United States v. Claiborne

252 F. Supp. 897, 1966 U.S. Dist. LEXIS 7990, 1966 WL 152082
District Court, S.D. Alabama·Decided April 12, 1966·No. No. 3137·Published·Cited by 3 cases

Opinion

DANIEL HOLCOMBE THOMAS, District Judge:

The Respondents have filed a Motion for Summary Judgment with supporting affidavits.

The dispute arises out of an alleged freight overcharge by the Respondent, Waterman Steamship Corporation, hereinafter called Waterman, for the carriage of certain military cargo from New Jersey and New York to the Azores in December of 1951.

[898] The Libel was filed by the Government on January 4, 1968. The cargo in question, principally lumber, was carried aboard the S.S. CLAIBORNE which departed New York on or about December 15, 1951. The parties have stipulated that the cargo was discharged and delivered to the Libellant in the Azores on December 29,1951.

The shipment in question was carried under Government Bill of Lading #WV-9798064, dated December 14, 1951, which is a Government standard form, being #1103, approved by the Comptroller General in 1943, and which names the Port Transportation Officer, New York Port of Embarkation, Brooklyn, New York, as shipper, and designates the Commanding General, U. S. Air Forces, Praia, Azores, as the consignee. The shipment was contracted and arranged for between Waterman and the Military Sea Transportation Service and after the cargo was delivered, Waterman billed MSTS, Water Transportation Division, Washington, D. C. for its charges as required by the Government bill of lading.

The billing was submitted by Waterman to MSTS on February 29, 1952 on a form designated as Public Voucher for Transportation Charges, standard form 1113 as prescribed by the Comptroller General. Thereafter, on April 10, 1952, one C. M. Jones, who is designated as a Government Accountant and as the Authorized Certifying Officer, certified on the voucher that Waterman’s services shown thereon “were rendered as stated as evidenced by the attached subvouch-ers ; that the services were necessary in the conduct of official business, and that the amount is a proper charge to the appropriation (s) shown.” On April 16, 1952, the bill was paid by MSTS.

The Motion for Summary Judgment is based upon the contractual periods of limitation contained in Waterman’s bill of lading and in the rules and regulations of the North Atlantic Portuguese Freight Conference Tariff No. 5.

The Government form bill of lading in paragraph 2 incorporates by reference the Waterman Commercial Bill of Lading in the following language:

“Unless otherwise specifically provided for or otherwise stated hereon, this bill of lading is subject to the same rules and conditions as govern commercial shipments made on the usual forms provided therefor by the carrier.”

It appears from the affidavits of C. R. Hall, Sterling F. Stoudenmire, Jr. and M. A. Kearns that the form of bill of lading used for such shipment was the usual Waterman form in use at that time and that fact has not been denied by the Government.

Paragraph 15 of such Waterman bill of lading provides that suit for overcharge must be brought within one year from the date the goods are delivered. The actual language is as follows:

* * * the carrier and the ship shall be discharged from all liability in respect of claim for overcharge and/or overpayment of freight unless suit is brought to recover the same within one year from the date the goods are delivered.”

The Government has shown, by affidavits filed by it, that after the billing had been certified and paid by MSTS, it was then forwarded to the General Accounting Office, but was not received by the General Accounting Office until November of 1952. The billing then remained in the General Accounting Office until September 27, 1957, when a notice of overcharge was mailed to Waterman. Over four years later, the bill remaining unpaid, suit was instituted by the Government for the alleged overcharge. In the meanwhile, many years prior to the institution of the suit, one Kars Kraack, who was the employee of Waterman, who had quoted and agreed upon the rate with MSTS, died.

The primary question presented is whether the Government, as the sovereign, can be held time-barred by provisions contained in a carrier’s bill of lading when the shipment moves under a Government form bill of lading which [899] embodies, by reference, the terms of the carrier’s bill of lading.

It is the general rule that statutes of limitation do not bind the United States, unless Congress has manifested an intention that the Government be so bound. However, it is established that in contracting for the transportation of cargo a carrier bears the same relation to the Government that it does to private shippers. St. Louis, B. & M. R. Co. v. United States, 268 U.S. 169, 45 S.Ct. 472, 69 L.Ed. 899.

Likewise, the Supreme Court has held that when the United States “comes down from its position of sovereignty and enters the field of commerce, it submits itself to the same laws that govern individuals”. Cooke v. United States, 91 U.S. 389, 23 L.Ed. 237. With specific reference to a carrier’s shipping contracts in the form of a rail bill of lading which provided for a nine month claim filing provision and a two year period for filing of suit for cargo damage, the Fifth Circuit has held that the limitations were valid and binding upon the United States. United States v. Chicago, R. I. & P. R. Co., 200 F.2d 263 (5th Cir., 1952). In that case the Government contended, as it does here, that it cannot be barred by any limitation of time to either file claim with the carrier or to file suit, in the absence of an act of Congress authorizing such a limitation. In upholding the validity of the limitation contained in the carrier’s bill of lading and rejecting the Government’s argument that it could not be time-barred in the absence of an express Federal statute, the Fifth Circuit held:

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United States v. Claiborne, 252 F. Supp. 897, 1966 U.S. Dist. LEXIS 7990, 1966 WL 152082 (S.D. Ala. 1966).

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