John Costello, as Trustee of the Estate of Arthur W. Baxter v. Safeway Stores Incorporated

Costello, as trustee in bankruptcy of the bankrupt estate of Baxter, brought this suit in the district court to collect money allegedly owed by Safeway stores to Baxter, for trucking services performed by Baxter for Safeway. Costello claims that the payments formerly made by Safeway, though they were the amounts provided for in contracts between Baxter and Safeway, were insufficient because they were less than the amounts set by California law as the minimum lawful charges for the services rendered by Baxter to Safeway.

Prior to January, 1959, Baxter was employed by a California Corporation named Liberty Freight Lines. Liberty had, in 1957, obtained from the Califor nia Public Utilities Commission a certificate of public convenience and necessity authorizing Liberty to truck certain commodities between the San Francisco area and the Los Angeles area. In the latter months of 1958, Liberty agreed to sell its entire business including its vehicles and equipment, to Baxter, effective January 1, 1959. On that date, by mutual consent, Baxter took over the business and operated it under the name of Liberty Truck Lines. The procedural steps prescribed by the California Public Utilities…