Pitney-Bowes, Inc. v. State of California

108 Cal. App. 3d 307, 166 Cal. Rptr. 489, 1980 Cal. App. LEXIS 2056
CourtCalifornia Court of Appeal
DecidedJuly 17, 1980
DocketCiv. 57520
StatusPublished
Cited by14 cases

This text of 108 Cal. App. 3d 307 (Pitney-Bowes, Inc. v. State of California) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pitney-Bowes, Inc. v. State of California, 108 Cal. App. 3d 307, 166 Cal. Rptr. 489, 1980 Cal. App. LEXIS 2056 (Cal. Ct. App. 1980).

Opinions

Opinion

HANSON (Thaxton), J.

Background

Plaintiff/respondent Pitney-Bowes, Inc. (hereinafter plaintiff and/or Pitney-Bowes) since 1935 has been engaged in business in California of manufacturing, selling and servicing business equipment, including specialized scales designed and used for computing transportation and delivery charges for letters, packages, parcels and other items. As of April 1978 Pitney-Bowes had approximately 31,438 scale customers in California using 39,606 of their scales, about 28,415 of which were sold to customers within 9 years preceding the trial of this case. Plaintiff also employs 337 service representatives in California to service the scales which it sells, either on a call-for-service basis or pursuant to an equipment maintenance agreement.

In March 1975 there was a meeting between legal counsel for plaintiff Pitney-Bowes and general counsel for defendant/appellant State of California Department of Food and Agriculture (hereinafter the State) regarding the applicability or nonapplicability of California’s weights and measures legislation embodied in Business and Professions Code sections 12001 through 12540 (hereinafter section 12001 et seq. or the regulatory scheme or the statute)1 to Pitney-Bowes’ scales and scale repairmen.

[310]*310In June 1975 counsel for Pitney-Bowes and the State exchanged letters setting forth their respective legal positions concerning the applicability of the regulatory scheme to Pitney-Bowes’ scales and scale repairmen. Thereafter, the State in a letter dated June 16, 1975, addressed to Pitney-Bowes’ counsel ruled that plaintiffs scales were subject to the regulatory and licensing scheme contained in section 12001 et seq. which includes model approval, installation testing and sealing procedures, and licensing of their repairmen. Defendant State further told plaintiff to advise all former and future customers, except for Pitney-Bowes’ scales sold to and used exclusively by post offices, to arrange to have their scales sealed. The State also told plaintiff that the foregoing advisements would not deter criminal prosecution or civil actions based on violations of the regulatory scheme but sought Pitney-Bowes’ compliance with the laws “as soon as possible, hopefully within 30 days.”

In August 1975 Pitney-Bowes, threatened with criminal prosecutions and civil actions, filed a complaint in the superior court seeking declaratory relief and an injunction naming as defendants the State and the County of Los Angeles Department of Weights and Measures (hereinafter the County) which is involved with enforcing certain aspects of the regulatory scheme.

In February 1979 following a hotly contested nonjury trial, the superior court granted the relief sought by plaintiff declaring that the regulatory and licensing scheme embodied in section 12001 et seq. does not apply to plaintiff Pitney-Bowes’ scales or scale repairmen and enjoined defendants from enforcing the statute against plaintiff herein.

Defendants State and County appeal from the above judgment.

Facts

The following brief summary of the extensive, unchallenged findings of fact made by the trial court is adequate for the purposes of this appeal:

Plaintiff Pitney-Bowes, a Delaware corporation with principal offices in Connecticut, sells and services three types of scales , in California which are specially designed for the particular purpose of computing [311]*311postage and parcel transportation and delivery charges for the United States Postal Service (hereinafter the USPS) and the United Parcel Service (hereinafter UPS) and parcel delivery services other than USPS and UPS. Customers of the foregoing services also use the scales for computing transportation and delivery charges for items prior to turning them over to delivery services.

Two types of plaintiff’s scales (a balance-beam type scale [model 4916] and a fan-type scale) are equipped with USPS rate charts and are capable of weighing items to compute delivery charges but are not equipped with UPS rate charts. The third type of scale (a parcel scale with optical display) is equipped with both USPS and UPS rate charts.

USPS has the final authority for determining the adequacy of postal charges, has the prerogative to reweigh a letter or package, and has at least four different programs in operation to test the adequacy of postal charges. In those cases where the charge is not checked or verified by USPS, the computation made by the customer establishes the delivery charge. If USPS discovers an overpayment of postal charges by a customer, the decision of whether to make a refund to the customer is made in the local postal office.

UPS, a common carrier operating in 35 states including California and the District of Columbia, is engaged in the business of picking up and delivering small parcels, and also has the prerogative to reweigh a package which has been weighed by one of its customers and has final authority for determining the adequacy of its parcel delivery charges. UPS also has programs and audit procedures in existence designed to check the accuracy of charges paid by customers and to spot check the weights of packages in order to determine that rates are charged strictly in accordance with approved tariff schedules. When a customer of UPS weighs a package on one of plaintiff’s scales, the computation made by the customer establishes the amount paid by the customer in those cases where the charge is not checked or verified by UPS.

(The record shows that USPS is an agency of the United States government delegated the responsibility for making the final determination of the accuracy of postage charges and that UPS, being a common carrier, is regulated by another agency of the United States government, the Interstate Commerce Commission [ICC] which determines UPS’ interstate rates and charges and by the California Public Utilities [312]*312Commission [PUC] which determines UPS’ intrastate rates and charges.)

The scales are designed and intended by plaintiff to be kept at a “fixed location” as that term is used in section 12510, subdivision (d), and as previously noted, plaintiff employs 337 service representatives in California to service its scales, either on a call-for-service basis or pursuant to an equipment maintenance agreement.

There is no evidence that plaintiff’s scales are being used for any purpose other than for the particular purpose for which they were designed and intended as hereinbefore described. There is also no question about the fact, nor do defendants contend otherwise, (1) that plaintiff Pitney-Bowes’ scales are specially designed, equipped and used to compute the charge for a service, namely, that of transporting and delivering letters, packages and other items, and (2) that when an item is weighed on any type of plaintiff’s scales, no purchase or sale price for the item weighed is determined.

Issues

The umbrella issue on appeal is whether or not the trial court erred in concluding that plaintiff Pitney-Bowes’ scales and repairmen are not subject to the regulatory and licensing scheme contained in section 12001 et seq.

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Pitney-Bowes, Inc. v. State of California
108 Cal. App. 3d 307 (California Court of Appeal, 1980)

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Bluebook (online)
108 Cal. App. 3d 307, 166 Cal. Rptr. 489, 1980 Cal. App. LEXIS 2056, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pitney-bowes-inc-v-state-of-california-calctapp-1980.