Jones Truck Lines, Inc. v. WD40 Co.

170 B.R. 1004, 1994 U.S. Dist. LEXIS 10966, 1994 WL 411764
CourtDistrict Court, W.D. Arkansas
DecidedJuly 29, 1994
DocketCiv. No. 94-5054
StatusPublished
Cited by1 cases

This text of 170 B.R. 1004 (Jones Truck Lines, Inc. v. WD40 Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Arkansas 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. WD40 Co., 170 B.R. 1004, 1994 U.S. Dist. LEXIS 10966, 1994 WL 411764 (W.D. Ark. 1994).

Opinion

MEMORANDUM OPINION

H. FRANKLIN WATERS, Chief Judge.

Presently pending for disposition in the above styled matter is a motion for a stay of proceedings and a referral to the Interstate Commerce Commission filed by the defendant, WD40 Company (WD40).1 The plaintiff, Jones Truck Lines, Inc. (Jones), has not responded in the time provided by the Local Rules for the Eastern and Western Districts of Arkansas. Also before the court is a motion for summary judgment filed by Jones and the defendant’s response thereto.

Background.

On July 9, 1991, Jones filed a voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code. This action was initially filed as an adversary proceeding in the United States Bankruptcy Court for [1006]*1006the Western District of Arkansas, Fayette-ville Division. Defendant’s motion to withdraw reference of the adversary proceeding was granted on April 7, 1994.

This is one of a number of “freight undercharge” cases on the court’s current docket filed by Jones against various shippers. Jones contends that the defendant tendered freight to Jones, a motor common carrier, for transportation in interstate commerce and that Jones performed services for the defendant pursuant to authority issued by the Interstate Commerce Commission (ICC). Jones further contends that all of defendant’s shipments have been audited by comparing the commodities, weights, points of origin and destination, and declared value of each shipment to the applicable tariff rate and rules provisions on file with the ICC which were effective on the date of the shipment. As a result of the audit, Jones seeks to recover $40,121.46 in undercharges from the defendant.

Specifically, the claims at issue involve a total of 352 shipments. Corrected freight bills have been sent for each shipment. The dates of the original freight bills were between July 18,1988, and April 4,1991. Each bill originally applied a discount rate. This discount rate was on the majority of the bills 55% of the filed tariff rate. Jones now seeks to recover the difference between the amounts originally billed and paid in full by the defendant and the higher, undiscounted, rates.

In its answer, defendant raised a number of defenses and/or counterclaims. WD40 asserts three defenses or counterclaims which are relevant to the motion to stay: (1) it claims that the freight contracts at issue were made pursuant to contract carriage, not common carriage; (2) it claims that Jones’ attempts to collect the instant corrected freight bills constitutes an unreasonable practice; and (3) it claims that the filed rates now sought to be charged are unreasonable. Defendant contends each of these issues fall within the primary jurisdiction of the ICC.

Defendant asserts that the transportation services provided by the plaintiff were made pursuant to contract carrier requirements which are exempt from the “filed rate” doctrine. Defendant maintains that a transportation agreement effective on May 17, 1987, supports the conclusion that the shipments were moved pursuant to contract carrier authority rather than pursuant to common carrier requirements as plaintiff argues. The agreement recites the number of Jones’ ICC contract carrier permit.

Defendant argues, therefrom, that the contractual rate governs the shipping charges rather than the published tariffs rates pursuant to which plaintiff now seeks undercharges. Defendant supports its contentions with the affidavit of Michael Bange, a transportation consultant. In his affidavit Bange indicates the transportation agreement provides for a discount of 55% off all classes of freight rates on outbound, prepaid and collect shipments, with a minimum charge floor of $30. Bange further states that all of the shipments in the lawsuit moved subsequent to the execution of the agreement and virtually all of the original freight bills were rated showing discounts equal to those set forth in the agreement.

In light of this, defendant asserts that this issue, contract carriage versus common carriage, first should be decided by the ICC under the “primary jurisdiction” doctrine. Defendant is represented by the same counsel who have handled a number of the Jones undercharge cases pending before this court. For that reason, counsel is aware that this court in a memorandum opinion issued on October 13, 1993, in Jones Truck Lines, Inc. v. Iversen Baking Company, 837 F.Supp. 290 (W.D.Ark.1993) had previously refused to “refer” the issue of contract versus common carriage to the ICC. On this point, the court is referred to section 8 of the Negotiated Rates Act of 1993 (NRA), Pub.L. No. 103-180, 107 Stat. 2044 (1993). Defendant contends this provision now clearly compels the conclusion that the issue of contract versus common carriage falls within the primary jurisdiction of the ICC.

Next, defendant contends that the Negotiated Rates Act of 1993 makes specific remedies available to shippers with respect to shipments moving prior to September 30, 1990. According to Bange, all but four of the [1007]*1007shipments at issue occurred before September 30, 1990, and would be eligible for the “unreasonable practice” relief provided in the Act. Defendant also contests the reasonableness of the rates charged by the plaintiff and contends the issue of reasonableness falls within the primary jurisdiction of the ICC.

As we previously noted, plaintiff has not responded to the motion for stay or referral. Plaintiff has, however, moved for summary judgment asking the court to enter judgment in its favor based on the application of the filed rate doctrine. Plaintiff also argues that it is entitled to an award of prejudgment interest from the dates of delivery of each shipment. Jones supports its motion with the corrected freight bills applying the undis-eounted filed tariff rate and with the affidavit of Stephen L. Swezey, a freight auditor and analyst employed by Carrier Service, Inc. Carrier Service Inc., was retained by Jones, with the permission of the Bankruptcy Court, to conduct audits and collect receivables and freight charges.

Jones argues that under the filed- rate doctrine WD40 should be required to pay the tariff rates before it is allowed to pursue its “unreasonableness” counterclaim. Jones recognizes that the court has the discretion to stay entry of judgment but argues the equities favor the entry of judgment in its favor. In Jones’ opinion the defendant’s unreasonableness counterclaim is nothing more than a rehash of the negotiated rates defense rejected by the Supreme Court in Maislin Industries, U.S., Inc. v. Primary Steel, Inc., 497 U.S. 116, 110 S.Ct. 2759, 111 L.Ed.2d 94 (1990). In this regard Jones argues that the provisions of the NRA do not apply to bankrupt motor carriers. In another Jones case this court has already rejected Jones’ argument that the NRA does not apply to bankrupt carriers. For the court’s reasoning in this respect, the parties are referred to the court’s memorandum opinion in Jones Truck Lines, Inc. v. Whittier Wood Products, Inc., No. 94-5071, 1994 WL 525534 (July 18, 1994) and the cases cited therein.

Primary Jurisdiction.

The general division of initial jurisdiction between the courts and the ICC is defined by the “primary jurisdiction” doctrine, which requires that

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170 B.R. 1004, 1994 U.S. Dist. LEXIS 10966, 1994 WL 411764, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-truck-lines-inc-v-wd40-co-arwd-1994.