Transrisk Corp. v. Goodyear Tire & Rubber

839 F. Supp. 1162, 1992 U.S. Dist. LEXIS 21173, 1992 WL 549007
CourtDistrict Court, D. Maryland
DecidedNovember 5, 1992
DocketCiv. No. N-92-463
StatusPublished
Cited by1 cases

This text of 839 F. Supp. 1162 (Transrisk Corp. v. Goodyear Tire & Rubber) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Transrisk Corp. v. Goodyear Tire & Rubber, 839 F. Supp. 1162, 1992 U.S. Dist. LEXIS 21173, 1992 WL 549007 (D. Md. 1992).

Opinion

MEMORANDUM OPINION

NORTHROP, Senior District Judge.

Pending before the Court are several motions from Plaintiff and Defendant. Plaintiff has filed a Motion to Dismiss Defendant’s Counterclaim (Paper No. 6) and a Motion for Summary Judgment (Paper No. 11). Defendant has filed a Cross Motion for Summary Judgment, or in the alternative, a Motion to Stay and Referral to the Interstate Com[1164]*1164merce Commission (Paper No. 14). After reviewing the pleadings, this Court determines that no hearing is necessary. Local Rule 105.6. After consideration of all of the arguments contained in the papers filed, this Court will grant Defendant’s Motion to Stay the case and Refer to the Interstate Commerce Commission.

I. Background

The underlying basis of this action is fairly straight forward. Plaintiff, Transrisk Corporation (“Transrisk”) seeks $9,710.38 in alleged freight “undercharges” from Defendant Goodyear Tire and Rubber Company (“Goodyear”). Plaintiff is an assignee of the receivables of Allegheny Freight Lines (“Alegheny”), a bankrupt motor carrier. Alegheny carried over $250,000 worth of Goodyear freight in its 3,336 shipments. These shipments occurred over a three year period and were made in accordance to agreements between Goodyear and Allegheny.

In January of 1990, Allegheny sought reorganization with its creditors pursuant to Chapter 11 of the United States Bankruptcy Code. The Bankruptcy Court approved a sales agreement and freight audit contract whereby Transrisk was to conduct an audit of Allegheny’s freight bills for the purpose of determining whether the bills had been properly rated according to the tariffs filed by Allegheny with the Interstate Commerce Commission (“ICC”). If Transrisk uncovered any balances due Alegheny, Transrisk could collect them as Alegheny’s assignee.

There is no allegation that Defendant failed to make proper payment, or did not abide by any of the terms of the agreements between Alegheny and Goodyear. Instead, Transrisk claims that the negotiated rate arrived at between Allegheny and the Defendant was not made in accordance with the tariffs on file with the ICC. 49 U.S.C. § 10761 and § 10762. Transrisk, as assignee, claims that Alegheny should have charged Goodyear more for carrying Defendant’s shipments in spite of the terms of the agreements between Goodyear and Alegheny.

Transrisk’s argument rests on application of the “filed rate doctrine.” This doctrine arises out of the requirement that a common carrier:

may not charge or receive a different compensation for that transportation or service than the rates specified in the tariff.

49 U.S.C. § 10761(a). Violation of this statute can result in the imposition of civil as well as criminal penalties. 49 U.S.C. §§ 11901-17.

The “filed rate doctrine” was recently reaffirmed by the Supreme Court.

Under the Interstate Commerce Act, the rate of the carrier duly filed is the only lawful charge. Deviation from it is not permitted upon any pretext. Shippers and travelers are charged with notice of it, and they, as well as the carrier, must abide by it unless it is found by the Commission to be unreasonable. Ignorance or misquotation of rates is not an excuse for paying or charging either less or more than the filed rate.

Maislin Industries, U.S., Inc., 497 U.S. 116, 126, 110 S.Ct. 2759, 2766, 111 L.Ed.2d 94 (citations omitted).

The broad purpose of the “filed rate doctrine” is to prevent unjust discrimination against smaller shippers and harmful competition among carriers. See Dan Barclay, Inc. v. Stewart & Stevenson Services, 761 F.Supp. 194, 198 (D.Mass.1991). It is believed that by requiring public notice of the rates charged and providing shippers with an opportunity to protest, the filed rate doctrine insures stability of the motor carrier industry. Id. Shippers are charged, therefore, with constructive notice of the applicable rate. In re Carolina Motor Express, Inc., 84 B.R. 979, 990 (W.D.N.C.1988).

In response to Plaintiffs argument on the filed rate doctrine, Defendant claims that its shipments with Allegheny were pursuant to Alegheny’s status as a contract carrier. Further, Defendant argues that even if it was not a contract carrier, the filed rates that Allegheny were charged are unreasonable. Finally, Defendant counterclaims, for negligence and breach of contract in that Defendant alleges that Plaintiff did not properly file the rates that were contained in the agreement between Plaintiff and Defendant.

[1165]*1165II. Analysis

A. Defendant’s Motion for Summary Judgment, or in the alternative, for Stay and Referral to the Interstate Commerce Commission

Summary judgment is proper “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56. Regarding materiality, the substantive law will identify which facts are material. Only disputes over facts that might affect the outcome of the suit under the governing law will properly preclude the entry of summary judgment. Factual disputes that are irrelevant or unnecessary will not be counted. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986). Regarding genuineness, a dispute about a'material fact is genuine “if the evidence is such that a reasonable jury could return a verdict for the non-moving party.” Id.

The party seeking summary judgment bears the initial burden to show that there is an absence of evidence to support the non-moving party’s ease. Celotex Corp. v. Catrett, 477 U.S. 317, 325, 106 S.Ct. 2548, 2554, 91 L.Ed.2d 265 (1986). This burden does not require the moving party to produce evidence showing the absence of a genuine issue of material fact, but only to point out the absence of a material fact. Id. (emphasis added).

In responding to the defendant, the adverse (non-moving) party, in this case the plaintiff, “may not rest upon the mere allegations or, denials of the adverse party’s pleadings, but ... must set forth specific facts showing that there is a genuine issue for trial.” Fed.R.Civ.P. 56(e); Anderson, 477 U.S. at 248, 106 S.Ct. at 2510.

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839 F. Supp. 1162, 1992 U.S. Dist. LEXIS 21173, 1992 WL 549007, Counsel Stack Legal Research, https://law.counselstack.com/opinion/transrisk-corp-v-goodyear-tire-rubber-mdd-1992.