Schreiber v. United States

129 F.2d 836, 141 A.L.R. 1394, 1942 U.S. App. LEXIS 3459
CourtCourt of Appeals for the Seventh Circuit
DecidedJune 26, 1942
DocketNo. 7855
StatusPublished
Cited by3 cases

This text of 129 F.2d 836 (Schreiber v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schreiber v. United States, 129 F.2d 836, 141 A.L.R. 1394, 1942 U.S. App. LEXIS 3459 (7th Cir. 1942).

Opinions

SPARKS, Circuit Judge.

Appellees sued to recover a refund claimed to be due them for excess postage which they were required to pay for the mailing of certain items as first-class mail instead of at the third-class rate which they are now permitted to use and which they assert should have been permitted them all the time. The facts were stipulated, and the court, basing its findings on such stipulation, concluded that it had jurisdiction of the cause and that appellees were entitled to the refund claimed.

Appellees are engaged in the business of manufacturing and selling certain types of cards known as “push-cards” and “pull-cards” which are used for raffling merchandise. According to the description of the stipulation, the cards are made of two pieces of thin cardboard pasted together. They contain a number of small circular portions which in the case of the push-cards, are to be punched out, exposing a printed number on one of the pieces of cardboard. Under each circle is printed a girl’s name, and on the back of the card is a list of names corresponding to those on the front of the card under the circle where the person who punches out the circular portion writes his own name. There is a larger circular portion also on the face of the card which is also to be punched out when all of the small perforated circles have been punched out, and under this is printed a name corresponding to one of the names under the small circles. This name receives the article of merchandise which is the subject of the sale, and which is described on the card. According to the description on the card, certain numbers are free; others up to a certain number pay according to the number punched; and the balance pay a maximum of from 30 to 39 cents. The pull cards are similar except that they provide a tab to be pulled off the number instead of pushing it out, as in the case of the push card.

Appellees sold these cards as merchandise for ten or twenty-five cents apiece, paying a tax of 10% on each, and retaining no interest in the operation or use of the cards after they were sold to the purchasers.

In 1933, in response to an inquiry from one of the appellees, addressed to the United States Post Office in Chicago, regarding the classification of the cards, the Acting Postmaster notified him that the cards would be mailable in unsealed parcels at the third or fourth-class rate when bearing the printed inscription on the outside including the name of the manufacturer or dealer. He commented on the fact that it was noted that the sales cards were to be sold outright and that appellee’s concern retained no interest in their operation after sale to the addressee. Appellees thereupon had a large number of the cards and envelopes printed and sent them out as per instructions.

In February, 1934, the Postmaster at Chicago notified appellees that a lot of the punchboards were being held at the Post Office for additional postage at the first-class rate. In response to appellees’ protest, this classification was confirmed by the Department at Washington, and thereafter, appellees were required to pay at the first-class rate, from February 2, 1934, to November 22, 1937, although they continued to send their merchandise in unsealed envelopes on which was printed the postal legend and their name and address.

In November 1937, appellees again protested as to the classification of their mail, and at that time there was a ruling that the cards described could be sent as third-class matter provided a slip was enclosed within the envelope on which was printed “Contents merchandise; Postmaster: This parcel may be opened for postal inspection if necessary,” which legend was to be printed on the face of any cards thereafter printed.

In November 1938, appellees filed their claim for the amount paid by them in excess of the rate of postage for third-class matter, and after rejection of this claim, they presented a second claim which was also rejected, whereupon they filed their stiit for refund in the District Court. The parties stipulated that appellees “were not benefited by having their mail matter accorded the treatment of first-class matter during the period 1934-1937 and it was only because cf the ruling of the Post Office Department that the cards were first-class mail, that postage at the first-class rate was affixed.” They also stipulated that: “It was impossible for plaintiff to distribute such cards except by mail.”

Appellee Klompus testified as to the procedure employed in the office relating to the mailings, and estimated the number of pieces sent out at the excess rate accordingly. On the basis of this evidence the court found that 635,936 pieces of mail had been sent at the first-class rate, the excess postage on which amounted to $9,539, on which amount he entered judgment in favor of appellees.

[838]*838Appellant asserts that the primary issue is that of jurisdiction, contending that the court’s conclusion as a matter of law that it had jurisdiction is clearly erroneous, and citing for the first time, 39 U.S.C.A. § 300 to support its contention that' the Postmaster General had exclusive and final jurisdiction over such claims as are here involved. The section provides:

“Refund of postage paid for service not rendered, or in excess of legal rate. — Whenever it shall be shown to the satisfaction of the Postmaster General that any postage is paid on any mail matter for which service is not rendered, or is collected in excess of the lawful rate, he may, in his discretion, authorize the postmaster at the office where paid to refund the proper amount out of the postal receipts in the possession of the postmaster.”

Appellant relies upon a recent case in which relief was claimed under this section but denied by the Court of Claims. See Montgomery Ward & Co. v. United States, 94 Ct.Cl. 309. Inasmuch as the reason for the failure to render the service paid for in that case was the loss of the goods themselves in a wreck, rendering their delivery impossible, we consider the facts of the case in no way analogous, and the dismissal of the petition no authority for similar action here.

Appellees assert that they are not relying on § 300 for their relief, and that it was a special remedial statute for the purpose of simplifying repayment of sums of inconsequential amounts paid through mistake, ignorance, or misinterpretation of instructions. They state that refunds under it did not amount to $1000 a year, and that the statute was enacted to permit the Postmaster General legally to continue the discretionary practice of repaying such small sums out of the postal receipts in the hands of the, postmaster where paid, citing Cong. Rec. 58th Congress, Vol. 39, p. 3726. Whether they might have relied upon this section or not, they maintain that their chief reliance was upon the Tucker Act which permits suits against the United States on “all claims not exceeding $10,000 founded upon the Constitution * * * or any law of Congress, or upon any regulation of an executive department, * * * or for damages, liquidated or unliquidated, in cases not sounding in tort, in respect to which claims the party would be entitled to redress against the United States, either in a court of law, equity, or admiralty, if the United States were suable * * 28 U.S.C.A. § 41 (20).

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Bluebook (online)
129 F.2d 836, 141 A.L.R. 1394, 1942 U.S. App. LEXIS 3459, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schreiber-v-united-states-ca7-1942.