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Shippers gain major undercharge victory. (federal district court dismisses claim challenging use of account code tariffs) (Transportation)
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Purchasing
| Date:
October 7, 1993
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COPYRIGHT 1993 Reed Business Information. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group.
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A federal district court dismissed in Sep 1993 a claim filed by a defunct freight carrier questioning the use of account code tariffs. The use of numerical account codes in place of shippers' names entitled the shippers to lower tariffs. The trustees of the defunct freight carrier P-I-E Nationwide Inc. wanted this practice declared illegal so that shippers could be charged the higher tariffs applicable at the time of shipment. That would have made the shippers liable for undercharge claims by bankrupt carriers. A successful suit would have made shippers liable for almost $32-billion in claims.
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