United States v. Garner

134 F. Supp. 16, 1955 U.S. Dist. LEXIS 3832
CourtDistrict Court, E.D. North Carolina
DecidedSeptember 9, 1955
DocketCivil 657
StatusPublished
Cited by6 cases

This text of 134 F. Supp. 16 (United States v. Garner) is published on Counsel Stack Legal Research, covering District Court, E.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Garner, 134 F. Supp. 16, 1955 U.S. Dist. LEXIS 3832 (E.D.N.C. 1955).

Opinion

GILLIAM, District Judge.

This ■ is an action instituted by the United States under 28 U.S.C. § 1345, to recover from the defendant, doing business as M. C. Garner Truck Lines, alleged overpayments received for the transportation of Government property during the years 1944 and 1945. The case was heard without a jury.

During the years in question the defendant operated as an irregular route common carrier of property by motor vehicle in interstate commerce. Two certificates of public convenience and necessity were issued to him by the Interstate Commerce Commission, dated July 31, 1944 and April 23, 1945, under docket number NC 63, 295.

*18 Upon the issuance of his first certificate, defendant executed and filed with the Commission a power of attorney in usual form, naming R. S. Cooper his agent to file rates, tariffs and charges in accordance with law and regulations, and, either directly or through Cooper, defendant filed power of attorney in usual form naming C. F. Jackson his agent to file classifications. Accordingly, defendant was listed as a participating motor carrier in certain Motor Carrier Traffic Association tariffs issued by agent Cooper and certain National Motor Freight Classifications issued by agent Jackson.

During 1944 and 1945 defendant transported for the United States various shipments of war materials, military supplies and equipment from and to Cherry Point, N. C., and other military bases. Approximately three-fourths of the shipments were airplane engines. Defendant’s operating rights under his certificates of convenience and necessity did not authorize him to haul any of these shipments, but upon defendant’s application the Commission at various times granted him temporary operating authority under Section 210a of the interstate Commerce Act, 49 U.S.C.A. § 310a. Pursuant to these Commission orders, and in accordance with Commission regulations, defendant filed with the Bureau of Motor Carriers nine emergency transportation tariffs (Tariffs MF-I.C.C. No. W-l through W-8, including two W-4’s). These tariffs prescribed commodity rates on designated articles or groups of articles between specific points.

Thus, a part of the shipments in question were made under defendant’s temporary operating rights and temporary tariffs. The remaining shipments were made without authority, and defendant could have refused to transport the property involved.

In computing his freight bills, defendant followed his filed emergency tariffs, where applicable, and used the published tariffs of other carriers as a guide in charging what he felt was a reasonable rate for the remaining shipments. In determining his rates on airplane engines he followed closely the class rates for the classification “airplane parts”, which are 125 percent of first class rates, rather than the rates for the classification “internal combustion engines”, which are 40 percent of first class.

Defendant’s bills were paid upon presentation. Upon later audit, as authorized by 49 U.S.C.A. § 66, the General Accounting Office concluded that defendant had been overpaid in the amount of $80,280.09, plus the sum of $184.99 representing the value of a lost shipment and the unearned freight thereon. Defendant admits that he owes the $184.99.

The General Accounting Office disregarded defendant’s emergency tariffs and computed the freight charges by reference to the National Motor Freight Classifications and Motor Carrier Traffic Association tariffs which listed the defendant as a participating carrier. In the case of shipments outside the scope of these tariffs, published rates of other authorized motor carriers were applied. In all cases the GAO classified airplane engines as internal combustion engines at 40 percent of first class rates.

We are met at the threshold by the question of the Court’s jurisdiction over the subject matter of the action.

It is well settled that federal and state courts may entertain actions by shippers to recover freight charges which are in excess of those stated in tariffs duly and properly filed with the Commission, and in such actions the courts may decide questions of construction of tariffs as legal documents. Great Northern R. Co. v. Merchants’ Elevator Co., 259 U.S. 285, 42 S.Ct. 477, 66 L.Ed. 943. But it is equally well established that courts have no authority in such actions to declare a published rate unreasonable or to determine a reasonable rate and award damages accordingly. Texas & P. Ry. Co. v. Abilene Cotton *19 Oil Co., 204 U.S. 426, 27 S.Ct. 350, 51 L.Ed. 553.

The Act requires all rates to be “just and reasonable”, 49 U.S.C.A. § 316 (b), but Congress has delegated to the Commission the authority to determine reasonableness; and whenever a published rate, rule or practice is attacked as unreasonable, or whenever a reasonable rate, rule or practice must be established, there must be preliminary resort to the Commission. Robinson v. Baltimore & Ohio R. R., 222 U.S. 506, 32 S.Ct. 114, 56 L.Ed. 288; Northern P. Ry. Co. v. Solum, 247 U.S. 477, 38 S.Ct. 550, 62 L.Ed. 1221; Midland Valley R. R. Co. v. Barkley, 276 U.S. 482, 48 S. Ct. 342, 72 L.Ed. 664; Baldwin v. Scott County Milling Co., 307 U.S. 478, 59 S.Ct. 943, 83 L.Ed. 1409; Armour & Co. v. Alton R. Co., 312 U.S. 195, 61 S.Ct. 498, 85 L.Ed. 771; Atlantic Coast Line R. R. Co. v. Hampton and Branchville R. Co., 4 Cir., 80 F.2d 797.

Such being the law, the sole question is whether under the facts in this case there is a legal question for the Court’s decision or rate-fixing problem for the Commission.

A mere statement of the established legal principles shows that this Court has no power to change the rates in defendant’s published emergency tariffs. These tariffs covered transportation services which defendant was specifically authorized by lawful Commission orders to perform. The tariffs were published in accordance with the Act, 49 U.S.C.A. §§ 310a, 317, and the Commission regulations, 49 C.F.R. (1949 ed.) Secs. 187.21 through 187.47; 187.100. The rates in these tariffs were commodity rates, published to apply on a specifically named or described commodity or commodities, principally airplane engines, and under the Commission’s regulations a published commodity rate is the applicable rate and the only rate that may be applied, even though the class rate covering the shipment may be lower. 49 C.F.R. (1949 ed.) Sec. 187.28 (f) (2).

Plaintiff argues that the rates published in defendant’s temporary tariffs are unreasonable and unjust, but this argument must be addressed to the Commission, not the Court.

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Bluebook (online)
134 F. Supp. 16, 1955 U.S. Dist. LEXIS 3832, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-garner-nced-1955.