Pietro Culotta Grapes v. Southern Pacific Transp., Civ. S-95-0215-WBS.

• Court: United States District Courts. 9th Circuit. United States District Courts. 9th Circuit. Eastern District of California
• Writing for the Court: SHUBB
• Citation: 917 F. Supp. 713
• Decision Date: 16 January 1996
• Docket Number: No. Civ. S-95-0215-WBS.,Civ. S-95-0215-WBS.
• Parties: PIETRO CULLOTTA GRAPES LTD., a Canadian corporation; and P. Culotta & Co. [Ontario] Limited, a Canadian corporation, Plaintiffs, v. SOUTHERN PACIFIC TRANSPORTATION COMPANY, a Delaware corporation; Southern Pacific Rail Corporation, a Delaware corporation; and San Joaquin Valley Railroad Co., a California Corporation; Defendants.

917 F. Supp. 713

PIETRO CULLOTTA GRAPES LTD., a Canadian corporation; and P. Culotta & Co. Ontario Limited, a Canadian corporation, Plaintiffs,
v.
SOUTHERN PACIFIC TRANSPORTATION COMPANY, a Delaware corporation; Southern Pacific Rail Corporation, a Delaware corporation; and San Joaquin Valley Railroad Co., a California Corporation; Defendants.

No. Civ. S-95-0215-WBS.

United States District Court, E.D. California.

January 16, 1996.

917 F. Supp. 714

Andrew J. Skaff, Karen Lorraine Peterson, Knox Ricksen, Oakland, CA, Rubin Strauber, Berkowitz Strauber and Tiger, Montreal, Quebec, Canada, for Pietro Culotta Grapes Ltd., P. Culotta & Co.

Carol A. Harris, Southern Pacific Transportation Company, San Francisco, CA, Terry Lee Allen, Allen, Polgar, Proietti and Fagalde, Merced, CA, for Southern Pacific Transportation Company Holding Inc., Southern Pacific Railroad, San Joaquin Valley Railroad Company.

Lori A. Shoemaker, Steinhart and Falconer, San Francisco, CA, Terry Lee Allen, Allen, Polgar, Proietti and Fagalde, Merced, CA, for Canadian National Railways.

MEMORANDUM AND ORDER

SHUBB, District Judge.

Defendants move for judgment on the pleadings on the grounds that plaintiffs' state law causes of action are preempted by the Carmack Amendment to the Interstate Commerce Act. For the reasons that follow, the motion is granted.

BACKGROUND

The following facts are undisputed by the parties. Defendants Southern Pacific Transportation Company, Southern Pacific Rail Corporation and San Joaquin Valley Railroad (collectively referred to as "defendants") are in the business of transporting freight by railroad. Plaintiffs Pietro Culotta Grapes Ltd. and P. Culotta & Co. Ontario Limited (collectively referred to as "plaintiffs") are Canadian companies that sell wine grapes and other products to customers in Canada.

The instant action arises out of an agreement between the parties for shipment by rail of 48 rail cars of wine grapes and grape juice from the Fresno, California area to Toronto, Canada in the fall of 1993. Specifically, plaintiffs contracted with defendants for the shipment and delivery on various dates in September and October 1993 of the 48 rail cars of wine grapes and grape juice. These deliveries were to be made in time for the 1993 produce market in Toronto which took place from mid-September through October. While defendants were ultimately able to complete the shipment, many of the deliveries were untimely and some of the produce was damaged.

As a result, on August 16, 1994, plaintiffs commenced this action in the United States District Court for the Northern District of California against defendants. After defendants moved to dismiss for improper venue, the court ordered the action transferred to this Court, Eastern District of California. Plaintiffs' complaint alleges state common law causes of action for: (1) breach of contract; (2) negligence; (3) fraud; (4) negligent misrepresentation; and (5) interference with economic advantage.

Plaintiffs allege that because of the delays and "bunching" of rail car arrivals, and because of damage to the grapes, they could not meet the needs of their wine grape buyers. Plaintiffs further allege that defendants wrongfully induced them to enter into the contract by representing that the agreed upon delivery schedules would be met although defendants knew this was unlikely. Consequently, plaintiffs are seeking damages for actual injury to and loss of use of the grapes, loss of business and related profits, and punitive damages.

By this motion defendants argue that because the Carmack Amendment governs transportation agreements and provides for carrier liability arising from the shipment of goods in interstate commerce, all of plaintiffs' state common law causes of action for the recovery of damages to goods or delays of goods occurring in transit are preempted.

917 F. Supp. 715

STANDARD OF REVIEW

"After the pleadings are closed but within such time as not to delay the trial, any party may move for judgment on the pleadings." Fed.R.Civ.P. 12(c). The standard governing a Rule 12(c) motion is basically the same as that which governs Rule 12(b)(6) motions. The motion should be granted if, accepting as true all material allegations contained in the nonmoving party's pleadings, the moving party is entitled to judgment as a matter of law. See Hal Roach Studios, Inc. v. Richard Feiner & Co., 896 F.2d 1542, 1550 (9th Cir.1989); Austad v. United States, 386 F.2d 147 (9th Cir.1967).

DISCUSSION

Neither party disputes that the contract at issue in this action is governed by the Carmack Amendment and...