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- NOTICE: This opinion is subject to formal revision before publication in the
- preliminary print of the United States Reports. Readers are requested to
- notify the Reporter of Decisions, Supreme Court of the United States, Wash-
- ington, D.C. 20543, of any typographical or other formal errors, in order that
- corrections may be made before the preliminary print goes to press.
- SUPREME COURT OF THE UNITED STATES
- --------
- No. 91-1496
- --------
- PETER C. REITER, et al., PETITIONERS v.
- LANGDON M. COOPER, TRUSTEE FOR CAROLINA
- MOTOR EXPRESS, INC., et al.
- on writ of certiorari to the united states court
- of appeals for the fourth circuit
- [March 8, 1993]
-
- Justice Scalia delivered the opinion of the Court.
- This case presents the question whether, when a
- shipper defends against a motor common carrier's suit to
- collect tariff rates with the claim that the tariff rates were
- unreasonable, the court should proceed immediately to
- judgment on the carrier's complaint without waiting for
- the Interstate Commerce Commission (ICC) to rule on the
- reasonableness issue.
- I
- In many ways, this is a sequel to our decision in
- Maislin Industries, U. S., Inc. v. Primary Steel, Inc., 497
- U. S. 116 (1990). The facts of the two cases follow a
- pattern that has been replicated many times in the era
- of -deregulation- following enactment of the Motor Carrier
- Act of 1980, 94 Stat. 793: A motor carrier negotiates with
- a shipper rates less than the tariff rates that the
- Interstate Commerce Act (ICA), 49 U. S. C. 10701 et
- seq., requires the carrier to -publish and file- with the
- ICC, 49 U. S. C. 10762. After the shipments are
- delivered and paid for (sometimes years after), the carrier
- goes bankrupt and its trustee in bankruptcy sues the
- shipper to recover the difference between the negotiated
- rates and the tariff rates. Shippers' standard defenses
-
- against such -undercharge- actions have been (1) that the
- carrier's attempt to collect more than the agreed-upon
- rates is an -unreasonable practice- proscribed by the Act,
- see 10701(a), and (2) that the tariff rates were unlawful
- because they were unreasonably high, see ibid. In 1989,
- the ICC announced a policy approving the first of these
- defenses. See NITL-Petition to Institute Rulemaking on
- Negotiated Motor Common Carrier Rates, 5 I. C. C. 2d 623
- (1989); see also NITL-Petition to Institute Rulemaking on
- Negotiated Motor Common Carrier Rates, 3 I. C. C. 2d 99
- (1986); Maislin, 497 U. S., at 121-122. Our decision in
- Maislin held that policy invalid under the ICA, because
- it would -rende[r] nugatory- the specific command of
- 10761 that the carrier charge the filed rate. Id., at 133.
- While Maislin thus eliminated the shippers'
- -unreasonable-practice- defense, it expressly noted that
- -[t]he issue of the reasonableness of the tariff rates is
- open for exploration on remand.- Id., at 129, n. 10. The
- present case presents a problem of timing that has arisen
- out of that issue.
- The shippers here are petitioners California
- Consolidated Enterprises (CCE) and Peter Reiter.
- Between 1984 and 1986, they were engaged in the
- business of brokering motor carrier transportation, which
- essentially involves serving as a middleman between
- motor carriers and the shipping public. During that
- period, petitioners tendered shipments to Carolina Motor
- Express, which was operating as a certified motor carrier
- in interstate commerce subject to regulation by the ICC.
- Carolina and petitioners negotiated rates for several
- shipments that were lower than the applicable tariff rates
- on file with the ICC. (Petitioners believed that Carolina
- would publish these negotiated rates in its tariffs, but
- Carolina never did so.)
- In 1986, Carolina filed for bankruptcy and respondent
- Langdon Cooper was appointed trustee. Respondent Mark
- & Associates of North Carolina was retained to conduct
- an audit of Carolina's shipping bills, which revealed
- undercharges (below applicable tariff rates) in the amount
- of $58,793.03 on shipments made by CCE and $13,795.73
- on shipments made by Reiter. Respondents brought
- adversary proceedings against petitioners in Bankruptcy
- Court to collect those amounts. Petitioners raised the
- standard -unreasonable-practice- and -unreasonable-rate-
- claims, and moved the Bankruptcy Court to stay
- proceedings and to refer those claims to the ICC. The
- Bankruptcy Court refused to do so and entered judgment
- for respondents. In re Carolina Motor Express, 84 B. R.
- 979 (WDNC 1988). In 1989 (prior to our decision in
- Maislin), the District Court reversed and held that the
- -unreasonable-practice- defense should be referred to the
- ICC. The Court of Appeals, after holding respondents'
- appeal in abeyance until our decision in Maislin, reversed
- the District Court. In re Carolina Motor Express, Inc.,
- 949 F. 2d 107 (CA4 1991). It held that, in light of
- Maislin, there was no need to refer the -unreasonable-
- practice- issue to the ICC, 949 F. 2d, at 109; and that the
- -unreasonable-rate- claim was no obstacle to the carrier's
- action, since even if the tariff rates were unreasonable the
- -filed rate- doctrine requires the shipper to pay them first
- and then seek relief in a separate action for damages
- under 11705(b)(3). Id., at 110-111. We granted
- certiorari. 504 U. S. ___ (1992).
- II
- The Interstate Commerce Act requires carriers' rates to
- be -reasonable,- 10701(a), and gives shippers an express
- cause of action against carriers for damages (called
- -reparations- in the pre-codification version of the statute,
- see 49 U. S. C. 304a(2), (5) (1976 ed.)) in the amount
- of the difference between the tariff rate and the rate
- determined to be reasonable by the ICC, 11705(b)(3).
- Respondents argue, however, that the unreasonableness
- of a tariff rate may not be asserted as a -defense- to an
- action to recover charges based on that rate. That may
- be true in a technical sense, since 11705(b)(3) provides
- a cause of action rather than a defense. But that does not
- establish that the -unreasonable-rate- issue cannot be
- raised in the present suit, since a defendant having a
- cause of action against a plaintiff may-indeed, often
- must-assert that cause of action as a counterclaim. See
- Fed. Rule Civ. Proc. 13; Southern Const. Co. v. Pickard,
- 371 U. S. 57, 60 (1962). Petitioners' claims under
- 11705(b)(3) are certainly properly raised here, since they
- relate to the same shipments for which respondents seek
- to collect. And it makes no difference that petitioners
- may have mistakenly designated their counterclaims as
- defenses, since Federal Rule of Civil Procedure 8(c)
- provides that -the court on terms, if justice so requires,
- shall treat the pleading as if there had been a proper
- designation.- See also 5 C. Wright & A. Miller, Federal
- Practice and Procedure 1275, pp. 459-460 (2d ed. 1990)
- (-Inasmuch as it is not clear whether set-offs and
- recoupments should be viewed as defenses or
- counterclaims, the court, by invoking the misdesignation
- provision in Rule 8(c), should treat matter of this type as
- if it had been properly designated by defendant, and
- should not penalize improper labelling-).
- Under 49 U. S. C. 11706(c)(2), a shipper -must begin
- a civil action to recover damages under [11705(b)(3)]
- within two years after the claim accrues,- which occurs
- -on delivery or tender of delivery by the carrier,-
- 11706(g). That limitation is not applicable here,
- however, since presented in response to the carrier's suit
- petitioners' claims seek merely -recoupment- - i.e., the
- setting off against asserted liability of a counterclaim
- arising out of the same transaction. Recoupment claims
- are generally not barred by a statute of limitations so
- long as the main action is timely. See Bull v. United
- States, 295 U. S. 247, 262 (1935); 3 J. Moore, B. Ward,
- & J. Lucas, Moore's Federal Practice -13.11 (1992).
- There is no reason not to apply this principle to suits
- under the ICA, and we have indeed already done so. In
- United States v. Western Pacific R. Co., 352 U. S. 59, 71
- (1956), we held that an ICA limitation provision nearly
- identical to the one at issue here did not prohibit the
- shipper (the United States) from asserting -by way of
- defense- unreasonable-rate claims against a carrier
- seeking to collect on previous shipments. Respondents
- seek to distinguish Western Pacific on the ground that the
- United States has a unique statutory set-off right (now
- codified at 31 U. S. C. 3726), allowing it to deduct from
- amounts due to a carrier prior overcharges by the carrier.
- That statute may well have been essential to the holding
- in the case, since some of the amounts withheld by the
- United States were not recoupments (they related to
- shipments other than those that were the subjects of the
- carriers' suits). But the rationale of the case is the same
- as the rationale that permits recoupment here: -Only the
- clearest congressional language could force us to a result
- which would allow a carrier to recover unreasonable
- charges with impunity merely by waiting two years before
- filing suit.- 352 U. S., at 71. See Glama Dress Co. v.
- Mid-South Transports, Inc., 335 I. C. C. 586, 589 (1969).
- Courts of Appeals have understood Western Pacific as
- expressing not just a narrow holding based on the United
- States set-off statute, but a general principle of
- recoupment applicable in other contexts. See Distribution
- Services, Ltd. v. Eddie Parker Interests, Inc., 897 F. 2d
- 811, 813 (CA5 1990); In re Smith, 737 F. 2d 1549, 1554
- (CA11 1984); 118 East 60th Owners, Inc. v. Bonner
- Properties, Inc., 677 F. 2d 200, 203 (CA2 1982);
- Luckenbach S. S. Co. v. United States, 312 F. 2d 545, 549,
- n. 3 (CA2 1963).
- One major consequence does attach to the fact that an
- unreasonable-rate claim is technically a counterclaim
- rather than a defense: A defense cannot possibly be
- adjudicated separately from the plaintiff's claim to which
- it applies; a counterclaim can be. Federal Rule of Civil
- Procedure 54(b) permits a district court to enter separate
- final judgment on any claim or counterclaim, after making
- -an express determination that there is no just reason for
- delay.- See Sears, Roebuck & Co. v. Mackey, 351 U. S.
- 427 (1956); Cold Metal Process Co. v. United Engineering
- & Foundry Co., 351 U. S. 445 (1956). This power is
- largely discretionary, see Curtiss-Wright Corp. v. General
- Electric Co., 446 U. S. 1, 10 (1980), to be exercised in
- light of -judicial administrative interests as well as the
- equities involved,- id., at 8, and giving due weight to -`the
- historic federal policy against piecemeal appeals,'- ibid.
- (quoting Sears, supra, at 438).
- Nothing in the ICA provides that, in an action by a
- carrier to collect undercharges, a 11705(b)(3)
- counterclaim is not subject to the normally applicable
- provisions of the Federal Rules. Respondents contend that
- the so-called -filed rate doctrine- gives them absolute
- entitlement to judgment on their undercharge claims,
- without defense or counterclaim. We disagree. The filed
- rate doctrine embodies the principle that a shipper cannot
- avoid payment of the tariff rate by invoking common-law
- claims and defenses such as ignorance, estoppel, or prior
- agreement to a different rate. See Texas & Pacific R. Co.
- v. Mugg, 202 U. S. 242, 245 (1906); Louisville & Nashville
- R. Co. v. Maxwell, 237 U. S. 94, 98 (1915); Pittsburgh, C.,
- C. & S. L. R. Co. v. Fink, 250 U. S. 577, 581-582 (1919).
- It assuredly does not preclude avoidance of the tariff rate,
- however, through claims and defenses that are specifically
- accorded by the ICA itself. We can agree with
- respondents that this latter category does not include any
- -unreasonable-rate defense,- derived from the general ICA
- requirement (now codified in 10701(a)) that a carrier's
- rates be -reasonable.- See T. I. M. E. Inc. v. United
- States, 359 U. S. 464, 468-472 (1959). But we cannot
- agree that the filed rate doctrine precludes shippers from
- asserting (by way of claim or counterclaim) the
- reparations rights explicitly conferred by 11705(b)(3).
- Contrary to respondents' contention, the preclusive effect
- of the filed rate doctrine over reparations counterclaims
- is not established by our opinion in Crancer v. Lowden,
- 315 U. S. 631 (1942). There, shippers sued by a rail
- carrier for payment of tariff rates challenged them as
- unreasonable, and sought to stay the collection action
- until the ICC had an opportunity to rule on that issue.
- The district court denied the stay and entered judgment
- for the carrier. But unlike the present petitioners, the
- shippers in Crancer had no counterclaim; they had already
- instituted an administrative reparations proceeding (as the
- ICA allowed for rail carriage) before they were sued in
- district court, see Reply Brief for Petitioners, p. 13, and
- Brief for Respondents, p. 18, in Crancer v. Lowden, O. T.
- 1941, No. 505, which precluded filing a reparations claim
- in district court. See 49 U. S. C. 9 (1946 ed.).
- Moreover, all that Crancer held was that -there was no
- abuse of discretion by the trial judge,- since the equities
- balanced against waiting for the ICC's determination. 315
- U. S., at 636. Thus, Crancer held that the court was not
- required to stay the collection proceeding until the ICC
- ruled on the reasonableness of rates; not that the court
- was prohibited from doing so. That is entirely consistent
- with our holding here.
- III
- Respondents raise two arguments to the effect that
- petitioners' 11705(b)(3) counterclaims are not yet
- cognizable in court. First, respondents argue that there
- exists what they denominate as a -pay first- rule, whereby
- payment of the tariff rate is a -prerequisite to litigating
- the rate reasonableness issue.- Brief for Respondents 23.
- See also Milne Truck Lines, Inc. v. Makita U.S.A., Inc.,
- 970 F. 2d 564, 572 (CA9 1992) (embracing similar theory).
- That argument would have merit if the holding in United
- States ex rel. Louisville Cement Co. v. ICC, 246 U. S. 638
- (1918), were still good law. In that case, this Court held
- that a shipper's cause of action for reparations did not
- accrue -until payment had been made of the unreasonable
- charges.- Id., at 644. The opinion noted that -if Congress
- had intended that the cause of action of the shipper to
- recover damages for unreasonable charges should accrue
- when the shipment was received, or when it was delivered
- by the carrier, . . . a simple and obvious form for
- expressing that intention would have been used.- Ibid.
- Within two years, Congress enacted a simple and obvious
- provision stating that any -cause of action in respect of
- a shipment of property shall . . . be deemed to accrue
- upon delivery or tender of delivery.- Transportation Act,
- 1920, 424, 41 Stat. 492. That provision survives in
- substantially the same form in text now codified at 49
- U. S. C. 11706(g). While it is theoretically possible for
- a statute to create a cause of action that accrues at one
- time for the purpose of calculating when the statute of
- limitations begins to run, but at another time for the
- purpose of bringing suit, we will not infer such an odd
- result in the absence of any such indication in the statute.
- We therefore hold that petitioners could assert a claim
- under 11705(b)(3) before payment, but after their
- shipments were delivered.
- Secondly, respondents contend that the doctrine of
- primary jurisdiction requires petitioners initially to present
- their unreasonable-rate claims to the ICC, rather than to
- a court. That reflects a mistaken understanding of
- primary jurisdiction, which is a doctrine specifically
- applicable to claims properly cognizable in court that
- contain some issue within the special competence of an
- administrative agency. It requires the court to enable a
- -referral- to the agency, staying further proceedings so as
- to give the parties reasonable opportunity to seek an
- administrative ruling. See Western Pacific, 352 U. S.,
- at 63-64; Ricci v. Chicago Mercantile Exchange, 409 U. S.
- 289, 291, 302 (1973); Port of Boston Marine Terminal
- Assn. v. Rederiaktiebolaget Transatlantic, 400 U. S. 62, 65,
- 68 (1970). Referral of the issue to the administrative
- agency does not deprive the court of jurisdiction; it has
- discretion either to retain jurisdiction or, if the parties
- would not be unfairly disadvantaged, to dismiss the case
- without prejudice. See Carnation Co. v. Pacific Westbound
- Conference, 383 U. S. 213, 222-223 (1966); Mitchell Coal
- & Coke Co. v. Pennsylvania R. Co., 230 U. S. 247,
- 266-267 (1913); Jaffe, Primary Jurisdiction, 77 Harv. L.
- Rev. 1037, 1055 (1964).
- The result that respondents seek would be produced, not
- by the doctrine of primary jurisdiction, but by the doctrine
- of exhaustion of administrative remedies. Where relief is
- available from an administrative agency, the plaintiff is
- ordinarily required to pursue that avenue of redress before
- proceeding to the courts; and until that recourse is
- exhausted, suit is premature and must be dismissed. See
- Myers v. Bethlehem Shipbuilding Corp., 303 U. S. 41,
- 50-51 (1938); Heckler v. Ringer, 466 U. S. 602, 617, 619,
- and n. 12 (1984). That doctrine is inapplicable to
- petitioners' reparations claims, however, because the ICC
- has long interpreted its statute as giving it no power to
- decree reparations relief. Shortly after enactment of the
- provision now codified at 11705(b)(3), the ICC said that
- the law did not -grant the Commission any initial
- jurisdiction . . . with respect to the award of reparations-;
- rather, -shippers' recourse must be to the courts,- which
- would -refer- the issue of rate reasonableness to the
- Commission. Informal Procedure for Determining Motor
- Carrier and Freight Forwarder Reparation, 335 I. C. C.
- 403, 413 (1969). The ICC continues to adhere to that
- view. Brief for United States as Amicus Curiae 9, n. 6;
- NITL-Petition to Institute Rulemaking on Negotiated
- Motor Common Carrier Rates, 3 I. C. C. 2d, at 106-107;
- NITL-Petition to Institute Rulemaking on Negotiated
- Motor Common Carrier Rates, 5 I. C. C. 2d, at 625,
- 630-631. We find that to be at least a reasonable
- interpretation of the statute, and hence a binding one.
- Chevron U. S. A. Inc. v. Natural Resources Defense
- Council, Inc., 467 U. S. 837 (1984).
- Nor can we discern within the ICA an intent that, even
- though the ICC cannot decree relief, ICC determination
- of the reasonable-rate issue must be obtained before filing
- the civil action. Since the limitations period for filing
- actions under 11705(b)(3) begins running at the time of
- delivery of the shipment, rather than at the time the ICC
- enters an order, compare 11706(c)(2) and (g), with
- 11706(e), the period could expire before the ICC acted.
- We are not disposed to find an implicit prior-agency-
- determination requirement that would have such
- consequences.
- IV
- Since we have concluded that petitioners' unreasonable-
- rate claims are subject to the ordinary rules governing
- counterclaims, the judgment below must be reversed.
- Neither the Court of Appeals nor the District Court made
- the -express determination- required under Rule 54(b) for
- entry of a separate judgment on respondents' claims, and
- we cannot say categorically that it would be an abuse of
- discretion either to grant or to deny separate judgment.
- In the ordinary case, where a carrier is solvent and has
- promptly initiated suit, the equities favor separate
- judgment on the principal claim: referral of the
- unreasonable-rate issue could produce substantial delay,
- and tariff rates not disapproved by the ICC are legal
- rates, binding on both the shipper and the carrier. See
- Keogh v. Chicago & Northwestern R. Co., 260 U. S. 156,
- 163 (1922); Arizona Grocery Co. v. Atchison, T & S. F. R.
- Co., 284 U. S. 370, 384 (1932); Lowden v. Simonds-
- Shields-Lonsdale Grain Co., 306 U. S. 516, 520 (1939).
- The equities change, however, when the suing carrier is
- in bankruptcy. Indeed, we have previously held that even
- a -threat of insolvency- of the party seeking separate
- judgment is a factor weighing against it. See Curtiss-
- Wright, 446 U. S., at 12. Even so, we cannot say that
- insolvency is an absolute bar. Conceivably, a district
- court could determine that other equities favor separate
- judgment-for example, a threat that the shipper may
- become insolvent, which Rule 62(h) would allow a court
- to protect against by entering separate judgment for the
- carrier but staying enforcement on condition that the
- shipper deposit the amount of the judgment with the
- court. Id., at 13, n. 3.
- The judgment of the Court of Appeals is reversed, and
- the case is remanded for proceedings consistent with this
- opinion.
- It is so ordered.
-
- Justice Blackmun dissents.
-