Document: 329 U.S. 433 67 S.Ct. 439 91 L.Ed. 402 STEELEv.GENERAL MILLS, Inc. No. 79. Argued Dec. 18, 1946. Decided Jan. 6, 1947. Rehearing Denied Feb. 3, See 834, 628. Mr.Cecil A. Morgan, of Fort Worth, Tex., for petitioner. Mr. Alfred McKnight, respondent. Elton M. Hyder, Jr., Austin, State Texas, amicus curiae. Justice BLACK delivered the opinion Court. 1 Petitioner and respondent entered into a written contract under which petitioner was to transport goods by truck entirely within Texas at 'such rates, charges, or tariffs as may be fixed Railroad Commission Texas.' Based on that applied permit operate carrier pursuant rules promulgated law grants regulatory power over transportation Commission. Article 911b, §§ 22b, Rev.Stat. Tex. Petitioner's application stated 'the tariff charged service proposed will After notice hearing, representative testified, made an order 'After carefully considering evidence, laws its own regulations,' character business done applicant strictly conforms with definition carrier.' The directed granted permit, later issued, in but attention fact Commission's 'tariffs orders prescribed minimum rate carriers common motor carriers.' Later, prearrangement, parties supplemental agreement concerning kept uninformed, accordance actually paid carriage less than rates carriers. About three half years filed this suit, District Court had jurisdiction reason diversity citizenship, recover full prior general prescribing provided contract. 2 respondent's answer admitted it orders, denied legal liability pay several grounds. It were governed special granting carrier. also claimed two-year statute limitations barred recovery part amount claimed. further alleged led believe his type not subject regulation Commission, no petitioner's rates. In reliance upon representations, alleged, here Respondent pleaded conduct estopped from claiming transportation, predicating cause action tariffs. 3 rejected all contentions. Citing statutes, court decisions, practices, held limitations; charges such petitioner; any collateral attack validity orders; fixing been directly attacked, authorized law, they would have valid; shippers could private agreements defeat State's statutory purpose require payments uniform rates; original Commission-fixed valid, void; that, rely rate. Accordingly, jury return verdict balance due rate, judgment verdict.1 4 Circuit Appeals, one judge dissenting, reversed. General Mills v. Steele, 5 Cir., 154 F.2d 367. majority concluded should because subterfuge, neither party intention living up agr ement their amounted fraud 'contrary good morals (it) tended interfere purity administration puts both pari delicto right seek advantage * *' 'spurious' dissenting did agree records showed deliberate evade statutes. He thought controlling policy doctrine so shipper hauled others compelled law. All judges agreed, however, void. On motion rehearing Attorney intervened. contended court's decision ran counter long-established against discriminatory rate-cutting, if stood, impair integrity system, primary was, he argued, assure substantially same service. denying rehearing, reaffirmed former holding 'a suit particeps criminis, another like situation fully executed contract, whereon sought penalize extent $37,000 reward prime offender amount.' Whether Appeals' does undermine is question importance we certiorari review case. 328 830, 66 1341. 6 specifically claim sued Appeals discuss question. 5526 Revised Statutes relies, language applies only actions debts 'evidenced writing.' 'in has cited decisions considered bar suits contracts involved. We cannot say sitting erred 5526. Texarkana & Ft. S. Ry. Co., et al. Houston Gas Fuel 121 594, 51 S.W.2d 284. 7 Nor can interpreting render between designed circumvent payment void unenforceable. Court's holdings business, made, carry well buttressed state statutes decisions.2 No arguments relies refute reasoning conclusion. disagreed Texas. Under these circumstances shall leave undisturbed interpretation placed purely local federal judge. MacGregor Mutual Life Assurance 315 280, 62 607, 86 864; Henderson Co. Thompson, 300 258, 266, 57 447, 451, 81 632; Thompson Consolidated Utilities Corporation, 55, 74—75, 364, 373, 374, 510. Therefore proceed consider whether escape delicto. 8 what courts frequently decided, railroads cut below are unlawful estoppel invoked N.O.R. Yates, 139 89, 93, 161 1050, 1052. said, 'In word our relate intrastate freight every essential respect Federal consideration T.C.R. Johnson, Tex.Com.App., 41 14, 83 A.L.R. 241.' Just 49 U.S.C. § 41(3), U.S.C.A. prohibits rebate similar devices might interstate systems, Art. 1690b, Penal Code makes charge commission-fixed 1687 engage practice. referred indicate public different effective protecting railroad legislation system applicable alike lines represents 'studied effort prevent, through regulation, unfair, discriminatory, destructive competition ultimately usefulness.' P. Tex.Civ.App., 138 927, 930, 931 rev'd other grounds, 148, 157 622. Cf. Stephenson Binford, 287 251, 272-273, 53 181, 187, 77 288, 87 721. 9 merely obligation duty one, 241. And, said Yates case, supra, reference railroad, 'by means 'or device' performance duty.' While some types recovery, see Wright Wight Wight, 229 S.W. 881, satisfied apply Application proceeding, therefore, where diversity, result applying rule courts. Such approved. Holmberg Armbrecht, 327 392, 582, 90 743, 162 719. 10 reversed affirmed. ordered. 11 Reversed. permitted offer evidence intended show nor services performed. This offered support contention without fix because, urged, aa. limited compete perform These two questions submitted findings issues favor. district find despite findings, holding, set out opinion, valid beyond following authorities position: Tex.; Gene al Order 1, R.R.Comm. Aug. 22, 1931; Steel Worth Denver C. 120 597, 40 78; Greer 117 142; St. Louis, I.M. S.R. Landa Storey, 187 358; Uvalde Construction 1113; Alpha Petroleum Terrell, 122 257, 59 364; Mingus Wadley, 115 551, 285 1084. cases: Burford Sun Oil 319 315, 63 1098, 1424; United Kentucky, 278 300, 150, 73 390.

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