Ciotola v. Star Transp. & Trucking, LLC

• Decision Date: 24 August 2020
• Docket Number: CIVIL ACTION NO. 3:19-753
• Parties: Carmen CIOTOLA, Plaintiff v. STAR TRANSPORTATION & TRUCKING, LLC, and, Quarterback Transportation, USA Inc., and, Ball Metal Beverage Container Corp., Defendants, and Oldcastle, Inc. Liberity Mutual Corporation, Defendant/Intervenors
• Court: U.S. District Court — Middle District of Pennsylvania

481 F.Supp.3d 375

Carmen CIOTOLA, Plaintiff
v.
STAR TRANSPORTATION & TRUCKING, LLC, and, Quarterback Transportation, USA Inc., and, Ball Metal Beverage Container Corp., Defendants,
and
Oldcastle, Inc. Liberity Mutual Corporation, Defendant/Intervenors

CIVIL ACTION NO. 3:19-753

United States District Court, M.D. Pennsylvania.

Signed August 24, 2020

481 F.Supp.3d 379

Edward J. Ciarimboli, Harry P. McGrath, Jr., Molly Clark, Fellerman & Ciarimboli Law, P.C., Kingston, PA, for Plaintiff.

Allen R. Bunker, Henry J. Noye, Bunker & Ray, Philadelphia, PA, Marc S. Blubaugh, Benesch, friedlander, Coplan & Aronoff, LLP, Columbus, OH, for Defendant Quaterback Transportation Inc.

Nicholas R. Jimenez, Paige F. MacDonald-Matthes, Obermayer Rebmann Maxwell & Hippel LLP, Harrisburg, PA, Richard P. Limburg, Obermayer Rebmann Maxwell & Hippel LLP, Philadelphia, PA, for Defendant Ball Metal Beverage Container Corp.

Kevin L. Connors, Pro Hac Vice, Connors O'Dell, LLP, Exton, PA, for Defendant/Intervenor Old Castle, Inc.

MEMORANDUM

MALACHY E. MANNION, United States District Judge

Pending before the court is defendant Quarterback Transportation USA, Inc.’s ("Quarterback") motion for summary judgment against all other parties, pursuant to Fed.R.Civ.P. 56, (Doc. 69), arguing that the plaintiff's state law clams against it in his second amended complaint ("SAC"), (Doc. 25), should be dismissed since they are preempted under the Federal Aviation Administration Authorization Act ("FAAAA"), 49 U.S.C. § 14501(c)(1). Quarterback contends that plaintiff's SAC for damages against it for personal injuries and negligence claims are preempted under FAAAA, since they relate to its core services of brokering the shipment of goods in interstate commerce. Also pending is the plaintiff's motion for partial summary judgment against Quarterback, (Doc. 75), arguing that Hataway was the common law agent, servant or employee of Quarterback at the time of the accident rendering Quarterback vicariously liable for Hataway's conduct as a matter of law. Alternatively, plaintiff argues that pursuant to the Federal Motor Carrier Safety Regulations ("FMCSR") Quarterback was the de facto Motor Carrier and statutory employer since it allegedly exercised substantial authority and control over almost every aspect of the freight being transported at the time of the accident. (Doc. 75).¹

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For the reasons that follow, the court will DENY the cross-motions for summary judgment of Quarterback, (Doc. 69), and plaintiff, (Doc. 75). Quarterback's motion is denied because the FAAAA does not preempt state law claims against a broker or a carrier. Plaintiff's motion is denied because genuine issues of material fact exist as to whether Quarterback acted as a broker and whether Hataway was an employee of Quarterback.

I. BACKGROUND²

On May 2, 2019, plaintiff, Carmen Ciotola, initiated this action by filing a complaint against Ball Metal Beverage Container Corp. ("Ball Metal"), Quarterback, and Star Transportation & Trucking LLC ("Star") for personal injuries he sustained from a motor vehicle accident that occurred on November 12, 2018. (Doc. 1). Plaintiff is now proceeding on his SAC which he filed, with Exhibits, against Ball Metal and Quarterback on September 27, 2019. (Doc. 25).

Specifically, on November 12, 2018, Ronald Hataway was driving a 2009 Volvo commercial tractor trailer on Interstate 81 in Luzerne County, PA, within the scope of his contractor relationship with Star. Hataway was provided the tractor trailer he drove by Star, which Star had leased. Star was contracted as a motor carrier by Quarterback to ship Ball Metal's products. While Hataway was driving in the southbound lane, he collided into the rear end of a 2004 Ford Ranger pick-up driven by plaintiff causing him injuries. When the accident occurred, Hataway was transporting a load of aluminum cans used for beverages from the shipper, Ball Metal. The load Hataway was transporting was brokered by Quarterback pursuant to Agreements it had with Ball Metal and Star, including its Broker-Carrier Agreement with Star. In addition to suing Star and Ball Metal for the injuries he sustained in the accident, plaintiff sued Quarterback, which had arranged for the transportation of the load of aluminum cans from Ball Metal's plant in Wallkill, New York, to Missouri.

On September 24, 2018, Hataway plead guilty to "Possession of Alcohol Beverage in CMV" regarding the accident with plaintiff. Hataway is not a named defendant in this case.

Additionally, plaintiff originally named Star as a defendant in this case, however, plaintiff settled his claims against Star and dismissed all of the claims against it on September 25, 2019, pursuant to a Joint Tortfeasor Release Agreement. As such, plaintiff did not name Star as a defendant in his SAC.

In his SAC, plaintiff raises claims against Quarterback in Counts I-IV and X, namely, Vicarious Liability for Hataway, Negligent Hiring/Supervision/Retention, Reckless Hiring/Supervision/Retention regarding Star, Negligent Entrustment regarding Hataway and Star, and Joint Venture with Ball Metal. Plaintiff basically alleges that at the time of the accident Hataway was an employee of Quarterback and, that Quarterback was acting as the broker and a "motor carrier" for the Ball Metal shipment Hataway was transporting and, thus is responsible for Hataway's negligence in causing the accident.

On October 7, 2019, Quarterback filed a motion to dismiss plaintiff's SAC, or alternatively, motion for summary judgment,

481 F.Supp.3d 381

(Doc. 26), along with its brief in support and attached Exhibits, (Doc. 27). Quarterback contended that all of plaintiff's claims against it were preempted by the FAAAA because all of the claims against it relate to its core services of brokering the shipment of goods and hiring motor carriers to transport shipments in interstate commerce. It stated that it is only a licensed property broker by the Federal Motor Carrier Safety Administration ("FMCSA") and that it only arranged with the shipper Ball Metal for the transportation of Ball Metal's cargo by Star. It also stated that Star's driver, Hataway, was hauling Bell Metal's cargo on the day of the accident.

Also, on October 7, 2019, Quarterback filed a Third Party Complaint against Star based on its liability for the November 12, 2018 accident. (Doc. 28).

On October 22, 2019, plaintiff filed his brief in opposition to Quarterback's motion, (Doc. 26), with attached Exhibits, (Doc. 41).

Following discovery, Quarterback filed a motion for summary judgment on April 6, 2020, against all other parties in this case, but mainly seeking judgment with respect to plaintiff's claims against it in his SAC. (Doc. 69). Also on April 6, 2020, plaintiff filed a motion for partial summary judgment with respect to his claims in his SAC against Quarterback. (Doc. 75).³ Both motions have been briefed and exhibits have been filed.⁴ Ball Metal did not file a brief in opposition to either of the cross-summary judgment motions and, thus is deemed as not opposing them.

In his motion for partial summary judgment against Quarterback, plaintiff contends that under the FMCSR and prevailing case law, Quarterback functioned as a motor carrier and statutory employer when it exercised substantial authority and control over almost every aspect of the Ball Metal shipment. Additionally, plaintiff asserts that Hataway acted as Quarterback's common law agent, servant, or employee at the time of the accident, which therefore makes Quarterback vicariously liable for Hataway's conduct.

On April 27, 2020, Quarterback filed its brief in opposition to plaintiff's motion, (Doc. 75), with Exhibits attached, (Doc. 80).

Based on the following, the court finds that plaintiff's claims against Quarterback are not preempted by the FAAAA since the FAAAA does not preempt general tort law that does not significantly impact Quarterback's prices, routes, and services. The court also finds that genuine issues of material facts exist regarding whether Quarterback acted as a broker or carrier and whether Hataway was an employee of Quarterback.⁵

II. MATERIAL FACTS

On November 12, 2018, Ball Metal arranged for the transportation of a load of

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freight from Middletown, New York, to Farmington, Missouri. Ball Metal brokered, hired, assigned, or contracted the transportation of the freight to Quarterback.

Quarterback is a foreign corporation with a physical address of 1210 Sheppard Avenue East, Suite 114, Toronto, Ontario, M2K 1E3, and is a citizen of Canada. Quarterback is licensed and insured as a broker according to the FMCSA. Quarterback also possesses a U.S. Department of Transportation number, 2237651, and Motor Carrier number, 580470. Quarterback advertises on its website stating items such as: "Quarterback Transportation offers a wide variety of driving options for qualified carriers"; "Quarterback Transportation is also a great partner for Owner Operators. Bring your truck, or join our existing group of drivers and carriers who continue to enjoy their working experience with...