Southern Pacific Transportation Co. v. Continental Shippers Ass'n

HEANEY, Circuit Judge.

This appeal presents the issue of whether the shipper-members of a shippers association which is exempt from Interstate Commerce Commission (ICC) regulation 1 are individually liable to a common carrier for freight charges when the shippers association fails to pay those charges. In this case, Continental Shippers Association, Inc. (Continental) went bankrupt and plaintiff-appellee Southern Pacific Transportation Company (SP) did not receive payment for shipping certain goods for defendant-appellants, all of whom were Continental members. The district court2 held that…