Baird v. Wagoner Transportation Company, No. 19570-1.

CourtUnited States Courts of Appeals. United States Court of Appeals (6th Circuit)
Writing for the CourtCELEBREZZE and McCREE, Circuit , and WILSON
Citation425 F.2d 407
PartiesArchie BAIRD et al., Plaintiffs-Appellees and Cross-Appellants, v. WAGONER TRANSPORTATION COMPANY et al., Defendants-Appellants and Cross-Appellees.
Docket NumberNo. 19570-1.
Decision Date17 April 1970

425 F.2d 407 (1970)

Archie BAIRD et al., Plaintiffs-Appellees and Cross-Appellants,
v.
WAGONER TRANSPORTATION COMPANY et al., Defendants-Appellants and Cross-Appellees.

Nos. 19570-1.

United States Court of Appeals, Sixth Circuit.

April 17, 1970.


425 F.2d 408

John P. Boeschenstein, Muskegon, Mich., for defendants-appellants and cross-appellees; Schoener, Collinge. Boeschenstein & Barlow, Muskegon, Mich., H. William Butler, Arthur P. Boynton, Clark, Klein, Winter, Parsons & Prewitt, Detroit, Mich., on the brief.

Stephen C. Bransdorfer, Grand Rapids, Mich., for plaintiffs-appellees and cross-appellants; Miller, Johnson, Snell & Cummiskey, James L. Stokes, Grand Rapids, Mich., on the brief.

Laurence H. Silberman, Solicitor of Labor, Bessie Margolin, Associate Solicitor, Carin Ann Clauss, Betty Jo Christian, Attys., U. S. Dept. of Labor, Washington, D. C., Aaron A. Caghan, Regional Atty., on brief as amicus curiae, for George P. Shultz, Secretary of Labor.

Before CELEBREZZE and McCREE, Circuit Judges, and WILSON*, District Judge.

CELEBREZZE, Circuit Judge.

This is an appeal from the United States District Court for the Western District of Michigan in an action by 19 Wagoner Transportation truck drivers against Wagoner, pursuant to the Fair Labor Standards Act of 1938, as amended in 1961, 29 U.S.C. § 201 et seq. (1964) hereinafter sometimes referred to as "FLSA". The case was tried without a jury and the facts were generally uncontested. The parties stipulated that Wagoner was an "enterprise engaged in commerce within the meaning of Section 3(s) of the Act," 29 U.S.C. § 203(s); and that Wagoner had not paid for and would be liable under the FLSA for certain overtime work which the drivers had done over several years, unless Wagoner was exempted from the maximum hours provisions of the FLSA, 29 U.S.C. §§ 213(b) (1), 216(b). The District Court held that the 19 Wagoner

425 F.2d 409
truck drivers were not exempted from the maximum hours provision of the FLSA and awarded them overtime back pay, counsel fees and costs, but denied their claim for liquidated damages. Wagoner appeals and its 19 truck drivers cross-appeal for liquidated damages. 29 U.S.C. §§ 216(b), 260

Appellant is a motor carrier for hire engaged in the transportation of petroleum products, in bulk, in tank vehicles. At all times herein relevant, Appellant transported petroleum products for a wholly-owned subsidiary of Standard Oil of Indiana hereinafter "Standard". For the past ten years, including the period involved, none of Appellant's drivers ever transported petroleum products outside the State of Michigan, although Appellant did have a dormant Certificate of Public Convenience and Necessity authorizing it to transport petroleum and petroleum products from Granger, Indiana to points in Michigan.

Standard ships its oil to its Muskegon terminal on the basis of highly sophisticated forecasts of its customers' needs. Statistical projections never being precisely accurate, if Standard mis-estimates its customers' actual needs, Standard borrows or buys petroleum from its nearby competitors to fill the orders.

All customer orders are placed with Standard's sales department, which informs the terminal manager and Wagoner of the quantities and destinations of the various petroleum products which are to be delivered to points within Michigan from the Muskegon terminal. Standard gives copies of its forecasts to Wagoner so that Wagoner will have equipment available to handle actual orders. While the evidence did not reveal the average amount of time the petroleum products are in "inventory" pending the receipt of actual orders, Standard acknowledges that the "through-put" of the Muskegon terminal in any given year is about six times its tank capacity. If the terminal tanks were, on the average, one-half full, then petroleum products in the Muskegon terminal would be inventoried for an average length of one month.

Standard has more than 200 customers in the Michigan area served by the Muskegon terminal and Wagoner, under a variety of financial arrangements. Direct shipments to industrial plants and schools compose about 25 to 30 per cent of the shipments from the Muskegon terminal. Sales to some 77 service stations and 70 Standard bulk plants comprise the remaining 70 to 75 per cent of the shipments. The actual method of ordering varies: some customers have requirements contracts; others call each time they want an order; some are regular customers (including its own bulk plants) whose supply is maintained at a level by Standard; while a few customers order on an infrequent and irregular basis. Although Standard knows the identities of all its customers at the time it makes shipments to Muskegon, it does not know precisely the amount of petroleum each customer will actually order.

The sole issue on this appeal is whether the Appellants, who otherwise admit they are covered by the Fair Labor Standards Act, are excluded from its maximum hours provision by Section 13(b) (1) of the Act, 29 U.S.C. § 213(b) (1) (1964).

The FLSA provides that any employee who "is engaged in commerce or in the production of goods for commerce" shall be paid a minimum of "one and one-half times the regular rate at which he is employed" for every hour over 40 hours he works in a workweek. However, an employee is exempted from the benefits of this provision of he is

"(b)
* * * *
(1) Any employee with respect to whom the Interstate Commerce Commission has power to establish qualifications and maximum hours of service pursuant to the provisions of Section 304 of Title 49 (The Motor Carriers Act of 1935)." 29 U.S.C. § 213(b) (1).
425 F.2d 410

The Motor Carriers Act of 1935, 49 U.S.C. § 301 et seq. hereinafter sometimes referred to as MCA extends the power of the Commission to "motor carriers engaged in interstate * * * commerce." 49 U.S.C. § 302(a). "Interstate commerce" is defined under the MCA as

"(10) * * * commerce between any place in a State and any place in another State or between places in the same State through another State, whether such commerce moves wholly by motor vehicle, or partly by motor vehicle and partly by rail, express, or water." 49 U.S.C. § 303(a) (10).

Thus, the Interstate Commerce Commission has the "power to establish qualifications and maximum hours of service" for truck drivers only if they are engaged in "interstate commerce" for purposes of the MCA.

While the parties have stipulated that they are engaged in "interstate commerce" for the purposes of the FLSA, such stipulation does not necessarily require a conclusion that their activities were in "interstate commerce" for the purposes of the MCA. The scope and meaning of "interstate commerce" in each Congressional Act presents a "unique problem in which words derive vitality from the aim and nature of the...

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52 practice notes
  • Almy v. Kickert Sch. Bus Line, Inc., Case No.: 08-cv-2902
    • United States
    • United States District Courts. 7th Circuit. United States District Court (Northern District of Illinois)
    • January 7, 2013
    ...persuasive. See Bilyou, 300 F.3d at 229. The Court also finds that Bilyou does not conflict with Baird v. Wagoner Transportation Co., 425 F.2d 407 (6th Cir. 1970), Goldberg v. Faber Industries, 291 F.2d 232 (7th Cir. 1961), Marshall v. Aksland, 631 F.2d 600 (9th Cir. 1980), or Carolina Casu......
  • Badgett v. Rent-Way, Inc., Civil Action No. 03-188 Erie.
    • United States
    • United States District Courts. 3th Circuit. United States District Courts. 3th Circuit. Western District of Pennsylvania
    • September 30, 2004
    ...the carrier's involvement in interstate commerce was too remote, unlikely or simply not proven. In Baird v. Wagoner Transportation Co., 425 F.2d 407 (6th Cir.1970), a carrier's mere possession of a certification allowing it to ship petroleum interstate, which had not been used since 1959, w......
  • Ford Motor Co. v. Transport Indem. Co., Nos. 84-1735
    • United States
    • United States Courts of Appeals. United States Court of Appeals (6th Circuit)
    • June 30, 1986
    ...(1978), as extending to those activities " 'part of a continuous movement in interstate commerce.' " Baird v. Wagoner Transportation Co., 425 F.2d 407, 410 (6th Cir.) (quoting Shew v. Southland Corp. (Cabell's Dairy Division), 370 F.2d 376, 380 (5th Cir.1966)), cert. denied, 400 U.S. 829, 9......
  • Laffey v. Northwest Airlines, Inc., Nos. 74-1791 and 75-1334
    • United States
    • United States Courts of Appeals. United States Court of Appeals (District of Columbia)
    • September 8, 1977
    ...792 (W.D.La.1972); 29 C.F.R. § 790.22(b) (1974); contra, Baird v. Wagoner Transp. Co., 18 Wage & Hour Cas. 597 (W.D.Mich.1968), aff'd, 425 F.2d 407 (6th Cir.), cert. denied, 400 U.S. 829, 91 S.Ct. 58, 27 L.Ed.2d 59 270 McClanahan v. Mathews, supra note 268, 440 F.2d at 322-324. 271 The cour......
  • Request a trial to view additional results
52 cases
  • Almy v. Kickert Sch. Bus Line, Inc., Case No.: 08-cv-2902
    • United States
    • United States District Courts. 7th Circuit. United States District Court (Northern District of Illinois)
    • January 7, 2013
    ...persuasive. See Bilyou, 300 F.3d at 229. The Court also finds that Bilyou does not conflict with Baird v. Wagoner Transportation Co., 425 F.2d 407 (6th Cir. 1970), Goldberg v. Faber Industries, 291 F.2d 232 (7th Cir. 1961), Marshall v. Aksland, 631 F.2d 600 (9th Cir. 1980), or Carolina Casu......
  • Badgett v. Rent-Way, Inc., Civil Action No. 03-188 Erie.
    • United States
    • United States District Courts. 3th Circuit. United States District Courts. 3th Circuit. Western District of Pennsylvania
    • September 30, 2004
    ...the carrier's involvement in interstate commerce was too remote, unlikely or simply not proven. In Baird v. Wagoner Transportation Co., 425 F.2d 407 (6th Cir.1970), a carrier's mere possession of a certification allowing it to ship petroleum interstate, which had not been used since 1959, w......
  • Ford Motor Co. v. Transport Indem. Co., Nos. 84-1735
    • United States
    • United States Courts of Appeals. United States Court of Appeals (6th Circuit)
    • June 30, 1986
    ...(1978), as extending to those activities " 'part of a continuous movement in interstate commerce.' " Baird v. Wagoner Transportation Co., 425 F.2d 407, 410 (6th Cir.) (quoting Shew v. Southland Corp. (Cabell's Dairy Division), 370 F.2d 376, 380 (5th Cir.1966)), cert. denied, 400 U.S. 829, 9......
  • Laffey v. Northwest Airlines, Inc., Nos. 74-1791 and 75-1334
    • United States
    • United States Courts of Appeals. United States Court of Appeals (District of Columbia)
    • September 8, 1977
    ...792 (W.D.La.1972); 29 C.F.R. § 790.22(b) (1974); contra, Baird v. Wagoner Transp. Co., 18 Wage & Hour Cas. 597 (W.D.Mich.1968), aff'd, 425 F.2d 407 (6th Cir.), cert. denied, 400 U.S. 829, 91 S.Ct. 58, 27 L.Ed.2d 59 270 McClanahan v. Mathews, supra note 268, 440 F.2d at 322-324. 271 The cour......
  • Request a trial to view additional results

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