Nicholas Meat, LLC v. Pittsburgh Logistics Sys., Inc.
Decision Date | 04 October 2022 |
Docket Number | 1398 WDA 2021 |
Parties | NICHOLAS MEAT, LLC v. PITTSBURGH LOGISTICS SYSTEMS, INC., d/b/a PLS Logistics Services, Appellant |
Court | Pennsylvania Superior Court |
Pittsburgh Logistics Systems, Inc., d/b/a PLS Logistics Services (PLS) appeals from the judgment entered in the Butler County Court of Common Pleas after the trial court granted summary judgment in favor of Nicholas Meat, LLC (Nicholas Meat) in this breach of contract action. On appeal, PLS argues the trial court erred by granting relief based upon contractual terms that were not part of the parties’ agreement, and by concluding Nicholas Meat's claim was not preempted by federal law. For the reasons below, we affirm.
The relevant facts underlying this breach of contract action are aptly summarized by the trial court as follows:
Trial Ct. Memorandum Op., 10/27/21, at 5-7 (emphases added).
In October of 2016, Nicholas Meat filed a civil action against PLS in Clinton County, Pennsylvania. The lawsuit was subsequently transferred to Butler County. On November 26, 2019, Nicholas Meat filed a first amended complaint asserting claims for breach of contract, promissory estoppel, negligence, negligent misrepresentation, and vicarious liability. With regard to its breach of contract claim, Nicholas Meat asserted that, pursuant to the "Terms and Conditions" of their agreement, "motor carriers under contract with PLS were required to maintain cargo loss and damage liability insurance in the amount of $100,000.00[,]" or more if Nicholas Meat provided the requisite advance notification. Nicholas Meat's First Amended Complaint, 11/26/19, at 28-29; see also id. at Exhibit 1, PLS Credit Application & Setup Form, 5/27/15, Terms & Conditions (PLS Terms & Conditions) at ¶ 8. Nicholas Meat provided the requisite advance notification with respect to the Cargill Load, which required the carrier to have $150,000.00 in insurance. See Nicholas Meat's First Amended Complaint at 29. However, "PLS breached its own Terms and Conditions ... because it did not in fact require that the Carrier selected to transport the Cargill Load maintain the necessary cargo loss and damage liability insurance." Id. Further, Nicholas Meat asserted that as a result of PLS's breach, it incurred "significant damages[.]" Id.
PLS filed preliminary objections in December of 2019, followed by amended preliminary objections in March of 2020. Relevant herein, it asserted, inter alia, that Nicholas Meat's claims were preempted by federal law, in particular the Carmack Amendment2 to the Interstate Commerce Act.3 See PLS's Amended Preliminary Objections, 3/18/20, at 5-7. On July 13, 2020, the trial court overruled PLS's federal preemption preliminary objection.4 Order, 7/13/20, at 1 (unpaginated).
On September 11, 2020, Nicholas Meat filed a motion for summary judgment. It argued that PLS breached the terms of Item 8 in the parties’ agreement by failing to ensure the motor carrier it hired " ‘maintain[ed]’ adequate and legitimate cargo liability insurance[.]" Nicholas Meat's Motion for Summary Judgment, 8/11/21, at 41. It also asserted that PLS violated "the implied duty of good faith and fair dealing." Id. at 46. Alternatively, Nicholas Meat argued it was entitled to relief on its claims for negligence — PLS negligently hired and supervised the carrier, and negligently misrepresented its carrier vetting process — or promissory estoppel based upon the promises PLS made "to Nicholas Meat in order to induce Nicholas Meat to business with it." Id. at 50, 53-54, 56.
PLS filed a competing motion for summary judgment on September 2, 2021. First, it insisted Nicholas Meat's claims were preempted by federal law, including the Interstate Commerce Commission Termination Act (ICCTA), 49 U.S.C. § 14501(b), the Federal Aviation Administration Authorization Act (FAAAA), 49 U.S.C. § 14501(c), as well as the Carmack Amendment. PLS's Motion for Summary Judgment, 9/2/21, at 10-11. Further, PLS argued that it did not breach any terms of the parties’ agreement, but rather, it "did require that its contracted third-party motor carriers maintained $100,000 in cargo loss and damage liability insurance[,]" and, specifically, required GA Trucking to certify that it carried $150,000 of coverage for the Cargill Load. Id. at 14-15. PLS also repeated its contention that the tort claims were barred by the "gist of the action" doctrine,5 and argued that Nicholas Meat failed to prove its claim for promissory estoppel. See id. at 9, 21.
The trial court conducted oral argument on October 15, 2021. Thereafter, on October 27th, the court entered an order: (1) granting Nicholas Meat's motion for summary judgment with respect to its breach of contract claim; (2) denying PLS's motion with respect to its federal preemption argument; and (3) granting PLS's motion for summary judgment with respect to the negligence claims. See Order, 10/27/21, at 1-2 (unpaginated)....
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