Jones Truck Lines, Inc. v. Marathon Electric Manufacturing Corp. (In re Jones Truck Lines, Inc.)

177 B.R. 606, 1995 U.S. Dist. LEXIS 1497
CourtDistrict Court, E.D. Wisconsin
DecidedFebruary 2, 1995
DocketNo. 93-C-983
StatusPublished
Cited by1 cases

This text of 177 B.R. 606 (Jones Truck Lines, Inc. v. Marathon Electric Manufacturing Corp. (In re Jones Truck Lines, Inc.)) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jones Truck Lines, Inc. v. Marathon Electric Manufacturing Corp. (In re Jones Truck Lines, Inc.), 177 B.R. 606, 1995 U.S. Dist. LEXIS 1497 (E.D. Wis. 1995).

Opinion

DECISION AND ORDER

WARREN, District Judge.

Before the Court are the defendant’s Motion for Stay and Referral to the Interstate Commerce Commission (“ICC”) and the plaintiffs Motion for Summary Judgment pursuant to Federal Rule of Civil Procedure 56(c) (“Rule 56(c)”) in the above-captioned matter. For the following reasons, the defendant’s motion is granted, and the plaintiffs motion will be held in abeyance pending ICC determination of (1) the reasonableness of the tariff rate sought by Jones; (2) its motor carrier status; and (3) the applicable tariff rate. During the interim, this case shall be closed for statistical purposes, and may be reopened by either party after ICC resolution of such issues.

I. FACTUAL AND PROCEDURAL BACKGROUND

Between July and September, 1988, plaintiff Jones Truck Lines, Inc. (“Jones”) transported approximately one hundred twenty-nine (129) truckload shipments of goods on behalf of defendant Marathon Electric Manufacturing Corporation (“Marathon”). (PI. Mem.Supp.Summ.J. at 1.) Shortly thereafter, Jones became insolvent; it currently exists as a debtor-in-possession in a Western District of Arkansas bankruptcy proceeding. (Compl. ¶2.) On July 6, 1993, Jones filed the instant Complaint, seeking ex-post facto collection of $9,874.06 in freight charges plus interest allegedly owed by Marathon based on tariffs filed by Jones with the ICC. Marathon answered on July 23, 1993, denying Jones’ charges and bringing eighteen (18) affirmative defenses1 including, inter alio, [609]*609the inapplicability of the filed rate doctrine2 given Jones’ status as a motor contract carrier, the unreasonableness of the claimed tariff rate, and its “unreasonable practice” of attempting to collect purported undercharges. Marathon also filed a counterclaim pursuant to 49 U.S.C. § 11705(b)(3), seeking to enforce its reparations right based on the unreasonableness of Jones’ claimed tariff rate.3

On June 9, 1994, Marathon filed a Motion for Stay and Referral to the ICC, arguing that, pursuant to the Negotiated Rates Act of 1993 (“1993 Act”), the ICC has primary and exclusive jurisdiction over the threshold issue of whether the shipments moved under contract, rather than common, carriage, thereby rendering the “filed rate doctrine” advanced by Jones inapplicable. Marathon further asserts that the 1993 Act gives the ICC primary jurisdiction to determine whether the attempt to collect the tariff rate is an “unreasonable practice.” Marathon also argues that the need for uniformity in interpreting relevant statutory and regulatory provisions requires ICC expertise. Finally, Marathon argues that, under the majority view, the reasonableness of the tariff rate advanced by Jones must also be decided by the ICC.

The plaintiff responded on June 20, 1994,4 arguing that the 1993 Act is inapplicable in this case given 11 U.S.C. § 541(c)(1), which provides that “an interest of the debtor in property becomes property of the [debtor’s estate] ... notwithstanding any provision in ... applicable nonbankruptey law ... that is conditioned on the insolvency or financial condition of the debtor.” According to Jones, referral of this matter to the ICC under the provisions of the 1993 Act would cause an impermissible forfeiture of its property; specifically, the right to recover freight undercharges under the filed rate doctrine. Jones also claims that, even if the 1993 Act is applicable in this case, relevant provisions have not been given retroactive effect. Jones further asserts that Marathon has not met its burden of showing, beyond mere allegation, that the tariff rates filed were, in fact, unreasonable, and emphasizes the ICC’s' apparent inability to render timely decisions. Jones also claims that it operated as a motor common, rather than motor contract, carrier. Finally, Jones suggests that the Court enter judgment on its claim and stay enforcement, allowing discovery on the issue of Marathon’s financial solvency.

Marathon replied on June 29, 1994, listing a number of cases where courts have applied the 1993 Act despite the fact that the carrier was in bankruptcy and reiterating several points made in its principal brief.

On July 26, 1994, Jones moved for summary judgment, arguing that, despite Marathon’s counterclaim that its tariffs were unreasonable, enforcement of its undercharge claim is warranted under Reiter v. Cooper,— U.S. -, 113 S.Ct. 1213, 122 L.Ed.2d 604 (1993). According to Jones, referral of this action to the ICC is inappropriate because Phoenix has given inadequate evidence of tariff unreasonableness, the ICC policy on determining the reasonableness of negotiated rates is in a state of flux, and the 1993 Act is inapplicable to this case. Marathon’s unreasonable-rate counterclaim may nevertheless be protected, Jones argues, by requiring Marathon to pay into the court the amount owed under Jones’ filed rate while it litigates “rate reasonableness” with the ICC, or by entering judgment and staying enforcement. Jones further claims an entitlement to prejudgment interest accruing from the date of each shipment.

Marathon responded on August 25, 1994, arguing that the plaintiff misrepresented the law in its brief and that summary judgment is inappropriate. Marathon emphasizes that it is challenging the tariff rate sought by Jones in this case based on Jones’ status as a motor contract carrier as well as its unreasonableness; Marathon argues that, if Jones acted as a motor contract carrier, rather than [610]*610a motor common carrier, the Transportation Agreement entered into by the parties, rather than the filed rate doctrine, establishes the proper shipment charge. Marathon also claims that Reiter instructs lower courts to ordinarily not grant judgment for carrier undercharges prior to adjudication of a shipper’s counterclaim, and that Jones has shown no danger or hardship warranting equitable departure from this rule. The defendant also asserts that prejudgment interest is inappropriate in this case.

II. STANDARD OF REVIEW

1. Rule 54(b):

Federal Rule of Civil Procedure 54(b) (“Rule 54(b)”) provides that:

“[w]hen more than one claim for relief is presented in an action, whether as a claim, counterclaim, cross-claim, or third-party claim, or when multiple parties are involved, the court may direct the entry of a final judgment as to one or more but fewer than all of the claims or parties only upon an express determination that there is no just reason for delay and upon an express direction for the entry of judgment. In the absence of such determination and direction, any order or other form of decision, however designated, which adjudicates fewer than all the claims or the rights and liabilities of fewer than all the parties shall not terminate the action as to any of the claims or parties, and the order or other form of decision is subject to revision at any time before the entry of judgment adjudicating all the claims and the rights and liabilities of all the parties.”

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177 B.R. 606, 1995 U.S. Dist. LEXIS 1497, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-truck-lines-inc-v-marathon-electric-manufacturing-corp-in-re-wied-1995.