Trailer Marine Transport Corp. v. Dolphin Forwarding, Inc.

758 F. Supp. 796, 1991 U.S. Dist. LEXIS 3589, 1991 WL 37177
CourtDistrict Court, D. Puerto Rico
DecidedMarch 18, 1991
DocketCiv. No. 88-1893 (JAF)
StatusPublished
Cited by2 cases

This text of 758 F. Supp. 796 (Trailer Marine Transport Corp. v. Dolphin Forwarding, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trailer Marine Transport Corp. v. Dolphin Forwarding, Inc., 758 F. Supp. 796, 1991 U.S. Dist. LEXIS 3589, 1991 WL 37177 (prd 1991).

Opinion

OPINION AND ORDER

FUSTE, District Judge.

This action is between two corporations involved in the transportation of goods and involves a dispute over demurrage charges. Before the court is defendant’s motion to dismiss based on want of federal jurisdiction. For the reasons outlined below, we deny defendant’s motion.

I. Facts

Plaintiff Trailer Marine Transport Corp. (“TMT”) is a Delaware corporation. Plaintiff maintains an office in San Juan, Puerto Rico. On November 17, 1988 plaintiff filed a complaint alleging that defendant Dolphin Forwarding, Inc. (“Dolphin”), a consignee, had incurred demurrage charges of $16,207.00 pursuant to the tariffs published and filed with the Interstate Commerce Commission (“ICC” and “Commission”) and had refused payment when requested by TMT. Jurisdiction is alleged pursuant to 28 U.S.C. §§ 1331, 1337.

On October 15, 1989 we granted the parties’ petition for a stay of proceedings. (Docket Document No. 13). The parties informed this court that a jurisdictional issue which might be dispositive of the action was pending before the ICC.1 We ordered the parties to submit to this court a periodic progress report of the administrative proceedings.

On March 19, 1990, plaintiff submitted to the court a copy of the ICC’s decision in Puerto Rico Freight Systems, Inc. v. Trailer Marine Transport Corporation, 6 I.C.C.2d 337 (1989), (Docket Document No. 16). The ICC ruled that, under the Interstate Commerce Act (“ICA”), the Commission did, in fact, have jurisdiction over disputes about equipment free time and detention (demurrage) charges published by carriers under tariffs providing joint motor-water transportation between the mainland United States and the carrier terminals in the ports of Puerto Rico. The ICC found that the demurrage charges resulted from the use of the carrier’s equipment by the consignee in facilitating the latter’s unloading of the cargo and the fact that the consignee utilized the equipment away from the terminal was irrelevant to the jurisdictional issue. The movement of the equipment by the local drayage company was found to be “incidental” to the interstate transaction and considered simply to represent the “completion” of the underlying interstate transportation. Also, the agency analyzed whether the exercise of its jurisdiction in this area would interfere with the jurisdiction of the Puerto Rico Public Service Commission (“PRPSC”), the agency charged with regulating transportation within Puerto Rico, and found that it would not. The I.C.C. invited the PRPSC to comment on the jurisdictional issue and received no comment. The Commission found that the statute which made the ICA inapplicable to Puerto Rico, 48 U.S.C. § 751, has been interpreted by the courts to refer to only intra-island Puerto Rico transportation, and neither gives Puerto Rico the right to regulate interstate commerce nor precludes federal regulation of interstate commerce involving Puerto Rico. Also, the ICC found that exercise of its jurisdiction was consistent with the limitation clause of 49 U.S.C. § 10521(a)(1)(C).2 [798]*798The Commission, restating the holding of the United States Court of Appeals for the District of Columbia Circuit in Puerto Rico Maritime Shipping Authority v. I.C.C., 645 F.2d 1102 (D.C.Cir.1981), recognized its exclusive jurisdiction in the regulation of transportation between the United States and Puerto Rico in the same way it envisioned its regulation of interstate commerce. The ICC went on to find that “[w]hat is involved here is not transportation within Puerto Rico; rather it is detention related to transportation that begins on the U.S. mainland and ends in Puerto Rico.” 6 I.C.C.2d at 342.

Defendant then moved this court to dismiss the action arguing that the ICC erred in its decision with respect to its jurisdiction over disputes relating to demurrage charges. Defendant's argument goes as follows. Plaintiff’s equipment is carried outside the port terminals by local drayage carriers. These local carriers are subject to tariffs published and filed with the PRPSC. Because defendant has no control over the activities of the local carrier, when the latter fails to return plaintiffs equipment within the free time allowed by the ICC tariff, the local carrier, and not the defendant, is liable for the demurrage charge. And, since the ICA is not applicable to intra-Puerto Rico transportation, the ICC has no jurisdiction over the local carrier. Therefore, defendant concludes that this court is without jurisdiction to resolve this dispute. For the reasons stated below, we disagree with defendant’s position and therefore DENY defendant’s motion to dismiss.

II. Discussion

Plaintiff alleges federal court jurisdiction under 28 U.S.C. § 1331 (federal question) and § 1337 (commerce). The relevant portion of section 1337 states that “[t]he district courts shall have original jurisdiction of any civil action or proceeding arising under any Act of Congress regulating commerce.... ” Since 1918, the United States Supreme Court has held that federal district courts have jurisdiction over actions brought by carriers to enforce tariffs published and filed with the ICC. Louisville & N.R. Co. v. Rice, 247 U.S. 201, 38 S.Ct. 429, 62 L.Ed. 1071 (1918); see Turner, Dennis & Lowry Lumber Co. v. Chicago M. & S.P.R. Co., 271 U.S. 259, 261, 46 S.Ct. 530, 531, 70 L.Ed. 934 (1926) (demurrage tariff assessed). In Maritime Service Corp. v. Sweet Brokerage De Puerto Rico, Inc., 537 F.2d 560 (1st Cir.1976), the First Circuit affirmed the view of an earlier case and found that an action for demurrage under a tariff filed pursuant to the Shipping and Intercoastal Shipping Acts, 46 U.S.C. §§ 801-842 and §§ 843-848, “arises under” those Acts so as to provide federal jurisdiction under 28 U.S.C. § 1337. See Port of Boston Marine Terminal Ass’n v. Boston Shipping Ass’n, 420 F.2d 419 (1st Cir.) (dictum), rev’d on other grounds, 400 U.S. 62, 91 S.Ct. 203, 27 L.Ed.2d 203 (1970). The court went on to explain that the provisions of the above-named Acts “were modeled on those of the Interstate Commerce Act” and that the Supreme Court has stated that these Acts, each within its own domain, “should have like interpretation, application and effect.” Maritime Service, 537 F.2d at 562 (quoting United States Navigation Co. v. Cunard S.S. Co.,

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Bluebook (online)
758 F. Supp. 796, 1991 U.S. Dist. LEXIS 3589, 1991 WL 37177, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trailer-marine-transport-corp-v-dolphin-forwarding-inc-prd-1991.