Superior Towing & Transp. v. J.B. Hunt Transp.
| Decision Date | 30 September 2021 |
| Docket Number | Civil Action 3:21-cv-00900-PGS-LHG |
| Parties | SUPERIOR TOWING AND TRANSPORT, LLC, Plaintiff, v. J.B. HUNT TRANSPORT, INC., et al., Defendants. |
| Court | U.S. District Court — District of New Jersey |
This matter comes before the Court on three motions arising from a dispute under the federal Motor Carrier Act (“MCA”), 49 U.S.C. §10101: (1) Plaintiff Superior Towing and Transport, LLC's (“Superior Towing” or “Plaintiff”) motion for default judgment (ECF No. 17) against Defendant M&C Express Transport Inc. (“M&C Express”); (2) Defendants Crown Cork & Seal USA, Inc.'s (“Crown Cork”) and J.B. Hunt Transport Inc.'s (“Hunt”) motion to dismiss Counts I (breach of contract), II (book account), and III (reasonable value of services) for failure to state a claim, including three additional counts against Hunt in its capacity as self-insured (ECF No. 5); (3) Defendant Progressive Mountain Insurance Company's (“Progressive”) motion to dismiss Counts I (breach of contract), II (book account), and III (reasonable value of services) for failure to state a claim. (ECF No. 26) The Court heard oral argument on July 20 2021.
This is a very commonplace action for monies allegedly owed to a towing company (Superior Towing) for clearing and cleaning up debris after a tractor trailer (M&C Express) crashed into a guard rail on Route 78 in New Jersey. As often happens, Superior Towing was not paid and sues for the damages.
By way of background, Crown Cork (a Virginia corporation) required a shipment of 20 pallets of metal lids to be picked up in Virginia and delivered to a customer in New Jersey. It hired Hunt to transport the lids. Hunt, in turn, engaged another trucking company, M&C Express (a Georgia corporation) to transport the lids. During the course of the trip, Daley Strafford, an M&C Express driver, crashed a M&C truck into a guardrail on Route 78, overturning the tractor trailer and spewing the lids over the crash site. The New Jersey State Police responded; and in order to reestablish the orderly flow of traffic, deployed Superior Towing to clean-up, recover, remove, transport and store the remnants of the accident, including the lids. Superior Towing has not been paid for its services.[1] M&C Express is insured by Progressive. Progressive avers that it insures M&C Express on some of its vehicles; but not the one that was involved in the accident at issue because it was excluded from the policy. M&C Express disputes the same because it avers that the duty to provide coverage was a condition imposed by the Federal Motor Carrier Safety Administration to the license granted to Progressive (form MCS-90)[2].
In addition to the above facts, one other important fact to note: Superior Towing served process upon Claudia Augustin, a person authorized to accept service on behalf of M&C Express (ECF No. 9). As M&C did not answer or otherwise respond, the Clerk entered default on March 18, 2021. In April 2021, Superior Towing brought this motion to enter default (ECF No. 17) pursuant to Fed.R.Civ.P. 55(b)(2).
Pursuant to Federal Rule of Civil Procedure 55(b)(2), a default judgment can be entered by the Court after default has been entered, but to do so, the Court must determine, whether (1) the Court has jurisdiction over the parties and subject matter, (2) the Defendants have been properly served, (3) the complaint sufficiently pleads a cause of action, and (4) if the plaintiff has proved damages. See Aspen Am. Ins. Co. v. Total Quality Logistics, LLC, No. CV175281ESJAD, 2019 WL 1275058, at *2 (D.N.J. Mar. 20, 2019); see also Husain v. Casino Control Comm‘n, 265 Fed.Appx. 130, 133 (3d Cir. 2008).[3] If the proof is insufficient, the Court may conduct a hearing or order the plaintiff to provide additional support. Fed.R.Civ.P. 55(b)(2); see also Paniagua Grp., Inc. v. Hospitality Specialists LLC, 183 F.Supp.3d 591, 605 (D.N.J. 2016).
The Court may determine that the Defendant lacks a litigable defense based on the facts alleged in the complaint and the absence of any responsive pleading. See Aspen, 2019 WL 1275058, at *4.
In general, the Third Circuit has a policy “disfavoring default judgments and encouraging decisions on the merits.” Harad v. Aetna Casualty & Surety Co., 839 F.2d 979, 982 (3d Cir. 1988). However, once a plaintiff has obtained an entry of default and presented some proof of damages, the decision is left to the discretion of the court. Malik v. Hannah, 661 F.Supp.2d 485, 490 (D.N.J. 2009).
The Court has specific jurisdiction over M&C Express because it has direct contacts with a forum (New Jersey) that give rise to the plaintiff's claim. Generally, specific jurisdiction “is confined to adjudication of issues deriving from, or connected with, the very controversy that establishes jurisdiction.” Goodyear Dunlop Tires Operations, S.A. v. Brown, 564 U.S. 915, 919 (2011) (quotation omitted). The Third Circuit imposes a three-part test to find specific jurisdiction. O'Connor v. Sandy Lane Hotel Co., 496 F.3d 312, 317 (3rd Cir. 2007) (internal citations omitted). Suffice it to say, the key inquiry in the specific jurisdiction analysis is whether there was “some act by which the defendant purposefully avail[ed] itself of the privilege of conducting activities within the forum State, thus invoking the benefits and protections of its laws.” Hanson v. Denckla, 357 U.S. 235, 253 (1958). Here, M&C Express “purposefully directed its activities” at New Jersey when it agreed to transport the lids from Virginia to New Jersey with Hunt.
Moreover, the Court's exercise of jurisdiction comports with “traditional notions of fair play and substantial justice.” Int 'l Shoe v. Washington, 326 U.S. 310, 316 (1945). M&C Express is authorized to operate in New Jersey by the FMCSA (Compl. ¶ 3.) and it has a registered agent (Stone Mountain Agents LLC) in New Jersey. As such, specific jurisdiction test has been met.
Second, Defendants must be properly served. The Defendant was properly served upon Claudia Augustin as the documents were delivered to an authorized agent per Federal Rule of Civil Procedure 4(h)(b).
Third, the claims must satisfy all prima facie elements for the cause of action. When an entry of default has been entered, “factual allegations of the complaint, except those relating to the amount [in] damages, will be taken as true.” Comdyne I, Inc. v. Corbin, 908 F.2d 1142, 1149 (3d Cir. 1990). The three claims against M&C Express are Counts I (breach of contract), II (book account), and III (reasonable value of services). (ECF No. 1)
The elements for a breach of contract claim are (1) there was a contract; (2) defendant breached the contract; (3) and plaintiff suffered damages resulting from that breach. See Davis v. Wells Fargo, 824 F.3d 333, 351 (3d Cir. 2016). The Complaint does not allege sufficient facts to sustain a breach of contract claim against M&C Express because there was never any formation. The Complaint alleges that M&C Express benefited from emergency services provided by Superior Towing, but that fact alone is not sufficient to infer an agreement between the parties.
The same insufficiency exists for a book account claim. The elements for a book account claim are (1) an express or implied agreement as to the amount due; (2) the account was stated or agreed to by both creditor and debtor. See ASCO Power Techs., L.P. v. PEPCO Techs. L.L.C., 2006 U.S. Dist. LEXIS 76368 at *21 (N.J. Oct. 19, 2006). Here, there was no express or implied agreement between the parties. Superior Towing refers to the invoice issued to Hunt on August 29, 2020. (See Compl., ECF No. 1, Ex. 1.) Plaintiff also alleges that they demanded payment from M&C Express, but it refused. This fails to show mutual assent between the parties.
On the other hand, there are sufficient facts alleged to sustain a claim under a theory of quantum meruit. The elements for reasonable value of services, or quantum meruit, are: (1) the performance of services in good faith; (2) acceptance of the services by the person to whom they are rendered; (3) an expectation of compensation; and (4) reasonable value of the services. Starkey, Kelly, Blaney, & White v. Estate of Nicolaysen, 172 N.J. 60, 68 (2002). The third element requires the Plaintiff to show that there was an expectation of compensation or payment from the party against whom relief is sought. See TBI Unlimited, LLC v. Clearcut Lawn Decisions, LLC, 2013 U.S. Dist. LEXIS 41206 at *13 (D.N.J. Mar. 25, 2013). A claim for quantum meruit is also appropriate under circumstances that should have put the beneficiary on notice that the Plaintiff expects to be paid. See Manley Toys, 2013 U.S. Dist. LEXIS 8369 at *18 (D.N.J. Jan. 22, 2013) (citing Weichert Co. Realtors v. Ryan, 128 N.J. 427, 438 (1992)).
Superior Towing alleges sufficient facts to satisfy the elements for a reasonable value of services, or quantum meruit. After the accident, Superior Towing responded to a request from the State Police. The Complaint alleges that M&C Express was later notified of Plaintiff's services and sent an invoice for the assorted charges. Plaintiff has identified M&C Express as beneficiaries and notified them of the cost for services rendered. Taking these facts as true, they support a facially plausible claim for reasonable value of services.
Finally the Court must assess the amount in damages. Although default judgment can proceed with only limited proof, plaintiffs must still offer some proof of damages. See Comdyne I, 908 F.2d at 1149. A plaintiff must provide “an affidavit or other documentary evidence” to justify the amount in damages. Bryant v. Jackson, 2014 U.S. Dist. LEXIS 159574 at *1 (N.J. Nov. 12, 2014). Invoices may...
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