Sunbelt Freight, Inc. v. Advanced Precision Fabricators, Inc. (In re Sunbelt Freight, Inc.)

162 B.R. 878, 1994 Bankr. LEXIS 21
CourtUnited States Bankruptcy Court, N.D. Oklahoma
DecidedJanuary 7, 1994
DocketBankruptcy No. 91-01539-W; Adv. No. 93-0120-W
StatusPublished
Cited by1 cases

This text of 162 B.R. 878 (Sunbelt Freight, Inc. v. Advanced Precision Fabricators, Inc. (In re Sunbelt Freight, Inc.)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, N.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sunbelt Freight, Inc. v. Advanced Precision Fabricators, Inc. (In re Sunbelt Freight, Inc.), 162 B.R. 878, 1994 Bankr. LEXIS 21 (Okla. 1994).

Opinion

ORDER DENYING “MOTION OF DEFENDANT GENERAL PURPOSE STEEL, INC. TO ABSTAIN OR IN THE ALTERNATIVE TO STAY PROCEEDINGS PENDING REFERRAL TO INTERSTATE COMMERCE COMMISSION”

MICKEY DAN WILSON, Chief Judge.

Defendant General Purpose Steel, Inc. (“GPS”) moves for abstention from or stay of [879]*879this adversary proceeding “Pending Referral to Interstate Commerce Commission.” Plaintiff Sunbelt Freight, Inc. (“Sunbelt”) objects. Upon consideration thereof, of statements of counsel made in open court, and of the record herein, the Court determines, concludes and orders as follows.

On May 6,1991, Sunbelt filed its voluntary petition for relief under 11 U.S.C. Chapter 11 in this Court. On September 3, 1992, Sunbelt’s plan of reorganization was confirmed. As Sunbelt observes, it is now “in the final stages of completion of [its] liquidating plan. The plan is substantially consummated, and other than the conclusion of [a] few remaining freight audit proceedings, the case is ready to close,” Sunbelt’s obj. p. 4.

The “few remaining freight audit proceedings” include the present lawsuit. On April 28, 1993, Sunbelt commenced this adversary proceeding by filing its “Complaint to Recover Motor Carrier Undercharges” against eight different defendants. By now, only one defendant remains, namely GPS.

The complaint alleges that Sunbelt “was ... a common motor carrier operating in interstate commerce ...;” that GPS “tendered freight to [Sunbelt] for transportation in interstate commerce ...;” that Sunbelt performed the services “subject to the ... tariff rates and rules” prescribed by the Interstate Commerce Commission (“ICC”); that Sunbelt “compared the commodities, weights, point of origin, destinations and declared value of each shipment to the applicable tariff rates and rules provisions that [Sunbelt] had filed with the ICC which were effective on the applicable dates of shipment” and billed GPS accordingly; and that GPS was billed for $3,354.19 and ha[s] refused to pay such sum ...,” complaint ¶¶3, 5, 6, 11. Sunbelt prayed for judgment against GPS for the total bill of $3,354.19 “with interest and costs,” complaint p. 5. GPS’ answer admits that “from time to time [GPS] engaged the services of [Sunbelt],” but denies that GPS owes Sunbelt “in any amount whatsoever,” answer ¶¶ 5, 6. GPS also asserts various “Affirmative Defenses,” including the following: that “[s]ome or all of the freight charges sought to be collected ... are unreasonable, and therefore unlawful under [§] 10701(a) of the Interstate Commerce Act,” aff. def. ¶ 4; that Sunbelt’s tariff rates do not conform to miscellaneous regulations and procedures of the ICC; that Sunbelt’s “common carrier tariffs are not applicable to such shipments” because Sunbelt was acting not as a “common carrier” but as a “motor contract carrier” or “property broker” or “shipper’s agent” or “surface freight forwarder,” id. ¶¶ 11, 12; and that GPS “is entitled to set off and/or recoup ... any mutual debts or claims it may have against [Sunbelt],” id. ¶ 16.

On August 3,1993, a scheduling conference was held. On August 5, 1993, a scheduling order was filed which set pre-trial conference for October 27, 1993 and trial for November 8, 1993.

On September 16, 1993, GPS filed its “Motion ... to Abstain or in the Alternative to Stay Proceedings Pending Referral to Interstate Commerce Commission” and a “Brief in Support ...” thereof. Appended to said “Brief in Support ...” was an “Affidavit of Morton Chatkin, Traffic Manager [of GPS],” which recited in pertinent part as follows:

In my opinion, the rates contained in the tariff now relied upon by the Trustee of Sunbelt are patently unreasonable.
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Also appended to my affidavit hereto are paid freight bills and/or rate sheets evidencing the rates and charges paid by my company for transportation services identical to those involved here. These documents buttress my conviction and assertion that the rates which Sunbelt now seeks to collect would be found reasonable by ... the [ICC],

affidavit p. 4. On October 12, 1993, Sunbelt filed its “... Objection ...” to GPS’ motion. The motion and objection came on for hearing on October 27, 1993. After hearing, the Court took the matter under advisement. Pre-trial conference scheduled for October 27,1993, and trial scheduled for November 8, 1993, were stricken.

A preliminary issue concerns how long it might take ICC to issue its ruling if this matter were referred. Other Courts have found that “the ICC has an impenetrable backlog of rate reasonableness cases, some of [880]*880which have been pending before the agency for as many as eight years,” In re Roberts Carrier Corp., 157 B.R. 109, 116 (B.C., M.D.Tenn.1993). GPS informs the Court that ICC has promised to penetrate the “impenetrable backlog” and to dispose of all rate reasonableness eases within one year after their referral. Sunbelt points to the example of a case before the District Court of this District, namely Emporium Motor Freight v. Evans Box Manufacturing Corporation, Case No. CIV-91-C-461-E, which was referred to ICC in March 1992 and was ruled on by ICC in June 1993, fifteen months later. Sunbelt proposes that “[t]his is about the shortest length of time one can expect a case to be delayed if referred to the ICC,” Sunbelt’s obj. p. 5. For purposes of this opinion, this Court determines that referral to the ICC will require an additional delay of at least one year.

GPS states that “[t]his adversary proceeding is basically an action to collect accounts receivable, involving claims independent of bankruptcy law, and is not a core proceeding,” motion p. 2 ¶ 3. This Court can hear non-core proceedings, though its power to make final disposition thereof is limited, 28 U.S.C. § 157(a), (e).

But GPS does not ask this Court merely to acknowledge non-core limitations on finality of its decision. GPS asks this Court to either (1) “pursuant to 28 U.S.C. § 1334(c)(2) ... abstain from further proceedings,” or (2) “stay and suspend further proceedings herein, pending referral to the ICC ...,” motion p. 3 ¶¶5, 6. The reference to 28 U.S.C. § 1334(c)(2), so-called “mandatory abstention,” appears to be in error, since GPS in its brief argues only 28 U.S.C. § 1334(c)(1), so-called “discretionary abstention.”

Although GPS speaks of “referral” to the ICC, there is no procedure whereby a proceeding pending before a court can be “referred” (transferred or removed) to an administrative tribunal like the ICC, Reiter v. Cooper, 507 U.S. -, -n. 3, 113 S.Ct. 1213, 1220 n. 3, 122 L.Ed.2d 604, 617 n. 3 (1993) (hereinafter “Reiter v. Cooper”). GPS would have this Court abstain from or stay its own proceeding, so that the parties may commence a separate proceeding concerning the same issues before the ICC. This Court is asked, not to refer, but to defer, to the ICC.

GPS asks this Court to defer to the ICC for one reason. GPS asserts that its “affirmative defenses” listed above involve “issues over which the ICC ... has primary jurisdiction,” motion p. 3 ¶ 5.

49 U.S.C.

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Bluebook (online)
162 B.R. 878, 1994 Bankr. LEXIS 21, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sunbelt-freight-inc-v-advanced-precision-fabricators-inc-in-re-oknb-1994.