989 F.3d 1141
10th Cir.2021Background
- YRC is a less‑than‑truckload (LTL) carrier that uses standard two‑page bills of lading where customers provide estimated shipment weight (weight is “subject to correction”).
- Industry practice is to reweigh shipments and adjust charges up or down; beginning in Sept. 2005 YRC allegedly stopped issuing downward (negative) reweigh corrections while still issuing upward corrections, without notifying customers.
- Southern Furniture learned of the alleged ongoing overcharging only after a DOJ‑unsealed qui tam complaint in Dec. 2018 and filed a putative class action in March 2019 asserting breach of contract, breach of good faith, unjust enrichment, and deceptive trade practices.
- YRC moved to dismiss, arguing among other things that 49 U.S.C. § 13710(a)(3)(B) bars challenges not made within 180 days of receipt of the bill; the district court dismissed under that provision and declined to reach other defenses.
- The Tenth Circuit affirmed: it held Southern Furniture has Article III standing, § 13710(a)(3)(B)’s 180‑day requirement applies to court actions (not only STB proceedings), Southern Furniture qualifies as a "shipper," and the complaint presents a contest of charges subject to the 180‑day rule.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Standing | Southern Furniture alleged it paid inflated charges and thus suffered concrete injury. | YRC argued allegations were too vague to show injury in fact. | Plaintiff has Article III standing; allegations sufficiently pleaded. |
| Applicability of §13710(a)(3)(B) to court suits | The 180‑day rule applies only to proceedings before the STB, not court actions. | The statute’s plain text imposes a 180‑day condition to contest charges generally, not limited to STB. | §13710(a)(3)(B) applies to contests in court as well as before the STB. |
| Whether Southern Furniture is a “shipper” | Southern Furniture argued it is not an "individual shipper" under ICCTA definitions and thus §13710(a)(3)(B) doesn’t apply. | YRC: Southern Furniture contracted for transport and fits the ordinary meaning of "shipper." | Court treated "shipper" by ordinary meaning; Southern Furniture is a shipper under §13710(a)(3)(B). |
| Whether the complaint alleges a "billing dispute" | Plaintiff contended its claims (fraud, overcharging scheme) are broader than a mere billing contest. | YRC argued plaintiff is challenging billed charges—the paradigmatic "contest." | The complaint challenges billed charges and thus is a billing dispute subject to the 180‑day notice requirement. |
Key Cases Cited
- Spokeo v. Robins, 136 S. Ct. 1540 (2016) (injury‑in‑fact and standing pleading standards)
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (1992) (standing requirements)
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (pleading standards and plausibility)
- In re Taylor, 737 F.3d 670 (10th Cir. 2013) (statutory interpretation principles)
- Bostock v. Clayton Cty., 140 S. Ct. 1731 (2020) (textualist construction guidance)
- Skidmore v. Swift & Co., 323 U.S. 134 (1944) (weight of agency interpretations under Skidmore)
- United States v. Mead Corp., 533 U.S. 218 (2001) (limits on applying Chevron deference)
- Chevron U.S.A., Inc. v. Natural Res. Def. Council, 467 U.S. 837 (1984) (agency deference framework)
- Powerex Corp. v. Reliant Energy Servs., 551 U.S. 224 (2007) (same‑term usage across a statute)
- Roberts v. Sea‑Land Servs., 566 U.S. 93 (2012) (read statutory language in context)
