Koffman

Plaintiff appeals from a judgment for defendant in an action on an account.

Plaintiff, assignee of certain accounts receivable of Golden West Livestock Transportation Company, sued to collect $19,000 for trucking services rendered to defendant Modern-Imperial Company during November and December 1961. Modern-Imperial defended on the ground that it had *136 paid Golden West, plaintiff’s assignor, in advance for the trucking services. The trial court allowed defendant’s setoff against plaintiff’s claim and denied recovery.

On appeal, plaintiff contends the allowance of a setoff based on other transactions and accounts violates California’s constitutional and statutory provisions against rate discrimination by common carriers.

Modern-Imperial had formerly been affiliated with Golden West and had sold trucking equipment to Golden West on credit. In May 1961 the owners of Modern-Imperial sold their stock in Golden West to third parties, and the common ownership of the two companies terminated. By November 1961 Golden West still owed Modern-Imperial $42,000 for its trucking equipment, and, in addition, $26,000 for moneys Modern-Imperial had paid Golden West’s creditors in order to…