Transportation League, Inc. v. Morgan Express, Inc.

436 S.W.2d 378, 1969 Tex. App. LEXIS 2077, 1969 WL 177870
CourtCourt of Appeals of Texas
DecidedJanuary 3, 1969
Docket17187
StatusPublished
Cited by13 cases

This text of 436 S.W.2d 378 (Transportation League, Inc. v. Morgan Express, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Transportation League, Inc. v. Morgan Express, Inc., 436 S.W.2d 378, 1969 Tex. App. LEXIS 2077, 1969 WL 177870 (Tex. Ct. App. 1969).

Opinion

BATEMAN, Justice.

This case involves the construction of certain language contained in Certificate of Public Convenience and Necessity No. 3063 issued by the Railroad Commission of Texas, herein called “the Commission,” to Eli Morgan, predecessor in interest of the appellee Morgan Express, Inc. The appellants are Transportation League, Inc., a trade association, and fifteen regular route common motor carriers operating under the jurisdiction of the Commission. The latter are herein sometimes called “the carrier appellants.” Appellants sued for declaratory judgment and tor injunctive relief.

A brief history of Certificate No. 3063 will aid the reader in understanding the issues presented by this appeal and our disposition of it. In 1938 Eli Morgan applied to the Commission for a certificate of public convenience and necessity allowing him to transport small packages, weighing a maximum of 50 pounds each, by truck over certain Texas highways. The Commission first denied the application but later granted a motion for rehearing. The carriers which had protested the application sued to set aside the order granting a rehearing; the judgment was favorable to Morgan, and was affirmed in Sproles Motor Freight Line v. Smith, 130 S.W. 2d 1087 (Tex.Civ.App., Austin 1939, writ ref’d). Thereafter, on November 22, 1939, the Commission granted Morgan’s application and issued to him Certificate No. 3063. Various Texas common motor carriers, railroads and Railway Express Agency, Inc. unsuccessfully attacked this order by suit in the district court of Travis County, and the judgment was affirmed. Sproles Motor Freight Lines v. Railroad Commission, 157 S.W.2d 949 (Tex.Civ.App., Galveston 1941, writ ref’d w. m.). Appellee eventually became the owner of the certificate and has operated under it since then.

Appellants now contend that appellee’s operations under it have been unlawful: (1) In charging rates for transportation of property less than those prescribed by the Commission, resulting in unfair and harmful competition to the appellant carriers; and (2) in not observing departure times set forth in the certificate.

The authority for the Commission to regulate the business of common carriers of property and persons is found in Vernon’s Ann.Civ.St, Art. 911b, and violations of the lawful orders of the Commission are, by Art. 1690b of the Vernon’s Ann. Texas Penal Code, made criminal offenses.

Appellee’s Certificate No. 3063 authorizes it

“TO TRANSPORT:
(Old Cert. 3063) — GOODS, WARES & MERCHANDISE in packages not to exceed fifty (50) pounds each in weight, and
NEWSPAPERS, NEWSREELS, FILMS and THEATRE SUPPLIES in packages or bundles of not to exceed one hundred (100) pounds each in weight; and the said transportation not to exceed three thousand (3,000) pounds per single motor truck load.
THE HOLDER of this certificate is authorized to charge a rate for such services, the minimum of which shall not be lower than the lowest maximum rate charged by any other common carrier transporting like commodities over the route, or parts thereof set out hereinafter, and subject to the further rules and regulations of the Railroad Commission of Texas not in conflict herewith.”

Immediately following the above quoted portion of the Certificate appear detailed schedules of times of departure from vari *382 ous towns authorized by the Certificate to be served, and a list of the public highways to be used in serving them.

Appellants prayed for a judgment declaring inter alia that appellee is not authorized under Certificate No. 3063 to transport property for hire as a common carrier (1) other than on rates the minimum of which shall not be lower than the lowest maximum rate charged by any other common carrier transporting like commodities over the routes, or parts thereof, authorized in the Certificate; (2) on schedules and departures from authorized points of service under said Certificate other than specifically authorized therein; and for appropriate injunctive relief. The trial court, sitting without a jury, entered its judgment construing and declaring certain parts of the certificate to have meanings contrary to those alleged by appellants, from which judgment they appeal on five points of error.

In their first point of error on appeal the appellants urge that the trial court erred in construing the meaning of the word "rate” contained in that portion of the Certificate reading “shall not be lower than the lowest maximum rate charged by any other common carrier” as not comprising the charges made by common carriers such as the carrier appellants, including a "minimum charge” which the carrier appellants are required to collect. They argue, for instance, that a single shipment consisting of one package weighing less than 50 pounds, carried less than 100 miles by any of them requires a minimum charge of $3.00, whereas appel-lee, carrying a package of the same size and weight over the same route and for the same distance, charges substantially less, and that this is competition which they cannot meet and which the Commission did not intend to impose on them. The question raised is: Does the word “rate” as used in Certificate No. 3063 mean a certain figure stated in cents, dollars and cents, or fractions thereof, to be used in computing a carrier’s charge on property transported, as contended by appellee, or does it mean a “charge” (including a “minimum charge”), as contended by appellants ?

The carrier appellants are required by the Commission to charge for their intrastate transportation services in accordance with what is known as Southwestern Motor Freight Tariff 25-L, a very elaborate and complicated document consisting of several hundred printed pages. On Page 7 of Supplement 15 thereto we find Item 850-D, Part 1 of which is as follows:

MINIMUM CHARGES

Part 1 — Except as otherwise specifically provided herein, or in authorized exceptions hereto—

The minimum charge for a single shipment from one consignor to one consignee on one Bill of Lading shall be:

(A) If classified Class 100 or lower, for 100 pounds at the class or commodity rate applicable thereto; or
(B) If classified higher than Class 100, for 100 pounds at the Class 100 rate; or
(C) If shipment contains different articles, and no article is rated higher than Class 100, for 100 pounds at the class or commodity rate applicable to the articles taking highest rate; or if any one of the articles is rated higher than Class 100, for 100 pounds at the Class 100 rate; but
(D) In no case shall the charge on a single shipment be less than the amount shown in the distance scale below:
(When a shipment moves under a rate made by the combination of separately established rates, the minimum charge in *383 the scale below will apply to the continuous through movement and not to each of the separately established factors.)
MILES CHARGE MINIMUM

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Bluebook (online)
436 S.W.2d 378, 1969 Tex. App. LEXIS 2077, 1969 WL 177870, Counsel Stack Legal Research, https://law.counselstack.com/opinion/transportation-league-inc-v-morgan-express-inc-texapp-1969.