Louisiana & Arkansas Railway Company v. Export Drum Company, Inc.

359 F.2d 311
CourtCourt of Appeals for the Fifth Circuit
DecidedJune 6, 1966
Docket21899_1
StatusPublished
Cited by96 cases

This text of 359 F.2d 311 (Louisiana & Arkansas Railway Company v. Export Drum Company, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louisiana & Arkansas Railway Company v. Export Drum Company, Inc., 359 F.2d 311 (5th Cir. 1966).

Opinions

McRAE, District Judge:

This action was brought under the provisions of the Interstate Commerce Act by the Louisiana & Arkansas Railway Company (“Railway Company”), which sought to recover portions of freight charges that Export Drum Company, Inc. (“Export Drum”), had refused to pay. Involved were twenty-two shipments of old, used steel drums from points In Texas and Tennessee to Baton Rouge, Louisiana.

The district court found that the Railway Company was entitled to the higher rate on the Tennessee shipments and awarded it $1,918.34, together with interest from the date of judgment, but the court did not allow recovery on the Texas shipments. From that judgment, the Railway Company appeals, alleging as error the denial of recovery on the Texas shipments and the denial of interest on the Tennessee shipments from the dates of shipment to the date of judgment.

With regard to the Texas shipments, the district court held that the shipper, Export Drum, was entitled to a preferential rate since it met the requirements of Note 18, Item 9552 of Supplement 3 to Uniform Freight Classification No. 3, which provides as follows:

(a) Ratings apply only when the immediate preceding transportation of the filled containers or cores to the shipping point of the empty containers or cores was by railroad freight service or by joint railroad freight service in connection with water service, subject to paragraph (c), OR;
When the destination of the empty. containers or cores is a point from which the filled containers or cores moved by railroad freight service or by joint railroad freight service in connection with water service, subject to paragraph (c);
(b) Identity of containers or cores will not be required but a record, subject to verification by authorized representative of the carriers, must be maintained of the filled containers or cores received or forwarded and the empty containers or cores returned.
(c) Consignor or consignee of empty containers or cores must furnish carriers’ agent certificate in the form below:
CERTIFICATE
This is to certify that the filled containers (or cores) which are returned empty consist of not more than an equal number of the kind and size of the filled containers (or cores) ; that the filled containers (or cores) were received by railroad freight service or by joint railroad freight seviee in connection with water service, or the destination of the empty containers (or cores) is a point from which the filled contain[314]*314ers (or cores) moved by railroad freight service or by joint railroad freight service in connection with water service.

It was stipulated by the parties that the empty drums transported from Dallas,. Texas, had been shipped to Texas in a filled state by railroad freight service, but shipment had been to a GMC plant at Arlington, Texas, some 12 to 25 miles from Miller Yard, the Dallas shipping place. Export Drum transported the drums in its trucks from the GMC plant to Miller Yard.

It was stipulated further that the only records kept by Export Drum in connection with the requirements of Note 18(b) were bills of lading for each shipment of empty drums. These bills of lading bore the following inscription: “This certifies that these steel drums were received filled in railroad freight service.”

On the basis of these uncontested facts, the Railway Company alleges noneompliance with all three parts of Note 18: it urges that Miller Yard in Dallas is not within the same “shipping point” as Arlington, Texas, that Export Drum failed to maintain adequate records, and that the certifications of prior railroad shipment on the bills of lading were not sufficient.

Before reaching the merits of these contentions, however, we are faced with the problem whether, under the doctrine of primary jurisdiction, we first must allow the Interstate Commerce Commission to construe the tariffs in dispute. Although this issue apparently was not raised by counsel for either party at any stage in the proceedings, we must apply the doctrine if it is applicable, for, being a question of the proper allocation of business between the courts and administrative agencies, it is not subject to waiver.

Until recently, the doctrine of primary jurisdiction rarely would be invoked in a case involving the construction of a railroad tariff. “[W]hat construction shall be given to a railroad tariff presents ordinarily a question of law which does not differ in character from those presented when the construction of any other document is in dispute.” Great No. Ry. v. Merchants’ Elevator Co., 259 U.S. 285, 291, 42 S.Ct. 477, 479, 66 L.Ed. 943 (1922). Only when the words in dispute are used in a technical sense, requiring extrinsic evidence to determine their meaning, would initial resort to the Commission be required. Id. at 291-92, 42 S.Ct. 477.

In 1956, however, the Supreme Court seemed to expand the category of cases where primary jurisdiction would be applicable. Although purporting to adhere to the distinction drawn in Great No. By., supra, the Court held that where the construction of a tariff requires an “examination of the underlying cost-allocation which went into the making of the tariff in the first instance” and therefore where “the questions of construction and reasonableness [of the tariff] are so intertwined that the same factors are determinative on both issues, then it is the Commission which must first pass on them.” United States v. Western Pac. R.R., 352 U.S. 59, 69, 77 S.Ct. 161, 168, 1 L.Ed.2d 126 (1956). Because all tariffs rest to some extent on cost factors and most tariff interpretations imply some question of reasonableness, and in light of the decision in a companion case to Western Pac. B.B., supra, one commentator has expressed great alarm at the trend that he believes is indicated by the case. See Jaffe, Primary Jurisdiction, 77 Harv.L.Rev. 1037, 1043-47 (1964).

Whether or not this alarm is justified, we need not say; for even if the category of cases to be initially decided by the Commission has been expanded, we do not believe that this case falls within that group. The major dispute here is over the meaning of the words “shipping point” and “a record.” It is true that the Commission previously has neither construed these provisions nor indicated their purpose. Both parties, furthermore, believed it necessary at the trial to have experts testify to the meaning of the words “shipping point.” But the reasonableness of the rates is not in question; the purpose of the tariff is [315]*315clear, even to laymen; and if any tariff can be construed without reference to the underlying cost-allocation factors, this is one. Under these facts, courts are as competent as the Commission to interpret the tariff.

Having decided that this Court may initially consider the question of tariff construction, we now turn to the merits of the controversy. As previously stated, the Railway Company contends that Export Drum failed to meet any of the requirements of Note 18. Export Drum is entitled to the lower rate, of course, only if all of them were met.

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359 F.2d 311, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisiana-arkansas-railway-company-v-export-drum-company-inc-ca5-1966.