Bell v. L&B Transp., LLC
| Decision Date | 19 January 2021 |
| Docket Number | CIVIL ACTION NO. 19-658-RLB |
| Parties | DARRELL W. BELL v. L & B TRANSPORT, LLC, ET AL. |
| Court | U.S. District Court — Middle District of Louisiana |
CONSENT
Before the Court is Hudson Insurance Company's ("Hudson" or "Defendant") Motion for Summary Judgment filed on December 15, 2020. (R. Doc. 13). The deadline to file an opposition has expired. LR 7(f). Accordingly, the Motion is unopposed.
Darrell W. Bell ("Plaintiff") initiated this litigation with the filing of his Petition for Damages in state court on September 4, 2019, naming Hudson and L&B Transport, L.L.C. ("L&B") as defendants. (R. Doc. 1-3). Plaintiff alleges that he was travelling on the interstate in his 2000 Freightliner Model 8000 tractor to purchase new tires when he was rear-ended by another vehicle. (R. Doc. 1-3 at 1). Plaintiff further alleges that he can recover under a "policy of underinsured/uninsured liability insurance" issued by Hudson. (R. Doc. 1-3 at 4). Hudson removed the action on the basis that the Court has federal diversity jurisdiction under 28 U.S.C. § 1332. (R. Doc. 1).
On October 28, 2019, Plaintiff filed a Motion to Remand arguing that the Court lacks diversity jurisdiction. (R. Doc. 3). Among other things, Plaintiff admits in the Motion to Remand that at the time of the accident he "was driving his tractor which was leased through L&B Transport, L.L.C." (R. Doc. 3 at 1). The Court denied the Motion to Remand. (R. Doc. 11).
On December 15, 2020, Hudson filed the instant Motion for Summary Judgment. (R. Doc. 13). Hudson argues that coverage is precluded by the underlying insurance policy because Plaintiff was using the vehicle "in the business of" L&B, and Plaintiff's actions were "intended to generate economic or commercial benefit" for both himself and for L&B. (R. Doc. 13 at 1-2).
The Court has dismissed L&B from the action on the basis that it was improperly joined as a defendant. (R. Doc. 14).
Summary judgment shall be granted when there are no genuine issues as to any material facts and the moving party is entitled to a judgment as a matter of law. Fed. R. Civ. P. 56. When a motion for summary judgment is properly made and supported under Rule 56(c), the opposing party may not rest on the mere allegations of their pleadings, but rather must come forward with "specific facts showing that there is a genuine issue for trial." Matsushita Electric Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 587 (1986); Fed. R. Civ. P. 56(c)(1). The non-movant's evidence is to be believed for purposes of the motion and all justifiable inferences are to be drawn in the non-movant's favor. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255 (1986). However, summary judgment must be entered against the plaintiff, if he or she fails to make an evidentiary showing sufficient to establish the existence of an element essential to his or her claim. Celotex Corp. v. Catrett, 477 U.S. 317, 322-23 (1986). Without a showing sufficient to establish the existence of an element essential to the plaintiff's claim, there can be "no genuine issue as to any material fact since a complete failure of proof concerning an essential element of the nonmoving party's case necessarily renders all facts immaterial." Celotex Corp., 477 U.S. at 323.
A moving party must support an assertion that a fact cannot be genuinely disputed by "citing to particular parts of materials in the record, including depositions, documents, electronically stored information, affidavits or declarations, stipulations (including those madefor purposes of the motion only), admissions, interrogatory answers, or other materials." Fed. R. Civ. P. 56(c)(1)(A). Local Rule 56 details the requirements for statements of material facts. "A motion for summary judgment shall be supported by a separate, short, concise statement of material facts, each set forth in separately numbered paragraphs, as to which the moving party contends there is no genuine issue of material fact to be tried." LR 56(b)(1). "Facts contained in a supporting or opposing statement of material facts, if supported by record citations as required by this rule, shall be deemed admitted unless properly converted." LR 56(f).
The Court has reviewed Hudson's Statement of Undisputed Material Facts (R. Doc. 13-1), and the accompanying citations to the factual record (R. Docs. 13-4, 13-5, 13-6, 13-7, 13-8, 13-9). As Plaintiff does not oppose the instant Motion for Summary Judgment, and has not otherwise submitted an opposing statement of material facts, the Court concludes that the facts contained in Hudson's Statement of Undisputed Material Facts are admitted for the purposes of determining whether summary judgment is appropriate. See Fed. R. Civ. P. 56(e); LR 56(g).
The undisputed material facts are as follows.1 On January 25, 2018, the date of the accident, Plaintiff worked as a professional truck driver who transported chemicals while driving exclusively for L&B. At all pertinent times, L&B was a trucking company operating in interstate commerce, and Plaintiff was able to drive his truck in interstate commerce pursuant to L&B's ability to do so. Plaintiff was an "owner-operator" who owned the 2000 Freightliner tractor involved in the accident. A substantial portion of L&B's fleet was comprised of owner-operators such as Plaintiff.
Plaintiff effectively leased his truck to L&B pursuant to a "Contractor Agreement" entered on October 5, 2016. (R. Doc. 13-7). The Contractor Agreement identifies the specific 2000 Freightliner that Plaintiff was driving at the time of the accident. (R. Doc. 13-7 at 10). Under the Contractor Agreement, Plaintiff was to be paid 65% of the fee charged by L&B for a delivery, while the remaining 35% of the fee was retained by L&B. (R. Doc. 13-7 at 8). Plaintiff does not own a trailer and pulls chemical-hauling trailers owned by L&B.
Plaintiff testified that when the accident occurred, he was driving from his home in Gonzales, Louisiana, to the L&B trucking terminal and yard in Port Allen, Louisiana ("L&B facility"). Plaintiff acknowledged that he only used his 2000 Freightliner for business / commercial purposes and that L&B stickers/signs were located on the vehicle at the time of the accident. Prior to the accident, Plaintiff had received dispatch instructions from L&B to transport a load of chemicals from a Syngenta chemical plant in Louisiana to a destination in St. Louis, Missouri. Plaintiff was on his way to the L&B facility to pick up the L&B trailer and bill of lading needed to make the delivery when the accident occurred. Plaintiff also intended to purchase two new tires at the L&B facility and had received permission from an L&B dispatcher to meet the tire supplier at the L&B facility. Plaintiff did not make any detours for any personal purposes prior to the accident.
Section 5(a)(i) of the Contractor Agreement imposed on Plaintiff the responsibility of maintaining "in the state of repair required by all applicable regulations, as required in 49 CFR part 396" and to make all repairs on a timely basis. (R. Doc. 13-7 at 3). Plaintiff testified that L&B essentially relied upon him to tend to the details of maintaining the tractor in a condition that would satisfy L&B's legal obligations. Plaintiff agreed that in maintaining the vehicle he was properly caring for a business asset used to make money for both L&B and for himself. Section 5(j) of the Contractor Agreement also required Plaintiff to "notify carrier immediately ofany incidents or accidents involving any operation under this agreement." (R. Doc. 13-7 at 4). Consistent with the foregoing requirement, Plaintiff contacted a representative of L&B immediately after the accident.
Plaintiff acknowledged that both he and L&B handled the events after the accident exactly in the manner they are supposed to follow when a commercial tractor vehicle is involved in a work-related accident, rather than as some incident involving the operation of a personal vehicle being operated for personal purposes. Plaintiff testified that a representative of L&B took photos at the scene of the accident. The L&B representative also helped Plaintiff to move his truck from the accident location to L&B's Port Allen yard. From there, the L&B representative transported Plaintiff to undergo urine and breathalyzer testing, as required by applicable regulations, at a medical facility (Prime Occupational Medicine) that effectively functioned as a "company doctor" for L&B.
Hudson has submitted a certified copy of the Non-Trucking Auto Liability policy at issue (the "Policy"). (R. Doc. 13-4). Subject to its terms and conditions, the Policy provides a primary layer of coverage and an excess layer of coverage. The Certificate of Insurance provides that Plaintiff is the "named insured" and the "covered auto" is Plaintiff's 2000 Freightliner. (R. Doc. 13-4 at 3).
The Policy explicitly states that it does not provide commercial trucking liability coverage for commercial operations that are intended to generate economic or commercial benefit, and specifically excludes coverage when used to carry property in any business, en route for such purpose, or while used in the business of anyone to whom the vehicle is rented:
This policy does not provide commercial trucking liability coverage for commercial operations that are intended to generate economic or commercial benefit. Instead, this policy supplements your commercial trucking liabilitycoverage to provide Non-Trucking Liability Coverage. The Non-Trucking Liability Coverage provided by this policy expressly excludes coverage for any covered auto "while used to carry property in any business or en route for such purpose" or "while used in the business of anyone to whom the auto is rented" (See Section II - Liability Coverage, B. Exclusion 15).
(R. Doc. 13-4 at 15; see R. Doc. 13-4 at 19).
The...
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