Square D Co. v. Advance Freight, Ltd.

549 N.E.2d 197, 48 Ohio App. 3d 192, 1988 Ohio App. LEXIS 2005
CourtOhio Court of Appeals
DecidedMay 25, 1988
DocketC-860683
StatusPublished
Cited by1 cases

This text of 549 N.E.2d 197 (Square D Co. v. Advance Freight, Ltd.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Square D Co. v. Advance Freight, Ltd., 549 N.E.2d 197, 48 Ohio App. 3d 192, 1988 Ohio App. LEXIS 2005 (Ohio Ct. App. 1988).

Opinion

Shannon, P.J.

Defendant-appellant, Advance Freight, Ltd. (“Advance Freight”), has taken the instant appeal *193 from the entry of judgment below in favor of plaintiff-appellee, Square D Company (“Square D”), on Square D’s complaint to recover freight transportation charges billed and collected by Advance Freight in contravention of the Interstate Commerce Act. On appeal, Advance Freight presents five assignments of error.

The material facts underlying the instant action are uncontroverted. Square D is a manufacturer of electrical equipment, and Advance Freight is a motor common carrier subject to the Interstate Commerce Act (“Act”), Section 10101 et seq., Title 49, U.S. Code. From April through June 1982, Advance Freight transported in interstate commerce fifteen shipments of electrical equipment for Square D and billed and collected from Square D $41,419.85 in freight charges. Square D subsequently deemed the freight charges to be excessive and found that Advance Freight had transported its freight without operating authority and without filing with the Interstate Commerce Commission (“ICC”) the requisite tariffs covering the movements. Thus, in May 1984, Square D brought the instant action against Advance Freight, alleging that Advance Freight had acted in contravention of the Act in transporting Square D’s freight and in assessing and collecting transportation charges; the relief sought in the complaint was full recovery of the unlawful freight charges or, in the alternative, the amount paid in freight charges in excess of a reasonable rate for the transportation provided. The matter was tried to the court, which determined that Advance Freight had transported Square D’s freight and had assessed and collected transportation charges in contravention of the Act and, therefore, was entitled to no compensation. Thus, the ■court entered judgment in favor of Square D in the amount of $41,419.85.

Advance Freight, in its first assignment of error, contends that the trial court’s determination that Advance Freight was entitled to no compensation for its transportation of Square D’s freight was contrary to law. We agree.

The rights and liabilities of parties to an interstate carriage of goods are governed by federal statutes and decisions. Wilson v. Pennsylvania RR. Co. (1939), 135 Ohio St. 560, 14 O.O. 429, 21 N.E. 2d 865; CRST, Inc. v. A & W Foods, Inc. (Nov. 20, 1986), Cuyahoga App. No. 51373, unreported. Pursuant to Section 10921, Title 49, U.S. Code, a common carrier may provide transportation only if it holds the appropriate certificate, permit or license issued by the ICC. Section 10761(a), Title 49, U.S. Code, prohibits a carrier from providing transportation unless the rate for that transportation is set forth in an effective tariff filed with the ICC and forbids a carrier from charging or receiving compensation for transportation contrary to the rate specified in the tariff. It is undisputed that Advance Freight possessed no operating authority and had no tariffs on file with the ICC covering the transportation of Square D’s freight. Thus, Advance Freight transported Square D’s freight and collected transportation charges in contravention of the Act.

The controversy on appeal centers on the implications of Advance Freight’s unlawful transportation of Square D’s freight. Square D, in support of the trial court’s determination that Advance Freight was entitled to no compensation for its unlawful transportation of Square D’s freight, relies on the decision of the Second Circuit Court of Appeals in Mars Express, Inc. v. David Masnik, Inc. (C.A. 2, 1968), 401 F. 2d 891. In Mars, a common carrier brought an action against a shipper to recover transportation charges that were billed and collected at less *194 than the published tariff rates. The court held that a carrier under the jurisdiction of the ICC which lacked the requisite ICC operating authority could not recover from the shipper undercharges for illegal carriage off-route. However, the interpretation of the decision in Mars advanced by Square D on appeal, viz., that a shipper is entitled to recover from a carrier amounts paid for transportation of freight without operating authority and without the filing of tariffs covering the movements, has been rejected by the United States Court of Appeals for the District of Columbia in Fry Tracking Co. v. Shenandoah Quarry, Inc. (C.A.D.C. 1980), 628 F. 2d 1360, and by the United States District Court for the Northern District of Illinois in Larson Service Co. v. H. B. Fuller Co. (N.D. Ill. 1986), 634 F. Supp. 947.

In Fry, supra, as in Mars, supra, a carrier brought an action against a shipper to recover transportation charges billed and collected at less than the published tariff rates. The shipper counterclaimed to recover amounts paid for transportation of freight to points outside the carrier’s territorial operating authority. The court in Fry held, consistent with the holding in Mars, that the carrier could recover for charges made at below tariff rates for services to points within its territorial scope of operations but could not recover undercharges for services to points outside its operating authority. However, the court affirmed the district court’s dismissal of the shipper’s counterclaim upon its determination that neither statutory nor case-law authority supported the position advanced therein and that the decision in Mars would not operate to compel a carrier to disgorge amounts already paid by a shipper for services provided by the carrier outside the scope of its operating authority.

Similarly, the United States District Court for the Northern District of Illinois in Larson, supra, dismissed the counterclaim of a shipper seeking a refund of transportation charges paid to a carrier for transportation of the shipper’s goods prior to the effective date of the carrier’s tariff. The court cited Fry, supra, for the proposition that a “common carrier is not obligated to refund the shipper’s payment for services provided to areas in which the common carrier had neither I.C.C. authority nor an established tariff,” and remarked upon the otherwise “inequitable result of granting [the] shipper * * * free transportation services at the expense of * * * [the carrier].” Larson, supra, at 948. The court thus held that the shipper had no right to recover transportation charges paid to a common carrier for services performed prior to the effective date of a tariff. Id.

Upon the authority of Fry and Larson, we conclude that the trial court erred in its determination that Square D was entitled to a refund of all freight charges remitted to Advance Freight for its transportation of Square D’s freight without operating authority or established tariffs. Accordingly, we sustain Advance Freight’s first assignment of error.

In its second, third and fifth assignments of error, Advance Freight contends that the trial court erred in failing to determine a reasonable charge for its transportation of Square D’s freight and thereupon awarding Advance Freight quantum meruit recovery.

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Bluebook (online)
549 N.E.2d 197, 48 Ohio App. 3d 192, 1988 Ohio App. LEXIS 2005, Counsel Stack Legal Research, https://law.counselstack.com/opinion/square-d-co-v-advance-freight-ltd-ohioctapp-1988.