United States v. Davidson Transfer & Storage Co.
Decision Date | 24 April 1958 |
Docket Number | No. 14123.,14123. |
Citation | 259 F.2d 802 |
Parties | UNITED STATES of America, Appellant, v. DAVIDSON TRANSFER & STORAGE COMPANY, Inc., Appellee. |
Court | U.S. Court of Appeals — District of Columbia Circuit |
Mr. Alan S. Rosenthal, Atty., Dept. of Justice, with whom Asst. Atty. Gen. George C. Doub, Mr. Oliver Gasch, U. S. Atty., Mr. Paul A. Sweeney, Atty., Dept. of Justice, and Mr. Melvin Richter, Atty., Dept. of Justice, at the time the brief was filed, were on the brief, for appellant. Mr. Lewis Carroll, Asst. U. S. Atty., also entered an appearance for appellant.
Mr. Bryce Rea, Jr., Washington, D. C., for appellee. Mr. Donald E. Cross, Washington, D. C., also entered an appearance for appellee.
Before PRETTYMAN, BAZELON and BASTIAN, Circuit Judges.
Certiorari Granted October 13, 1958. See 79 S.Ct. 27.
This is a civil action brought in the District Court against the United States under the Tucker Act1 on a contract. The plaintiff was Davidson Transfer & Storage Company, Inc., appellee here, a motor carrier. The contract was for the carriage of goods from Poughkeepsie, New York, to Bellbluff, Virginia. The District Court, on cross motions for summary judgment, rendered judgment for Davidson.
The State of New York had levied a ton-mile truck tax for the privilege of operating motor vehicles on its highways. Davidson filed with the Interstate Commerce Commission, as a tariff, a surcharge which purported to cover this tax. On the bills of lading here involved the Government paid the full tariff rate, including the surcharge. Later, upon a threat of offset pursuant to audit by the General Accounting Office, Davidson repaid to the Government the amount of the surcharge. Davidson then filed its suit to recover.
Davidson filed its tariff with the Interstate Commerce Commission on October 8, 1951. The Commission suspended the effective date for seven months, the maximum period allowed by the statute.2 By the end of that period the Commission had not completed its inquiry, and the filed tariff went into effect on May 8, 1952. Thereafter, on July 20, 1953, the Commission issued its findings and order, concluding that the New York tax should be treated as a normal operating expense, to be reflected in the carriers' rates rather than in surcharges, and further concluded that the surcharges were unjust and unreasonable. The Commission ordered the surcharges cancelled, and they were cancelled on October 15, 1953. The transportation for which the amounts here in dispute were paid occurred during the period when the surcharges were in effect, that is, between May 8, 1952, and October 15, 1953.
The contentions of the parties, summarized, are:
United States.
The basic issue is whether, after the passage of the Interstate Commerce Act, a shipper by motor carrier has a right to a reasonable rate, cognizable in court as a defense to a claim for the amount of a filed and effective rate. We think the United States must prevail on this issue.
At common law a shipper had a right to a reasonable rate. The Interstate Commerce Act preserved that concept in respect to both railroads and motor carriers, declaring it to be the duty of every common carrier to establish just and reasonable rates9 and declaring every unjust and unreasonable rate to be unlawful.10 The statutory scheme of procedure and power in respect to rail carriers is in Part I of the Act,11 principally in Sections 15 and 16;12 and in respect to motor carriers it is in Part II,13 principally Section 216.14 Both Part I and Part II provide that when a complainant alleges that a rate being charged is unreasonable the Commission shall determine the lawful rate to be thereafter observed. Part I, relating to rail carriers, proceeds further and provides that the Commission may award damages in such a case and direct the carrier to pay them.15 Such an order is enforceable in a civil action by a federal district court. But Part II of the Act, relating to motor carriers, contains no provisions similar to these latter provisions of Part I. No authority is conferred on the Commission to award damages in respect to motor-carrier rates.
A similar situation exists in respect to proposed new rates. In both rail and motor-carrier cases the Commission may suspend a proposed new tariff for a limited time and determine the reasonable rate. If the tariff has gone into effect due to the expiration of the suspension, the Commission may, in the case of a rail carrier, order a refund to the shipper of the charged and collected excess over the reasonable rate.16 But no provision as to refunds appears in Part II of the Act, relating to motor carriers.
A filed rate determined by the Commission to be reasonable is not only the legal rate but also the lawful rate. This was thoroughly explained in the Arizona Grocery case.17 While that case dealt with rail carriers its doctrines seem clearly applicable to motor carriers. The Court held that the Commission cannot disavow its legislative rate-making action and award reparations upon a different finding of reasonableness. If, on the other hand, the rate is carrier-made, not determined by the Commission to be reasonable, a shipper may complain and the statutory provisions we have described take effect.
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Incorporated v. United States Davidson Transfer Storage Company v. United States
...grounds, and directing a referral to the I.C.C. of the issue as to the reasonableness of the rate in question. 104 U.S.App.D.C. 72, 259 F.2d 802. We granted certiorari in both cases because of the suggestion that the result reached by the Courts of conflicted with this Court's decision in M......
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Smith's Transfer Corp. of Staunton, Va. v. Barksdale, 7733.
...has no right of action under the Federal statute for past overcharges by motor carrier was overruled in United States v. Davidson Transfer & Storage Co., D. C.Cir., 259 F.2d 802, notwithstanding certain statements seemingly to the contrary in the earlier opinion of the Supreme Court in Mont......
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