Utah Poultry & Farmers Cooperative v. United States

119 F. Supp. 846, 1954 U.S. Dist. LEXIS 3751
CourtDistrict Court, D. Utah
DecidedMarch 10, 1954
DocketCiv. A. C 8-53
StatusPublished
Cited by5 cases

This text of 119 F. Supp. 846 (Utah Poultry & Farmers Cooperative v. United States) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Utah Poultry & Farmers Cooperative v. United States, 119 F. Supp. 846, 1954 U.S. Dist. LEXIS 3751 (D. Utah 1954).

Opinions

RITTER, District Judge.

The complaint seeks to have the Interstate Commerce Commission order of February 4, 1952,1 approving special regulations of rail carriers covering claims of damage to shell eggs, set aside, annulled and enjoined.

Jurisdiction2 of this court to review the order, and venue of the parties, are admitted except as to the prayer for a mandatory injunction against the Commission and its eleven members, whose official residence is the District of Columbia and who are not within the venue of this court.

It is admitted that this court has jurisdiction to hear and decide as to the lawfulness of the Commission action and its order. The questions of lawfulness here involved relate only to the Commission orders and not to the tariff filed after the orders became effective, which [848]*848would be a different proceeding before the Commission and the court.3

The plaintiff, Utah Poultry and Farmers Cooperative, is a farmers cooperative marketing association incorporated under the laws of Utah 4 engaged among other things in marketing eggs. Armour and Company, Swift and Company, and the Secretary of Agriculture of the United States have intervened as plaintiffs herein and join in the attack upon the Commission order. The statutory defendant, the United States of America, claims in its answer that the Secretary of the Army represented the United States as a shipper in the proceedings before the Commission, and, in furtherance of its assault upon the Commission order, admitted all of the allegations of the complaint. At the hearing the Justice Department lawyer stated that the United States “confessed error”.

The claims of departments of government other than the Interstate Commerce Commission are entitled to no more weight and consideration than are the same claims in the complaint of the private parties. The Attorney General does not have authority to “confess error” and thereby to dispose of this action.5

The Interstate Commerce Commission is vested with the only legal authority to administer the Interstate Commerce Act. It has exclusive authority in this field. Neither the Department of Agriculture, Department of the Army, or the Department of Justice (or all of them) has any authority superior to the Commission to decide for the government the questions raised by this action.6

The proceeding before the Interstate Commerce Commission was instituted on the Commission’s own motion, by its order of July 23,1948. One hundred and thirty-one railroad companies, parties to the tariff schedules, were named respondents therein. And, all of those railroad companies have intervened as parties defendant in the suit in this court, and now defend the Commission order.

Hearings were held by the Commission at Washington, D. C., September 23, 1948; Chicago, Ill., July 26, 27, 1949; Brooklyn, N. Y., December 15, 1949; Washington, D. C., February 8, 1950; Los Angeles, Calif., August 1, 1950, and Chicago, Ill., September 7, 1950, at which counsel for respondent railroads, Department of Agriculture, Defense Depart[849]*849ment, various producer organizations, and shippers, appeared and submitted testimony of witnesses, and exhibits. The record compiled at these hearings consists of 1,067 pages of testimony and 60 exhibits, many of elaborate statistical data, tables, and charts. Following the hearings briefs were submitted by counsel for respondent railroads, Secretary of Agriculture, Secretary of thé Army, National Poultry, Butter and Egg Association, New York Mercantile Exchange, Fairmount Foods Co., Zenith Godley Co., and four packing house companies.

An examiner’s proposed report was filed and served on all parties on April 25, 1951, recommending, for reasons therein stated, that the Commission find that the then 5 percent tolerance on eggs, other than those rehandled and repacked at the rail point of origin, was not shown to be unreasonable or otherwise unlawful, and that the proposed tolerance of 4 percent on eggs packed at the rail point of origin and 6 percent on those packed at other than rail points of origin, had not been justified, but that tolerances of 3 and 5 percent, respectively, would be reasonable. Exceptions were filed to the examiner’s proposed report. Oral arguments by counsel were heard by the Commission on October 26, 1951.

Thereafter the report and orders of February 4, 1952, here involved, were entered by the Commission. Petitions for reopening, reconsideration, and re-argument were filed and were denied by the Commission.

The report of February 4, 1952, discontinued the original proceeding and required the suspended schedules to be cancelled without prejudice to the filing of new schedules in conformity with the findings therein, viz., that tolerances of 3 percent on eggs packed at the rail point of origin, and 5 percent on those packed at points other than rail points of origin, would be reasonable. Railroad respondents filed schedules, as permifted by the Commission report, effective on and since August 7, 1952.

The complaint alleges that respondents’ . schedules, which became effective August 7, 1952, purport to free railroads from all liability for loss of eleven eggs per case on shipments repacked at origin, or 18 per case on shipments not repacked at origin, or 4 per case on government inspected cases, and therefore violate the provisions of Section 20(11) of the Act.7 The complaint further alleges that “in approving and accepting the tariff”, the Commission failed or refused to enforce and observe provisions of the Act. And the complaint alleges that the decision of the Commission is unlawful, on the grounds (a) that findings of fact are unsupported by substantial evidence, and contrary to record evidence, (b) that conclusions óf law are not supported by findings of fact, and (c) that conclusions are based upon fact findings wholly irrelevant and immaterial to any issue, and that the decision lends color of authority for legality of tariff provisions in effect, which are unlawful and in violation of Section 20(11) of the Interstate Commerce Act.

Intervening complaint of the Secretary of Agriculture claims as the only Commission error that the carrier damage tolerance rules, approved by the Commission, are attempts to limit common carrier liability and, as such, are void as a matter of law under Section 20(11) of the Interstate Commerce Act, that there is no factual basis of record to support the tolerance percent approved, and that, if the damage tolerance rules are valid, approval thereof for nationwide application is unsupported by substantial evidence or adequate findings.

The Problem Before The Commission

The Commission was confronted here with complex and difficult questions, of great importance to railroad transportation over the nation. Claims by shippers against carriers for damage to shell [850]*850eggs had increased greatly. Claims throughout the country increased from about $110,000 in 1941 to an all time peak of $2,338,462 in 1947. Claim payments in the latter year were relatively greater for damage to eggs than to any other commodity. The shell egg carload traffic originated in 1947 was only 0.072 percent of all carload traffic, while the claim payments for damage to eggs was 1.91 percent of all claim payments.8

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Related

Secretary of Agriculture v. United States
350 U.S. 162 (Supreme Court, 1956)

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Bluebook (online)
119 F. Supp. 846, 1954 U.S. Dist. LEXIS 3751, Counsel Stack Legal Research, https://law.counselstack.com/opinion/utah-poultry-farmers-cooperative-v-united-states-utd-1954.