Southern Ry. Co. v. Aluminum Co. of America

119 F. Supp. 389, 1951 U.S. Dist. LEXIS 4423
CourtDistrict Court, E.D. Tennessee
DecidedJune 2, 1951
DocketCiv. No. 977
StatusPublished
Cited by10 cases

This text of 119 F. Supp. 389 (Southern Ry. Co. v. Aluminum Co. of America) is published on Counsel Stack Legal Research, covering District Court, E.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern Ry. Co. v. Aluminum Co. of America, 119 F. Supp. 389, 1951 U.S. Dist. LEXIS 4423 (E.D. Tenn. 1951).

Opinion

DARR, Chief Judge.

The Southern Railway Company sues the Aluminum Company of America for demurrage, amounting to $99,499.96 and interest, covering the period from April 1, 1945 to October 31, 1946. The claim is in connection with the defendant’s operations at Alcoa, Tennessee.

The defendant began operations at Alcoa in 1913, and now owns and operates aluminum reduction and fabricating plants and a carbon electrode making plant. These are located approximately [391]*391one mile north of Maryville and fifteen miles south of Knoxville, Tennessee. Railway service is rendered the three plants by plaintiff and by the Louisville & Nashville Railroad Company, from their respective branch lines running from Knoxville to Maryville.

When the defendant began its operations in 1913 and 1914, the plaintiff did not have at Alcoa adequate yard and switching facilities for the storage of freight cars. Consequently the defendant constructed on its own property and at its own expense adequate track facilities for the marshalling and sorting of cars, preparatory to “spotting” them for loading and unloading purposes. These facilities were in excess of what would otherwise have been required for its operations.

At that time both the plaintiff and defendant contemplated that the plaintiff would perform all switching services.

These track facilities or yards were enclosed by a fence, the gates to which, however, were left open and afforded plaintiff full access thereto. The three separate plants were located, one at Alcoa near the yards, one about a mile north and the third about two and a half miles south; and each of them was enclosed by a fence, the gates to which were kept locked except when opened for railway or other such service.

From the beginning of operations in 1913 up to December 31, 1920, the plaintiff performed all such switching operations for both empty and loaded cars, which were brought by it to defendant’s plants. This included the placing at the loading or unloading points within each plant’s fenced enclosure, of all such freight cars which were to be loaded or unloaded by defendant. These operations included also the removal from said loading points of such loaded ears for further transportation, and the removal from unloading points of such empty cars as were released by defendant to the plaintiff. Under this method of operation many of the. empty cars brought to defendant were moved on to defendant’s track facilities or yards, where they were permitted to remain for varying periods of time. Later the plaintiff would switch from the yards to the loading points within the fenced, enclosures, as many of such cars as defendant ordered for loading.

Additional cars were sometimes switched by the plaintiff directly from its own tracks to defendant’s loading or unloading points without being set out on defendant’s yards.

During this same period, when loaded cars which had been placed at proper unloading points by the plaintiff were made empty, some of such cars were first switched from such points by the plaintiff to defendant’s yards where they were permitted to remain for some period of time before being moved by the plaintiff from said yards to the plaintiff’s own tracks. Other such cars, after being made empty, were removed by the plaintiff from said unloading points directly to the plaintiff’s own tracks without being set out in the yards.

The plaintiff performed these switching operations with its own equipment and employees and at its own expense; and defendant maintained no equipment or employees to perform such operations.

During this period of eight years, defendant’s yards were in fact merely yard switching tracks used by the plaintiff principally for marshalling, sorting and classifying freight ears destined to or received from defendant.

Under this custom, established by practice and mutual understanding during this period, time was computed under the demurrage rules only after empty cars had actually been placed by the plaintiff at loading points designated by defendant. No demurrage was charged by the plaintiff or paid by defendant on empty cars while they were stored or standing on defendant’s yards.

In November 1920, the plaintiff gave notice to defendant that it would not perform the switching service referred to above after a designated date, later changed to January 1, 1921.

[392]*392. The evident intention of both parties was that the yards would thereafter be used by the plaintiff as an assembly or storage yard as had been previously used when the plaintiff performed the switching.

Since that date the plaintiff has performed no “spotting” service or placement of cars at loading and unloading points. But no change was made in the matter of demurrage accounting.

As defendant’s business greatly increased in volume, resulting in a corresponding increase in the railway service required, defendant enlarged its plants in the year 1941 and constructed new track facilities, or yards, at a new location, so as to provide adequate yards for the marshalling, sorting, classifying and interchanging of cars. Again, no change was made in the demurrage accounting practice.

And thus, throughout the period from January 1, 1921, when switching operations were changed, to November 1, 1946, no demurrage was charged or demanded by the plaintiff on empty cars put'into either the original yards or the new enlarged yards until such time as such cars were removed from the yards to the designated loading points in the plants. And this was true as to empty cars whether placed by request of the defendant to the plaintiff or received from the plaintiff through its conductor by action of defendant’s yardmaster. Also the same reckoning for demurrage was used on cars that came in loaded and thereafter unloaded and then used for outbound shipments by defendant.

Throughout this period, the plaintiff and defendant followed several consistent practices, namely:

(a) All loaded cars consigned to defendant’s plants as well as all empty cars intended therefor, were placed by the plaintiff in defendant’s yards upon tracks designated therefor, such cars being usually placed without any separation or classification with respect to type, size or contents of cars. The incoming track was the Lead Track and the outgoing track was' Track No. 4.

(b) , Defendant performed the task of sorting the cars arid classifying them as to size and type of empty cars placed by the plaintiff on said tracks.

(c) Defendant moved such empty cars of proper sizes, and types as were needed for loading to the proper loading points, and also moved such loaded cars from said yards to the proper unloading points in its plants, and when unloaded moved these empty cars to points for loading, some of which were first moved to the yards.

(d) During the period from a date slightly subsequent to July 1,1932 to November 1, 1946, defendant, at the request of the plaintiff, furnished to the plaintiff daily reports indicating the dates on which defendant removed empty cars from the yards.

(e) During the period from 1921 to November 1, 1946, defendant informed the plaintiff daily of the number of empty cars which defendant would require for loading its shipments.

(f) The defendant daily informed the plaintiff of the number of cars on hand, indicating the types in the yards. This was done whether request for other cars was made.

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Bluebook (online)
119 F. Supp. 389, 1951 U.S. Dist. LEXIS 4423, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-ry-co-v-aluminum-co-of-america-tned-1951.