R. E. Tharp, Inc. v. Miller Hay Co.

261 Cal. App. 2d 81, 67 Cal. Rptr. 854, 1968 Cal. App. LEXIS 1720
CourtCalifornia Court of Appeal
DecidedApril 12, 1968
DocketCiv. No. 851
StatusPublished
Cited by2 cases

This text of 261 Cal. App. 2d 81 (R. E. Tharp, Inc. v. Miller Hay Co.) 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
R. E. Tharp, Inc. v. Miller Hay Co., 261 Cal. App. 2d 81, 67 Cal. Rptr. 854, 1968 Cal. App. LEXIS 1720 (Cal. Ct. App. 1968).

Opinion

GARGANO, J.

Plaintiff, a licensed radial highway common carrier, brought this action to recover $11,935.22 from defendants on an open book account.1 During the trial plaintiff attempted to prove that the money which it sought to recover was for undercharges resulting from the transportation of defendants’ hay. Defendants, however, objected to plaintiff’s evidence on the ground that it was at variance with the pleadings and the objection was sustained. Plaintiff then moved the court for leave to amend its complaint to state a cause of action for an account stated in order to conform to proof. Plaintiff’s motion was granted by the court and the complaint was deemed amended accordingly. At the conclusion of the trial the trial judge (Judge Coffee) resigned before awarding judgment to either party. By stipulation the cause was submitted to another judge (Judge Hammerberg) for decision on the reporter’s transcript. Judgment was granted in favor of defendants and plaintiff moved for a new trial. It asserted that irregularities in the proceedings prevented plaintiff from having a fair trial; plaintiff alleged that Judge Coffee erred when he rejected plaintiff’s proffered evidence relating to the undercharges. Plaintiff’s motion was granted and this appeal followed.

[84]*84Defendants correctly contend that plaintiff did not prove an account stated. There is absolutely no- evidence- that the parties ever struck a balance on the undercharges. On the contrary, it is clear from the evidence that defendants consistently denied liability for the undercharges and maintained that plaintiff’s hauling services were performed under a contract of sale, not one of transportation. It is elementary that an account stated is an express or implied agreement between a debtor and his creditor that a certain sum shall be paid and accepted in discharge of the debtor’s obligation (1 Cal.Jur.2d, §42, p. 366, 1952 ed.). And an open book account is not transformed into an account stated by striking a balance unless both parties expressly or impliedly assent to its correctness, or unless the debtor expressly or impliedly acknowledges that he owes the amount struck (1 Cal.Jur.2d, § 50, p. 377,1952 ed.).2

Defendants also correctly assert that plaintiff could not recover undercharges under the pleaded “open book account.” Plaintiff’s president testified that defendants calculated the charges due each week and paid plaintiff on that basis. Thus, the open book account terminated with each weekly payment even though the balance struck may have rested on an illegal computation (Groom v. Holm, 176 Cal.App.2d 310 [1 Cal.Rptr. 410]). In fact, an open account between a shipper and a licensed radial highway common carrier cannot remain open for more than 15 days under the “Collection of Charges Rule” of the Public Utilities Commission.3

The plaintiff’s right to recover undercharges in the instant ease, if it exists at all, is based on defendants’ legal obligation (a so-called “implied promise”) to pay the minimum transportation rates fixed by the Public Utilities [85]*85Commission which became a part of the parties’ original transportation agreement as a matter of law despite the parties’ billing procedure (Gardner v. Rich Mfg. Co., 68 Cal.App.2d 725 [158 P.2d 23]; Pellandini v. Pacific Limestone Products, Inc., 245 Cal.App.2d 774 [54 Cal.Rptr. 290]). Thus, it is manifest that plaintiff’s proffered evidence was at variance with the pleadings and that the trial court correctly sustained defendants’ objections. It is settled that a plaintiff must recover, if at all, upon the cause of action alleged and not upon some other which may appear from the proofs (Bailey v. Brown, 4 Cal.App. 515 [88 P. 518]; Lewis v. South San Francisco Yellow Cab Co., 93 Cal.App.2d 849 [210 P.2d 62]).

Thus, the crucial question is whether the trial judge should have ordered an appropriate amendment to plaintiff’s pleadings even though the amendment would have required plaintiff to state an entirely different cause of action. If so, the court erred when it neglected to do so, and this error would support the order for a new trial. On the other hand, if the trial judge was not under a duty to order an amendment the subsequent order granting a new trial was in excess of the court’s discretion. It is the rule that there is no legal ground for granting a new trial if it is granted for an error of law which did not occur (Parker v. Womack, 37 Cal.2d 116 [230 P.2d 823]).

It is absolutely clear from the record that defendants were not misled by the pleadings as to the true nature of plaintiff’s action. Defendants requested and received a bill of particulars prior to trial in which the claimed undercharges were itemized in detail. Moreover, it is difficult to believe that defendants were unaware of the investigation of the Public Utilities Commission or that they did not know that the commission had directed the plaintiff to collect the undercharges in question. Thus, we may safely assume that defendants were prepared to meet the undercharges issue at the time of trial. Nevertheless, it has long been the decisional law of this state that a trial judge who correctly sustains an objection to proffered evidence because it is at variance with the pleadings is not [86]*86under a duty to order an appropriate amendment to enable the plaintiff to prove his ease (Davey v. Southern Pac. Co., 116 Cal. 325 [48 P. 117]). And ordinarily we would be reluctant to depart from this long established rule of pleading, particularly in a ease where, as here, the plaintiff knew the exact reason for the court’s ruling and yet failed to protect its interest by offering an appropriate amendment.4

We do not here deal with ordinary circumstances. On the contrary, the recovery of undercharges by a carrier through the judicial process is founded on salutary public policy and is not only a right but a duty. In fact, it has been repeatedly held that the recovery of undercharges is one of the most effective means of preserving the minimum rate structure and of eliminating collusion between carriers and shippers (Hischemoeller v. National Ice etc. Storage Co., 46 Cal.2d 318 [294 P.2d 433]; Gardner v. Basich Bros. Constr. Co., 44 Cal.2d 191 [281 P.2d 521]; Gardner v. Rich Mfg. Co., 68 Cal.App.2d 725 [158 P.2d 23]; People ex rel. Public Utilities Com. v. Ryerson, 241 Cal.App.2d 115 [50 Cal.Rptr. 246]). As the court said in Transmix Corp. v. Southern Pac. Co., 187 Cal.App.2d 257, 265 [9 Cal.Rptr. 714] . . The reason why there must be inflexibility in the enforcement of the published rate against all and every suggestion for relaxation rests upon the practical impossibility otherwise of maintaining equality between all shippers without preferential privileges of any sort. The rate when published becomes established by law. It can be varied only by law, and not by act of the parties.”

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Bluebook (online)
261 Cal. App. 2d 81, 67 Cal. Rptr. 854, 1968 Cal. App. LEXIS 1720, Counsel Stack Legal Research, https://law.counselstack.com/opinion/r-e-tharp-inc-v-miller-hay-co-calctapp-1968.