bottles and containers, which Freight-cor had hauled for Vitro, were included within the term “Building materials or supplies” as found in FSSI 282.

On March 15, 1991, however, the court granted reconsideration. The court rejected Vitro’s defenses and held that FTHS 275 had properly referred to mileage guide HGCB MF-ICC 100-A. The court further held that, although there was a dispute with respect to the applicability of FSSI 282, there was no factual dispute as to the applicability of FTHS 275, which covered “freight of all kinds.” The court therefore held that FTHS 275 was applicable. It noted, however, that because Freightcor had also contended, viz., “conceded,” that FSSI 282 was also applicable, the court would apply the lower rate under FSSI 282 and assess Freightcor’s damages on that basis. In so doing, the court observed it was undisputed that when two tariffs are applicable, the proper rate to apply is the lower rate. Because Freightcor had contended that both FSSI 282 and FTHS 275 were applicable, it could not complain that the district court applied the lower rate to assess undercharge damages. Judgment was entered for $19,199 in principal and $5,449 in prejudgment interest. Vitro filed a motion for “new trial,” which was denied. Vitro then filed this appeal.

II

We review de novo the summary judgment, applying the same standards of law as those available to the district court. Trial v. Atchison, Topeka and Santa Fe R. Co., 896 F.2d 120, 122 (5th Cir.1990). Therefore, to sustain thé summary judgment rendered below, we' must find that there is “no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c).

III

The heart of Vitro’s appeal is its argument that the district court erred in applying the filed rate doctrine Based on Freight-cor’s tariff FTHS 275. Vitro argues that FTHS 275 was void under ICC regulations because, although FTHS 275 refers to HGCB MF-ICC 100-A for the mileage of specific shipments, Freightcor did not give to the HGCB a power of attorney in order to “participate” in the tariff, as required by the Commission’s regulations. Therefore, contends Vitro, FTHS 275 is unenforceable, and Freightcor may not collect undercharges based upon its rates. In response, Freightcor argues that the regulations do not require it to participate in the mileage guide in order to refer to it, and if they do, they still cannot be used to retrospectively *1566 void a tariff that had been otherwise duly filed and effective.

The district court found that Freightcor permissibly referred to HGCB MF-ICC 100-A in tariff ICC FTHS 275 for the purpose of computing the distance rate. See 49 C.F.R. § 1312.30(c)(1). The mileage guide in question complied with 49 C.F.R. § 1312.30(c)(4) because, without dispute, it was on file with the ICC at the time the tariff was published and filed. The court rejects Vitro’s arguments to the contrary.

Thus the district court did not expressly address the effect of Freightcor’s failure to file a power of attorney with respect to the HGCB mileage guide. We read the district court’s opinion as holding implicitly either (1) that the mileage guide is not a tariff, or (2) that Freightcor was not required to participate in the mileage guide, or (3) that Freightcor’s mere reference to the mileage guide amounted to participation.

A

The ICC regulations make clear that whether a carrier “participates” in the tariff of another carrier or an agent is a matter of certain formalities. ICC regulation 49 C.F.R. § 1312.4(d) mandates that

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

Related

North Penn Transfer, Inc. v. Victaulic Co. of America
859 F. Supp. 154 (E.D. Pennsylvania, 1994)
Siegel Transfer, Inc. v. Carrier Express, Inc.
856 F. Supp. 990 (E.D. Pennsylvania, 1994)
Security Services, Inc. v. Kmart Corp.
511 U.S. 431 (Supreme Court, 1994)
Security Services, Inc. v. Transportation, Inc.
3 F.3d 966 (Sixth Circuit, 1993)
Brizendine v. Cotter & Company
4 F.3d 457 (Seventh Circuit, 1993)
Brizendine v. Cotter
4 F.3d 457 (Seventh Circuit, 1993)
Grove v. Malden Mills Industries, Inc.
821 F. Supp. 32 (D. Maine, 1993)
F.P. Corp. v. Golden West Foods, Inc.
807 F. Supp. 1228 (W.D. Virginia, 1992)
Security Services, Inc. v. Cramer Products, Inc.
806 F. Supp. 849 (W.D. Missouri, 1992)
Freightcor Services, Inc. v. Vitro Packaging, Inc.
965 F.2d 1339 (Fifth Circuit, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
969 F.2d 1563, 1992 WL 195841, Counsel Stack Legal Research, https://law.counselstack.com/opinion/freightcor-services-inc-debtor-in-possession-v-vitro-packaging-inc-ca5-1992.