Jacoby v. Pennsylvania R.

200 F. 989, 1912 U.S. Dist. LEXIS 1148
CourtDistrict Court, E.D. Pennsylvania
DecidedNovember 12, 1912
DocketNo. 2,008
StatusPublished
Cited by2 cases

This text of 200 F. 989 (Jacoby v. Pennsylvania R.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jacoby v. Pennsylvania R., 200 F. 989, 1912 U.S. Dist. LEXIS 1148 (E.D. Pa. 1912).

Opinion

THOMPSON, District Judge.

This suit was brought to recover damages from the Pennsylvania Railroad Company which the plaintiffs claim to have suffered by reason of unjust and unlawful discrimination against the plaintiffs, practiced by the defendant, in violation of the act to regulate commerce, in the distribution of coal cars in the Clearfield coal region of Pennsylvania, in which the coal mines owned and operated by the plaintiffs were situated.

The petition sets out the facts upon which the plaintiffs’ claim of unlawful discrimination is based. It further sets out that in June, 1907, the plaintiffs filed with the Interstate Commerce Commission a complaint setting forth the unjust, unreasonable, and discriminatory practices of the defendant in violation of the act to regulate commerce, and praying for a hearing and an order awarding the plaintiffs reparation in damages. It recites that, after answer and joinder of issue, the cause was heard and argued by all the parties, and that a report was duly filed, in which the Interstate Commerce Commission found that the rules, regulations, and practices of the defendant, of which the plaintiffs complained, unduly discriminated against them, and that the Commission thereupon on March 11, 1912, made an order of reparation against the defendant in the sum of $21,094.39, with interest at the rate of 6 per cent, per annum from June 28, 1907. The suit is brought to recover the principal and interest awarded, amounting to $27,332.55, with interest from June 1, 1912, “as and for damages and reparation, in accordance with a report and order of the Interstate Commerce Commission, dated March 11, 1912.”

The defendant demurs, upon the ground that the action is brought to recover the amount of an award which the Commission was without authority to make, because the authority conferred by the acts of Congress does not extend to nor include the making of awards of the character of that which forms the basis of the action, and because the Commission has not been empowered to entertain claims for damages of the character asserted by the plaintiffs in the proceeding instituted by them before the Commission.

In the case of Morrisdale Coal Co. v. Pennsylvania Railroad Co., 176 Fed. 748, where a suit was brought in this district to recover damages for alleged unlawful discrimination in distribution of coal cars, in violation of the Interstate Commerce Act, the plaintiff had not, prior to bringing suit, filed a complaint with the Interstate Commerce Commission, and obtained a ruling of the Commission finding the alleged discriminatory practice unlawful, nor obtained an order from the Commission for reparation. There was a trial by jury, and a return of a special verdict. The defendant moved to dismiss the suit, upon the ground that the Circuit Court was without primary jurisdiction to entertain the action. The question was whether, in a suit to recover damages for an alleged unlawful discrimination, in which the question of rates was not involved, a previous application to the In[991]*991terstate Commerce Commission for relief under section 13 of the act to regulate commerce was a prerequisite to maintaining an action in court; the Supreme Court having held in the case of Texas & Pacific Railway Co. v. Abilene Cotton Oil Co., 204 U. S. 426, 27 Sup. Ct. 350, 51 L. Ed. 553, 9 Ann. Cas. 1075, that a shipper seeking reparation predicated upon the unreasonableness of an established rate must primarily invoke redress through the Interstate Commerce Commission, which body alone it was declared is vested with power originally to entertain proceedings for the alteration of an established schedule. The motion to dismiss for want of jurisdiction was granted by Judge McPherson, under the authority of the decision of the Supreme Court in the cases of Texas & Pacific Railway Co. v. Abilene Cotton Oil Co. 204 U. S. 426, 27 Sup. Ct. 350, 51 L. Ed. 553, 9 Ann. Cas. 1075, Baltimore & Ohio Railroad Co. v. United States ex rel. Pitcairn Coal Co., 215 U. S. 481, 30 Sup. Ct. 164, 54 L. Ed. 292, and Interstate Commerce Commission v. Illinois Central Railroad Co., 215 U. S. 452, 30 Sup. Ct. 155, 54 L. Ed. 280. The judgment of the Circuit Court was affirmed by the Circuit Court of Appeals. Morrisdale Coal Co. v. Pennsylvania Railroad Co., 183 Fed. 929, 106 C. C. A. 269.

In the case at bar it is conceded by the defendant that, in order to maintain the present action, it was necessary for the plaintiffs to first complain to the Interstate Commerce Commission and obtain a ruling of that body upon the lawfulness or unlawfulness of the alleged discriminatory practice; but it is contended that the Commission, having passed upon the practice, exhausted its authority, and under the act had no power to make an award of damages in a case like this, where the order of reparation involves a finding which is not the result of a mere calculation, as is the case in a cause of action arising from alleged discrimination in rates. It was argued by counsel for the defendant that in the Morrisdale Case the question of the Commission’s primary jurisdiction to make an award of reparation was not decided by Judge McPherson. The position of the defendant is thus stated in counsel’s brief:

“It will be manifest, however, from a reading of the whole opinion, that Judge McPherson considered solely the question of the right of the courts to entertain actions for damages, in the absence of the Commission’s primary consideration and condemnation of the carrier’s regulations, and that the question whether the Commission’s primary jurisdiction extended beyond the consideration of the questions which were involved in reaching a decision as to whether or not the carrier’s regulations were discriminatory was really not considered nor passed upon by him at all. True it is that lie did speak of this jurisdiction. He did say that in his opinion the Commission 'has the primary jurisdiction to award reparation,’ hut it is clear that he was speaking of the jurisdiction of the Commission generally to entertain complaints-of the character which was involved in the action pending before him, and had not in mind the question whether the Commission’s jurisdiction was confined to the administrative features of the Interstate Commerce Act, or went further and included the performance of the judicial functions involved in considering and passing upon claims for damages of the character which the Morrisdale Coal Company was endeavoring to recover.”

The Circuit Court of Appeals in its decision refrained from determining the question of the jurisdiction of the Commission to award damages, because that question was not raised in the briefs nor in [992]*992the record, and was not necessary for the determination of the case, after the one jurisdictional question, that of the necessity of the Commission passing upon the discriminatory nature of the practice of the carrier, was determined. Judge Lanning said, however, in his opinion:

“As already suggested, the letter of the statute seems to confer upon the Commission the power to assess damages in every ease of discriminatory practices. Its procedure in making the assessment constitutes no part of a judicial proceeding.

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Related

Siggins v. Chicago & Northwestern Railway Co.
140 N.W. 1128 (Wisconsin Supreme Court, 1913)
Franklin v. Philadelphia & R. Ry. Co.
203 F. 134 (E.D. Pennsylvania, 1913)

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Bluebook (online)
200 F. 989, 1912 U.S. Dist. LEXIS 1148, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jacoby-v-pennsylvania-r-paed-1912.