Imperial Van Lines International, Inc. v. United States

9 Cl. Ct. 145, 1985 U.S. Claims LEXIS 885
CourtUnited States Court of Claims
DecidedNovember 12, 1985
DocketNo. 324-84C
StatusPublished
Cited by2 cases

This text of 9 Cl. Ct. 145 (Imperial Van Lines International, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims 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. United States, 9 Cl. Ct. 145, 1985 U.S. Claims LEXIS 885 (cc 1985).

Opinion

ORDER ON PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT

WHITE, Senior Judge.

The plaintiff, Imperial Van Lines International, Inc. (“Imperial”), sues for additional compensation in connection with shipments of household goods and unaccompanied baggage which Imperial moved for the Department of Defense from points overseas to points in the Continental United States (“CONUS”).

The case comes before the court at this time on the plaintiff’s motion for summary judgment, supplemented by the parties’ briefs and oral arguments.

It should be mentioned at the outset that, under RUSCC 56, this court can grant a motion for summary judgment if—and only if—the papers submitted to the court show that there is no genuine issue as to any material fact in the case, and that the moving party is entitled to judgment as a matter of law.

Background Information

Imperial, a California corporation, is a freight forwarder. As such, at all times relevant to this case, Imperial participated in the International Through Government Bill of Lading (“ITGBL”) program of the Military Traffic Management Command (“MTMC”) for the transportation of household goods and unaccompanied baggage for the Department of Defense between points in CONUS and points overseas, and between points overseas.

Under the ITGBL procurement method, a shipment of household goods or unaccompanied baggage belonging to military (or other) personnel of the Defense Department is tendered to a freight forwarder for movement from origin to destination under the forwarder’s responsibility as a common carrier. Thus, as between the Defense Department and the forwarder, the former is the shipper and the latter is the carrier. The forwarder packs the shipment in a [147]*147specially designed container, selects the underlying carrier or carriers to be used, including an ocean carrier in most instances, and establishes the routing of the shipment from origin to destination. The forwarder’s relationship to an underlying ocean carrier is that of a shipper; and, as such, the forwarder purchases transportation service from the ocean carrier and pays the ocean carrier’s tariff rates.

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

If, during a particular Volume period, the ocean transportation cost to forwarders of a particular type of service in an ocean channel increases by 2.5 percent or more after the pegged quotation date for such period, and the service is no longer available in that ocean channel at the former ocean rate level, a forwarder utilizing the service in such channel is entitled, upon application, to obtain from MTMC an ocean rate adjustment upward to cover the additional cost of the ocean transportation.

Two of the four shipments involved in this case moved during the Volume 45 period, and two shipments moved during the Volume 46 period. Volume 45 covered shipments tendered during the period beginning October 1, 1982, and extending through March 31, 1983. Volume 46 originally covered shipments tendered during the period beginning April 1, 1983 and extending through September 30, 1983, but the period was subsequently extended through October 31,1983. One of the shipments during the Volume 45 period was a Code 4 shipment involving household goods, and the other was a Code 7 shipment involving unaccompanied baggage. Both of the shipments during the Volume 46 period were Code 4 shipments involving household goods. All four shipments originated in Germany and all were destined for points in CONUS. Each shipment was in a single container.

For both the Volume 45 and the Volume 46 periods, Imperial had quoted to MTMC, pursuant to the latter’s solicitations, single-factor rates on the movement of Code 4 and Code 7 shipments between various overseas points and CONUS, including rates on the movement of such shipments (1) between points in Germany and points in CONUS, and (2) between points in England or Scotland and points in CONUS. These rates were based {inter alia)upon the cost to Imperial of ocean transportation for single-container shipments in effect on the respective pegged quotation dates for the Volume 45 and the Volume 46 periods.

Pursuant to a request submitted by Imperial, MTMC authorized upward ocean rate adjustments for Code 4 and Code 7 single-container shipments during the Volume 45 period from England or Scotland to CONUS (East Coast ports only), the Code 4 adjustment being in the amount of $31.22 per net cwt., and the Code 7 adjustment being in the amount of $17.44 per gross cwt.

Also, pursuant to a request submitted by Imperial, MTMC authorized upward ocean rate adjustments on Code 4 and Code 7 single-container shipments during the Volume 46 period from England or Scotland to CONUS (Gulf ports only), the Code 4 adjustment being in the amount of $13.40 per net cwt., and the Code 7 adjustment being in the amount of $8.18 per gross cwt.

The adjustments upward referred to the two immediately preceding paragraphs were based upon increases in the tariffs of ocean carriers for single-container shipments moving from England or Scotland to CONUS.

[148]*148As stated previously, each of the four shipments involved in this case was in a single container; and they were all tendered to Imperial at points in Germany for movement to points in CONUS. Instead of routing each shipment from Germany to CONUS, Imperial routed the shipment to England and loaded it aboard a vessel of the American Coastal Line that was bound for Felixstowe, England. There, the particular container was off-loaded and combined with other containers originating at different points. The resulting multiple-container shipment was then routed to CONUS and put aboard the same vessel previously mentioned, for movement to CONUS under a multi-container ocean tariff of the American Coastal Line, which was cheaper than the single-container ocean tariff from England to CONUS.

For the transportation services rendered by Imperial in connection with the four shipments involved in this case, Imperial included, as factors in computing its charges, the upward ocean rate adjustments previously authorized by MTMC in connection with single-container shipments moving from England or Scotland to CO-NUS—i.e., the Code 4 adjustments of $31.22 and $13.40 per net cwt. for the Volume 45 and Volume 46 periods, respectively, and the Code 7 adjustment of $17.44 per gross cwt. for the Volume 45 period.

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

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9 Cl. Ct. 145, 1985 U.S. Claims LEXIS 885, Counsel Stack Legal Research, https://law.counselstack.com/opinion/imperial-van-lines-international-inc-v-united-states-cc-1985.