Rebel Motor Freight v. Malone & Hyde, Inc.

813 S.W.2d 470, 1991 Tenn. App. LEXIS 171
CourtCourt of Appeals of Tennessee
DecidedMarch 11, 1991
StatusPublished

This text of 813 S.W.2d 470 (Rebel Motor Freight v. Malone & Hyde, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rebel Motor Freight v. Malone & Hyde, Inc., 813 S.W.2d 470, 1991 Tenn. App. LEXIS 171 (Tenn. Ct. App. 1991).

Opinion

CRAWFORD, Judge.

This case involves a suit for shipping charges due from transactions in interstate commerce. Defendant, Malone & Hyde, Inc., appeals from the order of the Chancery Court granting plaintiff, Rebel Motor Freight, Inc., summary judgment and awarding plaintiff the sum of $44,168.55 plus prejudgment interest in the amount of $24,441.27.

The first issue for review is whether the trial court erred in granting summary judgment.

From the pleadings, affidavits and exhibits in the record, we observe the following pertinent facts:

In 1985, Rebel and Malone & Hyde entered into an agreement for Rebel to ship petroleum products and other automotive supplies to Malone & Hyde’s warehouse in Memphis from various locations in Missouri, Illinois, Georgia and Texas. Shipping rates were agreed upon between Malone & Hyde’s transportation coordinator, Holcomb, and Rebel’s sales manager, James. There were three groups of shipments. The first group consisted of 32 shipments of petroleum products from Co-noco, Inc., in Hartford, Illinois. The second group consisted of 22 shipments of petroleum products from Valvoline Oil Company in St. Louis, Missouri. Holcomb and James [472]*472agreed that these shipments would move at a flat rate of $300 per truck load. The third group consisted of 13 shipments of batteries from cities in Texas and Georgia.

When the parties hereto made their agreement, Rebel represented to Malone & Hyde that it would publish the tariffs incorporating the rates upon which they agreed. However, this did not take place.

Rebel made the shipments, charged and was paid the amounts agreed upon for the freight charges pursuant to the various bills of lading for the shipments. In 1987, approximately two and one-half years after the last freight shipment by Rebel for Malone & Hyde, Malone & Hyde was notified by Mr. Charles Pinkston of Professional Truck Auditing, Inc., that an audit of the freight bills for the Valvoline shipments indicated that Malone & Hyde had been undercharged by Rebel a total of $2,313.61. Demand was made for payment of the sum and subsequently Malone & Hyde was notified of other undercharges resulting from the Conoco shipments and the battery shipments, for which demand was also made.

Suit was filed by Rebel for the additional amount allegedly due. Malone & Hyde’s answer joined issue on Rebel’s complaint. Rebel filed a motion for summary judgment supported by the affidavit of Pink-ston. The affidavit has as exhibits, copies of the freight bills and tariff pages. It states that the tariffs on file concerning the Conoco shipment required freight charges of $2.82 increasing to $2.93 per hundred weight over the time period involved which resulted in an additional amount of $31,366.26 due from Malone & Hyde for the Conoco shipments. As to the Valvoline shipments, the affidavit states that while the published tariff was a flat truck load rate of $300, this included a 46,000 pound weight limit. The audit also revealed that Malone & Hyde was liable to Rebel for an additional $10.47 to $11.18 per hundred weight for the excess in each of the 22 shipments which amounts to $2,313.61. The audit revealed that the 13 shipments of batteries were undercharged but Malone & Hyde does not dispute the undercharge for the battery shipments.

In opposition to the motion for summary judgment, Malone & Hyde filed various affidavits. Holcomb’s affidavit stated that in the Valvoline shipment, Valvoline was estimating the per case weight of the motor oil and the pallet weight which resulted in an overstatement of the weight on all of the 22 Valvoline shipments. Calculations made by Pinkston were based upon the weights shown on the bills of lading which were subject to correction and the lower weights would result in a smaller sum due for the undercharged tariffs. Holcomb’s second affidavit states the published tariffs relied upon by Pinkston in connection with the Conoco shipment were incorrect and that the tariff rate in effect was a $300 flat truck load rate, the same that was used for the Valvoline shipments. The affidavit of Mr. James, who was the negotiating party for Rebel at the time the shipping agreements were made, substantiated the $300 per truck load rate for the Conoco shipments.

Joe Gallager was the plant supervisor for Valvoline in St. Louis at the time of the shipments. His affidavit states that the weights given at the time of the shipments were estimates, and it was later determined that they were overweight estimates. The company subsequently learned of this discrepancy and lowered the estimate to 24.5 pounds per case and 80 pounds per pallet, as opposed to the 25 pounds per case and 100 pounds per pallet used at the time the shipments were actually made.

Brian Hawker’s affidavit was also filed. He is a production coordinator for Valvoline in Santa Pe Springs, California. His affidavit sets out the individual weights of the cases of the five types of the motor oil shipped under the agreement between Rebel and Malone & Hyde.

In summary, it appears that Rebel in support of its motion for summary judgment submitted two detailed affidavits from Pinkston with numerous exhibits which included the bills of lading and related documents. The affidavit establishes that the tariff applicable for the Valvoline shipments was $300 per truck load with a 46,000 pound limit. Pinkston’s affidavit as[473]*473serts that the weights shown in the various bills of lading for Valvoline shipments indicate additional sums due under the published tariffs.

Malone & Hyde’s affidavits, on the other hand indicate that the weights shown on the bills of lading were not the correct weights and the affidavits provide the information to enable a determination of the correct weight.

On the Conoco shipments, Pinkston’s affidavit sets out what he says are the published tariff rates for shipments from Hartford, Illinois to Memphis. The affidavits submitted by Malone & Hyde in opposition to the motion for summary judgment assert that St. Louis, Missouri and Hartford, Illinois are in the same commercial zone and the applicable tariff is the same as the rate for the Valvoline shipments.

The trial court granted summary judgment and awarded the sums claimed pursuant to Pinkston’s audit for the Valvoline shipments from St. Louis, Missouri to Memphis and Conoco shipments from Hartford, Illinois to Memphis.

The shipper as well as the carrier must be presumed to know the law, and to understand the rate charged could lawfully only be one fixed by the tariff. Carriers who sue to recover the full tariff rate after mistakenly undercharging the shipper cannot be estopped from asserting the correct rate on the basis of their prior representations to the shipper that the rate was lower. Aero Trucking, Inc. v. Regal Tube Co., 594 F.2d 619 (7th Cir.Ill. 1979). Malone & Hyde concedes that the parties are bound by the freight rates specified in the published tariffs and that the tariffs control the freight charges regardless of the agreement between the parties.

In 13 Am.Jur.2d, Carriers, Sec. 116, it is stated:

§ 116. Generally.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Rodgers v. United States
332 U.S. 371 (Supreme Court, 1947)
Evco Corporation v. Ross
528 S.W.2d 20 (Tennessee Supreme Court, 1975)
Prescott v. Adams
627 S.W.2d 134 (Court of Appeals of Tennessee, 1981)
Bennett v. Mid-South Terminals Corp.
660 S.W.2d 799 (Court of Appeals of Tennessee, 1983)
Graves v. Anchor Wire Corp. of Tennessee
692 S.W.2d 420 (Court of Appeals of Tennessee, 1985)
Blue Diamond Coal Co. v. Holland-America Insurance Co.
671 S.W.2d 829 (Tennessee Supreme Court, 1984)
Air Temperature, Inc. v. Morris
469 S.W.2d 495 (Court of Appeals of Tennessee, 1970)

Cite This Page — Counsel Stack

Bluebook (online)
813 S.W.2d 470, 1991 Tenn. App. LEXIS 171, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rebel-motor-freight-v-malone-hyde-inc-tennctapp-1991.