Vanguard Car Rental Usa, Inc. v. Huchon

• Decision Date: 14 September 2007
• Docket Number: Case No. 06-10082-CIV.
• Parties: VANGUARD CAR RENTAL USA, INC., a Delaware corporation, National Rental (US), Inc., f/k/a National Car Rental, a Delaware corporation, and Alamo Financing, L.P., a foreign limited partnership, Plaintiffs, v. Jean Francois HUCHON, Defendant.
• Court: U.S. District Court — Southern District of Florida

Page 1371

532 F.Supp.2d 1371

VANGUARD CAR RENTAL USA, INC., a Delaware corporation, National Rental (US), Inc., f/k/a National Car Rental, a Delaware corporation, and Alamo Financing, L.P., a foreign limited partnership, Plaintiffs, v. Jean Francois HUCHON, Defendant.

Case No. 06-10082-CIV.

United States District Court, S.D. Florida.

September 14, 2007.

COPYRIGHT MATERIAL OMITTED

Daniel Brian Reinfeld, Luks, Santaniello, Perez, Petrillo & Gold, Fort Lauderdale, FL, Daniel Joseph Santaniello, Luks, Santaniello, Perez, Petrillo & Gold, Boca Raton, FL, Paul Stephen Jones, Paul S. Jones, James P. Waczewski, Luks Koleos & Santaniello, Orlando, FL, for Plaintiffs.

Patricia Margaret Kennedy, Thomas B. Scolaro, Leesfield Leighton & Partners, P.A., Miami, FL, Andre M. Mura, John, Vail, Washington, DC, for Defendant.

ORDER DENYING DEFENDANT'S MOTION TO DISMISS; DENYING PLAINTIFFS' MOTION FOR SUMMARY JUDGMENT

K. MICHAEL MOORE, District Judge.

THIS CAUSE came before the Court upon Defendant's Motion to Dismiss (DE # 7) and Plaintiffs' Motion for Summary Judgment (DE # 23). A Response (DE # 12) and a Reply (DE # 27) to the Motion to Dismiss were filed. A Response (DE # 35), a Reply (DE # 40) and a Supplemental Memorandum (DE # 72) were filed in response to the Motion for Summary Judgment, and a hearing was held on April 18, 2007 (minutes at DE # 75). The United States of America subsequently intervened in this action and filed a Memorandum in Support of the Constitutionality of 49 U.S.C. § 30106 (DE # 87).

UPON CONSIDERATION of the motions and being otherwise fully advised in the premises, the Court enters the following Order.

I. Background

Plaintiffs leased a Chevrolet Classic vehicle to Michael Jankowski in February, 2006. Pet at 2. Subsequently, Jankowski was in a motor vehicle accident with Defendant Jean Francois Huchon, in which Huchon was injured. Id. at 2-3. Plaintiffs filed an action with this Court seeking a Declaratory Injunction. Defendant Jean Francois Huchon filed a personal injury action against certain of the Plaintiffs in the Circuit Court of the Sixteenth Judicial Circuit in and for Monroe County, Florida. Huchon v. Jankowski, 06-10094 ("Huchon"), Def. Not. of Removal at 9. Huchon's claim against Alamo Financing, L.P. ("Alamo"), was made specifically pursuant to Florida's Dangerous Instrumentality Doctrine (the "Doctrine"). Id. at 13. That case was removed, transferred to this Court, and consolidated with this declaratory judgment action. Accordingly, Huchon, the tort plaintiff, will be referred to here as the Defendant.

In this action, Plaintiffs seek, among other relief, declaratory judgment that they are not liable, to Defendant for damages from the accident. Plaintiffs base their claim of immunity from liability on 49 U.S.C. § 30106, which provides:

(a) In general. — An owner of a motor vehicle that rents or leases the vehicle to a person (or an affiliate, of the owner) shall not be liable under the law of any State or political subdivision thereof, by reason of being the owner of the vehicle (or an affiliate of the owner), for harm to persons or property that results or arises out of the use, operation, or possession of the vehicle during the period of the rental or lease, if —

(1) the owner (or an affiliate of the owner) is engaged in the trade or business of renting or leasing motor vehicles; and (2) there is no negligence or criminal wrongdoing on the part of the owner (or an affiliate of the owner)

(b) Financial responsibility laws. — Nothing in this section supersedes the law of any State or political subdivision thereof —

(1) imposing financial, responsibility or insurance standards on the owner of a motor vehicle for the privilege of registering and operating a motor vehicle; or

(2) imposing liability on business entities engaged in the trade or business of renting or leasing motor vehicles for failure to meet the financial responsibility or liability insurance requirements under State law.

Defendant Huchon moves to dismiss the Petition for Declaratory Judgment on the grounds that (A) this Court lacks jurisdiction; (B) no actual case or controversy exists between Huchon and the Plaintiffs not named as defendants in Huchon's state court action; and (C) this Court should use its discretionary authority to dismiss the petition. Plaintiffs move for Summary Judgment on the grounds that, pursuant to 49 U.S.C. § 30106, they cannot be held vicariously liable to Defendant for damages resulting from the automobile accident. Pl. Mot. at 2.

II. Standard of Review for the Motion to Dismiss

As the Eleventh Circuit explained in Morrison v. Amway Corp.:

Attacks on subject matter jurisdiction under Rule 12(b)(1) come in two forms, `facial' and `factual' attacks. Facial attacks challenge subject matter jurisdiction based on the allegations in the complaint, and the district court takes the allegations as true in deciding whether to grant the motion. Factual attacks challenge subject matter jurisdiction in fact, irrespective of the pleadings. In resolving a factual attack, the district court may consider extrinsic evidence such as testimony and affidavits.

323 F.3d 920, 925 n. 5 (11th Cir.2003). Defendant has made a facial attack on jurisdiction.

A motion to dismiss for failure to state a claim merely tests the sufficiency of the complaint; it does not decide the merits of the case. Milburn v. United States, 734 F.2d 762, 765 (11th Cir.1984). On a motion to dismiss, the Court must construe the complaint in the light most favorable to the plaintiff and accept the factual allegations as true. SEC v. ESM Group, Inc., 835 F.2d 270, 272 (11th Cir. 1988). Specifically, "[i]t is a well-settled principle of law that a complaint should not be dismissed merely because a plaintiff's allegations do not support the particular legal theory he advances, for the court is under a duty to examine the complaint to determine if the allegations provide for relief on any possible theory." Bowers v. Hardwick, 478 U.S. 186, 201-02, 106 S.Ct. 2841, 92 L.Ed.2d 140 (1986) (Blackmun, J., dissenting) (quotations omitted); see, Brooks v. Blue Cross & Blue Shield of Fla., Inc., 116 F.3d 1364, 1369 (11th Cir. 1997).

III Discussion of the Motion to Dismiss

A) This Court has Jurisdiction over the Instant Case

Defendant; claims that Plaintiffs' failure to specifically allege the Defendant's citizenship in their Complaint (DE # 1) is fatal. Def. Mot. at 5. Plaintiffs do not specifically mention Defendant's citizenship. However, Plaintiffs allege Defendant to be "domiciled in the State of Florida." Pet. at 2. An individual is considered to be a citizen of the state in which he is domiciled. Newman-Green, Inc. v. Alfonzo-Larrain, 490 U.S. 826, 828, 109 S.Ct. 2218, 104 L.Ed.2d 893 (1989). Accordingly, this Court finds that Plaintiffs have included sufficient allegations in the Petition to provide this Court with Diversity Jurisdiction over this matter.

B) An Actual Case or Controversy Exists between Plaintiffs and Defendant

Defendant argues that Plaintiffs' Petition for Declaratory Judgment (DE # I) fails to state a case or controversy between Plaintiffs Vanguard Car Rental USA, Inc. ("Vanguard") and National Rental(US), Inc. f/k/a National Car Rental ("National") and Defendant Huchon, as Alamo Financing, L.P. ("Alamo") was the only defendant named in Huchon's state court action. Def. Mot. at 3. Defendant also argues the Petition for Declaratory Judgment fails to state a case or controversy for Alamo, claiming a fatal dearth of factual allegations. Id. at 6-7. Reviewing the allegations in the Petition, Plaintiffs have alleged they were all parties to the car rental contract with Jankowski. Pet. at 2. Plaintiffs also claim that Defendant made a demand on Alamo as a result of Defendant's injuries, but had not yet filed suit. Id. at 2-3. Construing the complaint in the light most favorable to the Plaintiffs, it appears the Petition was filed in anticipation of a vicarious liability claim against all Plaintiffs.

C) This Court Declines to Dismiss the Petition Using its Discretionary Authority

Defendant asks the Court to use its discretionary authority to "decline to entertain a declaratory judgment action." Def. Mot. at 9, citing Ven-Fuel, Inc. v. Dept. of the Treasury, 673 F.2d 1194, 1195 (11th Cir.1982); Lumbermen Mut. Cas. Co. v. Ins. Co. of the State of Pennsylvania, 45 F.Supp.2d 1349, 1351 (S.D.Fla. 1999). This Court declines to do so.

D) This Court Declines to Stay the Declaratory Judgment Action

As an alternative, Defendant requests the Court stay the declaratory judgment action pending resolution of the underlying tort action. Def. Mot. at 14. The tort action has subsequently been removed to federal court, and consolidated with the declaratory judgment action. At this time, the Court declines to stay the declaratory judgment portion of this consolidated case.

IV. Standard of Review for the Summary Judgment Motion

The applicable standard for reviewing a summary judgment motion is unambiguously stated in Rule 56(c) of the Federal Rules of Civil Procedure:

The judgment sought shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.

Summary judgment may be entered only where there is no genuine issue of material fact. Twiss v. Kury, 25 F.3d 1551, 1554 (11th Cir.1994). The moving party has the burden of meeting this exacting standard Adickes v. S.H. Kress & Co., 398 U.S. 144, 157, 90 S.Ct. 1598, 26 L.Ed.2d 142 (1970). An issue of fact is "material" if it is a legal element of the claim under the applicable substantive law which might affect the outcome of the case. Allen v. Tyson Foods, Inc., 121 F.3d 642, 646 (11th Cir.1997). It is "genuine" if the record taken as a whole could lead a...