Pensick & Gordon, Inc. v. California Motor Express

This is an action for money damages brought by shipper against several motor common carrier defendants. The shipper (Appellant), in its original complaint (App. No. 17235) alleged the breach by each of the common carriers (Appellees) of their statutory duty to serve the appellant under the Motor Carrier Act (hereinafter referred to as “MCA,”), part II of the Interstate Commerce Act, Section 216(b) and (d), ( 49 U.S.C.A. § 316 (b) and (d)). 1 The breach alleged was failure of the appellees to pick up and make delivery of goods at appellant’s place of business, upon reasonable terms and without unjust discrimination.

In the original complaint, appellant asserted jurisdiction as to all appellees under 28 U.S.C.A. § 1337 , on the theory that the MCA gave a shipper the right under the Commerce clause to bring an action for damages in the United States District Court for breach by motor common carriers of their statutory duty to serve shippers and to serve without discrimination. The District Court, relying on Consolidated Freightways v. United Truck-Lines (9 Cir., 1954), 216 F.2d 543 , decided that it did not have jurisdiction to hear and determine the controversy because the MCA does…