Gilbert Carrier Corp. v. Receivers and Shippers, Inc.

ORDER DENYING INJUNCTION AND DISMISSING COMPLAINT

Receivers and Shippers Inc. (RSI) was formed in 1961 by a group of Santa Monica retail merchants who bought ready-to-wear clothing in New York and were faced with the problem of shipping the merchandise to the Los Angeles area. The retailers’ purpose was to group their several small purchases into one container so they could realize reduced shipping costs and thus compete more favorably with larger stores. RSI is organized as a non-profit company and charges its members dues of $6.00 per year. The member that uses the service is also billed for his share of the total freight costs.

When the local merchant makes a selection of goods from the salesman that calls on him, he gives the salesman an RSI sticker which is placed on the order form and this informs the manufacturer how the buyer wants the merchandise shipped. In the early years, the association used the services of Gilbert Carrier Corp. which consolidated the various orders in New York and delivered them to a terminal in Los Angeles where the bulk was broken and the various small orders sent by truck to the member merchants. Gilbert is a common carrier by motor vehicle…