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February 2020

Alaniz v. Sun Pacific Shippers

2020 WL 562381
Court of Appeal, Second District, Division 6, California.
Jesus ALANIZ et al., Plaintiffs and Respondents,
v.
SUN PACIFIC SHIPPERS, L.P., Defendant and Appellant.
2d Civil No. B290013
|
Filed 2/5/2020
Synopsis
Background: Employee of independent contractor and employee’s wife brought action against independent contractor’s hirer, forklift driver, and other independent contractor for negligence and against hirer for premises liability. Following jury trial, the Superior Court, Ventura County, Nos. 56-2012-00428643-CU-PO-VTA, 56-2013-00445026-CU-PO-VTA, Henry J. Walsh, J., entered judgment in favor of employee and wife, assigning 40 percent responsibility to hirer, and awarding $2,563,190 to employee for past and future economic and noneconomic losses and $131,250 to wife for loss of consortium. After denial of hirer’s motions for new trial and judgment notwithstanding the verdict (JNOV), hirer appealed.

Holdings: The Court of Appeal, Tangeman, J., held that:

[1] failure to give jury instructions on limitations on hirer’s negligence liability was prejudicial;

[2] any request by hirer for jury instruction on mitigation of damages would have been futile;

[3] hirer was entitled to jury instruction on mitigation of damages; and

[4] hirer was not liable under premises liability theory for injury caused by unsafe condition that was openly visible and known to employee.

Reversed and remanded with instructions.

West Headnotes (19)

[1]
Labor and Employment
Extent of Control

In a negligence action, the hirer of an independent contractor may be liable to the contractor’s employee only if the hirer retained control over safety conditions at the worksite and that exercise of retained control affirmatively contributed to the employee’s injuries.

[2]
Negligence
Defect or dangerous conditions generally
Negligence
Knowledge or Notice in General
Negligence
Accidents and Injuries in General

In a premises liability action, the hirer of an independent contractor may be liable for injuries to the contractor’s employee only if: (1) it knows or reasonably should know of a concealed, preexisting hazardous condition on its premises; (2) the contractor does not know and could not reasonably ascertain the condition; and (3) the hirer fails to warn the contractor.

[3]
Appeal and Error
Correcting erroneous instructions

Hirer of independent contractor whose employee was allegedly injured on hirer’s property did not forfeit its contention that jury instructions on hirer’s negligence and premises liability incorrectly explained applicable law, where jury instructions were indeed incorrect statements of law as to when a hirer may be liable for injuries to an independent contractor’s employees under negligence or premises liability theories.

[4]
Appeal and Error
Relation Between Error and Final Outcome or Result

Error in instructing a jury is reversible only if there is a reasonable probability that in the absence of the error, a result more favorable to the appealing party would have been reached.

[5]
Appeal and Error
Relation Between Error and Final Outcome or Result

When the jury receives an improper instruction in a civil case, prejudice will generally be found only where it seems probable that the jury’s verdict may have been based on the erroneous instruction.

[6]
Appeal and Error
Relation Between Error and Final Outcome or Result

“Reasonable probability,” for purposes of determining whether an erroneous jury instruction had a reasonable probability of affecting the verdict, means merely a reasonable chance, more than an abstract possibility, a probability sufficient to undermine confidence in the outcome.

[7]
Appeal and Error
Relation Between Error and Final Outcome or Result

To determine whether a reasonable probability exists that an erroneous jury instruction affected a verdict, the Court of Appeal evaluates the entire record, including (1) the state of the evidence, (2) the effect of other instructions, (3) the effect of counsel’s arguments, and (4) any indications by the jury itself that it was misled.

[8]
Appeal and Error
Instructions

In reviewing whether a reasonable probability exists that an erroneous jury instruction affected a verdict adverse to an appellant, the Court of Appeal assumes the jury might have accepted the appellant’s evidence, and, if properly instructed, might have decided in the appellant’s favor.

[9]
Appeal and Error
Negligence and torts in general

State of evidence at trial on negligence claim by independent contractor’s employee, who was injured while unloading bins, against hirer of independent contractor would have allowed jury to find, if correctly instructed as to law governing hirer’s liability for employee’s injury, that hirer did not negligently exercise its retained control over safety conditions, and, thus, state-of-evidence factor in determining whether erroneous instruction was prejudicial to hirer weighed in favor of prejudice; jury could reasonably have found that hirer’s general control over harvesting operation, including designating area for unloading bins, did not establish hirer retained control over safety conditions for contractors, and that hirer merely permitted rather than directed manner of unloading bins.

[10]
Appeal and Error
Negligence and torts in general

Jury instructions that, in order for hirer of independent contractor to be liable for injury to independent contractor’s employee, hirer had to own or control property at issue and that jury could consider extent of hirer’s control over condition creating risk of harm did not cure trial court’s error in failing to instruct jury that, for hirer to be liable under negligence theory, hirer needed to have retained control over safety conditions and to have controlled conditions in manner affirmatively contributing to injury, and, thus, “totality of jury instructions” factor in determination of whether instructional error was prejudicial weighed in favor of prejudice; instructions were given as limitations on premises liability, not negligence, and did not completely cover applicable limitations. CACI 1000, 1001.

[11]
Trial
Negligence in general

Argument to jury by counsel for independent contractor’s employee did not cure trial court’s error in failing to instruct jury on limitations on negligence liability of hirer of independent contractor for injury to employee, and, thus, instructional error had reasonable probability of affecting jury’s verdict, such that it was prejudicial to hirer; counsel merely argued general negligence principles without mentioning limitations on hirer’s negligence liability, and counsel’s argument that hirer was negligent for failing to widen area where injury occurred aggravated prejudicial effect of erroneous jury instructions, which were based on general negligence and premises liability principles without regard to heightened negligence liability requirements applying to hirer.

[12]
Appeal and Error
Requests and Failure to Give Instructions

Any request by hirer of independent contractor for jury instruction on mitigation of damages based on delay by injured employee of independent contractor in seeking medical care for injury incurred while working on hirer’s premises would have been futile, and, thus, hirer’s failure to request instruction did not waive contention that instruction was warranted, where trial court refused co-defendants’ request for same instruction, and hirer was similarly situated to co-defendants. CACI 3930.

[13]
Trial
Issues and Theories of Case in General

A party is entitled to a jury instruction on every theory that could be established by the evidence most favorable to that theory.

[14]
Damages
Duty of Person Injured to Prevent or Reduce Damage

Plaintiffs cannot be compensated for damages that they could have avoided by reasonable effort or expenditure.

[15]
Damages
Personal injuries

Injured persons must use reasonable diligence in caring for their injuries, such as by seeking immediate medical care if reasonable under the circumstances.

[16]
Damages
Mitigation or reduction of damages

Hirer of independent contractor was entitled to jury instruction on mitigation of damages based on failure by injured employee of independent contractor to promptly seek medical care for injuries, where physician testified that it would have been advantageous for employee to obtain medical care within an hour of the accident, and site of accident was located about 25 minutes from hospital. CACI 3930.

[17]
Judgment
Where there is no evidence to sustain verdict

Judgment notwithstanding the verdict (JNOV) must be granted if the verdict is not supported by substantial evidence.

[18]
Appeal and Error
Postverdict motions;  judgment notwithstanding verdict (JNOV)

Unlike an analysis of instructional error, when reviewing the grant or denial of a motion for judgment notwithstanding the verdict (JNOV), the Court of Appeal views the evidence in the light most favorable to the party securing the verdict.

[19]
Automobiles
Injuries from defects in private premises
Negligence
Conditions known or obvious in general

Orchard owner that hired independent contractor trucking company was not liable for injuries caused when the independent contractor’s employee, a truck driver, fell from the truck while unloading bins and was crushed by forklift, under premises liability theory based on unsafe condition that road where employee was working was too narrow for forklift to safely access bins in order to assist in the unloading, where unsafe condition was openly visible and known to employee.

Superior Court County of Ventura, Henry J. Walsh, Judge (Super. Ct. Nos. 56-2012-00428643-CU-PO-VTA & 56-2013-00445026-CU-PO-VTA).
Attorneys and Law Firms
Horvitz & Levy, Burbank, Christopher D. Hu, San Francisco, Curt Cutting, Burbank, and Stanley H. Chen, Los Angeles, for Defendant and Appellant.
Greene, Broillet & Wheeler, Scott H. Carr, Tobin M. Lanzetta, Santa Monica; Silverberg Law Corporation, James W. Haines, Ivetta Avanesov, West Hollywood; Esner, Chang & Boyer, Pasadena, and Andrew N. Chang, Oakland, for Plaintiffs and Respondents.
Opinion

TANGEMAN, J.

*1 [1] [2]The Privette/Hooker doctrine limits the circumstances in which the hirer of an independent contractor can be liable for injuries to the contractor’s employees. (Privette v. Superior Court (1993) 5 Cal.4th 689, 21 Cal.Rptr.2d 72, 854 P.2d 721; Hooker v. Department of Transportation (2002) 27 Cal.4th 198, 115 Cal.Rptr.2d 853, 38 P.3d 1081 (Hooker).) In a negligence action, the hirer of an independent contractor may be liable to the contractor’s employee only if “the hirer retained control over safety conditions at [the] worksite” and that “exercise of retained control affirmatively contributed to the employee’s injuries.” (Hooker, at p. 202, 115 Cal.Rptr.2d 853, 38 P.3d 1081, original italics.) In a premises liability action, the hirer may be liable for injuries to the employee only if: “(1) it knows or reasonably should know of a concealed, preexisting hazardous condition on its premises; (2) the contractor does not know and could not reasonably ascertain the condition; and (3) the [hirer] fails to warn the contractor.” (Kinsman v. Unocal Corp. (2005) 37 Cal.4th 659, 675, 36 Cal.Rptr.3d 495, 123 P.3d 931 (Kinsman), italics added.) We conclude that the trial court here prejudicially erred when it omitted these limitations from its instructions on negligence and premises liability.

Sun Pacific Shippers, L.P. (Sun Pacific), appeals from the judgment after a jury awarded damages against it for injuries sustained by Jesus Alaniz, an employee of one of its independent contractors. Sun Pacific contends: (1) the trial court erred when it did not instruct the jury on the Privette/Hooker doctrine, (2) the court erred when it did not instruct on mitigation of damages, (3) the court improperly denied its motion for judgment notwithstanding the verdict (JNOV), and (4) substantial evidence does not support the award of future medical expenses. We reverse the judgment, remand for a new trial on the negligence cause of action, and direct judgment for Sun Pacific on the premises liability cause of action.

FACTUAL AND PROCEDURAL HISTORY

The accident
Sun Pacific grows mandarins at its orchard outside Fillmore. It hires independent contractors to deliver empty bins to the orchard, pick the fruit, and deliver full bins to the packing house. Each contractor provides its own pickers, truck drivers, and forklift operators.

In February 2012, Alaniz, a truck driver employed by Navarro Trucking, delivered a truckload of empty bins to Sun Pacific’s orchard. A forklift driven by Roberto Reynosa—who was employed by another independent contractor, J. Antonio Rosa Lule—unloaded bins from the north side of the trailer. Alaniz climbed onto the trailer and, as space became available on the north, pulled bins over so Reynosa could unload them. No one from Sun Pacific directed Alaniz to do this.

While pulling a stack of bins, Alaniz fell off the truck and onto the ground. Reynosa drove forward, crushing Alaniz’s leg under the forklift. He offered to take Alaniz to the doctor. Alaniz declined Reynosa’s offer and chose to finish working his shift instead. He went to a clinic four hours later, and subsequently underwent surgery on his leg and shoulder.

Trial
*2 Alaniz and his wife sued Sun Pacific, Lule, and Reynosa for negligence, and Sun Pacific for premises liability. At trial, Alaniz testified that a Sun Pacific supervisor, Filipe Merino, told him to park at a specific location on the south side of the road; cars parked on the road made it too narrow for a forklift to access the trailer from the south. Alaniz also said that Reynosa told him to climb onto the trailer and pull the bins to its north side so Reynosa could unload them. Reynosa claimed that “everybody [did] this so it was okay to go up there and do it.” Alaniz asked if they could instead move the cars parked on the north side of the road so he could park there, but Reynosa said that would take too long. Alaniz got onto the truck and pulled the bins to the north side of the trailer as directed by Reynosa.

Reynosa testified that Merino called him when Alaniz arrived at the orchard and told him to tell Alaniz where to park so he could unload the bins. Reynosa conveyed this instruction, and Alaniz complied by backing up a short distance. Reynosa said that cars did not block Alaniz from moving the truck so the forklift could reach the bins on the south. He denied telling Alaniz to get on the trailer to move the bins.

Merino denied telling Alaniz where to park, denied telling Reynosa to unload Alaniz’s truck, and denied talking to either Alaniz or Reynosa before the accident. He testified that cars were not blocking Alaniz’s truck.

A defense expert, Dr. Richard Rosenberg, testified that Alaniz’s injuries would have been less serious if he had gone to the hospital sooner. It “would [have been] so advantageous” if he could have seen a doctor within an hour. It is about a 25-minute drive from Fillmore to Ventura County Medical Center.

Alaniz’s expert, Dr. Robert Klapper, testified that the seriousness of Alaniz’s leg injuries did not depend on how quickly he got to the hospital.

Life-care planner Carol Hyland testified about future medical care costs, including an orthopedist, a physical therapist, gym membership, functional restoration program, and attendant care or chore services. She said that she included those services in her cost calculation on the recommendation of Dr. Klapper. Dr. Klapper testified that he only had expertise in orthopedics, however, and was responsible for only certain aspects of Hyland’s report.

Jury instructions
The trial court instructed the jury on general principles of negligence, but refused Lule and Reynosa’s request for a modified version of CACI No. 1009B, the instruction that explains negligent exercise of retained control pursuant to Privette and Hooker. Although Sun Pacific relied on the Privette/Hooker doctrine throughout trial, the record does not establish that it joined Lule and Reynosa’s request.

The trial court also instructed the jury on general principles of premises liability. It did not instruct on a landowner’s limited responsibility to employees of an independent contractor pursuant to the Privette/Hooker doctrine. Sun Pacific relied on the doctrine throughout trial, but did not request an instruction on it.

Lule and Reynosa requested a jury instruction on mitigation of damages based on Alaniz’s delay in seeking medical treatment. The trial court refused the instruction, reasoning that it would be based on speculation because there was no evidence of how long an ambulance would have taken to reach the work site.

Verdict
The jury found for Alaniz and his wife, and assigned 40 percent responsibility to Sun Pacific, 35 percent to Lule and Reynosa, 15 percent to Navarro Trucking, and 10 percent to Alaniz. After reducing the award for workers’ compensation benefits, the trial court awarded Alaniz $2,563,190 for past and future economic and noneconomic losses. It awarded his wife $131,250 for loss of consortium.

Motions for new trial and JNOV
*3 Sun Pacific moved for a new trial and for JNOV on the basis that substantial evidence did not support either negligence or premises liability. The new trial motion also challenged the court’s failure to give a mitigation of damages instruction and its admission of evidence regarding future medical expenses. The trial court denied both motions.

DISCUSSION

Privette/Hooker jury instructions
Sun Pacific contends the trial court prejudicially erred because it did not instruct the jury on the Privette/Hooker doctrine as it applies to either negligence or premises liability. The Alanizes assert Sun Pacific forfeited its contention because it did not request the instructions at trial. We disagree with the Alanizes because without the instructions the court incorrectly explained the applicable law. (Suman v. BMW of North America, Inc. (1994) 23 Cal.App.4th 1, 9, 28 Cal.Rptr.2d 133 (Suman).)

Our Supreme Court’s decision in Kinsman is controlling. There, an employee of an independent contractor that built and dismantled scaffolding used by other trades was exposed to airborne asbestos produced by those trades. (Kinsman, supra, 37 Cal.4th at p. 665, 36 Cal.Rptr.3d 495, 123 P.3d 931.) The trial court instructed the jury on the hirer’s liability for failure to exercise ordinary care in the maintenance of the property to avoid exposing persons to an unreasonable risk of harm. (Id. at p. 681, 36 Cal.Rptr.3d 495, 123 P.3d 931.) But “the usual rules about [premises] liability must be modified, after Privette, as they apply to a hirer’s duty to the employees of independent contractors.” (Id. at p. 674, 36 Cal.Rptr.3d 495, 123 P.3d 931.) The trial court’s instruction, “while an accurate statement of premises liability generally, [was] partly erroneous when applied” to the hirer’s liability to Kinsman because it did “not make clear that the hazard must have been unknown and not reasonably ascertainable to the independent contractor that employed Kinsman and to other contractors working contemporaneously on the premises.” (Id. at p. 682, 36 Cal.Rptr.3d 495, 123 P.3d 931.) Because a properly instructed jury could have concluded that the contractors knew about the hazard, the judgment was reversed. (Id. at p. 683, 36 Cal.Rptr.3d 495, 123 P.3d 931.)

[3]Similarly here, the trial court instructed the jury that Sun Pacific was liable if its failure to use reasonable care was a substantial factor in harming Alaniz (see CACI Nos. 400, 401 & 4310), but did not say that that principle only applied to the hirer of an independent contractor if its negligent exercise of retained control over safety conditions affirmatively contributed to the harm. (Hooker, supra, 27 Cal.4th at p. 202, 115 Cal.Rptr.2d 853, 38 P.3d 1081.) The court also told the jury that Sun Pacific was liable if its negligent use or maintenance of the property was a substantial factor in harming Alaniz (see CACI Nos. 1000, 1001, 1003 & 1011), but did not say that these principles would only apply to Sun Pacific if the hazard were concealed. (Kinsman, supra, 37 Cal.4th at p. 675, 36 Cal.Rptr.3d 495, 123 P.3d 931.) Because each instruction was “an incorrect statement of law,” Sun Pacific has not forfeited its contention. (Suman, supra, 23 Cal.App.4th at p. 9, 28 Cal.Rptr.2d 133.)

[4] [5] [6]And the trial court’s error was prejudicial. Error in instructing a jury is reversible only if “there is a reasonable probability that in the absence of the error, a result more favorable to the appealing party would have been reached.” (Soule v. General Motors Corp. (1994) 8 Cal.4th 548, 574, 580, 34 Cal.Rptr.2d 607, 882 P.2d 298 (Soule).) “Thus, when the jury receives an improper instruction in a civil case, prejudice will generally be found only “ ‘[w]here it seems probable that the jury’s verdict may have been based on the erroneous instruction ….’ [Citation.]” (Id. at p. 574, 34 Cal.Rptr.2d 607, 882 P.2d 298.) “ ‘[R]easonable probability’ ” means “merely a reasonable chance, more than an abstract possibility,” a “ ‘probability sufficient to undermine confidence in the outcome.’ ” (College Hospital Inc. v. Superior Court (1994) 8 Cal.4th 704, 715, 34 Cal.Rptr.2d 898, 882 P.2d 894, italics omitted.)

*4 [7] [8]To determine whether that probability exists here, we evaluate the entire record, including (1) the state of the evidence, (2) the effect of other instructions, (3) the effect of counsel’s arguments, and (4) any indications by the jury itself that it was misled. (Soule, supra, 8 Cal.4th at pp. 580-581, 34 Cal.Rptr.2d 607, 882 P.2d 298.) We assume the jury might have accepted Sun Pacific’s evidence, and, if properly instructed, might have decided in its favor. (Mayes v. Bryan (2006) 139 Cal.App.4th 1075, 1087, 44 Cal.Rptr.3d 14.)

[9]Here, a properly instructed jury might have decided in Sun Pacific’s favor on the negligence cause of action based on the first three Soule factors. First, the jury could have found that Sun Pacific’s general control over aspects of the harvesting operation, including designating the area to unload bins, did not establish that it retained control over safety conditions for its contractors. (See, e.g., McDonald v. Shell Oil Co. (1955) 44 Cal.2d 785, 788-790, 285 P.2d 902 [broad power of control over results of the work did not constitute control over means of accomplishing the job].) It is also reasonably probable that the jury would have found that Sun Pacific merely permitted—rather than directed—the manner of unloading the bins. (Hooker, supra, 27 Cal.4th at pp. 214-215, 115 Cal.Rptr.2d 853, 38 P.3d 1081; see also McDonald, at p. 790, 285 P.2d 902 [owner’s “suggestions or recommendations as to details of the work” to contractor’s employees do not impose liability on owner].)

[10]Second, the jury instructions that were given support a finding of prejudice. CACI No. 1000 told jurors that “Sun Pacific owned or controlled the property,” but did not mention that it had to retain control over safety conditions for liability to attach. (Cf. Khosh v. Staples Construction Co., Inc. (2016) 4 Cal.App.5th 712, 718, 208 Cal.Rptr.3d 699 [to be liable pursuant to retained control theory, hirer must “direct[ ] the contractor about the manner or performance of the work, direct[ ] that the work be done by a particular mode, or actively participat[e] in how the job is done”].) CACI No. 1001 told the jury that it could consider “[t]he extent of Sun Pacific’s control over the condition that created the risk of harm,” but did not include the Privette/Hooker requirement that Sun Pacific negligently exercise its retained control in a manner that affirmatively contributed to the harm. (Cf. Hooker, supra, 27 Cal.4th at p. 202, 115 Cal.Rptr.2d 853, 38 P.3d 1081.) Moreover, these instructions were given as limitations on premises liability, not as limitations on negligence. They were thus an insufficient substitute for a Privette/Hooker instruction. (E.g., Vine v. Bear Valley Ski Co. (2004) 118 Cal.App.4th 577, 594-595, 601, 13 Cal.Rptr.3d 370 (Vine) [contributory negligence instruction did not cure failure to instruct on assumption of risk].)

[11]Finally, counsel for Alaniz argued general principles of negligence, without mentioning the Privette/Hooker limitations. He also argued that Sun Pacific was negligent for failing to widen the area by removing trees. These arguments aggravated the prejudicial effect of the erroneous jury instructions. (Vine, supra, 118 Cal.App.4th at pp. 601-603, 13 Cal.Rptr.3d 370 [failure to give assumption of risk instruction allowed counsel to give legally erroneous argument]; Whiteley v. Philip Morris, Inc. (2004) 117 Cal.App.4th 635, 660, 11 Cal.Rptr.3d 807 [counsel’s arguments highlighted prejudicial effect of instructional error].)

Because there is a reasonable probability the jury based its negligence verdict on the erroneous instructions, the case must be remanded for a new trial on negligence so that a jury may evaluate whether Sun Pacific is liable pursuant to the applicable legal standards.1

Mitigation of damages instruction
*5 [12]Sun Pacific contends the trial court improperly refused a jury instruction on mitigation of damages based on Alaniz’s delay in seeking medical care. The Alanizes claim Sun Pacific forfeited its contention because it did not request the instruction at trial. But the court refused Lule and Reynosa’s request for the instruction (CACI No. 3930, as modified). Because Sun Pacific was similarly situated, a request would have been futile. (People v. Chism (2014) 58 Cal.4th 1266, 1291, 171 Cal.Rptr.3d 347, 324 P.3d 183; M.T. v. Superior Court (2009) 178 Cal.App.4th 1170, 1177, 101 Cal.Rptr.3d 183.)

[13] [14] [15]And the trial court’s refusal was error. A party is entitled to an instruction on every theory that could be established by the evidence most favorable to that theory. (Scott v. Rayhrer (2010) 185 Cal.App.4th 1535, 1540, 111 Cal.Rptr.3d 36.) Relevant here is the theory that plaintiffs cannot be compensated for damages that they could have avoided by reasonable effort or expenditure. (State Dept. of Health Services v. Superior Court (2003) 31 Cal.4th 1026, 1042-1043, 6 Cal.Rptr.3d 441, 79 P.3d 556.) Injured persons must use reasonable diligence in caring for their injuries. (Christiansen v. Hollings (1941) 44 Cal.App.2d 332, 346, 112 P.2d 723.) Depending on the circumstances, it may be reasonable for the person to seek immediate medical care. (Ibid.)

[16]Here, Dr. Rosenberg testified that it would have been “so advantageous” if Alaniz could have seen a doctor within an hour, and that it is about a 25-minute drive from Fillmore to the hospital. Reynosa offered to take Alaniz there. If the jury credited this testimony, it could have determined that Alaniz’s delay in seeking medical attention increased his injuries. Sun Pacific was thus entitled to a mitigation of damages of instruction. (Bernal v. Richard Wolf Medical Instruments Corp. (1990) 221 Cal.App.3d 1326, 1337-1338, 272 Cal.Rptr. 41, overruled on another point by Soule v. General Motors Corp., supra, 8 Cal.4th at pp. 574, 580, 34 Cal.Rptr.2d 607, 882 P.2d 298.)

JNOV
Sun Pacific contends the trial court erred when it denied its motion for JNOV. We agree in part.

[17] [18]JNOV must be granted if the verdict is not supported by substantial evidence. (Sweatman v. Department of Veterans Affairs (2001) 25 Cal.4th 62, 68, 104 Cal.Rptr.2d 602, 18 P.3d 29.) Unlike an analysis of instructional error, when reviewing the grant or denial of a motion for JNOV we view the evidence in the light most favorable to the party securing the verdict. (Simmons v. Ware (2013) 213 Cal.App.4th 1035, 1048, 153 Cal.Rptr.3d 178.) Here, then, we credit the testimony that Merino directed Alaniz to park at a location too narrow for the forklift to access the bins on the south side of the trailer.

As to the negligence cause of action, there was evidence that Sun Pacific exercised control over where vehicles parked to load and unload bins, and exercised that control in a way that affirmatively contributed to Alaniz’s injuries. Based on this evidence, a properly instructed jury could have found Sun Pacific liable for negligence. (Kinsman, supra, 37 Cal.4th at p. 683, 36 Cal.Rptr.3d 495, 123 P.3d 931.) Accordingly, we must remand so a new jury may evaluate the evidence in light of proper jury instructions. (McCoy v. Hearst Corp. (1991) 227 Cal.App.3d 1657, 1659-1661, 278 Cal.Rptr. 596.)

[19]As to the premises liability cause of action, there was evidence that the road where the bins were unloaded was too narrow and constituted an unsafe condition. But this condition was openly visible and known to Alaniz. As such, JNOV should have been granted on the premises liability cause of action. (Kinsman, supra, 37 Cal.4th at p. 675, 36 Cal.Rptr.3d 495, 123 P.3d 931.) We thus direct the trial court to enter judgment in favor of Sun Pacific on this cause of action. (Code Civ. Proc., § 629, subd. (c); Singh v. Southland Stone, U.S.A., Inc. (2010) 186 Cal.App.4th 338, 367, 112 Cal.Rptr.3d 455.)

Future medical costs
*6 Finally, Sun Pacific contends it is entitled to a new trial regarding damages because Hyland’s and Dr. Klapper’s testimony did not constitute substantial evidence to support the award of future medical costs. Our reversal of the judgment as to liability renders resolution of this issue unnecessary.

DISPOSITION
The judgment is reversed and the case is remanded for a new trial on the negligence cause of action. The trial court is directed to enter judgment in favor of Sun Pacific on the premises liability cause of action. Sun Pacific shall recover its costs on appeal.

We concur:
GILBERT, P. J.
YEGAN, J.

Henry J. Walsh, Judge

Superior Court County of Ventura
Horvitz & Levy, Christopher D. Hu, Curt Cutting and Stanley H. Chen, for Defendant and Appellant.

Greene, Broillet & Wheeler, Scott H. Carr, Tobin M. Lanzetta; Silverberg Law Corporation, James W. Haines, Ivetta Avanesov; Esner, Chang & Boyer and Andrew N. Chang, for Plaintiffs and Respondents.

All Citations
— Cal.Rptr.3d —-, 2020 WL 562381, 20 Cal. Daily Op. Serv. 976, 2020 Daily Journal D.A.R. 928

Footnotes

1
We would reach the same conclusion regarding the trial court’s failure to give a Privette/Hooker instruction on the premises liability cause of action, but, as discussed below, the absence of evidence of a concealed hazardous condition compels us to conclude that JNOV should have been granted as to this cause of action. We thus need not evaluate the prejudicial effect of that instruction’s absence.

Gillum v. High Std., LLC

Gillum v. High Std., LLC
United States District Court for the Western District of Texas, San Antonio Division
January 27, 2020, Decided; January 27, 2020, Filed
Civil Action No. SA-19-CV-1378-XR

Reporter
2020 U.S. Dist. LEXIS 14820 *; 2020 WL 444371

SCOTT GILLUM, Plaintiff, v. HIGH STANDARD, LLC et al., Defendants.

ORDER ON MOTION TO REMAND AND MOTION TO DISMISS
On this date, the Court considered Plaintiff Scott Gillum’s motion to remand (docket no. 11) and Defendant Danco Transport Inc.’s response (docket no. 12). The Court further considered Defendant Danco Transport’s motion to dismiss (docket no. 5, as supplemented by no. 13) and Plaintiff’s response (docket no. 8). After careful consideration, Plaintiff’s motion to remand (docket [*2] no. 11) is DENIED and Defendant Danco Transport’s motion to dismiss (docket no. 5) is GRANTED.

BACKGROUND
This case arises out of a motor vehicle accident in which Plaintiff Scott Gillum (“Plaintiff”) was allegedly struck by a tractor trailer driven by Micah Underwood. Plaintiff asserts essentially three tiers of claims. First, he asserts negligence, gross negligence, and negligence per se claims against the driver. Second, he asserts negligent entrustment and hiring/training claims against two motor carriers, High Standard and Double Down Trucking (and their individual owners), one or both of whom hired, trained, and entrusted the driver. Finally—and at issue here—Plaintiff asserts negligence claims against the freight broker, Defendant Danco Transport, under both a respondeat superior theory1 and for negligent “hiring, retention, entrustment, and/or agency” under the theory that Defendant Danco was negligent in the selection of motor carriers who were thereafter negligent in their selection and training of the driver.
Plaintiff filed his Original Petition in the District Court for the 207th Judicial District of Comal County, Texas on October 30, 2018. Docket no. 7 at 4. Originally, [*3] Plaintiff named only High Standard and Micah Underwood as defendants. Id. His First Amended Original Petition added Double Down Trucking. Id. at 318. It was not until Plaintiff’s Second Amended Petition that he named Danco Transport as a defendant. Docket no. 7 at 396. Defendant Danco then removed this action to this Court on November 25, 2019 (docket no. 1), asserting federal question jurisdiction based on complete preemption under the Federal Aviation Administration Authorization Act, and a week later filed its motion to dismiss (docket no. 5, as supplemented by no. 13). On December 24, 2019, Plaintiff filed a motion to remand (docket no. 11).

ANALYSIS

I. Plaintiff’s Motion to Remand

a. Legal Standard
A defendant may remove to federal court any civil action brought in state court over which the district court would also have had original jurisdiction. 28 U.S.C. § 1441(a). One such category of cases over which district courts have original jurisdiction is federal question cases, or cases “arising under the Constitution, laws, or treaties of the United States.” 28 U.S.C. § 1331. In determining whether a claim “arises under” federal law, courts examine the well-pleaded allegations of the complaint and ignore potential defenses. Beneficial Nat’l Bank v. Anderson, 539 U.S. 1, 6, 123 S. Ct. 2058, 156 L. Ed. 2d 1 (2003). [*4] Such a suit arises under federal law “only when the plaintiff’s statement of his own cause of action shows that it is based upon those laws or [the] Constitution. It is not enough that the plaintiff alleges some anticipated defense to his cause of action and asserts that the defense is invalidated by some provision of the Constitution….” Louisville & Nashville R. Co. v. Mottley, 211 U.S. 149, 152, 29 S. Ct. 42, 53 L. Ed. 126 (1908); see also Merrell Dow Pharm. Inc. v. Thompson, 478 U.S. 804, 808, 106 S. Ct. 3229, 92 L. Ed. 2d 650 (1986). Thus, if a plaintiff pleads solely state-law claims, “a federal court generally does not have jurisdiction over that complaint, even if the defendant asserts preemption as an affirmative defense.” McKnight v. Dresser, Inc., 676 F.3d 426, 430 (5th Cir. 2012) (quoting Gutierrez v. Flores, 543 F.3d 248, 251-52 (5th Cir. 2008)).
The “complete preemption” doctrine, however, presents an exception to the well-pleaded complaint rule. Id. Under complete preemption, “[w]hen the federal statute completely preempts the state-law cause of action, a claim which comes within the scope of that action, even if pleaded in terms of state law, is in reality based on federal law. The claim is then removable under 28 U.S.C. § 1441(b)….” Anderson, 539 U.S. at 8. Federal question jurisdiction based on such preemption exists “[w]hen Congress ‘so completely preempt[s] a particular area that any civil complaint raising this select group of claims is necessarily federal in character.'” Gutierrez, 543 F.3d at 252 (quoting Johnson v. Baylor Univ., 214 F.3d 630, 632 (5th Cir. 2000)).
Because removal implicates [*5] federalism concerns, any ambiguities are construed against removal and in favor of remand. Manguno v. Prudential Prop. & Cas. Ins. Co., 276 F.3d 720, 723 (5th Cir. 2002) (citing Acuna v. Brown & Root, Inc., 200 F.3d 335, 339 (5th Cir. 2000)). Indeed, “[s]tatutes that authorize removal, including those that do so through complete preemption, are meant to be strictly construed.” Hood ex rel. Miss. v. JP Morgan Chase & Co., 737 F.3d 78, 89 (5th Cir. 2013). The party seeking to remove bears the burden of showing that federal jurisdiction exists and that removal was proper. Manguno, 276 F.3d at 723.
b. Analysis
Plaintiff argues this Court lacks jurisdiction over the matter because neither diversity nor federal question jurisdiction is present. Docket no. 11. Specifically, Plaintiff argues that “[t]he [Federal Aviation Administration Authorization Act, or ‘FAAAA’] has not specifically exempted state causes of action for simple negligence and gross negligence” through its preemption provision. Id. at 7. Alternatively, Plaintiff argues the public-safety exception to preemption applies. Id. at 10-11. Defendant, in turn, argues that the FAAAA completely preempts such claims against a freight broker. Docket no. 12.
There are two relevant preemption provisions, though the parties and related case law focus largely on the second. The Interstate Commerce Commission Termination Act (“ICCTA”) reads:
[N]o State or political subdivision thereof and no intrastate [*6] agency or other political agency of 2 or more States shall enact or enforce any law, rule, regulation, standard, or other provision having the force and effect of law relating to intrastate rates, intrastate routes, or intrastate services of any freight forwarder or broker.
49 U.S.C. § 14501(b)(1) (emphasis added). Similarly, the FAAAA preemption provision reads, in relevant part:
[A] State…may not enact or enforce a law, regulation, or other provision having the force and effect of law related to a price, route, or service of any motor carrier… or any private motor carrier, broker, or freight forwarder with respect to the transportation2 of property.
§ 14501(c)(1) (emphasis added).3 Congress enacted the FAAAA to “preempt state trucking regulation” and to avoid “a State’s direct substitution of its own governmental commands for ‘competitive market forces’ in determining (to a significant degree) the services that motor carriers will provide.” Rowe v. New Hampshire Motor Transp. Ass’n, 552 U.S. 364, 368, 372, 128 S. Ct. 989, 169 L. Ed. 2d 933 (2008) (citations omitted). The preemption language of the FAAAA directly mirrored the earlier Airline Deregulation Act (“ADA”) and in interpreting identical provisions of those two statutes, the Supreme Court held that the FAAAA’s preemption must also be read broadly. Id. at 370 (“[W]hen judicial [*7] interpretations have settled the meaning of an existing statutory provision, repetition of the same language in a new statute indicates…the intent to incorporate its judicial interpretations as well.”). In applying the ADA preemption standard to the FAAAA, the Rowe Court adopted the holding of Morales v. Trans World Airlines, Inc., 504 U.S. 374, 112 S. Ct. 2031, 119 L. Ed. 2d 157 (1992), which held that “pre-emption may occur even if a state law’s effect on rates, routes, or services ‘is only indirect'” and that “pre-emption occurs at least where state laws have a ‘significant impact’ related to Congress’ deregulatory and pre-emption-related objectives.” Rowe, 552 U.S. at 370-71 (citing Morales, 504 U.S. at 384-90)); see also Dan’s City Used Cars, Inc. v. Pelkey, 569 U.S. 251, 260, 133 S. Ct. 1769, 185 L. Ed. 2d 909 (2013) (interpreting the FAAAA’s “related to” provision as embracing state laws “having a connection with or reference to” carrier rates, routes, or services, whether directly or indirectly).
There are limits, however, to the FAAAA’s preemption. Pelkey, 569 U.S. at 260. The Supreme Court noted that “§ 14501(c)(1) does not preempt state laws affecting carrier prices, routes, and services in only a tenuous, remote, or peripheral manner.” Id. at 261. The Court also highlighted one key difference between the ADA and the FAAAA: the phrase “with respect to the transportation of property” appears solely in the FAAAA and it “massively limits the scope [*8] of preemption” ordered by the FAAAA. Id.4 Further, the FAAAA contains an explicit exception, which provides that FAAAA preemption “shall not restrict the safety regulatory authority of a State with respect to motor vehicles….” 49 U.S.C. § 14501(c)(2).
With neither persuasive nor binding authority from any circuit court, “[f]ederal district courts are sharply divided on how to apply these guiding principles to personal injury claims alleging negligence by brokers in selecting motor carriers for the transportation of property,” the very issue presented in this case. Loyd v. Salazar, No. CIV-17-977, 2019 U.S. Dist. LEXIS 160694, 2019 WL 4577108, at *4 (W.D. Okla. Sept. 20, 2019); see also Creagan v. Wal-Mart Transp., LLC, 354 F. Supp. 3d 808, 812 (N.D. Ohio 2018) (outlining split among district courts and noting the lack of circuit court guidance). Two diverging lines of cases have developed, though both share an understanding that common law negligence claims embody state laws that may be preempted. See Northwest, Inc. v. Ginsberg, 572 U.S. 273, 281-82, 134 S. Ct. 1422, 188 L. Ed. 2d 538 (“[S]tate common-law rules fall comfortably within the language of the ADA preemption provision” because they “appl[y] to state law[s], regulation[s], or other provision[s] having the force and effect of law….”); see also Am. Airlines, Inc. v. Wolens, 513 U.S. 219, 233 n.8, 115 S. Ct. 817, 130 L. Ed. 2d 715 (1995).
One set of courts has “simply refused to hold that personal injury claims are preempted, largely relying on ADA cases [*9] to justify such a rule.” Loyd, 2019 U.S. Dist. LEXIS 160694, 2019 WL 4577108, at *4 (citing Scott v. Milosevic, 372 F. Supp. 3d 758, 769 (N.D. Iowa 2019)). The Milosevic court acknowledged the lack of appellate authority on FAAAA preemption and instead looked at cases refusing to find the ADA preempted state tort law claims. Milosevic, 372 F. Supp. 3d at 769-70 (citing Charas v. Trans World Airlines, Inc., 160 F.3d 1259, 1266 (9th Cir. 1998); Hodges v. Delta Airlines, Inc., 44 F.3d 334, 338 (5th Cir. 1995) (“[N]either the ADA nor its legislative history indicates that Congress intended to displace the application of state tort law to personal physical injury inflicted by aircraft operations, or that Congress even considered such preemption.”)).
But those courts finding no preemption under the ADA largely reasoned as such due to an ADA provision requiring air carriers to maintain insurance coverage for personal injury claims. See, e.g. Hodges, 44 F.3d at 337-38 (“A complete preemption of state law in this area would have rendered any requirement of insurance coverage nugatory.”).5 The FAAAA contains a similar insurance-coverage provision for motor carriers and freight forwarders, but not for brokers. See 49 U.S.C. § 13906(a)(1), (b)(1)-(2), (c)(3); Krauss v. IRIS USA, Inc., No. 17-778, 2018 U.S. Dist. LEXIS 74922, 2018 WL 2063839, at *6 (E.D. Pa. May 3, 2018) (“[T]his airline-specific insurance provision is one of the few ways in which the statutory text could be read to distinguish FAAAA preemption for freight brokers from ADA preemption for airlines.”). Given that distinction, the Court finds unpersuasive cases rejecting FAAAA preemption based [*10] solely on the fact that prior courts rejected ADA preemption. Loyd, 2019 U.S. Dist. LEXIS 160694, 2019 WL 4577108, at *4.
Another set of courts found no preemption on the rationale that a negligent hiring action is too “tenuous, remote, or peripheral” from the “services” of a freight broker. See, e.g. Mann v. C. H. Robinson Worldwide, Inc., No. 7:16-cv-104, 2017 U.S. Dist. LEXIS 117503, 2017 WL 3191516, at *7 (W.D. Va. July 27, 2017). Such reasoning is unavailing, however, given the definition of “brokerage services” as defined in Title 49. See 49 C.F.R. § 371.2(c) (“Brokerage or brokerage service is the arranging of transportation or the physical movement of a motor vehicle or of property.”). And “freight broker” itself is defined as “a person…that as a principal or agent sells, offers to sell…provid[es], or arrang[es] for, transportation by motor carrier for compensation.” Id. § 13102(2).
Plaintiff’s claims here do indeed relate to those services, as Plaintiff alleges Defendant Danco—acting as a freight broker—was negligent in its vetting of freight carriers High Standard and Double Down Trucking (who, in turn, were negligent in vetting the driver involved in the accident). In essence, Plaintiff claims that Defendant Danco was negligent in arranging for the transportation of property between motor carriers. These allegations “go to [*11] the core of what it means to be a careful broker.” Krauss, 2018 U.S. Dist. LEXIS 74922, 2018 WL 2063839, at *5 (holding FAAAA completely preempted claim against freight broker under negligent hiring theory because careless selection of a carrier is a core service of a freight broker); see also Ga. Nut Co. v. C.H. Robinson Co., No. 17 C 3018, 2017 U.S. Dist. LEXIS 177269, 2017 WL 4864857 (N.D. Ill. Oct. 26, 2017) (“While the services of a freight broker do not include the actual transportation of property, they are focused on arranging how others will transport the property; these services, therefore, fall within the scope of the FAAAA preemption.”).6
A final set of courts has found that state law negligent hiring claims fall within the FAAAA’s carve-out for safety regulations related to motor vehicles. See, e.g. Morales v. Redco Transp., Ltd., No. 14-cv-129, 2015 U.S. Dist. LEXIS 169801, 2015 WL 9274068 (S.D. Tex. Dec. 21, 2015). That section provides that the preemption provision “shall not restrict the safety regulatory authority of a State with respect to motor vehicles….” 49 U.S.C. § 14501(c)(2)(A). The exception [*12] is intended to ensure FAAAA preemption does “not restrict the preexisting and traditional state police power over safety.” City of Columbus v. Ours Garage & Wrecker Serv. Inc., 536 U.S. 424, 439, 122 S. Ct. 2226, 153 L. Ed. 2d 430 (2002). But “[c]ase law interpreting § 14501(c)(2)(A) refers solely to the ability of the several states to define safety standards and insurance requirements…The exception is not read to permit a private right of action.” Huntington Operating Corp v. Sybonney Express, Inc., No. H-08-781, 2010 U.S. Dist. LEXIS 55591, 2010 WL 1930087, at *3 (S.D. Tex. May 11, 2010) (citing City of Columbus, 536 U.S. 424, 122 S. Ct. 2226, 153 L. Ed. 2d 430; Cardinal Towing & Auto Repair, Inc. v. City of Bedford, Tex., 180 F.3d 686 (5th Cir. 1999)).
Indeed, the FAAAA preemption provision applies broadly to any “law, regulation, or other provision having the force and effect of law,” whereas the carve-out provision applies more narrowly to the “safety regulatory authority” of a state with respect to motor vehicles. Compare 49 U.S.C. § 14501(c)(1) with § 14501(c)(2)(A); see also Creagan, 354 F. Supp. 3d at 814 (rejecting argument that § 14501(c)(2)(A) applied to negligent hiring claim against freight broker under similar facts). In this case, Plaintiff does not allege that Defendant Danco violated any state regulation related to a motor vehicle, whereas he does with the driver. See docket no. 10 at 8 (alleging driver violated Texas Transportation Code §§ 545.062 (following distance) and 545.352 (excess speed)).7 Indeed, Defendant did not own or operate any motor vehicle subject to the state’s regulatory authority, and “Plaintiff points to no convincing [*13] authority supporting the proposition that a state common law claim for negligent hiring constitutes a safety regulation of a motor vehicle.” No. 16 C 1883, Volkova v. C.H. Robinson Co., 2018 U.S. Dist. LEXIS 19877, 2018 WL 741441, at *4 (N.D. Ill. Feb. 7, 2018); see also Loyd, 2019 U.S. Dist. LEXIS 160694, 2019 WL 4577108, at *7 (finding an application of the public-safety exception to a negligent brokering claim would be an “unwarranted extension of the exception”). Accordingly, the Court finds that § 14501(c)(2)(A) does not apply to save Plaintiff’s claims from preemption.
The Court finds most persuasive the line of cases that have held negligence claims against freight brokers are preempted under the FAAAA because “[e]nforcing state negligence laws that would have a direct and substantial impact on the way in which freight brokers hire and oversee transportation companies would hinder” the objective of the FAAAA in deregulating the shipping and transportation industry. Georgia Nut, 2017 U.S. Dist. LEXIS 177269, 2017 WL 4864857, at *3 (citing Rowe, 552 U.S. at 371)); see also Volkova, 2018 U.S. Dist. LEXIS 19877, 2018 WL 741441, at *4; Creagan, 354 F. Supp. 3d at 813 (“[B]ecause the negligent hiring claim seeks to enforce a duty of care related to how [the broker] arranged for a motor carrier to transport the shipment (the service), the claim falls squarely within the preemption of the FAAAA.”). Those cases emphasize that a broker hiring a motor carrier (and any related investigations of that motor carrier) are indeed “related to” [*14] the services that a broker is anticipated or contracted to provide; they also emphasize the policies underlying Congress’s enactment of the preemption provision to further expand the deregulation of the transportation industry and to avoid a patchwork of state and local regulations and standards. See Krauss, 2018 U.S. Dist. LEXIS 74922, 2018 WL 2063839, at *3; Georgia Nut, 2017 U.S. Dist. LEXIS 177269, 2017 WL 4864857, at *3; Creagan, 354 F. Supp. 3d at 813; Volkova, 2018 U.S. Dist. LEXIS 19877, 2018 WL 741441, at *3-4.
At bottom, Plaintiff claims that Defendant Danco negligently selected or hired High Standard and Double Down Trucking who, in turn, negligently hired and entrusted the driver involved in the accident. Docket no. 10. Plaintiff’s petition itself admits that Defendant’s alleged duty toward Plaintiff arose from Defendant’s services as a truck broker. Docket no. 7 at 24 (“Plaintiff asserts that due to the business relationship with [High Standard and Double Down], DANCO TRANSPORT, INC. as a truck broker…had a duty to Plaintiff to ensure that [the driver] was properly trained….”) (emphasis added). Plaintiff’s claims against Defendant Danco, therefore, seek to enforce a duty of care related to how Defendant arranged for the transportation of property between High Standard and Double Down, which—Plaintiff admits—are the very “services” Defendant provides as a federally-licensed freight [*15] broker. Such a claim “falls squarely within the preemption of the FAAAA.” Creagan, 354 F. Supp. 3d at 813. Indeed, the claim directly implicates how Defendant “performs its central function of hiring motor carriers” and will therefore “have a significant economic impact” on Defendant’s services and is not tenuous, remote, or peripheral. Krauss, 2018 U.S. Dist. LEXIS 74922, 2018 WL 2063839, at *5 (quoting Volkova, 2018 U.S. Dist. LEXIS 19877, 2018 WL 741441, at *3). In sum, the allegations “go to the core of what it means to be a careful freight broker” and, as such, they are preempted. Id.
Such a holding comports with the impetus behind the FAAAA’s preemption provision because, in essence, Plaintiff is seeking “to reshape the level of service a broker must provide in selecting a motor carrier to transport property.” Miller v. C.H. Robinson Worldwide, Inc., No. 17-cv-408, 2018 U.S. Dist. LEXIS 194453, 2018 WL 5981840, at *4 (D. Nevada Nov. 14, 2018), appeal docketed, No. 19-15981 (9th Cir. May 7, 2019). To avoid negligence liability, a broker like Defendant would need to inspect each motor carrier’s background and the ways in which the motor carrier investigates, hires, and trains its own drivers, and “such additional inspection would result in state law being used to, at the least indirectly, regulate the provision of broker services by creating a standard of best practices, and ultimately contravening Congress’s [*16] deregulatory objectives in enacting the FAAAA.” Id. (citing Rowe, 552 U.S. at 370).
And finally, contrary to Plaintiff’s argument that a finding of preemption will leave Plaintiff without a remedy, Plaintiff may (and has) sought recourse against the two carriers (High Standard and Double Down Trucking), High Standard’s individual owner (Cory Wood), Double Down’s individual owners (Lora and Dale Wood), and the driver (Micah Underwood). See Volkova, 2018 U.S. Dist. LEXIS 19877, 2018 WL 741441, at *4. And although “a plaintiff’s ‘lack of remedy…does not create a defense to federal preemption,” Krauss, 2018 U.S. Dist. LEXIS 74922, 2018 WL 2063839, at *7 (citing Weir v. Nw. Nat. Life Ins. Co., 796 F. Supp. 846, 849 (E.D. Pa. 1992)), the FAAAA does require motor carriers to carry liability insurance for injuries that may result from negligence. Creagan, 354 F. Supp. 3d at 814 (citing 49 U.S.C. § 13906(a)(1)). The requirement that the motor carriers maintain liability insurance—and the lack of such a requirement for brokers—evidences an intent that such motor carriers remain liable for negligence despite the FAAAA’s preemption provision. See supra, note 5 (collecting cases in which courts interpreting the ADA found no preemption for negligence claims due to statutorily-mandated liability insurance). As such, the Court finds unpersuasive Plaintiff’s argument that if the Court denies its motion to remand, “every motor carrier, CDL driver and truck [*17] broker would improperly remove to federal court every lawsuit against them for negligent conduct….” Docket no. 11 at 5.
Accordingly, the Court holds that Plaintiff’s negligence and gross negligence claims against the freight broker Defendant Danco are completely preempted by the FAAAA. And “[w]hen the federal statute completely preempts the state-law cause of action, a claim which comes within the scope of that action, even if pleaded in terms of state law, is in reality based on federal law.” Anderson, 539 U.S. at 8. Defendant Danco—as the freight broker who allegedly hired the motor carriers who then hired the driver who was allegedly negligent—properly removed this case, and Plaintiff’s motion to remand (docket no. 11) is DENIED.
II. Defendant Danco Transport’s Motion to Dismiss

a. Legal Standard
To survive a 12(b)(6) motion to dismiss, “a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.'” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S. Ct. 1937, 173 L. Ed. 2d 868 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S. Ct. 1955, 167 L. Ed. 2d 929 (2007)). A claim for relief must contain: (1) “a short and plain statement of the grounds for the court’s jurisdiction”; (2) “a short and plain statement of the claim showing that the pleader is entitled to the relief”; and (3) “a demand [*18] for the relief sought.” Fed. R. Civ. P. 8(a). In considering a motion to dismiss under Rule 12(b)(6), all factual allegations from the complaint should be taken as true, and the facts are to be construed favorably to the plaintiff. Fernandez-Montes v. Allied Pilots Assoc., 987 F.2d 278, 284 (5th Cir. 1993). To survive a 12(b)(6) motion, a complaint must contain “more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Twombly, 550 U.S. at 555.
b. Application
The discussion here overlaps entirely with the previous analysis of FAAAA preemption. As held above, the FAAAA completely preempts Plaintiff’s negligence claims against Defendant Danco, at least where that negligence “relates to” the services the broker provides, as is the case here. Finding such FAAAA preemption afforded this Court jurisdiction to consider the matter, and that same preemption compels the Court to grant Defendant Danco’s motion to dismiss. Even taking all facts in Plaintiff’s complaint as true—which we must at this stage—Plaintiff does not state a claim for which relief is plausible. See Loyd, 2019 U.S. Dist. LEXIS 160694, 2019 WL 4577108, at *8 (granting motion to dismiss due to FAAAA preemption of negligence claim against broker). Accordingly, Defendant Danco’s motion to dismiss (docket no. 5) is GRANTED.
c. Remaining State-Law Claims
When Defendant [*19] Danco removed to this Court, the Court obtained supplemental jurisdiction over the state-law claims made against the other defendants (the motor carriers and the driver) because those claims formed part of the same case or controversy as the claims against Defendant Danco. 28 U.S.C. § 1367(a). But now having disposed of the claim over which original jurisdiction exists, i.e. the claim against Defendant Danco, the Court hereby exercises its discretion to decline to exercise supplemental jurisdiction over the remaining claims. Id. § 1367(c)(3) (“The district courts may decline to exercise supplemental jurisdiction over a claim…if the district court has dismissed all claims over which it has original jurisdiction.”); see also Guidry v. Bank of LaPlace, 954 F.2d 278, 285 (5th Cir. 1992) (citing United Mine Workers v. Gibbs, 383 U.S. 715, 726, 86 S. Ct. 1130, 16 L. Ed. 2d 218 (1966)). Accordingly, the state-law claims by Plaintiff against the remaining defendants (High Standard, LLC; Double Down Trucking, LLC; Cory Wood; Micah David Underwood; Lora Wood; and Dale Wood) are REMANDED.

CONCLUSION
For the foregoing reasons, Plaintiff’s motion to remand (docket no. 11) is DENIED. Defendant’s motion to dismiss (docket no. 5) is GRANTED. The claims against the remaining defendants are REMANDED.
It is so ORDERED.
SIGNED this 27th day of January, 2020.
/s/ Xavier Rodriguez
XAVIER [*20] RODRIGUEZ
UNITED STATES DISTRICT JUDGE

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