Fields v. Allied Van Lines, Inc.
| Decision Date | 08 November 2021 |
| Docket Number | Civil Action No. 3:21-cv-448-RGJ |
| Citation | 570 F.Supp.3d 511 |
| Parties | Scott FIELDS, Plaintiff v. ALLIED VAN LINES, INC., et al., Defendants |
| Court | U.S. District Court — Western District of Kentucky |
Hayden A. Holbrook, Michael A. Valenti, Valenti Hanley, PLLC, Louisville, KY, for Plaintiff.
Emileigh Hubbard, Vic H. Henry, Henry Oddo Austin & Fletcher, PC, Dallas, TX, for Defendants.
Defendants Allied Van Lines, Inc. ("Allied"), Sirva Relocation, LLC ("Sirva"), and Coleman Worldwide Moving, LLC ("Coleman") (collectively, "Defendants") each move to dismiss Plaintiff Scott Fields’ ("Fields’ ") claims against them. [DE 7; DE 8; DE 9]. Fields responded [DE 15], and Defendants replied. [DE 16]. These matters are ripe. For the reasons below, Allied's Motion to Dismiss [DE 7] is GRANTED in part and DENIED in part . Sirva's Motion to Dismiss [DE 8] and Coleman's Motion to Dismiss [DE 9] are DENIED AS MOOT and they are dismissed as parties .
Fields sued Allied, Sirva, and Coleman in state court on June 14, 2021. [DE 1-1 at 13]. Fields’ original Complaint contained three Counts: Count 1 against Allied and Coleman for breach of contract under state law, Count 2 against Allied and Coleman for state law negligence, and Count 3 against all Defendants for unfair practice under state law. [DE 1-1 at 17-19].
Fields alleges that he contracted with Allied to move his household goods from Kentucky to Colorado. [DE 1 at 4; DE 13 at 107-8]. Fields contends his goods were damaged in the move and sued in state court to recover damages. [DE 1 at 5; DE 1-1 at 13-20; DE 13 at 108].
Defendants removed the case to federal court. [DE 1]. Just days later, each defendant moved to dismiss Fields’ claims. [DE 7; DE 8 DE 9]. Sirva and Coleman argued that they were improper defendants and all Defendants argued that the state law claims were preempted by the Carmack Amendment. [DE 7 at 53-61; DE 8 at 66-78; DE 9 at 85-86]. On August 4, 2021, in response to Defendants’ motions, Fields filed an Amended Complaint under Fed. R. Civ. P. 15(a)(1)(B). [DE 13]. In his Amended Complaint, Fields dropped Sirva Relocation, LLC and Coleman Worldwide Moving, LLC as defendants and withdrew his contract and negligence claims. [DE 13; DE 15 at 119-20]. Fields also added a claim under the Carmack Amendment. [DE 13 at 110]. Fields then responded to Defendants’ motions on August 23, 2021. [DE 15]. Allied replied, arguing that Fields’ remaining state claim and attorneys’ fee request are preempted by the Carmack Amendment. [DE 16].
Federal Rule of Civil Procedure 12(b)(6) instructs that a court must dismiss a complaint if the complaint "fail[s] to state a claim upon which relief can be granted[.]" Fed. R. Civ. P. 12(b)(6). To state a claim, a complaint must contain "a short and plain statement of the claim showing that the pleader is entitled to relief[.]" Fed. R. Civ. P. 8(a)(2). When considering a motion to dismiss, courts must presume all factual allegations in the complaint to be true and make all reasonable inferences in favor of the non-moving party. Total Benefits Plan. Agency, Inc. v. Anthem Blue Cross & Blue Shield , 552 F.3d 430, 434 (6th Cir. 2008) (citation omitted). "But the district court need not accept a bare assertion of legal conclusions." Tackett v. M & G Polymers, USA, LLC , 561 F.3d 478, 488 (6th Cir. 2009) (citation omitted). Ashcroft v. Iqbal , 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (internal quotation marks and citation omitted).
To survive a motion to dismiss, a plaintiff must allege "enough facts to state a claim to relief that is plausible on its face." Bell Atl. Corp. v. Twombly , 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). A claim is plausible "when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged." Iqbal , 556 U.S. at 678, 129 S.Ct. 1937 (citing Twombly , 550 U.S. at 556, 127 S.Ct. 1955 ). "A complaint will be dismissed ... if no law supports the claims made, if the facts alleged are insufficient to state a claim, or if the face of the complaint presents an insurmountable bar to relief." Southfield Educ. Ass'n v. Southfield Bd. of Educ. , 570 F. App'x 485, 487 (6th Cir. 2014) (citing Twombly , 550 U.S. at 561–64, 127 S.Ct. 1955 ). In deciding a motion to dismiss under Rule 12(d), a court generally may not consider matters outside the pleadings without converting the motion into a motion under Rule 56.
Because Fields’ Amended Complaint dropped defendants Sirva and Coleman, the Court will only consider Fields’ claims as to Allied. [DE 13 at 110]. Further, the Court only addresses the two remaining claims in the Amended Complaint, a Carmack Amendment claim and a Kentucky Unfair Claims Settlement Practices claim under Ky. Rev. Stat. Ann. § 304.12-230 ("state claim"), as Fields has abandoned all other claims in the original Complaint. [DE 13 at 110]. In reply, Allied states that the only claims subject to dismissal pursuant to its motion to dismiss are "Plaintiff's claims for violations of the Kentucky unfair claims settlement practices statute and attorneys’ fees.1 " [DE 16 at 123]. Allied does not address the Carmack Amendment claim.
Allied argues that the state claim, however, is preempted by the Carmack Amendment. [DE 7 at 55-60; DE 16 at 124-26]. Allied also contends that KRS 304.12-230 generally only applies to insurance providers, and Allied is a motor carrier. [DE 16 at 126]. Fields responds arguing that his state claim is not preempted. [DE 15 at 120]. He argues that neither the Sixth Circuit nor this court have considered the issue. [DE 15 at 119-122]. Allied replies arguing that the authority cited by Fields is no longer good law. [DE 16 at 123-126]. Allied also argues that Fields’ request for attorney fees is preempted by the Carmack Amendment, which has no attorney fee provision. [DE 7 at 61; DE 16 at 123-124].
Because this action was removed from state court, the Court first considers whether it has jurisdiction. Federal courts are limited in their jurisdiction, and "possess only that power authorized by Constitution and statute ..." Kokkonen v. Guardian Life Ins. Co. of Am. , 511 U.S. 375, 377, 114 S.Ct. 1673, 128 L.Ed.2d 391 (1994). "Congress has provided for removal of cases from state court to federal court when the plaintiff's complaint alleges a claim arising under federal law." Rivet v. Regions Bank , 522 U.S. 470, 472, 118 S.Ct. 921, 139 L.Ed.2d 912 (1998). District courts have "original jurisdiction of all civil actions arising under the Constitution, laws, or treaties of the United States," commonly referred to as federal question jurisdiction. 28 USCS § 1331. Courts use the "well-pleaded complaint rule" to determine whether this jurisdiction is proper. Obeid v. Meridian Auto. Sys. , 296 F. Supp. 2d 751, 752 (E.D. Mich. 2003) (citing Rivet , 522 U.S. 470, 118 S.Ct. 921 ).
The well-pleaded complaint rule "provides that federal jurisdiction exists only when a federal question is presented on the face of the plaintiff's properly pleaded complaint." Caterpillar, Inc. v. Williams , 482 U.S. 386, 392, 107 S.Ct. 2425, 96 L.Ed.2d 318 (1987). The face of the complaint does not include defenses that might be raised: "Congress has not authorized removal based on a defense or anticipated defense federal in character." Rivet , 522 U.S. at 472, 118 S.Ct. 921. There are two ways a case can arise under federal law. First, "a case arises under federal law when federal law creates the cause of action asserted." Gunn v. Minton , 568 U.S. 251, 257, 133 S.Ct. 1059, 185 L.Ed.2d 72 (2013). The second way to create a federal question is a small category of claims that originate from state law and pass the following test: "federal jurisdiction over a state law claim will lie if a federal issue is: (1) necessarily raised, (2) actually disputed, (3) substantial, and (4) capable of resolution in federal court without disrupting the federal-state balance approved by Congress." Id. at 258, 133 S.Ct. 1059. This " Grable " analysis is unnecessary because, regardless of the original complaint, federal question is present on the face of the Amended Complaint as Fields has added a Carmack Amendment claim under 49 U.S.C. § 1367(a). See Grable & Sons Metal Prods. v. Darue Eng'g & Mfg. , 545 U.S. 308, 125 S.Ct. 2363, 162 L.Ed.2d 257 (2005).
Allied asserts that Fields’ state claim is preempted by the Carmack Amendment, which preempts state and common law claims for loss or damage to goods in interstate transportation. [DE 7 at 55-60]. Allied argues that allowing Fields to bring a state claim would enlarge his remedy prevent uniformity in bill of lading claims. [Id. at 60]. Allied also argues that, although neither the Sixth Circuit nor this Court have considered the issue specifically, there is supporting authority. See, e.g., Sec. USA Servs., Inc. v. United Parcel Serv., Inc. , 371 F. Supp. 3d 966 (D.N.M. 2019), Cleveland v. Beltman N. Am. Co. , 30 F.3d 373 (2d Cir. 1994) ; Hanlon v. United Parcel Serv. , 132 F. Supp. 2d 503 (N.D. Tex. 2001). [DE 7 at 59-60].
Fields disagrees, citing Sokhos v. Mayflower Transit, Inc. , 691 F. Supp. 1578 (D. Mass. 1988). [DE 15 at 119-122]. Allied rebuts this argument by responding that Sokhos is a non-binding, outdated case that is no longer good law. [DE 16 at 124-26]. Allied also contends that the Kentucky statute involved in the state claim, KRS 304.12-230, generally only applies to insurance providers, and Allied is a motor carrier.2 [DE 16 at 126].
Although neither the Sixth Circuit nor this Court have...
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