Eastman v. R. Warehousing & Port Servs., Inc.

• Decision Date: 30 August 2013
• Docket Number: 1111323.
• Citation: 141 So.3d 77
• Parties: Jessica EASTMAN, as dependent widow of David Bentley, deceased, and on behalf of David Bentley's three minor children v. R. WAREHOUSING AND PORT SERVICES, INC.
• Court: Alabama Supreme Court

141 So.3d 77

Jessica EASTMAN, as dependent widow of David Bentley, deceased, and on behalf of David Bentley's three minor children

v.R. WAREHOUSING AND PORT SERVICES, INC.

1111323.

Supreme Court of Alabama.

Aug. 30, 2013.

J. Cole Portis and R. Graham Esdale, Jr., of Beasley, Allen, Crow, Methvin, Portis & Miles, P.C., Montgomery, for appellant.

J. Mitchell Frost, Jr., and Steven R. Colclough of Ferguson, Frost & Dodson, LLP, Birmingham, for appellee.

BOLIN, Justice.

Jessica Eastman, as the dependent widow of David Bentley, deceased, and on behalf of Bentley's three minor children (hereinafter “the plaintiff”), appeals the judgment entered on a jury verdict in favor of R. Warehousing and Port Services Inc. (hereinafter referred to as “R. Warehousing”). The plaintiff asserts (1) that she is entitled to a judgment as a matter of law (“JML”) on R. Warehousing's affirmative defense based on the “loaned-servant” doctrine and (2) that she is entitled to a new trial because, she claims, counsel for R. Warehousing implied during opening statements, in violation of the collateral-source rule, that she had recovered workers' compensation benefits from Richway Transportation Services, Inc (“Richway”). We affirm.

I. Facts and Procedural History

Richway is a trucking company that operates a facility in Mobile. Richway also has a facility in Georgiana and a facility in Greenville. On May 11, 2009, David Bentley, a truck driver employed with Richway, was scheduled to deliver a load of steel coils to Tennessee. Before leaving Richway's Mobile facility, Bentley requested that Robbie Shaw, the operation and sales manager for Richway, examine the two front steering tires on the tractor-trailer truck he would be driving. The truck at issue was actually owned by Robin International Transport, Inc., and leased and/or loaned to Richway. According to Shaw, the left front driver's side tire was worn, but the right passenger side tire appeared fine. Shaw nonetheless agreed that both tires should be replaced, and he provided Bentley with two new tires. As is customary, Shaw instructed Bentley to have the tires installed at Richway's Georgiana facility, where Richway's maintenance staff is located. On the day of the accident forming the basis of this action, Bentley had allegedly asked Shaw on three different occasions if he could have the tires installed at McGriff Tires in Mobile so that the tires could also be balanced. Shaw denied that Bentley requested to have the tires installed at McGriff Tires. While traveling on Interstate 65 from Mobile to the Georgiana facility, the right front steering tire of the truck blew out, causing Bentley to lose control of the truck. Bentley died as a result of the accident.

The plaintiff filed a wrongful-death action, pursuant to § 6–5–410, Ala.Code 1975, against R. Warehousing.¹ R. Warehousing is a brokerage company that hires outside trucking companies to pick up and deliver loads for its customers. R. Warehousing does not own trucks, nor does it employ any truck drivers. R. Warehousing and Richway are both family-owned businesses that share some of the same officers and shareholders. Nolan Richardson is the father of Chance Richardson and Michael Richardson. Nolan Richardson is employed by R. Warehousing; he also serves as vice president of Richway. Chance Richardson is the owner of R. Warehousing; he also serves as president of Richway. Michael Richardson is employed solely by R. Warehousing, and he receives his paychecks from R. Warehousing. Beginning in 2001, Nolan Richardson sent Michael to Richway to oversee and/or to manage the day-to-day operations at Richway.

At trial, the plaintiff alleged that R. Warehousing, through its employee, Michael Richardson, was in complete control of Richway's day-to-day operations, including the maintenance of tires. More specifically, the plaintiff alleged that Michael Richardson was responsible for instituting the policy at Richway that led to Shaw's ordering Bentley to drive from Mobile to Georgiana on worn front steering tires. In other words, the plaintiff sought to fasten liability for Bentley's death on R. Warehousing on the theory that R. Warehousing reserved the right to control Richway's operations and that R. Warehousing exercised that right through the conduct of R. Warehousing employee Michael Richardson. R. Warehousing, on the other hand, asserted that Michael Richardson, at all times relevant to the plaintiff's claim, was a “loaned servant” to Richway.

At trial, the evidence was undisputed that Michael Richardson was employed solely by R. Warehousing and that he answered to his father Nolan Richardson. The jury heard the video deposition of Nolan Richardson, who testified that Michael oversaw the day-to-day operations at Richway, that Michael ran the maintenance shop at Richway, and that Michael directed the repairs that were needed at Richway. Michael Richardson testified in his deposition that R. Warehousing “loans” him out at Richway to help supervise the operations and/or to manage the business. Chance Richardson testified as follows regarding R. Warehousing, Richway, and Michael's role at both companies:

“Q. Mr. Richardson, isn't it true that back in 2009, May of 2009, that your brother, Mike Richardson, was the person most in charge of Richway Transportation in Alabama?

“A. Yes, he was the manager in Alabama, yes, sir.

“....

“Q. Your dad sent Mike over to Alabama to manage Richway Transportation, correct?

“A. Yes, sir.

“Q. And would you agree then that Mike Richardson is [an] employee [of] R. Warehousing, isn't he?

“A. Yes, sir; he is an employee of R. Warehousing.

“Q. So, you would agree then that R. Warehousing, through Mike Richardson, controlled Richway Transportation?

“A. I don't agree with that.

“....

“Q. You disagree that Mike's responsibilities are to direct repairs that are needed on Richway trucks?

“A. He doesn't direct repairs.

“Q. And you disagree that your dad sent him to oversee maintenance of Richway trucks?

“A. He sent him over [there] to manage, not oversee maintenance.

“....

“Q. [Chance], do Richway Transportation and R. Warehousing ... share the same officers and directors?

“A. Some, yes.

“....

“Q. Chance, as I understand, you own a hundred percent of R. Warehousing; is that right?

“A. Yes, sir.

“Q. And you are president of Richway Transportation; is that right?

“A. That is correct.

“Q. To your knowledge, did Richway Transportation ever consent in any way to have R. Warehousing control its operations in Mobile, Alabama?

“A. No, sir.

“....

“Q. Now, does R. Warehousing own any trucks?

“A. No, sir.

“Q. Does it employ any truck drivers?

“A. No, sir.

“....

“Q. Are you familiar with DOT [Alabama Department of Transportation] regulations that relate to R. Warehousing?

“A. Yes sir.

“....

“Q. Can R. Warehousing under DOT regulations run or control a truck company like Richway?

“A. No, sir.

“....

“Q. Well, does R. Warehousing provide any benefits to any Richway employees in Mobile, Alabama?

“A. No, sir.

“Q. Do you know anything about any kind of work your brother might do for R. Warehousing in Mobile for its Houston operation?

“A. The only thing Michael would do would maybe broker loads....

“....

“Q. Well, let me ask it this way, it is your understanding that your family sent Mike Richardson, your brother, over [to Richway] as a loaned servant to manage Richway's operations in Mobile.

“A. That's correct.

“....

“Q. What is a loaned servant?

“A. A loaned servant is somebody that works for one company that helps another company, you know, serve—what they need done.

“....

“Q. ... Mike Richardson has been overseeing Richway Transportation since 2001 and he is still doing it today, correct?

“A. Well he was in college until 2004.

“....

“A. My father sent him over [to Richway]. Michael came over here [in 2004], more often than he did in 2001.

“Q. And he has been here constantly from 2004 managing Richway Transportation?

“A. No, not constantly.

“Q. Well, it has not been a temporary assignment has it?

“A. It's not constant, no.

“....

“A. No, off and on, right.

“Q. I think you mentioned your father is the one that sent Mike over here?

“A. Yes, sir.

“Q. Is that who Mike reports to is your dad?

“A. Yes.”

There was also testimony introduced at trial demonstrating that Michael Richardson was the “head” person at Richway and that he had instituted the policy at Richway regarding the inspection and installation of tires. Richway's operation and sales manager, Robbie Shaw, testified that Michael had hired him, that Michael was his supervisor, that Michael was the “head” person at Richway, and that Michael had the authority to hire and fire Richway employees. Shaw testified that, although he could make the decision regarding whether tires needed to be replaced, it was his practice to check with Michael to make sure it was okay. On the day of Bentley's accident, Michael was not present at the Richway office. Shaw testified that he made the decision to provide Bentley with two new steering tires because the “tread depth was getting close.” Shaw also testified that Richway truck drivers normally had new tires installed at the Georgiana facility because that is where Richway's maintenance staff is located. Shaw testified that, on the morning of Bentley's accident, he could have sent Bentley to McGriff Tires to have his tires installed, but, he said, Bentley never asked for that. Richway truck driver Randy Matthews testified that Michael Richardson was his boss. Matthews also testified that, on the morning of Bentley's accident, he overheard Bentley on three different occasions ask Shaw if he could have his tires installed at McGriff Tires in Mobile and that, each time, Shaw denied Bentley's request. Richway safety administrator Keenan Bishop testified that Michael was his boss, that Michael was the head of Richway, that the Georgiana facility maintenance director, Randall Matthews, reported to Michael, and that Richway dispatchers...