Bbd Transportation Company, Inc. v. Southern Pacific Transportation Company

BBD Transportation Company, Inc. sued Southern Pacific Transportation Company and five other railroads alleging that they conspired with United States Steel Corporation and Kaiser Steel Corporation to depress motor carrier rates in violation of section 1 of the Sherman Act, 15 U.S.C. § 1 , and the Cartwright Act, California Business & Professions Code §§ 16700-16758. The district court dismissed BBD’s complaint as barred by the four-year statute of limitations in section 4B of the Clayton Act, 15 U.S.C. § 15b. We reverse in part.

FACTS:

BBD contends that the defendant railroad companies agreed with Kaiser and United States Steel to lower their shipping rates on certain intrastate California routes in exchange for the steel companies’ promise to help the railroad companies improve their interstate iron and steel traffic.

BBD argues that the steel companies’ ultimate aim was the reduction of motor carrier rates. Under California law, “permit motor carriers” are prohibited from charging rates lower than those charged by railroads, California Public Utilities Code § 3663, and BBD contends that the rail rate reduction, in addition to being illegal in itself as an act of…