Whitaker v. Interstate Commerce Commission (In re Olympia Holding Corp.)

141 B.R. 443, 6 Fla. L. Weekly Fed. B 147, 1992 Bankr. LEXIS 868, 23 Bankr. Ct. Dec. (CRR) 74
CourtUnited States Bankruptcy Court, M.D. Florida
DecidedJune 8, 1992
DocketBankruptcy Nos. 90-4195-3P-1, 90-4223-3P-1; Adv. No. 92-2747
StatusPublished
Cited by5 cases

This text of 141 B.R. 443 (Whitaker v. Interstate Commerce Commission (In re Olympia Holding Corp.)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Whitaker v. Interstate Commerce Commission (In re Olympia Holding Corp.), 141 B.R. 443, 6 Fla. L. Weekly Fed. B 147, 1992 Bankr. LEXIS 868, 23 Bankr. Ct. Dec. (CRR) 74 (Fla. 1992).

Opinion

ORDER GRANTING PLAINTIFFS’ MOTION FOR PRELIMINARY INJUNCTION

GEORGE L. PROCTOR, Bankruptcy Judge.

This adversary proceeding was commenced pursuant to 11 U.S.C. § 301, pursuant to jurisdiction vested by 28 U.S.C. Sections 1334, 2201 and 2202. The adversary proceeding is before the Court on Plaintiffs’ Motion For Preliminary Injunction filed on May 8, 1992 pursuant to Rule 7065(a), Federal Rules of Bankruptcy Procedure, and Rule 65, Federal Rules of Civil Procedure.

In order to grant the remedy of a preliminary injunction, the Court must make specific findings of fact and conclusions of law. Schrank v. Bliss, 412 F.Supp. 28, 34 (M.D.Fla.1976) (citing Granny Goose Foods, Inc. v. Brotherhood of Teamsters and Auto Truck Drivers, Local 70, 415 U.S. 423, 443, 94 S.Ct. 1113, 1126, 39 L.Ed.2d 435 (1974); Sampson v. Murray, 415 U.S. 61, 92 n. 58, 94 S.Ct. 937, 951 n. 58, 39 L.Ed.2d 166 (1974); Canal Authority of the State of Florida v. Callaway, 489 F.2d 567, 573, 578 (5th Cir.1974).

Upon the evidence presented, the Court makes the following findings of fact and conclusions of law as grounds for the issuance of the preliminary injunction.

FINDINGS OF FACT

On October 16, 1990, Olympia Holding Corporation, formerly known as P*I*E Nationwide, Inc. (“Debtor”), filed a petition for relief under Chapter 11 of the Bankruptcy Code.

As of the petition date, Debtor was principally engaged in the business of motor carrier transportation providing truckload and less-than-truckload service for its customers.

As of the petition date, Debtor had pledged its accounts receivable to Fidelcor Business Credit Corporation (“Fidelcor”) as security for more than $40 million in indebtedness to Fidelcor.

Fidelcor was Debtor’s principal pre-petition lender pursuant to prior agreements between them.

On December 15, 1990, in the course of a hearing being conducted in Debtor’s main bankruptcy case, Debtor announced its decision to terminate its operations.

On December 22, 1990, the United States Bankruptcy Court for the Middle District of Florida, Jacksonville Division (the “Bankruptcy Court”) ordered the appointment of a Chapter 11 trustee. On December 29, 1990, the Bankruptcy Court approved Lloyd T. Whitaker as the Chapter 11 trustee for Debtor.

In mid-January, 1991, Debtor terminated its operations.

On March 11, 1991, the Bankruptcy Court converted Debtor’s case from a case under Chapter 11 of the Bankruptcy Code to a case under Chapter 7 and Lloyd T. Whitaker (“Trustee”) was appointed the Chapter 7 trustee.

On March 24, 1991, the Bankruptcy Court granted Fidelcor’s motion for relief from the automatic stay and vacated the automatic stay imposed by Bankruptcy Code Section 362(a) to permit Fidelcor to collect freight charges owed from former customers of Debtor.

In 1991, Phoenix Advisors and Collections, Inc. was engaged by Fidelcor to act as the Trustee’s agent in collecting the accounts receivable owed the Debtor’s estate.

The statute of limitations for instituting actions to collect these freight charges may begin to expire on certain accounts as early [445]*445as October 16, 1992, pursuant to Section 108(a)(2) of the Bankruptcy Code.

On June 4, 1991, the Trustee began filing adversary proceedings against former customers of Debtor (“Shippers”) to collect freight charges and undercharges owed to Debtor. The freight undercharges are generally comprised of the difference between the full filed tariff rate and some lower but either allegedly unlawful or discounted tariff or contract rate. The total of these freight undercharges is estimated by the Trustee to be in excess of $200 million. The number of adversary proceedings to collect freight charges and undercharges which must be filed is estimated by the Trustee to be in excess of 20,000.

The Bankruptcy Court maintains exclusive subject matter jurisdiction over these freight undercharges as assets of the estate. 28 U.S.C. § 1334(d).

On April 1, 1992, the ICC instituted an administrative proceeding styled Olympia Holding Company f/k/a P*I*E Nationwide, Inc., et al. and assigned Docket No. MC-C-30197. On April 16, 1992, the ICC reissued its Order and renumbered the proceeding as No. 40786 (“Order” or “ICC Order”).

The Order purports to institute an investigation to determine whether respondents (Plaintiffs here) “are violating the [Interstate Commerce Act] and the rules and regulations promulgated thereunder by collecting or attempting to collect freight charges in excess of those contained in duly filed tariffs without first seeking a determination from the Commission that the rate is unlawful”. The Order also names AAA Trucking, a shipper unrelated to any of the Plaintiffs in this proceeding; the AAA Trucking trustee, Joseph DiPasq-uale; and the AAA Trucking agents and assignees.

The ICC purports to make Plaintiffs, none of which is a motor carrier, respondents in the ICC administrative proceeding and require them to file written statements under oath “showing good cause why a cease and desist order should not be issued prohibiting them from collecting or attempting to collect more than the previously billed discount rates on file with the Commission”. The Order also requires these Plaintiffs to respond on or before May 6, 1992.

In addition, the Order provides that the Plaintiffs’ failure to respond will result in the automatic issuance of a cease and desist order. If entered, the cease and desist order would prohibit Plaintiffs’ collection of Debtor’s accounts receivable.

On April 13, 1992, respondents (Plaintiffs here) filed a motion for more definite statement with the ICC.

During 1992, the ICC has regularly advised Shippers, through letters, a telephone hotline, and a brochure, that the Shippers do not owe the money that the Trustee is attempting to collect and that they do not have to pay that money.1

On May 1, 1992, the ICC entered a decision in No. 40785, holding that the scope of its Order is limited to the shipper coded tariffs and that Plaintiffs’ response to the Order must be filed by May 25, 1992.

On May 12, 1992, Plaintiffs filed a Complaint for Declaratory Judgment and Injunction before this Court and asked it to enjoin the ICC from enforcing its Order in Docket No.

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141 B.R. 443, 6 Fla. L. Weekly Fed. B 147, 1992 Bankr. LEXIS 868, 23 Bankr. Ct. Dec. (CRR) 74, Counsel Stack Legal Research, https://law.counselstack.com/opinion/whitaker-v-interstate-commerce-commission-in-re-olympia-holding-corp-flmb-1992.