K.G.L. Contracting Services, Inc. v. Coulter Electronics, Inc. (In re K.G.L. Contracting Services, Inc.)

118 B.R. 881, 1990 Bankr. LEXIS 1782
CourtUnited States Bankruptcy Court, S.D. Florida.
DecidedJuly 31, 1990
DocketBankruptcy No. 83-0084-BKC-AJC; Adv. No. 86-0203-BKC-AJC-A
StatusPublished

This text of 118 B.R. 881 (K.G.L. Contracting Services, Inc. v. Coulter Electronics, Inc. (In re K.G.L. Contracting Services, Inc.)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, S.D. Florida. primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
K.G.L. Contracting Services, Inc. v. Coulter Electronics, Inc. (In re K.G.L. Contracting Services, Inc.), 118 B.R. 881, 1990 Bankr. LEXIS 1782 (Fla. 1990).

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW

A. JAY CRISTOL, Bankruptcy Judge.

BACKGROUND

This cause came on before the Court for trial on October 25 and 26, 1989. The trial was continued to January 3, 1990, then to March 29, 1990, and was concluded on March 30, 1990. The Court, during the course of trial heard witnesses from both sides, accepted legal arguments from counsel for each of the parties and, received numerous exhibits into evidence.

K.G.L. Contracting Service, Inc. (hereinafter KGL), filed an adversary complaint seeking damages for unpaid transportation charges for goods actually shipped and delivered in late 1980 through the end of 1981. These transportation charges included the following categories: billed but unpaid shipments; unbilled and unpaid ship[882]*882ments; late charges for shipments that were paid beyond seven (7) days after shipment; fuel surcharges; and fuel surcharges on backhauls of Coulter Electronics, Inc. (hereinafter CE) specially designed pallets.

KGL’s claim was voluntarily reduced during pretrial discovery as CE provided evidence of payment for specific shipments. The Court further narrowed the issues in a pretrial ruling when it granted partial summary judgement to CE based upon its affirmative defense that certain claims asserted by KGL were brought beyond the statute of limitations. At that time the Court ruled that KGL could not recover on shipments for which payment was due more than five (5) years prior to the commencement of this action. The Court reserved for trial the issue of whether a shorter period (four year statute) was applicable. If a five year statute is applicable then KGL may recover the charges otherwise supported by the evidence. If a four year statute is applicable, all of KGL’s claims would be time barred.

As of the opening of trial in this cause, KGL (in accordance with this Court’s ruling on the statute of limitations) was seeking the following damages from CE;

unpaid shipments $111,102.71
late charges $ 1,963.17
fuel surcharges $ 204.94
pallets — fuel surcharges $ 4,924.20.

Accordingly, at trial, KGL sought judgement for $118,195.02 plus interest beginning seven (7) days after the date of each shipment.

During trial, KGL abandoned its claim for fuel surcharges with a reservation of right to reassert the claim in the event that this Court’s ruling in regard to the statute of limitations was reversed. The Court has accepted this conditional abandonment.

The Court, at the close of KGL’s case further narrowed the remaining issues in this proceeding when it granted, in part, CE’s motion for “directed verdict” (involuntary dismissal) as to KGL’s claim for late charges.

Based upon the following findings, KGL has sustained its case only as to $111,-102.71 for shipping charges based upon bills of lading executed by CE.

FINDINGS OF FACT

1. KGL, at all times material hereto, was a licensed interstate “contract carrier” of freight.

2. CE, headquartered in Hialeah, Florida is a manufacturer of medical diagnostic equipment and related supplies.

3. KGL and CE, entered into a Contract Carrier Agreement dated October 12, 1979 whereby KGL would act as carrier for CE under the provisions therein.

4. Curtin Matheson Scientific, Inc. (hereinafter CMS), is a distributer of medi-' cal equipment supplies, including certain of CE’s products. CMS has distribution facilities throughout portions of the continental United States. CMS is also a subsidiary corporation of CE.

5. KGL and CMS entered into a Contract Carrier Agreement also dated October 12, 1979 but signed by CMS in January 1981, whereby KGL would act as carrier for CMS under the provisions therein. Contract content was identical to the KGL-CE contract.

6. KGL carried freight from CE’s Hialeah plant to CMS distribution points throughout the country. Each of the shipments were evidenced by “bills of lading”. All bills of lading identified CE as the “shipper”.

7. Between March 24, 1981 and December 7, 1981, one hundred and six (106) shipments (outbound) were undertaken by KGL at the request and direction of CE. These shipments were all picked up at CE’s Hialeah facility and were received by the consignee (CMS). In each instance a bill of lading was executed by CE. (Copies of these bills of lading are collected and tabbed in KGL’s plaintiff composite exhibit “S-l, Group I through III”.)

8. Each of the bills of lading referred to in ■ these findings of fact are uniform straight bills of lading which reflect CE as the shipper/consignor. The bills of lading were preprinted CE forms.

[883]*8839. On each and every bill of lading, CE typed the words “ship prepaid”.

10. Tariff rates for these movements total $110,564.52.

11. On April 23, 1981 and May 29, 1981, CE engaged KGL to move two shipments of commodities (inbound) from Edison, New Jersey to CE’s Hialeah plant. The Tariff charges of $538.19 are unpaid. (These bills of lading are collected in KGL plaintiffs composite exhibit “S-l, Group IV (nos. 3 and 4)”.)

12. CE did not execute the non-recourse provision of the bill of lading which, under its terms and custom in the industry, would have released CE from liability for transportation charges.

13. CE exhibit 6, a letter from KGL to CMS dated January 16, 1981, sets forth procedures on how invoices would be mailed from KGL to CE for verification, then to CMS for payment.

14. In each instance, CE made all arrangements with KGL concerning the times of shipment, size and nature of each load, destination(s), risk of loss and freight rate.

15. There was evidence CMS’ was providing CE with some instructions on shipping information but overwhelming evidence that CE provided all shipping instructions directly to KGL.

16. The only tariff that was ever filed with the Interstate Commerce Commission (hereinafter ICC) was under the KGL-CE contract and no ICC permit was obtained in connection with the KGL-CMS contract.

17. KGL plaintiffs exhibit 18, in conjunction with plaintiff exhibit 100 demonstrates that at least one of the bills from the shipments to be paid by CMS was actually paid by CE.

18. Paragraph 2 of CE exhibit 11, a document introduced by testimony of one of CE’s witnesses, refers to the fact it took too long to pay the “Coulter’s bills”.

19. CE exhibit 12 indicates that the bills of lading were to be signed by the “shipper” at the time of pickup. In each instance, CE signed the bill of lading at the time of pickup.

20. CE exhibit 14 shows that the carrier, KGL, in July 1981, was still looking to CE as well as CMS for payment of past due deliveries.

21. The Court specifically finds that the pallets were transported under a verbal agreement of $3 per pallet and the agreement was made between KGL and CE, but no mention was made of a fuel surcharge obligation.

22. CE agreed to provide payment of $15,000 to KGL as a standing advance payment intended to cover KGL charges, in progress, but in excess of the seven day ICC payment rule, i.e. late charges.

23.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Texas & Pacific Railway Co. v. Leatherwood
250 U.S. 478 (Supreme Court, 1919)
AAA Trucking Corp. v. Spherex, Inc.
272 A.2d 594 (Supreme Court of New Hampshire, 1970)
Bekins Van Lines Co. v. Cauble
547 S.W.2d 320 (Court of Appeals of Texas, 1977)
Watkins Motor Lines, Inc. v. Imperial Freight Brokers, Inc.
493 So. 2d 545 (District Court of Appeal of Florida, 1986)
Minton v. General Shale Products Corp.
371 S.W.2d 808 (Court of Appeals of Tennessee, 1962)

Cite This Page — Counsel Stack

Bluebook (online)
118 B.R. 881, 1990 Bankr. LEXIS 1782, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kgl-contracting-services-inc-v-coulter-electronics-inc-in-re-flsb-1990.