Lafond Motor Co. v. Northern Pac. Ry. Co.

2 F. Supp. 658, 1932 U.S. Dist. LEXIS 1542
CourtDistrict Court, D. Minnesota
DecidedJune 24, 1932
StatusPublished
Cited by1 cases

This text of 2 F. Supp. 658 (Lafond Motor Co. v. Northern Pac. Ry. Co.) is published on Counsel Stack Legal Research, covering District Court, D. Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lafond Motor Co. v. Northern Pac. Ry. Co., 2 F. Supp. 658, 1932 U.S. Dist. LEXIS 1542 (mnd 1932).

Opinion

MOLYNEAUX, District Judge.

This action was brought to recover damages on the failure of the defendant to comply with the award of the Interstate Commerce Commission, declaring reparation for alleged freight overcharges, made by defendant on shipments of automobiles over its line of railway between November 28, 1925, and April 7, 1927.

The pertinent facts are as follows:

The defendant operates two lines of railroad between Minneapolis and Coon Creek, on the one hand, and Duluth -and Carlton, on the other. The shorter, direct line passes through White Bear, Wyoming, and Rush City; the longer, circuitous route passes through St. Cloud, Little Ealls, and Brainerd. The distance from Minneapolis to Carlton, over the direct route, is 136.4 miles, while the distance via the circuitous route, through St. Cloud, little Fhlls, and Brainerd, is 218.3 miles. The shipments were from North Flint, Mich., and consisted of automobiles.

They moved over certain connecting carriers to Minneapolis, tbence over the Northern Pacific through Coon Creek, some to St. Cloud, Minn., and some to Little Falls, Minn. Charges on shipments were made on the basis of a combination rate composed of $1.57 to Coon Creek; and the appropriate factor beyond to the point of destination. A rate of $1.57 applied to Duluth and Carlton, and plaintiff contends that the same rate applied to the destinations named, St. Cloud and Little Falls, upon the theory that sueh. named points are situated on defendant’s line directly between Coon Creek and Duluth, within the meaning of the following tariff provision: “To an intermediate point of destination which is not named herein, but which is situated directly between two points on the same railroad to which rates are published herein, the rate will be the same as the rate named in this tariff, or as supplemented, to sueh two points unless the rate to- sueh two points is not the same, in which ease the rate to the intermediate point will be that applicable to that one of sueh two points to which the higher rate is published herein.”

Neither of the destinations, St. Cloud or Little Falls, are embraced in the tariff. The $1.57 rate applied to Duluth and also to Carlton, over several different routes, including the one over which the shipments were moved, but prior to March 22, 1927, it was unrestricted as to its application over the lines of the Northern Pacific. Effective on March 22-, 1927, it was restricted so as not to apply via Little Falls and Brainerd. There is no question but that the shipments moved as far as Minneapolis over a route specifically defined by the tariff. The distance from Minneapolis to Duluth via St. Cloud, Little Falls, and Brainerd is 2391 miles, or 82 miles [659]*659longer than tho direct route from Minneapolis, north, through White Bear and Bush City.

The route via, St. Cloud and Little Falls was not tho usual and customary route. It is physically possible to run cars from St. Paul, Minneapolis, and Coon. Creek to Duluth and the head of the lakes through, St. Cloud, Little Falls, and Brainerd, but there is no direct service that way, and it would cause a twenty-four hour later delivery than by the short line.

In the event that shipments were tendered to the Northern Pacific at Coon Creek, they would he handled by taking them back through Minneapolis, to Duluth, over tho short line. There is no through service for either freight or passengers from St. Paul, Minneapolis, and Coon Creek to the head of the lakes, via the circuitous route through St. Cloud and Little Falls, and there never has keen any such service since the short line, running through White Bear and Wyoming, was acquired by the Northern Pacific. There is both direct passenger service and freight service over the short line, -and all of the business is handled that way. It is necessary to handle both freight and passengers over the short line, for the reason that it would be uneconomical and wasteful to handle it via the circuitous route, and for the further reason that it is necessary to handle it that way to meet the keen competition of other roads who have short lines between Minneapolis and Duluth, and it is necessary to expedite tho service between the Twin Cities and the head of -the lakes to meet the highly competitive competition. It would be disastrous to the business of the Northern Pacific to handle the business over the circuitous route, and any one in his right mind would not, under the circumstances, think of so doing. There has been no instance when the road has handled business between tho Twin Cities or Coon Creek and the head of tho lakes through St. Cloud, Little Falls, and Brainerd, since the time the Northern Pacific acquired the short line. Tho only circumstances under which the business would be so handled would be in the event of an interruption of the service over the short line by some accident or otherwise.

Defendant contends that the points, St. Cloud and Little Falls, are not directly between Coon Creek and Duluth, within the meaning of the tariff. It argues that, while rates unrestricted as to routes are properly applicable over all workable junction points of such carriers, the rates are limited in their application over the lines of the individual earners to those routes which the carrier customarily uses in transporting its traffic.

Division 5 of tho Interstate Commerce Commission found that the route via St. Cloud, Little Falls, and Brainerd was an open route, and that tho $1.57 rate was applicable; Farrell, Commissioner, dissenting.

As sustaining its holding’, tho Commission cited Delmar Co. v. Great Northern By. Co., 34 F.(2d) 221 (District Court), and Great Northern Railway Company v. Delmar Co., 43 F. (2d) 780 (same case in Circuit Court of Appeals). Since the award of the Commission in the present case, the Delmar Case was reversed by the Supreme Court (Great Northern Railway Company v. Dehnar Co., 283 U. S. 888, 51 S. Ct. 579, 581, 75 L. Ed. 1349) on tho ground that tho holding of the Commission and the two lower courts, that the route was an open one to the shipper, and lha.t the through rate was applicable, was erroneous, as a matter of law, because, for the reasons stated in the; decision, shipment over the longer route1, under the circumstances shown in the ease, was in violation of section 4 of the Interstate Commerce Act (49 USCA § 4). The court said: “This conclusion is in accord with the principle that, where two constructions of a written contract are possible, preference will bo given to that which docs not result in violation of law.”

It will be noted that the Supreme Court held that the Commission and tho two- lower courts came to tho wrong conclusion because of an improper construction of the tariff provision.

The Commission has consistently held, as a matter of law, that, when two or moie routes are open, tho shipper has the option of routing, in the absence of a contrary statement in the tariff, but it is contended by the defendant that as a matter of law the tariff provision must be eonstx’uod to mean that the shipper in such case must be confined to- the route or routes usually and customarily used,, and in its more recent decisions the Commission seems to have adopted this latter view.

In the case of Miner Lumber Co. v. Penn. R. R. Co. et al., 161 I. C. C. 801, decided March 11, 1930, by the entire Commission, it was stated as follows: “In no ease where the application of rule 77 has been considered have we established any definitely settled rule of what is or is not a reasonable or natural route. Every case has boon decided on its own merits.

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Related

Samuel P. Mandell Co. v. Pennsylvania Railroad
336 F. Supp. 565 (E.D. Pennsylvania, 1971)

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Bluebook (online)
2 F. Supp. 658, 1932 U.S. Dist. LEXIS 1542, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lafond-motor-co-v-northern-pac-ry-co-mnd-1932.