Land O'Lakes, Inc. v. United-Buckingham Freight Lines, Inc.

351 F. Supp. 102, 1972 U.S. Dist. LEXIS 11099
CourtDistrict Court, D. Minnesota
DecidedNovember 16, 1972
Docket4-71 Civ. 221 to 4-71 Civ. 238, 4-71 Civ. 240
StatusPublished
Cited by7 cases

This text of 351 F. Supp. 102 (Land O'Lakes, Inc. v. United-Buckingham Freight Lines, Inc.) 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
Land O'Lakes, Inc. v. United-Buckingham Freight Lines, Inc., 351 F. Supp. 102, 1972 U.S. Dist. LEXIS 11099 (mnd 1972).

Opinion

NEVILLE, District Judge.

Nineteen lawsuits 1 against as many motor carriers have been commenced by plaintiff Land O’Lakes, Inc., seeking a refund of freight charges ordered by the Interstate Commerce Commission at various times in Increased Rates and Charges from, to and between Middle-west Territory, Doc. No. 34571 and 34971, 355 ICC 142 and 397. Each case presently is before the court on defendants’ motions to dismiss for failure to state a cause of action or in the alternative to refer the cases back to the Interstate Commerce Commission (ICC) and on plaintiff’s motion, in part a speaking motion made at the hearing, for leave to amend the various complaints to assert a new theory and statutory basis for recovery. All defendants are members of the Middlewest Motor Freight Bureau, Inc. and appear by common counsel. Plaintiff is a shipper and all defendant carriers are subject to Part II of the Interstate Commerce Act, 49 U.S.C. § 301 et seq. While the cases technically are not ripe for summary judgment and the pending motions are not so styled, in the court’s view no material issues of fact appear to be involved and the court believes it is in a position to determine the question of liability and validity of the ICC orders without any further proceedings. 2

A statement of the controlling facts is necessary to an understanding of the cases.

The ICC refund orders in question resulted from an unsuccessful attempt by members of the Middlewest Bureau to obtain authority to increase certain rates and charges. In accordance with customary ICC procedure, 3 the Bureau on behalf of all present defendants and other carriers filed and published tariff schedules with the ICC specifying various increased rates and charges which the carriers proposed to charge, to take effect April 1, 1968. The Board of Suspension of the ICC decided neither to investigate nor to suspend the increases, and they therefore became effective on that date.

But the matter did not end here. Upon the request of many shippers, the entire Commission reviewed the proposed increased rates and ordered an investigation into their legality. The Commission did not, however, order a suspension of the proposed increases but ordered a hearing to be held May 20, 1968. The carriers, through the Middlewest Bureau, together with the United States Department of Transportation and General Services Administration, re *105 quested a 90 day delay in the hearing so as to be able adequately to prepare an evidentiary presentation. The Commission approved the request but conditioned its approval upon an agreement by the carriers that they would refund any amounts for rates paid on traffic moving after May 20, 1968, the date scheduled for the original hearing, to the extent that the increased rates were subsequently not approved. 4 The order containing the refund condition was dated April 25, 1968 and reads in part as follows:

“That respondents [defendants herein] be, and, they are hereby, ordered to make refunds to the shippers on any shipment moving after May 20, 1968, to the extent that the increases or any portion thereof under investigation herein are not approved by the Commission.” [Emphasis add" ed.]

The carriers then petitioned the Commission for reconsideration of this order, challenging particularly the refund provision contained therein. The carriers shortly however withdrew their petition for reconsideration apparently when it became clear that the ICC would go forward with the hearing on May 20, 1968 if the carriers did not accede to the refund condition. The hearing was not held before the Commission until August 19, 1968. Approximately ten months later on June 5, 1969, the ICC cancelled the proposed increased rates finding that such “have not been shown to be just and reasonable”. Pursuant to the April 25, 1968 order, the carriers were directed to refund to their shippers that portion of the rates which the Commission had found not shown to be just and reasonable. This order provided:

“It is further ordered, that, in accordance with the Order entered herein on April 25, 1968 the respondents be, and they are hereby, required to refund to shippers the charges on shipments moving after May 20, 1968, to the extent that such charges included the increases herein found not shown to be just and reasonable.”

The Commission subsequently denied several requests by the carriers to reconsider that order and it was finally reaffirmed and became effective on October 27, 1969. This latter order provided:

“. . . that the respondents will hereinafter in accordance with the said decision of June 5, 1969, make refunds to shippers presenting their claims to the carriers supported by paid freight bills or other appropriate evidence.” Increased Rates and Charges, From, To and Between Middlewest Territory, I.C.C. #34571

The Middlewest Motor Freight Bureau, acting for carriers including the present defendants, perfected an appeal from the refund portion of the ICC order to a three-judge court sitting in Denver, Colorado which found the order to be valid. Admiral-Merchants Motor Freight, Inc. v. United States, 321 F.Supp. 353 (D.Colo.1971). 5 This decision was affirmed by the United States Supreme Court without opinion, Admiral-Merchant Motor Freight, Inc. v. United States, 404 U.S. 802, 92 S.Ct. 51, 30 L.Ed.2d 37 (1971). Several quotes from the three-judge opinion are apposite and *106 will form a basis in part' for what is said hereinafter:

“. . . Plaintiffs assert that insofar as that order [of the Commission] purports to or does order them to refund certain portions of a disputed rate increase schedule, that portion of the order should be set aside and annulled, and the enforcement of it enjoined as beyond the statutory authority and jurisdiction of the Commission.” 321 F.Supp at 354.
“We must decide whether an order of the Commission in which a rate increase is denied, which order directs repayment of interim rates, if determined to be invalid, and which refund order was entered by the Commission as a condition of granting an extension of time to the carriers at their request, is invalid and subject to a judgment annulling the same. We are not involved with the Commission’s order denying the increase. We are limited to the propriety and validity of a conditional rate refund order, which order was tacitly or impliedly (by withdrawal of objection) accepted by the carriers, plaintiffs herein.” 321 F.Supp. at 358.
“An even stronger argument for refusal to annul the Commission’s order is the doctrine of equitable estoppel.

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Bluebook (online)
351 F. Supp. 102, 1972 U.S. Dist. LEXIS 11099, Counsel Stack Legal Research, https://law.counselstack.com/opinion/land-olakes-inc-v-united-buckingham-freight-lines-inc-mnd-1972.