In re J.H. Ware Trucking

186 B.R. 935, 1995 U.S. Dist. LEXIS 13385, 1995 WL 550098
CourtUnited States Bankruptcy Court, E.D. Missouri
DecidedSeptember 13, 1995
DocketNo. 4:93CV2684SNL (TIA)
StatusPublished
Cited by1 cases

This text of 186 B.R. 935 (In re J.H. Ware Trucking) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re J.H. Ware Trucking, 186 B.R. 935, 1995 U.S. Dist. LEXIS 13385, 1995 WL 550098 (Mo. 1995).

Opinion

MEMORANDUM

LIMBAUGH, District Judge.

This matter is before the Court on the appeal of appellant The Plan Committee from the final order of the United States Bankruptcy Court for the Eastern District of Missouri holding that a lack of concurrence or power of attorney in the mileage guide was fatal to all of Ware’s tariffs, thus, the Plan Committee could not proceed with a cause of action against defendant Eveready Battery Co. to collect freight undercharges. This Court has appellate jurisdiction of this matter pursuant to 28 U.S.C. § 158(a).

On an appeal, the United States District Court may affirm, modify, or reverse a judgment, order, or decree of á bankruptcy judge, or remand to the bankruptcy court with instructions for further proceedings. This Court may affirm the decision of a bankruptcy court if it is supported by law and the facts contained in the record. Findings of fact shall not be set aside unless clearly erroneous, and due regard shall be given to the opportunity of a bankruptcy court to judge the credibility of the witnesses. In re Van Horne, 828 F.2d 1285, 1287 (8th Cir.1987); In re Martin, 761 F.2d 472, 474 (8th Cir.1985). Under Bankruptcy Rule 8013, findings of fact are clearly erroneous when they are not supported by substantial evidence, contrary to the clear preponderance of evidence, or based on an erroneous view of the law. In re Cook, 72 B.R. 976 (W.D.Mo.1987). Conclusions of law, however, are subject to de novo review. In re Martin, 761 F.2d at 474. Since the issue on appeal concerns a conclusion of law, the decision of the United States Bankruptcy Court for the Eastern District of Missouri is subject to de novo review by this Court.

It appears from the record before this Court that the underlying facts germane to this appeal are essentially undisputed. On or about May 20, 1991 J.H. Ware Trucking, Inc. filed its Chapter 11 petition in bankruptcy. From the date of filing until April 14, 1992 it operated as a Debtor-in-Possession (DIP). On April 14, 1992 a Second Amended Plan of Liquidation was confirmed by the Bankruptcy Court. The Second Amended Plan of Liquidation established the Plan Committee, which was assigned J.H. Ware’s rights in all causes of action belonging to it.

On or about May 19, 1993 the Plan Committee brought an adversary proceeding for alleged undercharges against appellee/defendant Eveready Battery Co. The Plan Committee sought additional freight charges which it calculated were due under J.H. Ware’s common carriage tariffs for shipments J.H. Ware had moved for Eveready Battery Co. Eveready Battery Co. filed its answer and counterclaim on June 17, 1993. On or about September 14, 1993 Eveready Battery Co. filed a motion for summary judgment contending that it was not liable for the additional freight charges because the underlying tariffs were invalid since J.H. Ware had no power of attorney to show it was authorized to use the Household Goods Carriers’ Bureau (HGCB) Mileage Guide. Extensive responsive pleadings were filed by both parties.

On November 17, 1993 the Bankruptcy Court issued its memorandum opinion holding that the lack of a concurrence or power of attorney in the mileage guide rendered J.H. Ware’s tariffs void as a matter of law. The Bankruptcy Court based its opinion primarily on the Eighth Circuit case of Atlantis Exp. v. Associated Wholesale Grocers, 989 F.2d 281 (8th Cir.1993) which held that carrier tariffs which reference the HGCB Mileage Guide without effective concurrences or powers of attorney are void as a matter of law. However, the Bankruptcy Court did note that Atlantis primarily relied upon the ICC’s similar decision in Jasper Wyman & Son, et al., 8 I.C.C.2d 246 (1992), which was subsequently overruled by the Court of Appeals for the District of Columbia in Overland Express, Inc. v. Interstate Commerce Com[937]*937mission, 996 F.2d 356 (D.C.Cir.1993). Irrespective of the D.C. Circuit’s rejection of Jasper Wyman, the Bankruptcy Court held that in accordance with the Eighth Circuit’s ruling in Atlantis, the undercharge claims were invalid because they were based on tariffs that referenced the HGCB Mileage Guide without effective concurrences or powers of attorney. The Court granted Ever-eady Battery Co.’s motion for summary judgment. Bankruptcy Court Memorandum Opinion, dated November 17, 1993.

The Plan Committee then filed its appeal before this Court. On or about May 19, 1994 this Court entered a stay pending the United States Supreme Court’s decision in Security Services v. K Mart, 996 F.2d 1516 (3rd Cir.1993). In Security Services, a carrier which had filed for Chapter 11 protection sought to recover freight undercharges. The issue before the Supreme Court was whether a motor carrier’s failure to participate in the HGCB Mileage Guide, pursuant to applicable I.C.C. regulations, voids, as a matter of law, the carrier’s mileage-based rate tariffs that incorporate the mileage guide by reference. This Court determined that the Supreme Court’s determinations regarding the issues raised in the Security Services case would be instrumental in resolving the issue(s) raised in the instant case.

At about the same time that this Court entered a stay in this case, the United States Supreme Court rendered its decision in Security Services v. K Mart, — U.S.-, 114 S.Ct. 1702, 128 L.Ed.2d 433 (1994). It held that a bankrupt carrier cannot rely on tariff rates, which it has filed with the I.C.C. but are void for nonparticipation under the I.C.C. regulations, as the basis for recovering undercharges. In reaching this decision, the Supreme Court upheld the lower courts’ rulings and the I.C.C.’s rulings in Atlantis, supra and Jasper Wyman, supra; and rejected the rulings in Overland Express, supra. In fact, Overland Express and a similar case from the Seventh Circuit, Brizendine v. Cotter & Co., 4 F.3d 457 (7th Cir.1993), were both granted certiorari. The Supreme Court vacated both decisions and remanded the cases back to their respective appellate courts for further consideration in light of Security Services, supra. I.C.C. v. Overland Express, — U.S. — , 114 S.Ct. 2095, 128 L.Ed.2d 658 (1994); Cotter & Co. v. Brizen-dine, — U.S. — , 114 S.Ct. 2095, 128 L.Ed.2d 658 (1994).

There is no question that the Bankruptcy Court’s granting of Eveready Battery Co.’s motion for summary judgment was proper in light of Atlantis, supra, Jasper Wyman, supra, and now the recent Supreme Court decision of Security Services v. K Mart, supra. The Planning Committee concedes as much. However, it seeks to remand this case to the Bankruptcy Court in order to determine what rates are applicable and for a trial on the merits as to all non-mileage based undercharge claims. The Plan Committee does not specify as to what other tariffs might be applicable.

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Bluebook (online)
186 B.R. 935, 1995 U.S. Dist. LEXIS 13385, 1995 WL 550098, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-jh-ware-trucking-moeb-1995.