Document: 355 U.S. 253 78 S.Ct. 212 2 L.Ed.2d 247 UNITED STATES of America, Petitioner,v.The NEW YORK, HAVEN & HARTFORD RAILROAD COMPANY. No. 45. Argued Nov. 20, 1957. Decided Dec. 16, Mr. Alan S. Rosenthal, Washington, D.C., for the petitioner. Edmund M. Sweeney, Boston, Mass., respondent. Justice BRENNAN delivered opinion Court. 1 The General Accounting Office audited transportation bills respondent, rendered and paid in 1944, determined that Government was overcharged amount $1,025.26. When respondent did not refund this on demand, exercised right, reserved § 322 Transportation Act 1940,1 to deduct overpayments from a subsequent bill. credited against bill admittedly owing, $1,143.03 1950 services, balance $117.77 by check. thereupon brought action under Tucker Act2 District Court Massachusetts. complaint seeks recovery $1,025.26 deducted, but full $1,143.03. Government's answer admits pleads its payment check credit liquidation overcharges 1944 bills. filed pleading response government answer3 admitting 'that it receive $117.77, all as recited defendant, leaving due date unpaid $1025.26.' 3 question presented both courts below, Court, is whether carrier has burden proving correctness bills, or overcharged. held contract which attempting 'set off' claims other contracts, 'whoever attempts set off contractual showing there are claims.' In absence evidence claimed motion summary judgment granted. entered, however, $402.84, because accepted difference between sum Appeals First Circuit affirmed judgment. 236 F.2d 101. We granted certiorari, 352 965, 77 L.Ed. 359, 320. 4 Before enactment 322, protected itself paying until responsible officers, and, doubtful cases, Office, first found charges were correct.4 questioned required justify them. If administrative settlement reached sued United States recover bill, no one questions carrier's duty sustain charges.5 Southern Pacific Co. v. States, 272 445, 448, 47 123, 124, 71 343. 5 Section such 'upon presentation * prior audit *.' procedures remained substantially same those effect statute former means protecting overcharges—by their proved—has, force statute, been replaced method collecting them right section 'to any overpayment subsequently be carrier.' recently said Western R. Co., 59, 74, 161, 170, 126: 6 '* This (to carrier) thought necessary measure protect Government, since carriers' must before audit.' 7 Again at page 75 U.S., 171 S.Ct.: 8 'The fact without significance light Act, supra, requiring presentation' postponing final 9 interpretation finds support legislative history section. included omnibus became 1940, direct demand railroads legislation relieving inordinate delays attributable preaudit procedure, tied up substantial amounts accounts receivable contributed financial difficulties confronted during depression years. then President Association American Railroads raised issue letter Procurement Division Department Treasury dated October 5, 1937. (See Appendix opinion, 264, 219.) Proposed almost identical language introduced 1938.6 It failed passage Seventy-fifth Congress number similar proposals therefore Seventy-sixth Congress.7 None these passed, following year provision 1940.8 10 entirely clear although sought, words spokesman, 'corrective will render impossible long services rendered,' gain end recognized remedy suggested behalf should 'both practical legal (one) can easily made operative assumption risk insofar concerned.' 'with mind' proposed elimination prompt when rendered, with 'after (of) referred governmental auditing office might desired plan contemplated 'in event reveals an over-payment' 'will promptly railway, preserving, make further effort re-collect does believe proper resulted audit.'9 11 hearings House Committee Interstate Foreign Commerce June 1, 1938,10 connection incorporating proposal Counsel Railroads, arguing proposal, urged '(i)f could put here, would require they railroads, privilege, course, if develop overpayment, may bills.' 12 conclusion inescapable desirous aiding secure charges,11 also Congress, protection available practice diminished. carriers establish continue unabridged. immediately upon submission return administratively determined. have re-collect' refunded justifying agency claim courts. footing each parties stood controversies over developed changed. own securing having prove proceedings reimbursement. 13 history, we unable agree holdings '(a)ll authorize disbursing officers pay presentation, waiting Office,' reservation offset significance—'We suppose inserted out abundance caution, availability setoff need depend specific statutory authorization,' citing Gratiot 15 Pet. 336, 370, 759. Cir., 101, 105. 14 Nor do share view 'the position shipper, so far present case concerned, different private shipper.' Id., 104. Even assume shipper consignee satisfying himself demanded—as he pursuant 3(2) 49 U.S.C.A. regulations Commission thereunder—and later sues alleged overpayments, another due, either alleging overpayment,'12 overlooks designed equivalent previous withhold altogether established charges. Thus overcharges, after arises way, differing control placement proof.13 situation railroad suing initially conditionally, recaptured, procedure. hold lawfulness superseded practice. Similarly, conventional principles govern determination proof merely frames rather than deducted therefrom. respondent's brief concedes '(w)henever brings directly deduction (as, facts case, overpayments), establishing validity applicable tariffs.' There authority plaintiff burden, damages deduction. Suncook Mills 44 F.Supp. 744; Eastport S.S. 130 333, 131 Ct.Cl. 210; Buch Express, Inc., 132 473, 772.14 see shaped pleadings action. Cf. Wisconsin Central 164 190, 212, 17 45, 52, 41 399. Although ad damnum clause prays $1,143.03, actual controversy concerns true dispute parties, arising collection authorized involves substance, form, our concern. Alcoa 338 421, 70 94 225; Reynolds 292 443, 54 800, 1353. entitled only satisfies computed lawful rates. 16 here intimate binding judicial proceeding, 211, 51; Grand Trunk 252 112, 120—121, 40 309, 311—312, 64 484; extrinsic fact, namely freight cars sizes ordered, remains proved suit. Our respect carrier. reversed direction remand inconsistent opinion. 18 Reversed remanded. 19 FRANKFURTER dissents, basis Chief Judge Magruder court more particularly initial 20 Appendix. 21 letter, 1937, addressed J. Pelley, Captain H. E. Collins, Assistant Director, Division, Department, reads: 22 'Dear Collins: 23 members comprise about 98% Class I very much concerned delay Government. know further, conferences Short Line Railroad Association, lines experiencing difficulty. These justified expected finance now doing, concerned. Furthermore, necessarily large borrowers condition obtaining capital interest borrowed money, whereas hand delayed payments companies, many instances run invariably settled sixty ninety days. money borrow, cannot law collect matter how settlements delayed. obviously unfair. 24 'Under commercial shippers, transactions cash basis. Shippers within 48 hours, majority traffic, permitted excess 96 hours. appears us, unfortunate ought hours possible providing machinery instructions issued. 25 'This greater importance today years past, reason conditions engaged shipping extent ever before. Due various bureaus agencies, relief work some corporations organized, handling tonnage previously traffic serious decade ago. borne mind shipped lading assessing rates making discounts requires land-grants below cost performing service. mentioned indicating great sort system permit 26 'That you picture situation, your attention directed July 94,182 outstanding amounting $11,749,774, had May $4,683,946, representing 37,761 January 27 'We feel sure grossly unfair corrective taken rendered. 28 sufficient us simply complain addition thereto suggest associates operation issued needed therewith. With mind, respectfully submit consideration following: 29 absolutely avoided departments contracting instructed audit. over-payment, thereof Attention never have, plan, lawfully owed daily currently obligated companies place applies transactions. 30 'I am negotiations others connected regard subject exists differences necessity heretofore prevailed. hope consider suggestions contained herein reasonable rely good offices bring arrangement. desire discuss perhaps differ somewhat herein. Should develop, want assure appropriate committee gladly time mutually satisfactory. obtain improvement exists, matters handled along recommended create better feeling materially reduce expenditures give greatly needed. 31 'With kindest regards, beg remain. 32 'Yours most cordially, 33 '(Signed) Pelley.' September 18, Stat. 955, U.S.C. 66, provides follows: 'Payment mail persons property common amended, Civil Aeronautics 1938, shall therefor, hereby 505, 1346(a)(2), 1346(a) (2). Pleading captioned 'Plaintiff's Answer Defendant's Counterclaim.' generally payment. Op.Atty.Gen. 383. Prepayment examination several statutes. See 55 875, 82b, 82b; R.S. 3620, 492, 492; 3622, 496, 496; 3623, 498, 498; 3633, 514, 514; 3648, 529, 529; 37 375, 82, 82; 82c, 82c. claimant furnish satisfactorily his claim. Charles 316. Doubtful transmitted review. G.A.O. Regulations 50, April 21, 1926, CFR 4.1. turned shorter lengths ordered supplied larger sizes. A wartime charging tariffs furnished supply ordered. 103. finding documents showed longer On available, stated interrogations: 'Such information peculiarly knowledge (respondent) and/or ordinary rule, based considerations fairness, litigant adversary. Selma, D.R. 139 560, 566, 638, 640, 35 266; Denver R.G.R. 191 84, 91—92, 33, 35, 106. known 3876, 75th Cong., 3d Sess., 1938 (83 Cong.Rec. 5569). H.R. 10620, 12, 6842). See, e.g., 1915, 76th 1st March 23, 1939 (84 3143); S.1990, 30, 3509). dealt land-grant rates; presentation. 2531, 13, 345); 4862, 8, 2512). 501 Title V 2531 §§ 201 202 II 4862 traffic. Their provisions 1915 1990. H.R.Rep. 2016, Sess.; 2832, Sess. postpayment large-scale 322. For example, Annual Report Comptroller fiscal ending 1951, pages 31—32, reports that: 'During examined reviewed regular payments—exclusive special cases—a total 633,706 vouchers covering 2,569,198 lading, $350,341,941 issuance 25,591 notices totaling $6,301,799. passenger 400,639 2,917,633 requests, $91,380,604, 11,015 $672,708.' general refunds apparently footnote states: advised that, 1956, $40,941,188.78. period totaled $11,155,837.72. During preceding year, approximately two one-half times deducted.' Hearings Representatives pp. 34—35. broadened apply et seq., 401 seq. p. 472. expressed services. 380, 3(2), 3(2). limited exception allows extend shippers prescribed limitations. Ex parte 73, 57 I.C.C. 591. Compare followed Claims, concurrent jurisdiction actions Act. 'Memorandum Order Procedure Common Carrier Cases,' 11, 1953, Claims (now, amendments, B Rules revised December 2, 1957), expressly defines 'dispute' cases instant kind, among others, court: word shipment shipments overpaid except shipments.' memorandum prescribes procedure framing issues defined. bringing detailed schedule 'each dispute' file, petition days thereafter, 'a request admission defendant (United States) genuineness relevant described exhibited truth material relied action.' statements 'sufficiently explicit show nature reasons why believes higher allowed Government.' Failure comply requirements cause imposition sanctions, including dismissal petition. But Atlantic Coast Ct.Cl., 140 569, 572. indicated holding provide cars.

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