G.M.W., Inc. v. Certified Parts Corp.

400 N.W.2d 512, 135 Wis. 2d 503, 1986 Wisc. App. LEXIS 4052
CourtCourt of Appeals of Wisconsin
DecidedDecember 18, 1986
Docket86-1086
StatusPublished
Cited by6 cases

This text of 400 N.W.2d 512 (G.M.W., Inc. v. Certified Parts Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
G.M.W., Inc. v. Certified Parts Corp., 400 N.W.2d 512, 135 Wis. 2d 503, 1986 Wisc. App. LEXIS 4052 (Wis. Ct. App. 1986).

Opinions

DYKMAN, J.

Certified Parts Corporation appeals from a judgment granting a motion for summary judgment. The issue is whether a shipper may raise an equitable defense to the collection of an undercharge by a motor common carrier on rates filed by the carrier with the Interstate Commerce Commission. Because we conclude that a shipper may not do so, we affirm.

The trustee in bankruptcy of G.M.W., a motor common carrier, sued to collect undercharges on shipments made by Certified. As an affirmative defense, Certified alleged that it orally agreed with G.M.W. to ship its inventory on G.M.W. semitrailers for $400 a load, and that it paid this rate for all loads shipped.

At the time of the agreement G.M.W.’s filed tariff rates were substantially higher than $400 per load. G.M.W. did not file the $400 per load rate with the ICC until after it completed its work for Certified. The trustee audited G.M.W.’s freight bills, determined that prior to August 16, 1982, G.M.W. undercharged Certified $9,411.26, and began this action to collect the undercharges. The circuit court granted summary judgment in favor of G.M.W.

[505]*505In In re Cherokee Park Plat, 113 Wis. 2d 112, 334 N.W.2d 580 (Ct. App. 1983), we considered the standard of review in summary judgment proceedings.

Under the methodology, the court, trial or appellate, first examines the pleadings to determine whether claims have been stated and a material factual issue is presented. If the complaint ... states a claim and the pleadings show the existence of factual issues, the court examines the moving party’s affidavits for evidentiary facts admissible in evidence or other proof to determine whether that party has made a prima facie case for summary judgment.... If the moving party has made a prima facie case for summary judgment, the court examines the affidavits submitted by the opposing party for evidentiary facts and other proof to determine whether a genuine issue exists as to any material fact, or reasonable conflicting inferences may be drawn from the undisputed facts, and therefore a trial is necessary....
The court determines only whether a factual issue exists, resolving doubts in that regard against the party moving for summary judgment. [Citations omitted.]

Id. at 116, 334 N.W.2d at 582-83.

Federal statute prohibits motor common carriers from charging rates different from those recorded with the ICC. 49 U.S.C. sec. 10761(a) (1982). Motor common carriers may collect undercharges on rate tariffs filed with the ICC. Louis. & Nash. R.R. Co. v. Maxwell, 237 U.S. 94, 97 (1915). G.M.W.’s complaint sufficiently alleges that Certified failed to pay money owed to G.M.W. under the filed tariff. Certified’s answer admits the undercharges but alleges a contract for a charge less than the amount of the tariff.

[506]*506The existence of a contract inconsistent with a filed ICC tariff and the carrier’s intentional or negligent failure to file the contracted rate with the ICC are not relevant. Equitable defenses are not available to shippers faced with undercharge collection actions brought by common carriers. Maxwell, 237 U.S. at 97. Certified contends, however, that changes in the statutes, court opinions and ICC orders have effectively overruled this longstanding doctrine.

Certified argues that 49 U.S.C. sec. 10101 (1982), by providing for competition and flexible pricing, should be interpreted as allowing shippers to raise equitable defenses when they are subject to actions by carriers to collect filed tariff undercharges. Certified relies on Seaboard System R.R., Inc. v. United States, 794 F.2d 635 (11th Cir. 1986). In Seaboard a railroad sued to collect undercharges based on a higher single car rate from a shipper who was promised and had received a lower multicar rate from the railroad. Both rates were filed with the ICC, but the higher rate applied to single car loads. The two rates were listed adjacent to each other in the ICC tariffs. Id. at 636-37. The action was stayed pending an ICC determination of the reasonableness of enforcing the higher rate. Id. at 639. The ICC concluded that the higher rate was unambiguously recorded. However, the printing of the rate

even if not technically ambiguous, lent itself to misinterpretation by the ordinary user [here the shipper], and the shipper relied on [the railroad’s] continued misquotations and misbillings, to the shipper’s substantial detriment.

Id. at 637. Thus, when the shipper examined the ICC tariffs, the confusing printing in combination with the carrier’s misrepresentations led the shipper to believe [507]*507that the lower rate was properly filed and applicable to the contested transaction. The ICC allowed the shipper to escape liability for the undercharges. The ICC claimed authority to prevent unreasonable practices under 49 U.S.C. sec. 10701(a) which prohibits unreasonable practices by all carriers subject to the Interstate Commerce Act and 49 U.S.C. sec. 10704(a)(1) which authorizes the ICC to order carriers to stop violations. The eleventh circuit upheld the ICC’s decision, reasoning that “finding a carrier practice unreasonable is the kind of determination that lies in the primary jurisdiction of the Commission.” Id. at 637-38.

In Maxwell, the Supreme Court distinguished cases before the ICC from those before courts. The rule in actions before courts continues to be:

[T]he rate of the carrier duly filed is the only lawful charge. Deviation from it is not permitted upon any pretext. Shippers and travelers are charged with notice of it, and they as well as the carrier must abide by it, unless it is found by the Commission to be unreasonable. Ignorance or misquotation of rates is not an excuse for paying or charging either less or more than the rate filed. This rule is undeniably strict, and it obviously may work hardship in some cases, but it embodies the policy which has been adopted by Congress in the regulation of interstate commerce in order to prevent unjust discrimination. [Emphasis added.]

Maxwell, 237 U.S. at 97. “The reasonableness of practice, however, is exclusively within the jurisdiction of the Interstate Commerce Commission, and cannot be addressed to this Court.” G.M.W. Inc. v. Flambeau Paper Corp., 623 F. Supp. 473, 476 (W.D. Wis. [508]*5081985).1 The ICC has the power to, in effect, excise unreasonable provisions from a tariff, thus permitting a court to compare the tariff, as changed by the ICC, with the rate charged by the shipper, Western Transp. Co. v. Wilson and Co., Inc., 682 F.2d 1227, 1231-32 (7th Cir. 1982). In Wilson, a condition of the tariff was a notation on the bill of lading that the shipper and consignor must load the freight, a pointless requirement when the reason for the tariff was that the carrier be spared the expense of loading and unloading. Here, we are faced with a shipper contracting for a rate other than the filed rate. Wilson is inapplicable to the facts of this case.

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G.M.W., Inc. v. Certified Parts Corp.
400 N.W.2d 512 (Court of Appeals of Wisconsin, 1986)

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400 N.W.2d 512, 135 Wis. 2d 503, 1986 Wisc. App. LEXIS 4052, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gmw-inc-v-certified-parts-corp-wisctapp-1986.