Gardner v. Rich Manufacturing Co., Ltd.

158 P.2d 23, 68 Cal. App. 2d 725, 1945 Cal. App. LEXIS 824
CourtCalifornia Court of Appeal
DecidedApril 14, 1945
DocketCiv. 14524; Civ. 14525
StatusPublished
Cited by38 cases

This text of 158 P.2d 23 (Gardner v. Rich Manufacturing Co., Ltd.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gardner v. Rich Manufacturing Co., Ltd., 158 P.2d 23, 68 Cal. App. 2d 725, 1945 Cal. App. LEXIS 824 (Cal. Ct. App. 1945).

Opinion

*729 FOX, J. pro tem.

Defendant appeals from a judgment in favor of plaintiff Gardner, as trustee in bankruptcy of the estate of James B. Smith, a bankrupt. Defendant also appeals from a judgment in favor of plaintiff Heffron, as trustee in bankruptcy of the estate of Betty Boyd Krug, a bankrupt. Plaintiffs’ assignors, the bankrupts, had been engaged in business as licensed highway contract carriers under the Highway Carriers’ Act (Stats. 1935, chap. 223; Deering’s Gen. Laws, Act 5129a) transporting property for compensation by motor vehicle over the public highways of the state. As such highway contract carriers plaintiffs’ assignors had transported for defendant certain shipments of cast iron pipe and fittings. The theory of both complaints is that plaintiffs’ assignors charged and collected freight charges less than the minimum rates prescribed by the California Railroad Commission for such services. Plaintiffs therefore seek to recover the difference between the legally prescribed rate and the rate paid by the defendant pursuant to a purported contract with said carriers.

The Gardner case is based upon the Railroad Commission’s decision and order No. 29313, effective February 5, 1937, and orders supplementary thereto, in case No. 4088, part “C” and the schedules of minimum rates therein established and prescribed, together with the rules and regulations governing the same. The second cause of action in the Heffron case is based upon the same decision and order. The first cause of action, however, in the Heffron case is based on the Railroad Commission’s decision and order No. 28761, effective June 1, 1936, in case No. 4088, part “A.” The third cause of action in the Heffron case is based on said commission’s decision and order No. 30370, effective April 1, 1938, in said case No. 4088, parts “U” and “V.” Bach of the complaints also has a cause of action in the form of a common count for the reasonable value of the transportation services alleged to have been rendered to the defendant.

The purpose of the Highway Carriers’ Act is, among other things, to establish just and reasonable rates for the transportation of property by motor vehicle over the public highways of the state and to prevent discrimination among shippers of this class. To this end the act confers jurisdiction on the Railroad Commission to hold hearings and establish and prescribe schedules for minimum rates for contract high *730 way carriers, and to make rules and regulations governing the same. It was pursuant to this authority that the Railroad Commission rendered the decisions and promulgated the orders hereinbefore referred to establishing and fixing schedules of minimum rates, rules and regulations upon which these actions are based. The schedule of minimum rates thereby established and prescribed and the rules and regulations governing the same become a part of every contract between a highway contract carrier and the shipper. (Pittsburgh, C. C. & St. L. R. Co. v. Fink (1919), 250 U.S. 577 [40 S.Ct. 27, 63 L.Ed. 1151]; Johnston v. L. B. Hartz Stores (1938), 202 Minn. 132 [277 N.W. 414].) The tariff applicable, on the facts, to any particular shipment cannot be changed by an agreement between the parties (New York Cent. & H. R. R. Co. v. York & Whitney Co. (1921), 256 U.S. 406 [41 S.Ct. 509, 65 L.Ed. 1016]), and the carrier or its assignee is entitled to collect the proper rate. (13 C.J.S. § 393, pp. 873-75; see, also, note, 83 A.L.R. 245 et seq., and cases there cited.) Otherwise, the statute would be ineffectual for the purpose for which it was enacted. The defendant, however, contends that the superior court had no jurisdiction to render the judgments herein on the ground that exclusive primary jurisdiction to determine controversies concerning the interpretation and application of rates, orders, decisions, rules and regulations of the Railroad Commission has been fixed by law in said commission, and plaintiffs were required to seek and to exhaust the administrative remedy with that commission before applying to the courts. In making this argument defendant misconceives the nature of these actions. They are simply actions to recover a stated amount of money—the difference between the amount paid under the contract between the carriers and the shipper and that due under the rates fixed by the railroad commission in the aforesaid decisions and orders. The court was called upon to determine what rate the Railroad Commission had established for a particular commodity transported by motor vehicle in a given territory in specified quantities. It was then simply a question of the application of these rates to the facts as disclosed by the evidence. No question of fixing rates or rules and regulations was in any way involved. That had already been determined by the Railroad Commission in its decisions and orders. There is, therefore, no reason why the superior *731 court should not have jurisdiction of these cases for the effect of the judgments, if properly rendered, is to enforce the rates already established by the Railroad Commission.

In California Adj. Co. v. Atchison, T. & S. F. R. Co. (1918), 179 Cal. 140 [175 P. 682, 13 A.L.R. 274], the shipper claimed reparations for deviation from the long and short haul clause of the state Constitution. It was there argued, as it is here, that the superior court had no jurisdiction of the action— that jurisdiction was with the Railroad Commission in the first instance and not with the courts. This contention, however, was not sustained. In passing on it the court pointed out that “When a charge has been paid to a carrier, or a demand exacted in violation of the long and short haul clause of the Constitution, there is nothing which can call for the action of the Railroad Commission. As the transaction fixes conclusively the liability of the carrier, the transaction itself furnishes the measure of damage which the shipper suffered as soon as it occurred, and the commission could neither decrease nor enlarge it.” (P. 145.) That principle by analogy applies to the instant cases. Defendant points out, however, that section 71(d) of the Public Utilities Act [Stats. 1915, p. 115, as amended; Deering’s Gen. Laws, Act 6386] provides that complaints for the collection of lawful tariff charges of public utilities may be filed in any court of competent jurisdiction and that the Highway Carriers’ Act does not contain such a provision. The right of a highway contract carrier to collect undercharges in the absence of a provision in the statutes authorizing the filing of an action therefor was directly presented in the case of Johnston v. L. B. Hartz Stores, supra. The Minnesota Supreme Court held the action to recover the undercharges could be maintained. In passing on the point the court had this to say: ‘ ‘ There is no specific provision in Chap. 170 that a carrier may recover such an undercharge, but we are asked to imply that right from the language of Sec. 7 and the general purpose of the act as announced by the legislature.

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

Related

Concerned Citizens Coalition v. City of Stockton
26 Cal. Rptr. 3d 735 (California Court of Appeal, 2005)
Ramirez v. Moran
201 Cal. App. 3d 431 (California Court of Appeal, 1988)
Blecker v. Kofoed
672 P.2d 526 (Supreme Court of Colorado, 1983)
Masonite Corp. v. Pacific Gas & Electric Co.
65 Cal. App. 3d 1 (California Court of Appeal, 1976)
South Tahoe Gas Co. v. Hofmann Land Improvement Co.
25 Cal. App. 3d 750 (California Court of Appeal, 1972)
Product Research Associates v. Pacific Telephone & Telegraph Co.
16 Cal. App. 3d 651 (California Court of Appeal, 1971)
Medak v. Cox
12 Cal. App. 3d 70 (California Court of Appeal, 1970)
Muelder v. Western Greyhound Lines
8 Cal. App. 3d 319 (California Court of Appeal, 1970)
Howard A. Deason & Co. v. Costa Tierra Ltd.
2 Cal. App. 3d 742 (California Court of Appeal, 1969)
Warren Southwest, Inc. v. Wicks
276 Cal. App. 2d 152 (California Court of Appeal, 1969)
Estate of Horman
265 Cal. App. 2d 796 (California Court of Appeal, 1968)
Malenko v. State
265 Cal. App. 2d 796 (California Court of Appeal, 1968)
West v. Holstrom
261 Cal. App. 2d 89 (California Court of Appeal, 1968)
R. E. Tharp, Inc. v. Miller Hay Co.
261 Cal. App. 2d 81 (California Court of Appeal, 1968)
Keller v. Thornton Canning Co.
429 P.2d 156 (California Supreme Court, 1967)
Pellandini v. Pacific Limestone Products, Inc.
245 Cal. App. 2d 774 (California Court of Appeal, 1966)
People Ex Rel. Public Utilities Commission v. Ryerson
241 Cal. App. 2d 115 (California Court of Appeal, 1966)
Talman v. Talman
229 Cal. App. 2d 39 (California Court of Appeal, 1964)
Pratt v. Coast Trucking, Inc.
228 Cal. App. 2d 139 (California Court of Appeal, 1964)

Cite This Page — Counsel Stack

Bluebook (online)
158 P.2d 23, 68 Cal. App. 2d 725, 1945 Cal. App. LEXIS 824, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gardner-v-rich-manufacturing-co-ltd-calctapp-1945.