General Motors Corp. v. United States

193 F. Supp. 198, 1961 U.S. Dist. LEXIS 4200, 1961 WL 106811
CourtDistrict Court, E.D. Michigan
DecidedMarch 16, 1961
DocketCiv. No. 19633
StatusPublished

This text of 193 F. Supp. 198 (General Motors Corp. v. United States) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
General Motors Corp. v. United States, 193 F. Supp. 198, 1961 U.S. Dist. LEXIS 4200, 1961 WL 106811 (E.D. Mich. 1961).

Opinion

KAESS, District Judge.

This action is brought by plaintiff to set aside certain orders of the Interstate Commerce Commission and to enjoin their enforcement. The Alabama Great Southern Railroad Company, along with approximately one hundred fifty other railroads, intervened as defendants.

The general subject matter in this controversy is the applicability of tariff rates as imposed by railroads. Prior to May 30, 1952 there existed class rates within and between official (eastern), southern, southwestern and western truckline territories. However “exceptions” to these class rates were established and took precedence over such class rates, in order to meet competition to the railroads. On the above date however, in Docket No. 28300, the Interstate Commerce Commission prescribed a single uniform class rate structure between all points in the United States east of the mountain-pacific territory. It was made clear that this uniformity did not contemplate the exception rates. The result of the order was to have two sets of rates in effect, one applicable on traffic subject to the old exception ratings, and the other on traffic subject to the uniform classification ratings.

At the time the shipments in issue took place, the new class rates were in effect for the southern territory. The items shipped were a mixed carload of cooling boxes, drying machines, refrigerators and electric stoves from the plaintiff’s Frigidaire plant in Lorraine, Ohio, to [199]*199various southern destinations. The new class rates had each of the items shipped separately rated, but it also had a mixed carload rating which was lower and would apply under the mixed carload rule. However the railroad applied the “exception” ratings under the old structure on all the individual items shipped. There was no carload exception rating.

The railroad relied on Item 300-B of the new class rates, which read:

“Class rates published in tariff, as amended, will not apply where there is in effect on a given shipment a commodity rate, classification exception or column rating between the same points via any route.”

The railroads argue in all these proceedings that this allowed them to charge the exception rates for the various items shipped. These exception rates provided for a higher fare than the mixed carload rating of the new classification rating schedule.

The plaintiff argues that since there was no separate exception rating for a mixed carload shipment to correspond with the one in the class rate schedule, this section did not apply.

Plaintiff filed a complaint with the Commission on March 7, 1955, attacking the method used by the railroad for computing the charges on mixed carload shipments. The examiner recommended that the complaint be dismissed. Exceptions were filed and on June 26, 1957 Division 2 of the Commission reversed the examiner and found the rates and charges collected were inapplicable. The railroads involved filed a petition for reopening and on April 20, 1959 the full Commission, in a divided opinion, modified the findings of Division 2 and determined that the rates charged by the railroads in this type of situation were applicable, Docket No. 31757. On November 9, 1959 the Commission denied a petition for reopening, reconsideration and modification of the adverse portion of decision against plaintiff who thereupon started this action to review the orders of the Commission.

All parties have submitted extensive briefs, and we have examined all the decisions and many of the briefs submitted before the Commission. Our decision must boil itself down to two basic issues:

(1) Does the court have jurisdiction to review this ease, and if so
(2) Was there a “rational” basis for the orders of the Commission ?

The jurisdictional issue is concerned with an interpretation of 49 U.S.C.A. § 9, which reads in pertinent parts:

“Any person * * * claiming to be damaged by any common carrier * * * may either make complaint to the Commission * * * or bring suit * * * for the recovery of the damages * * * in any district court of the United States * * *; but such person * * * shall not have the right to pursue both of said remedies, and must in each case elect which one of the two methods of procedure * * he * * * will adopt.”

Plaintiff admits that they may not litigate this case de novo in this court, but argues that this section is not a bar to judicial review of a case decided by the Commission, citing United States v. I. C. C., 337 U.S. 426, 69 S.Ct. 1410, 93 L.Ed. 1451, and Great Lakes Steel Corp. v. United States, D.C., 115 F.Supp. 31, affirmed 6 Cir., 220 F.2d 751, certiorari denied 350 U.S. 821, 76 S.Ct. 47, 100 L.Ed. 734. In United States v. I. C. C. the railroads refused to grant a deduction on freight rates against the United States, which had assumed wharfage expenses formerly imposed upon the railroad. The Supreme Court held that the district court could review the order of the Interstate Commerce Commission denying the deduction claimed by the United States. It must be noted, however, that the court did not by this decision grant blanket review of all ICC orders. They tempered their decision by distinguishing it from several earlier cases which had denied review. The court declared that in this case there was a question of “reasonableness” of [200]*200the rates, involving an exercise of the Commission’s “primary jurisdiction” while the others were simply reparation cases and nothing else. Thus the court decided that where an administrative determination of part of the case had to be made, the court may review the entire decision of the Commission.

In J. D. Pittman Tractor Co. v. United States, D.C.1954, 121 F.Supp. 162, the issue concerned whether the lower classification rates or the higher exception rates applied in a shipment of tractors and parts from Peoria, Illinois, to Birmingham, Alabama. The court refused to review the Commission’s order, stating at page 165:

“The lawfulness of the Commission order relates only to the legal correctness of its denial of the reparations claimed in the suit filed before the Commission. If that suit had embraced both the issue of reasonableness of the rates and that of reparations, this court would have jurisdiction under United States vs. ICC, supra. Such is not this case. Where, as here, the question is one involving solely the application of rates, and thus not involving the primary jurisdiction of the Commission, and where, as here, the suit could have been brought in this court in the first instance, this court will not, in the face of Section 9, sit as a reviewing court to correct procedural errors or to pass on the legal correctness of the Commission’s denial of reparations.”

The situation in this case closely parallels the Pittman case. No part of this case involves an administrative determination that dictated a decision by the Commission in the first instance. Significantly the plaintiff nowhere claims that there was a reason other than choice in their application to the Commission. This court could have applied the law to the facts in the first instance and adjudicated the matter. Since this matter presents only an issue of reparations, this court cannot review the orders of the Commission. See Standard Oil Co. (Indiana) v.

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Related

Standard Oil Co. (Indiana) v. United States
283 U.S. 235 (Supreme Court, 1931)
Baltimore & Ohio Railroad v. Brady
288 U.S. 448 (Supreme Court, 1933)
Mississippi Valley Barge Line Co. v. United States
292 U.S. 282 (Supreme Court, 1934)
United States v. Interstate Commerce Commission
337 U.S. 426 (Supreme Court, 1949)
Great Lakes Steel Corp. v. United States
115 F. Supp. 31 (E.D. Michigan, 1953)
J. D. Pittman Tractor Co. v. United States
121 F. Supp. 162 (N.D. Alabama, 1954)

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Bluebook (online)
193 F. Supp. 198, 1961 U.S. Dist. LEXIS 4200, 1961 WL 106811, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-motors-corp-v-united-states-mied-1961.