Reading Company v. Commodity Credit Corporation

289 F.2d 744, 1961 U.S. App. LEXIS 4714
CourtCourt of Appeals for the Third Circuit
DecidedApril 25, 1961
Docket13292
StatusPublished
Cited by8 cases

This text of 289 F.2d 744 (Reading Company v. Commodity Credit Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reading Company v. Commodity Credit Corporation, 289 F.2d 744, 1961 U.S. App. LEXIS 4714 (3d Cir. 1961).

Opinion

BIGGS, Chief Judge.

This is an appeal from an order of the court below granting summary judgment in favor of the plaintiff, Reading Company, in its action to recover $2,628.-12 in charges for the storage of grain owned by the defendant, Commodity Credit Corporation. Two questions are presented.

First, does Interstate Commerce Service Order 905, which limits to 7 days the free time which may be allowed by rail carriers on cars held for unloading, apply where the shipper has no control whatsoever over unloading but has the sole responsibility to provide ships into which the contents of the cars may be unloaded? Inherent in the judgment appealed from is the legal fact that the answer given to this question by the court below, by way of a decision, referred to hereinafter, denying Commodity’s motion for a summary judgment, was in the affirmative. We are of the view that we may pass upon the correctness of the answer given by the court below to this first question since otherwise final judgment could not have been given for Reading as it was.

After the court below had entered an order denying Commodity’s motion for summary judgment, based on the ground indicated, Reading moved for summary judgment. Commodity set up as an “Opposition”, Rule 8 of I.C.C. 4610, Freight Tariff 4-B, asserting that Reading was not entitled to the amount of storage charges claimed since it had failed to unload the cars in the order of their arrival. To this opposition Reading interposed the provisions of Section 2(b) of the Uniform Commercial Bill of Lading which provided that a claim for delay must be made within 9 months after delivery at a port of export. The court ruled in favor of Reading and gave judgment on the ground interposed by Reading in the amount stated in the first paragraph of this opinion. Thereby was posed the second question for our decision, which may be stated as follows: does Section 2(b) of the Uniform Commercial Bill of Lading bar Commodity’s defense because it did not file a claim within the 9 months period ?

The facts are stipulated. 1 Between August and November 1955, Commodity, desiring to ship a quantity of grain overseas, ordered cars from Reading for shipment of the grain to Reading’s Port Richmond elevator in Philadelphia. The grain arrived at various times in August and November and remained in the cars for periods ranging from 10 to 65 days. During this period there was an embargo on the shipment of grain to eastern ports, and no grain was accepted at the Port Richmond elevator unless, prior to its shipment, a permit had been obtained *747 from Reading. 2 All of the grain shipped to Port Richmond by Commodity was shipped subject to permits issued by Reading despite the fact that Reading had knowledge of the crowded conditions of its grain elevators.

Reading had complete control of the unloading of the grain which arrived at its Port Richmond elevator from the cars into the elevator and the vessels which were to take the grain overseas. Neither Commodity nor any other shipper had any control whatsoever over such unloading; nor could a shipper take any action which would compel Reading to unload cars. Commodity, however, had the responsibility for providing vessels to receive the grain. Despite its knowledge of the crowded conditions at Reading’s elevator, Commodity continued to order ears and failed to provide vessels into which the grain from the cars or elevator could be unloaded.

Eventually Reading unloaded the grain into its elevator. It did not, however, unload the cars in the order of their arrival at Port Richmond. If Reading had unloaded the cars in which Commodity’s grain was stored in the order of their arrival, Reading’s claims against Commodity would have been substantially reduced even assuming Car Service Order 905 to be applicable.

During the periods in question Tariff No. 90-A, I.C.C. No. 2351, Rule 260, was applicable. That tariff provided that grain not unloaded into the Port Richmond elevator would be held in cars at that point without charge for storage for 20 days. In addition, it provided that grain placed in the elevator prior to the expiration of the free storage periods would be entitled to the balance of the free period in the elevator. Reading’s claim was based on I.C.C. Car Service Order 905, 20 F.R. 5131 (1955) which forbade carriers to allow more than 7 days free time on any box car held for unloading at ports. 3 Reading asserted that it' had undercharged Commodity insofar as it had not submitted bills for storage charges covering periods in excess of 7 days during which the cars loaded with Commodity’s grain remained at Port Richmond. It is conceded that if Car Service Order 905 did not modify Tariff 90-A, Reading is not entitled to recover the additional charges it claims in this case.

On February 12, 1957 Commodity moved for summary judgment primarily on the ground that “Service Order No. 905 was intended to apply only to those shippers who were in control of the unloading of box cars or were in a position to influence the time of such unloading, and was not intended to apply to shippers who had no control or influence over the times of unloading of box cars.” Reliance was placed on Western Maryland Ry. Co. v. Commodity Credit Corp., D.C.D.Md.1957, 154 F. Supp. 508 which held that Car Service Order No. 871, an Order similar to Order 905, applied only to situations where the shipper was in control of unloading and was liable for demurrage charges. 4 The *748 court below denied Commodity’s motion, Í958, 159 F.Supp. 67. In answer to Commodity’s argument that Car Service Order 905 was intended to apply only in the ease of shippers who were in a position to expedite the unloading of cars, and its assertion that it was not such a shipper, the court said: “Prior to this Order there was no pressure on shippers and consignees, such as the present defendant, to bestir themselves to make ships available at ports until twenty days after their goods had arrived there, because these twenty days cost them nothing for either storage or demurrage. By Service Order 905 the Commission obviously intended to stimulate shippers such as defendant to provide ships more promptly by exerting on those shippers the economic pressure of an earlier starting date for charges for railroad cars that awaited unloading at ports. The purpose of Order 905 was reasonable and the Order was well calculated to accomplish its purpose.” 159 F.Supp. at pages 69-70.

We conclude that the court below was correct in holding that, on the facts of this case, Car Service Order 905 reduced the free storage time allowed Commodity by Reading’s Tariff 90-A from 20 to 7 days. Commodity’s contention that Order 905 is applicable only to demurrage charges is untenable. Order 905, section 95.905 does not, by its terms, distinguish between storage and demurrage charges. It states only that na carrier “shall allow, grant or permit more than a combined total of 7 days free time on any box or refrigerator car held for unloading. * * * ” Commodity’s argument that storage free time is not affected is based on the purpose of the Order as set out in its preamble which is as follows: “It appearing that there is a critical shortage of box and refrigerator cars, that such cars are being.

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Bluebook (online)
289 F.2d 744, 1961 U.S. App. LEXIS 4714, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reading-company-v-commodity-credit-corporation-ca3-1961.