Imperial Van Lines International, Inc. v. The United States

821 F.2d 634, 1987 U.S. App. LEXIS 353
CourtCourt of Appeals for the Federal Circuit
DecidedJune 18, 1987
DocketAppeal 86-1568
StatusPublished
Cited by78 cases

This text of 821 F.2d 634 (Imperial Van Lines International, Inc. v. The United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Federal Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Imperial Van Lines International, Inc. v. The United States, 821 F.2d 634, 1987 U.S. App. LEXIS 353 (Fed. Cir. 1987).

Opinion

EDWARD S. SMITH, Circuit Judge.

Imperial Van Lines International, Inc., appeals from the July 28, 1986, order of the United States Claims Court granting the Government’s motion for summary judgment. We affirm.

Issue

The issue in this case is whether the Claims Court erred in holding that Imperial Van Lines International, Inc., is not entitled to ocean rate adjustment compensation for shipments of household goods and unaccompanied baggage shipped from Germany to the United States, routed through England.

Background

Imperial Van Lines International, Inc. (Imperial), is a freight forwarder which participated in the International Through Government Bill of Lading (ITGBL) program for the transportation of household goods and unaccompanied baggage for the Department of Defense between points in the continental United States (CONUS) and points overseas and between points overseas. This program was administered by the Military Traffic Management Command (MTMC).

Under the ITGBL procurement method, a shipment of household goods or unaccompanied baggage belonging to Defense Department personnel is tendered to a freight forwarder for movement from the point of origin to the destination. Thus, in its relationship with the Defense Department, the forwarder is the carrier and the Defense Department is the shipper. The forwarder packs the shipment in a specially designed container, chooses the carriers to be used, *636 usually including an ocean carrier, and selects the routing of the shipment from origin to destination. In its relationship with the ocean carrier, the forwarder is the shipper and, as such, purchases transportation service from the ocean carrier and pays the ocean carrier’s tariff rates.

MTMC regularly solicits freight forwarders to submit rates applicable to ITGBL shipments of household goods and unaccompanied baggage belonging to military personnel and their dependents. Rates are usually solicited for 6-month procurement periods, known as “Volumes.” Rates submitted by forwarders are single-factor rates applicable to the through transportation of shipments from point of origin to point of destination. These single-factor rates are based, among other things, on the underlying ocean transportation rates in effect on a date established for each Volume period by MTMC, known as the “pegged quotation date.”

If the costs on which the single-factor rate was based increase during the Volume, the forwarder may obtain compensation for those increases. The requirements for an ocean rate adjustment to cover increased ocean transportation costs are that the ocean transportation cost for the particular type of service in the ocean channel has increased more than 2.5 percent after the pegged quotation date, and that the service is no longer available in that ocean channel at the prior rate.

Two of the four shipments involved in this case were moved during Volume 45, which covered shipments tendered during the period beginning October 1, 1982, and ending March 31, 1983. One of the shipments in the Volume 45 period was a Code 4 shipment involving household goods. The other was a Code 7 shipment involving unaccompanied baggage. Volume 46 originally covered shipments tendered during the period beginning April 1, 1983, and ending September 30, 1983, but the period was later extended through October 31, 1983. Both of the Volume 46 shipments were Code 4 shipments involving household goods.

For both the Volume 45 and the Volume 46 periods, Imperial had quoted to MTMC single-factor rates on the movement of Code 4 and Code 7 shipments between various overseas points and CONUS, including rates for the movement of such shipments between points in Germany and points in CONUS, and between points in England or Scotland and points in CONUS. Shipments between England and CONUS were subject to ocean rate adjustments for both Code 4 and Code 7 shipments. These adjustments, which were requested by Imperial, were due to the increased tariffs of ocean carriers for single-container shipments moving from England or Scotland to CONUS.

Each of the four shipments involved here was a single container which was to be shipped from Germany to CONUS. However, in routing these shipments, Imperial did not route the shipments directly from Germany to their ultimate destinations in CONUS. Instead, Imperial first routed each shipment from a port in Germany to Felixstowe, England, where it was off-loaded and combined with other shipments originating from different ports and bound for CONUS. The resulting multiple-container shipment was then reloaded on the same vessel from which the single container had just been unloaded, and routed to CONUS under a multiple-container ocean tariff, which was less than the single-container tariff.

Imperial included in its charges for the shipments involved in this case the ocean rate adjustments previously authorized for single-container shipments from England or Scotland to CONUS. This resulted in a charge substantially in excess of what would have been the cost had Imperial routed the shipment directly from Germany to CONUS on the same ship at the single-container rate.

The General Services Administration (GSA) denied Imperial’s claimed entitlement to the ocean rate adjustments applicable to single-container shipments from England or Scotland to CONUS. Instead, GSA paid Imperial on the basis of the lower rates which Imperial had quoted to MTMC *637 for single-container shipments routed from Germany to CONUS.

Imperial filed suit in the Claims Court to recover the amounts that GSA deducted from its charges for the four shipments. Imperial now appeals the Claims Court’s grant of summary judgment in favor of the Government.

Standard of Review

In reviewing the grant of summary judgment by the Claims Court, we must determine whether the strict standard set out in RUSCC 56(c), which standard is the same as Fed.R.Civ.P. 56(c), has been met. 1 The party appealing the grant of summary judgment must show that the Claims Court erred in determining that, based on “the pleadings and evidence before it,” there was no genuine issue of material fact, and that the moving party was entitled to judgment as a matter of law. 2

In this case, there are no factual disputes, so the only question is whether the Government was entitled to judgment as a matter of law.

Applicability of the Ocean Rate Adjustment

As Judge White noted in his opinion, ordinarily the carrier is under a legal obligation to move a shipment using the cheapest available route. 3 There are certain exceptions to this rule, such as where the shipper directs the carrier to use a more expensive routing, 4 or where it would be unreasonable under the circumstances for the carrier to move the shipment over the cheapest available routing. 5 Neither party contends that these exceptions are applicable.

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Bluebook (online)
821 F.2d 634, 1987 U.S. App. LEXIS 353, Counsel Stack Legal Research, https://law.counselstack.com/opinion/imperial-van-lines-international-inc-v-the-united-states-cafc-1987.