Court Opinion

ID: 9491720
Source: CourtListenerOpinion
Date Created: 2023-08-05 14:21:40.317001+00
Date Added: 2024-06-11T17:54:54.343223
License: Public Domain

BEAM, Circuit Judge,
dissenting.
The court chooses to side-step the well established requirements of the “century-old filed rate doctrine,” American Telephone and Telegraph Co. v. Central Office Telephone, Inc., — U.S. -, -, 118 S.Ct. 1956, 1962, 141 L.Ed.2d 222 (1998) (AT & T), in its construction (in my view, misconstruction) of the shipper/carrier contract at issue in this case. In the process, the court reaches an exceedingly unjust result. Accordingly, I dissent.
Imports Etc., Ltd. (Imports) apparently decided to do business with a group of base individuals or, at least, with an entity operated by persons who were, it seems, dishonest. Apparently sensing the risky nature of this particular transaction, Imports unilaterally added the words “COD CASHIERS CHECK” to the face of the Alternate Bill of Lading (BOL) delivered to ABF Freight System, Inc.’s (ABF) truck driver. These additional words were inserted, as I understand it, without any meaningful negotiations between authorized officials of either party. These words, so the court says, modified the ABF tariff that was in full force and effect and incorporated by reference into this contract for truck transportation and COD collection services. Under this purported modification, ABF not only loses its shipping fee of $2,843, but is also victimized by Imports’ risky dealings to the tune of $53,180.90, the alleged value of the shoes delivered to Imports’ nefai’ious customer.
The Supreme Court reminded us in 1998 that the “filed rate doctrine” is alive and well. See id. 118 S.Ct. at 1963. Shippers are charged with notice of it and carriers must abide by it. See id. at 1962-63. And, the doctrine deals not just with rates, because they do not exist in isolation, but also extends to nonprice features, such as COD collection services. See id. at 1963.
There is no dispute between the parties that ABF’s published tariff was incorporated in the bill of lading by reference and was part of the transportation contract. The tariff reads in pertinent part: “Only the following forms of payment will be accepted: (1) cash up to maximum of $500, (2) bank cashier’s check, (3) bank certified check, (4) money order, or (5) personal check of the consignee when so authorized in writing by the consignor.”
I concede that the Negotiated Rates Act of 1993, Pub.L. 103-180, 107 Stat.2044 (codified as amended in scattered sections of 49 U.S.C.), provides for some shipping rate exemptions and for some defenses against carrier “undercharge” claims, and the Trucking Industry Regulatory Reform Act of 1994 (TIRRA), Pub.L. 103-311 Title II, 108 Stat. 1683 (codified as amended in scattered section of 49 U.S.C.), eliminates the need for carriers to file tariffs containing individually negotiated rates with the Surface Transportation Board. However, neither Act eliminated the filed rate doctrine or the use of tariffs, nor are the terms of these Acts directly applicable to this dispute. There are no undercharge or exemption claims at issue nor is an individually negotiated shipping rate in dispute.
Under the filed rate doctrine, the shipper is charged with knowledge of the contents of the tariff. See AT & T, 118 S.Ct. at 1962. Traditionally, even if the carrier and shipper negotiated for new rates or services, the shipper had no right to rely on anything other than the filed tariff, which allowed no deviation in rates or services. See id. at 1963. In the trucking industry, now that carriers are' allowed under TIRRA to negotiate individual tariff conditions, deviation is allowed when negotiated. Under the facts presented in this case, there is no indication that an agreement deviating from the tariff was contemplated by either party, much less negotiated. The issue then becomes one of tariff interpretation. Tariffs are interpreted using the same principles as contract interpretation. See Carrier Serv., Inc. v. Boise Cascade Corp., 795 F.2d 640, 642 (8th Cir.1986).
*533The tariff provision is not ambiguous on its face. Clearly, there is no language present which can be construed as giving the shipper a choice of one method to the exclusion of others. Even if the tariff were ambiguous, it could only be construed as providing a shipper an option if Imports presented evidence of custom and usage in the industry, or past course of dealings. No such evidence was advanced. Indeed, the fact that the shipper is specifically given an option regarding a consignee’s personal check, but given no other options, argues strongly that the tariff precludes the menu theory advanced by Imports and the court.
Under the filed rate doctrine, Imports had no right to rely on any modification of the rate or service provided for in the tariff. See AT & T, 118 S.Ct. at 1962-63. Even under the more relaxed statutory framework now in place, an effective tariff, without negotiation to the contrary, must control the relationship between the shipper and carrier. To argue otherwise is to assert that carriers must give their drivers authority to modify their tariffs. While drivers must necessarily have the authority as agents of the carrier to count and inspect loads, and sign a BOL, thus binding the carrier to certain liabilities anticipated under the terms of the tariff, without any indication to the contrary, a driver cannot be expected to have the authority to bind the carrier to promises not contained in the tariff. Under the court’s theory, if the shipper writes “20% discount” on the BOL and the driver signs for the load, the carrier is bound by the lower rate. Without actual negotiations to strike an individual deal, the tariff simply cannot be modified in the manner suggested by the court.
Similarly, under a straight contract analysis, the extra service of collecting only a cashier’s cheek is unsupported by additional consideration. The court asserts that the filed rate doctrine does not bar a special arrangement unless the shipper receives an increased value and the carrier incurs increased cost. I find no ease law or statutory support for this holding and the court cites none. Such an analysis of the filed rate doctrine bears no relationship to the purpose of the doctrine-the prohibition of discriminatory pricing and practices. Even if the court’s theory is correct, it is inapplicable here. By Imports’ attempted limiting of the allowed forms of COD payment, ABF incurred a greater risk by increasing its exposure to potential liability. Greater liability results in greater cost, in this case, $56,-023.90 worth.
The court also holds that the modified service allegedly agreed to by the parties did not “affect the rate” and is therefore not barred by the filed rate doctrine. Imports received a service — at no charge- — not provided for in the tariff. In essence, they got more for their money, thus affecting the rate. See id. 118 S.Ct. at 1963. (a filed rate violation can come in the form of a lower price for an equivalent service or in the form of an enhanced service for an equivalent price).
Under both the law and the equities, the court’s result is wrong. I dissent.