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CASES (2022)

Pearson v. Doe

United States Court of Appeals for the Eleventh Circuit

October 14, 2022, Filed

No. 21-14470 Non-Argument Calendar

Reporter

2022 U.S. App. LEXIS 28578 *; 2022 WL 7952610

DAVID PEARSON, SANDRA PEARSON, Plaintiffs-Appellants, versus JOHN DOE, WERNER ENTERPRISES, INC., Defendants-Appellees, DOLLAR GENERAL CORPORATION, et al., Defendants.

Notice: PLEASE REFER TO FEDERAL RULES OF APPELLATE PROCEDURE RULE 32.1 GOVERNING THE CITATION TO UNPUBLISHED OPINIONS.

Prior History:  [*1] Appeal from the United States District Court for the Northern District of Georgia. D.C. Docket No. 1:19-cv-00314-WMR.


Pearson v. John Doe, 2021 U.S. Dist. LEXIS 249315 (N.D. Ga., May 10, 2021)

Core Terms

truck, trailers, summary judgment, district court, distribution center, dark blue, logo

Case Summary

Overview

HOLDINGS: [1]-The district court did not err by entering summary judgment in favor of defendant pursuant to Fed. R. Civ. P. 56(a) because the plaintiffs failed to offer substantial evidence to create a genuine issue of material fact that the truck that injured the plaintiffs belonged to defendant or was driven by its employee or agent.

Outcome

Judgment affirmed.

LexisNexis® Headnotes

Civil Procedure > … > Summary Judgment > Entitlement as Matter of Law > Appropriateness

Civil Procedure > Judgments > Summary Judgment > Entitlement as Matter of Law

Civil Procedure > … > Summary Judgment > Summary Judgment Review > Standards of Review

Civil Procedure > … > Summary Judgment > Entitlement as Matter of Law > Legal Entitlement

Civil Procedure > … > Summary Judgment > Entitlement as Matter of Law > Genuine Disputes

HN1  Entitlement as Matter of Law, Appropriateness

Appellate courts review a summary judgment de novo. Summary judgment is appropriate when there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(a).

Business & Corporate Law > … > Establishment > Proof of Agency > Burdens of Proof

Evidence > Inferences & Presumptions > Presumptions

Torts > Vicarious Liability > Agency Relationships

Torts > Vicarious Liability > Employers

HN2  Proof of Agency, Burdens of Proof

Under Georgia law, the mere presence of lettering or a logo on the side of a vehicle, without more, is insufficient to establish liability. It is too great an inferential leap to presume ownership or agency based merely on the visual observation of a company’s name or distinctive insignia on a vehicle. A plaintiff must point to specific evidence giving rise to a triable issue on whether the company owned the vehicle that caused the accident and whether the driver of the vehicle was an employee or agent of the company and was driving the vehicle in the course and scope of his employment.

Counsel: For DAVID PEARSON, SANDRA PEARSON, Plaintiffs – Appellants: Kurt G. Kastorf, Law Office of Kurt G. Kastorf, ATLANTA, GA; Jan P. Cohen, McConnell Sneed & Cohen, LLC, ATLANTA, GA; William Gordon Hammill, Kenneth S. Nugent, PC, DULUTH, GA; Brandon Scott Smith, Shiver Hamilton Campbell, LLC, ATLANTA, GA; Mathew K. Titus, Titus Law, LLC, ALPHARETTA, GA.

For WERNER ENTERPRISES, INC., Defendant – Appellee: Sean B. Cox, Hall Booth Smith, PC, ATLANTA, GA; Austin Atkinson, Attorney, Hall Booth Smith, PC, ATLANTA, GA.

Judges: Before WILLIAM PRYOR, Chief Judge, WILSON, and BRASHER, Circuit Judges.

Opinion

PER CURIAM:

David and Sandra Pearson appeal the summary judgment in favor of Werner Enterprises, Inc., and against their amended complaint for injuries they sustained when a semi-trailer truck struck their motorcycle. The Pearsons also sued Hogan Dedicated Services, LLC, but the couple does not appeal the summary judgment entered in its favor. See Hamilton v. Southland Christian Sch., Inc., 680 F.3d 1316, 1318 (11th Cir. 2012). The Pearsons argued that Werner owned and operated the truck that caused their accident, but Werner denied responsibility. The district court ruled that, [*2]  under state law, the “facts and circumstances . . . fail[ed] to create a genuine issue for [a] jury regarding the ownership of the [truck] and whether the [truck] was being operated by [a Werner] employee or agent . . . within the course and scope of employment.” We affirm.

As the Pearsons drove northbound in the left lane on Interstate 75 in Georgia, a semi-trailer truck pulling a trailer owned by Dollar General drove alongside the couple in the middle lane of traffic. Between exits 201 and 205 for Jackson, Georgia, the truck merged into the Pearsons’ lane and sideswiped their motorcycle, which knocked the couple off their motorcycle and onto the road.

Ashley Gunter and Aaron Martin stopped their vehicles. Gunter, Martin, and his wife, Althea Bush, ran to aid the Pearsons. When law enforcement arrived, the three eyewitnesses reported that the trailer bore the Dollar General logo. Gunter also reported that the truck was “dark blue” with “white writing.”

When deposed, Martin testified that the “[t]he semi-trailer truck was a Werner truck.” Martin stated that he saw the “dark blue” cab when the collision caused “one of the tires [to] go[] flat on the [Dollar General] trailer.” Martin knew [*3]  “it was [a] Werner” truck because, as a commercial driver, he saw its trucks regularly hauling Dollar General trailers. Martin acknowledged that the “dark blue” Werner truck “look[ed] just like the Hogan truck,” but “Hogan . . . [was] a newer company with Dollar General [and he] never [had] seen Hogan hauling a Dollar General truck in the Atlanta area or Butts County area” where the accident occurred. On further questioning, Martin stated that the logo on the truck was “blue with a yellow or white outline.”

The Pearsons filed a complaint in a state court that alleged Werner was vicariously liable for the negligence of its unnamed employee, and Werner removed the action to federal court, see 28 U.S.C. § 1332. After the Pearsons amended their complaint, Werner moved for summary judgment. Werner submitted a declaration from its director of safety that no Werner truck was involved in the Pearsons’ accident. The director declared that every Werner truck was equipped with a tracking device that recorded its location and speed and that alerted the company of a “‘critical event’ such as a sudden deceleration or lateral movement beyond a certain threshold.'” The director stated that seven company trucks were [*4]  attached to Dollar General trailers on the day of the accident and that the trucks’ tracking data established that they were far away from the accident. Werner attached to the declaration a report listing the location history of its trucks.

The Pearsons opposed summary judgment and submitted the deposition of a manager for Dollar General. The manager testified that there was a “very high likelihood” that the trailer involved in the Pearsons’ accident originated in Jackson, Georgia, which was the exclusive distribution center for Dollar General in the state, and that the “only providers that pull trailers out of that Jackson distribution center are Werner Enterprises and Hogan Transport.” But the manager acknowledged that Dollar General also used “Averitt Express, US Express[,]” “Schneider National and XPO Logistics” to pull its trailers, and he could not eliminate the possibility “that another carrier could have routed his driver down 75.” The manager testified that “less than 60 percent” of its trailers had tracking devices on the day of the accident. And the investigation performed by Dollar General revealed that seven trailers with tracking devices were being pulled by Hogan or Werner; [*5]  that six of the trailers were excluded from involvement based on their location data; and that the seventh trailer “ha[d] not been accounted for by either Werner or Dollar General.”

The district court entered summary judgment in favor of Werner. Based on the “insignia rule” in Georgia, the district court ruled that Martin’s statement that there was a Werner logo on the truck that caused the Pearsons’ accident, without more, was insufficient to establish that Werner was liable. The district court determined that the Pearsons’ evidence that the semi-trailer truck was dark blue, that Werner transported Dollar General trailers, and that Werner frequently traveled near the Dollar General distribution center where the accident occurred was too “tenuous” to establish Werner owned the truck that caused the accident due to the evidence that Dollar General used other carrier companies and that Werner excluded its trucks from involvement. The district court also determined that there was “simply no evidence, other than the tractor-trailer‘s mere proximity to the distribution center, that the driver of the tractor-trailer was operating the vehicle within the scope of his employment at the time [*6]  of the accident.”

HN1 We review a summary judgment de novo. Newcomb v. Spring Creek Cooler Inc., 926 F.3d 709, 713 (11th Cir. 2019). We view the facts and draw all reasonable inferences from those facts in the Pearsons’ favor. See id. Summary judgment is appropriate when “there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a).

To avoid summary judgment on their complaint of negligence, the Pearsons had to establish a causal connection between their injury and Werner. Stadterman v. Southwood Realty Co., 361 Ga. App. 613, 865 S.E.2d 231, 233 (Ga. Ct. App. 2021), cert. denied, (Ga. 2022). HN2 Under Georgia law, which the parties agree applies, “the mere presence of lettering or a logo on the side of a vehicle, without more, is insufficient to establish liability.” Biddy v. City of Cartersville, 282 Ga. App. 466, 638 S.E.2d 874, 876 (Ga. Ct. App. 2006). It is too great an inferential leap to presume ownership or agency based merely on the visual observation of a company’s name or distinctive insignia on a vehicle. Sellers v. Air Therm Co., 231 Ga. App. 305, 498 S.E.2d 167, 168 (Ga. Ct. App. 1998). A plaintiff must “‘point to specific evidence giving rise to a triable issue’ on whether [the company] owned the [vehicle] that [caused the accident] . . . and whether the driver of the [vehicle] was an employee or agent of [the company] and was driving the vehicle in the course and scope of his employment.” See id. at 169.

The district court did not err by entering summary judgment in [*7]  favor of Werner. The Pearsons’ evidence fell short of creating a material factual dispute that Werner was liable for the accident. Werner established that none of its trucks transporting a Dollar General trailer were near the Pearsons’ accident. Martin’s testimony that the Pearsons were sideswiped by a truck with a Werner logo did not establish that the company owned or operated the truck. See Sellers, 498 S.E.2d at 168-69. The Pearsons argue that Werner is responsible because its trucks are dark blue, haul Dollar General trailers, and travel on Interstate 75 in and around Butts County after collecting trailers from the Dollar General distribution center. But the Pearsons’ “[s]peculation does not create a genuine issue of fact” as to the ownership of the truck. See Cordoba v. Dillard’s, Inc., 419 F.3d 1169, 1181 (11th Cir. 2005). And the Pearsons submitted no evidence from which to infer that a Werner employee or agent drove the truck that caused the accident. See Sellers, 498 S.E.2d at 169. The Pearsons failed to offer substantial evidence to create a genuine issue of material fact that the truck that injured the Pearsons belonged to Werner or was driven by its employee or agent.

We AFFIRM the summary judgment in favor of Werner.


End of Document

Waters v. Express Container Servs. of Pittsburgh

Superior Court of Pennsylvania

October 18, 2022, Decided; October 18, 2022, Filed

No. 94 WDA 2022

Reporter

2022 Pa. Super. LEXIS 432 *; 2022 PA Super 182

JAMES EDDIE WATERS v. EXPRESS CONTAINER SERVICES OF PITTSBURGH, LLC, EXPRESS CONTAINER SERVICE LIMITED LIABILITY COMPANY, MILLER TRANSPORTERS, INC., MILLER TRANSPORTATION SERVICES, INC., MILLER INTERMODAL LOGISTIC SERVICES, INC., HENIFF TRANSPORTATION SYSTEMS, LLC., HENIFF TRANSPORTATION HOLDINGS, LLC., HENIFF HOLDCO, LLC, AND PRE-HTS, INC. APPEAL OF: MILLER TRANSPORTERS, INC., MILLER TRANSPORTATION SERVICES, INC., MILLER INTERMODAL LOGISTIC SERVICES, INC., HENIFF TRANSPORTATION SYSTEMS, LLC., HENIFF TRANSPORTATION HOLDINGS, LLC., HENIFF HOLDCO, LLC, AND PRE-HTS, INC.

Subsequent History: Petition for Reargument Filed October 20, 2022.

Prior History:  [*1] Appeal from the Order Entered December 21, 2021. In the Court of Common Pleas of Allegheny County Civil Division at No(s): GD 20-010701.

Core Terms

arbitration, Transportation, Lease, second amended complaint, arbitration clause, preliminary objection, inspection, statute of limitations, Carrier, parties, Contractor, PROVISIONS, relates, truck, tanker-trailer

Case Summary

Overview

HOLDINGS: [1]-Because the parties’ equipment lease and transportation agreement required that the parties arbitrate any controversy or claim that arose out of or related to the agreement or operations pursuant to the agreement and because the truck driver who leased a truck tractor to a transporter alleged that his personal injury claims against the transporter arose out work that the was performing under the equipment lease and transportation agreement when he fell from the catwalk on the top of a tanker-trailer that he was inspecting while working on an assignment to transport the tanker-trailer for the transporter under the equipment lease and transportation agreement, the truck driver’s claims against the transporter in the action were within the scope of the arbitration clause and were to be resolved by arbitration.

Outcome

Order reversed, and case remanded with instructions to order arbitration.

LexisNexis® Headnotes

Business & Corporate Compliance > … > Alternative Dispute Resolution > Arbitration > Arbitrability

Civil Procedure > Appeals > Appellate Jurisdiction > Interlocutory Orders

Business & Corporate Compliance > … > Pretrial Matters > Alternative Dispute Resolution > Validity of ADR Methods

HN1  Arbitration, Arbitrability

While an order overruling preliminary objections is an interlocutory order, the law is clear that an order overruling a preliminary objection that asserts that the claims cannot be litigated in court because they are subject to an arbitration agreement is an interlocutory order appealable as of right pursuant to 42 Pa.C.S. § 7320(a)(1) and Pa.R.A.P. 311(a)(8). This rule, moreover, applies even when the preliminary objection that asserted that the claim was subject to arbitration did not specifically request an order compelling arbitration.

Business & Corporate Compliance > … > Alternative Dispute Resolution > Arbitration > Arbitrability

Business & Corporate Compliance > … > Arbitration > Federal Arbitration Act > Arbitration Agreements

Business & Corporate Compliance > … > Contracts Law > Contract Conditions & Provisions > Arbitration Clauses

HN2  Arbitration, Arbitrability

Both Pennsylvania and federal law impose a strong public policy in favor of enforcing arbitration agreements. Pennsylvania applies the following two-part test to determine whether a claim must be arbitrated: (1) the court must first determine whether a valid agreement to arbitrate exists; and (2) if a valid agreement to arbitrate exists, the court must determine whether the dispute falls within the scope of the arbitration agreement.

Business & Corporate Compliance > … > Alternative Dispute Resolution > Arbitration > Arbitrability

Civil Procedure > Appeals > Standards of Review > De Novo Review

Business & Corporate Compliance > … > Pretrial Matters > Alternative Dispute Resolution > Judicial Review

HN3  Arbitration, Arbitrability

The question of whether a plaintiff’s claims are within the scope of an arbitration clause is a question of law subject to an appellate court’s plenary review. Two somewhat contradictory principles govern this decision: (1) arbitration agreements must be strictly construed and not extended by implication; and (2) when there is a clear agreement to arbitrate, the arbitration provision should be enforced unless the arbitration clause is not susceptible to an interpretation that covers the claim.

Business & Corporate Compliance > … > Alternative Dispute Resolution > Arbitration > Arbitrability

Business & Corporate Compliance > … > Contracts Law > Contract Conditions & Provisions > Arbitration Clauses

Business & Corporate Compliance > … > Arbitration > Federal Arbitration Act > Arbitration Agreements

HN4  Arbitration, Arbitrability

When the parties’ contract contains an arbitration clause requiring arbitration of any claims arising out of or relating to the contract, a claim that arises out of the parties’ contractual relationship must be arbitrated, even if it is a tort or other non-contract cause of action and is not based on any breach of the contract’s terms.

Business & Corporate Compliance > … > Alternative Dispute Resolution > Arbitration > Arbitrability

HN5  Arbitration, Arbitrability

When an arbitration provision is a broad one, and in the absence of any express provision excluding a particular grievance from arbitration, only the most forceful evidence of a purpose to exclude the claim from arbitration can prevail.

Governments > Legislation > Statute of Limitations > Time Limitations

HN6  Statute of Limitations, Time Limitations

Miss. Code Ann. § 15-1-49 is the catch-all statute of limitations for all actions for which no other period of limitation is prescribed and applies to personal injury actions for which no other limitation period is prescribed.

Counsel: For Pre-HTS, Inc., Miller Transporters, Inc., Miller Transportation Services, Inc., Miller Intermodal Logistics Services, Inc., Heniff Transportation Services, LLC, Heniff Transportation Holdings, LLC, Heniff Holdco, LLC, Appellants: Pion, John Thomas, Shepard, Brian Lee, Pion, Nerone, Girman, Winslow & Smith, PC, Pittsburgh, PA.

For Waters, James Eddie, Appellee: Talarico, Richard Grimes, Weir, Lee Caroline, Woomer & Talarico, LLC, Pittsburgh, PA; Mays, Michael Lawrence, Woomer & Talarico Attorneys at Law, Pittsburgh, PA.

For Express Container Service of Pittsburgh, LLC, Appellee: Kunsch, John Michael, Sweeney & Sheehan, PC, Philadelphia, PA.

Judges: BEFORE: OLSON, J., DUBOW, J., and COLINS, J.* OPINION BY COLINS, J.

Opinion by: COLINS

Opinion

OPINION BY COLINS, J.:

Appellant Miller Transporters, Inc. (Miller) appeals from an order of the Court of Common Pleas of Allegheny County (trial court) overruling its preliminary objection seeking arbitration of claims brought against it by James Eddie Waters (Plaintiff). For the reasons set forth below, we reverse and remand with instructions [*2]  to order arbitration of Plaintiff’s claims against Miller.

This case is an action for personal injuries that Plaintiff, a truck driver who lives in Georgia, suffered on October 15, 2018, when he fell from the catwalk on the top of a tanker-trailer that he was inspecting at a trucking terminal in Pittsburgh. Second Amended Complaint ¶¶1, 31, 35-45. The trucking terminal was owned by Express Container Services of Pittsburgh, LLC (Express). Id. ¶22; Express Answer to Second Amended Complaint ¶22. At the time of the accident, Plaintiff was working on an assignment to transport the tanker-trailer for Miller under an Equipment Lease and Transportation Agreement that Plaintiff and Miller entered into on October 2, 2017. Second Amended Complaint ¶¶31, 35-37; Preliminary Objections to Second Amended Complaint ¶¶28-29; Plaintiff’s Response to Preliminary Objections to Second Amended Complaint ¶¶16-17. Plaintiff alleges that he was required by Miller and its customer to perform the inspection of the tanker-trailer before transporting it. Second Amended Complaint ¶¶36-37.

Under the Equipment Lease and Transportation Agreement, Plaintiff leased a truck tractor that he owned to Miller for a three-year [*3]  period and used it to transport loads for Miller, for which he received 63% or 67% of the baseline haul revenue from each shipment, 63% or 67% of certain other charges paid by Miller’s customers, and some other items of compensation. Equipment Lease and Transportation Agreement ¶¶1-3, Schedules A & B. This agreement contains the following dispute resolution provisions:

A. If a controversy or claim arises out of or relates to this Agreement or operations pursuant to this Agreement, the parties agree to negotiate the controversy or claim in good faith for a period of thirty (30) days after the controversy or claim is presented before legal proceedings or arbitration is instituted.

B. If there is no resolution of the claim or controversy through the procedure set forth in Section 20(A), the controversy or claim shall at the request of any party, made before or after institution of legal proceedings, be determined by binding arbitration. This transaction involves interstate commerce, and the arbitration is subject to and shall be conducted in accordance with the United States Arbitration Act notwithstanding any choice of law or other provision in the Agreement, and under the Commercial Arbitration Rules [*4]  of the American Arbitration Association (“AAA”). The arbitrator shall have authority to award damages and grant such other relief he deems appropriate. The arbitrator shall give effect to the laws of the State of Mississippi, including statutes of limitation, in determining any claim. Pursuant to Mississippi Code Annotated § 75-2A-506, any action for default under this lease contract, including breach of warranty or indemnity, must be commenced within one (1) year after the cause of action accrued. For any and all actions to which Section 75-2A-506 does not apply, the three year statute of limitations prescribed by Mississippi Code Annotated § 15-1-49 shall apply. Any controversy concerning whether an issue is arbitrable shall be determined by the arbitrator. Judgment upon the arbitration award may be entered in any Court having jurisdiction. The arbitrator shall be chosen no later than 30 days after filing the claim with AAA. The arbitration procedure shall be concluded and the arbitrator’s award issued no later than 180 days after selection of the arbitrator. Any claim arising under this Agreement shall be determined separate from the claims of others allegedly similarly situated, and shall not be the subject of a class, consolidated or collective action involving multiple [*5]  contractors.

Equipment Lease and Transportation Agreement ¶20(A)-(B) (emphasis added). The Equipment Lease and Transportation Agreement also contains the following notice in bold face letters:

THIS AGREEMENT CONTAINS DISPUTE RESOLUTION PROVISIONS WHICH INCLUDE PROVISIONS FOR BINDING ARBITRATION, BY THEIR EXECUTION OF THIS AGREEMENT, THE PARTIES ACKNOWLEDGE THEIR AWARENESS AND AGREEMENT TO THOSE PROVISIONS.

Id. at 14.

On October 9, 2020, Plaintiff filed this action against Express, Miller and seven other entities. Plaintiff filed a complaint on February 24, 2021, and subsequently filed an amended complaint and second amended complaint in response to preliminary objections. In his second amended complaint, Plaintiff alleged that Express was negligent in its duties as a landowner and was negligent in failing to remove the chemical residue on which he slipped and in failing to provide safety equipment for his inspection. Second Amended Complaint ¶¶34, 39-41, 44, 54. Plaintiff alleged that Miller was negligent in subjecting Plaintiff to unsafe working conditions, in failing to properly train him, and in failing to provide safety equipment for his inspection. Id. ¶56.

Miller and six of the other [*6]  defendants that were not affiliated with Express filed a joint set of preliminary objections to Plaintiff’s second amended complaint seeking dismissal of Plaintiff’s claims against them on various grounds. In these preliminary objections, Miller asserted, inter alia, that Plaintiff’s claims against it were subject to mandatory arbitration under the Equipment Lease and Transportation Agreement and sought dismissal of Plaintiff’s claims against it on that basis. Preliminary Objections to Second Amended Complaint ¶¶28-29, 47-52. On December 21, 2021, the trial court overruled all of the preliminary objections. Trial Court Order, 12/21/21.

On January 14, 2022, Miller and the six other defendants who had filed preliminary objections with it appealed the order overruling the preliminary objection that Plaintiff was required to arbitrate his claims against Miller. On February 16, 2022, the parties stipulated to the dismissal of all defendants other than Express and Miller and the trial court on February 22, 2022 dismissed those seven other defendants from the case. Stipulation to Dismiss Less Than All Defendants; Trial Court Order, 2/22/22. The only parties remaining in this action are therefore [*7]  Plaintiff, Express, and Miller.

In this appeal,1 Miller presents the following single issue for our review:

Whether the Lease Agreement entered into between Plaintiff-Appellee, James Waters (“Plaintiff”) and Defendant Miller mandates the arbitration of disputes between the parties, and whether the personal injury claim[s] asserted in this matter are within the scope of that arbitration provision, and must, therefore, be arbitrated pursuant to that Lease Agreement?

Appellant’s Brief at 5.

HN2 Both Pennsylvania and federal law impose a strong public policy in favor of enforcing arbitration agreements. Marmet Health Care Center, Inc. v. Brown, 565 U.S. 530, 532-33, 132 S. Ct. 1201, 182 L. Ed. 2d 42 (2012); Moses H. Cone Memorial Hospital v. Mercury Construction Corp., 460 U.S. 1, 24, 103 S. Ct. 927, 74 L. Ed. 2d 765 (1983); In re Estate of Atkinson, 2020 PA Super 87, 231 A.3d 891, 898 (Pa. Super. 2020); Saltzman v. Thomas Jefferson University Hospitals, Inc., 2017 PA Super 206, 166 A.3d 465, 471 (Pa. Super. 2017). Pennsylvania applies the following two-part test to determine whether a claim must be arbitrated: 1) the court must first determine whether a valid agreement to arbitrate exists; and 2) if a valid agreement to arbitrate exists, the court must determine whether the dispute falls within the scope of the arbitration agreement. TTSP Corp. v. Rose Corp., 2019 PA Super 262, 217 A.3d 1269, 1280 (Pa. Super. 2019); Saltzman, 166 A.3d at 472; Provenzano v. Ohio Valley General Hospital, 2015 PA Super 179, 121 A.3d 1085, 1094 (Pa. Super. 2015).2    

There is no dispute here that there is a valid agreement to arbitrate. Plaintiff admits that he and Miller entered into the Equipment Lease and Transportation Agreement and that the Equipment Lease and Transportation Agreement contains provisions that require [*8]  that any claim that “arises out of or relates to this Agreement or operations pursuant to this Agreement … shall at the request of any party, made before or after institution of legal proceedings, be determined by binding arbitration.” Preliminary Objections to Second Amended Complaint ¶¶29, 47-48; Plaintiff’s Response to Preliminary Objections to Second Amended Complaint ¶¶17, 35-36; Equipment Lease and Transportation Agreement ¶20(A)-(B). Plaintiff does not argue that the Equipment Lease and Transportation Agreement or its arbitration clause is unconscionable or invalid for any reason. Neither the fact that Plaintiff’s claims are personal injury claims nor the fact that arbitration would bifurcate Plaintiff’s claims and require piecemeal litigation of the same claims in separate fora3 is a permissible ground for denying arbitration if Plaintiff’s claims are within the scope of the Equipment Lease and Transportation Agreement’s arbitration clause. Marmet Health Care Center, Inc., 565 U.S. at 533-34; Taylor v. Extendicare Health Facilities, Inc., 637 Pa. 163, 147 A.3d 490, 507-10 (Pa. 2016).

The only issue here is therefore whether Plaintiff’s claims are within the scope of the Equipment Lease and Transportation Agreement’s arbitration clause. HN3 This is a question of law subject to this Court’s plenary review. Estate of Atkinson, 231 A.3d at 898; Saltzman, 166 A.3d at 471; Provenzano, 121 A.3d at 1095. Two somewhat [*9]  contradictory principles govern this decision: 1) arbitration agreements must be strictly construed and not extended by implication, and 2) where there is a clear agreement to arbitrate, the arbitration provision should be enforced unless the arbitration clause is not susceptible to an interpretation that covers the claim. Saltzman, 166 A.3d at 471; Provenzano, 121 A.3d at 1095; Callan v. Oxford Land Development, Inc., 2004 PA Super 353, 858 A.2d 1229, 1233 (Pa. Super. 2004).

HN4 Where the parties’ contract contains an arbitration clause requiring arbitration of any claims arising out of or relating to the contract, a claim that arises out of the parties’ contractual relationship must be arbitrated, even if it is a tort or other non-contract cause of action and is not based on any breach of the contract’s terms. Saltzman, 166 A.3d at 469, 476-79 (Whistleblower claim and tort claim for wrongful discharge were within scope of arbitration agreement in employment contract, “because the arbitration provision in this case states that it applies to ‘any’ dispute ‘arising under or related to’ the Agreement, we conclude that it encompasses all disputes relating to the parties’ contractual relationship”); see also Pittsburgh Logistics Systems, Inc. v. Professional Transportation and Logistics, Inc., 2002 PA Super 227, 803 A.2d 776, 779-82 (Pa. Super. 2002) (claims of interference with prospective contract with a third party, breach of fiduciary duty, and misappropriation of trade secrets were within arbitration clause [*10]  because they arose out of the parties’ contractual relationship). The arbitration clause in the Equipment Lease and Transportation Agreement not only contains that language, as it requires arbitration of any claim that “arises out of or relates to this Agreement,” but is even broader, as it also requires arbitration of any claim that “arises out of or relates to … operations pursuant to this Agreement.” Equipment Lease and Transportation Agreement ¶20(A)-(B) (emphasis added). HN5 “[W]here the arbitration provision is a broad one, and ‘[i]n the absence of any express provision excluding a particular grievance from arbitration, … only the most forceful evidence of a purpose to exclude the claim from arbitration can prevail.'” Provenzano, 121 A.3d at 1096 (ellipses in original) (quoting E.M. Diagnostic Systems, Inc. v. Local 169, International Brotherhood of Teamsters, Chauffeurs, Warehousemen & Helpers of America, 812 F.2d 91 (3rd Cir.1987)); see also Saltzman, 166 A.3d at 479 (tort claims were subject to arbitration where the arbitration clause was “broadly worded, and there is no evidence demonstrating the parties’ intent to exclude tort claims arising from or related to the Agreement”).

As Plaintiff correctly asserts, the Equipment Lease and Transportation Agreement governs the lease of a truck tractor and is not a lease of the tanker-trailer that was involved in Plaintiff’s fall. Equipment [*11]  Lease and Transportation Agreement ¶1 & Schedule A. In addition, it does not specifically reference inspections of trailers or any inspection of any equipment by Plaintiff. It also provides that Plaintiff’s compensation is primarily from revenues for over-the road transportation and specifically excludes tank cleaning from Plaintiff’s compensation. Id. ¶3(B), Schedule B ¶¶II, III, & Contractor Statement ¶II.

It is clear, however, from both the provisions of the Equipment Lease and Transportation Agreement and Plaintiff’s allegations and admissions in this action that Plaintiff’s personal injury claims against Miller arise out “operations pursuant to” the Equipment Lease and Transportation Agreement. The Equipment Lease and Transportation Agreement provides for Plaintiff to use his truck tractor to transport trailers. Equipment Lease and Transportation Agreement ¶¶1, 5(D), 19, Schedule B ¶¶II(A) & (E). While it does not set forth what Plaintiff is required to do in performing these transportation services, the Equipment Lease and Transportation Agreement provides that “[i]n the event Contractor [Plaintiff] accepts a trip or load offered by Carrier [Miller] for transportation and other [*12]  necessary services, Contractor agrees to transport and deliver such commodities in conformity with any terms and conditions of any agreement which may have been entered into by Carrier with a customer of Carrier for which Contractor is performing the transportation service.” Id. ¶1. Plaintiff admits that he was working on a job for Miller at the time of the accident and that Miller and the customer required him to perform the inspection of the tanker-trailer. Second Amended Complaint ¶¶31, 36-37.

Moreover, Plaintiff bases his claims against Miller on breach of its duties to him as a contractor working for Miller and admits that his relationship with Miller was governed by the Equipment Lease and Transportation Agreement. Second Amended Complaint ¶56; Preliminary Objections to Second Amended Complaint ¶29; Plaintiff’s Response to Preliminary Objections to Second Amended Complaint ¶17. In addition, the Equipment Lease and Transportation Agreement references and requires compliance with Federal Motor Carrier Safety Administration regulations, Equipment Lease and Transportation Agreement at 1, 15 & ¶¶1, 5(A), 11, 12(A) & (C), 14, and the Federal Motor Carrier Safety Administration regulations [*13]  governing carrier compliance review include “inspection” as an item that is part of the carrier’s “operations.” 49 C.F.R. § 385.3.

Nothing in the Equipment Lease and Transportation Agreement indicates that the parties intended to limit the arbitration clause to contract claims. The statutes of limitations referenced in the arbitration clause are not solely contract statutes of limitations. While the Equipment Lease and Transportation Agreement states that Miss. Code § 75-2A-506, the statute of limitations action for default under a lease contract, applies to actions for default, it also lists another statute of limitations that it states applies to all other actions. Equipment Lease and Transportation Agreement ¶20(B). HN6 That statute, Miss. Code § 15-1-49, is the catch-all statute of limitations for “[a]ll actions for which no other period of limitation is prescribed” and applies to personal injury actions for which no other limitation period is prescribed. Miss. Code § 15-1-49(1), (2). The inclusion in the arbitration clause of claims that arise out of “operations pursuant to this Agreement” shows a clear intent to encompass all claims arising out of Plaintiff’s work under the Equipment Lease and Transportation Agreement, not just disputes concerning the terms of the [*14]  contract. Indeed, the Equipment Lease and Transportation Agreement contains a provision concerning assertion of claims for “injury” against Miller. Equipment Lease and Transportation Agreement ¶7(E).

Setlock v. Pinebrook Personal Care & Retirement Center, 2012 PA Super 232, 56 A.3d 904 (Pa. Super. 2012) and Midomo Co. v. Presbyterian Housing Development Co., 1999 PA Super 233, 739 A.2d 180 (Pa. Super. 1999), relied upon by Plaintiff, do not support the conclusion that personal injury claims are outside the scope of this arbitration clause. In Setlock, this Court held that a survival and wrongful death action against a personal care facility that arose from negligence in transporting the decedent to a medical appointment was not within the scope of an agreement to arbitrate any dispute or controversy “arising out of or in connection with under or pursuant to” the decedent’s Resident Agreement with the facility. 56 A.3d at 906, 910-12. The Court based its conclusion that the wrongful death and survival claims were outside the scope of that arbitration clause on the ground that the Resident Agreement did not state that claims arising out of such transportation or claims arising out of the facility’s actions or care were subject to arbitration. Id. at 912. Here, in contrast, the language of the Equipment Lease and Transportation Agreement requiring arbitration of any claim that “arises out of or relates to … operations pursuant [*15]  to” the agreement is far broader than the arbitration clause in Setlock and not only requires arbitration of claims involving the terms of the agreement, but also encompasses claims arising out of the parties’ actions in performing under the Equipment Lease and Transportation Agreement.

Midomo Co. is even less relevant. In Midomo Co., the arbitration clause did not even cover all claims arising under the parties’ agreement and the Court held that the arbitration clause did not apply to tort claims because it expressly limited arbitration to disputes regarding specific aspects of the parties’ agreement. 739 A.2d at 187-90.

Because the Equipment Lease and Transportation Agreement requires that the parties arbitrate any “controversy or claim [that] arises out of or relates to this Agreement or operations pursuant to this Agreement” and Plaintiff alleges that his personal injury claims against Miller arose out work that he was performing under the Equipment Lease and Transportation Agreement, Plaintiff’s claims against Miller in this action are within the scope of the arbitration clause and must be resolved by arbitration. Accordingly, we reverse the trial court’s order overruling Miller’s preliminary objection that sought arbitration [*16]  and remand this matter to the trial court with instructions to order arbitration of Plaintiff’s claims against Miller.

Order reversed. Case remanded. Jurisdiction relinquished.

Judgment Entered.

Date: 10/18/2022


Retired Senior Judge assigned to the Superior Court.

    HN1 While an order overruling preliminary objections is an interlocutory order, Chase Manhattan Mortgage Corp. v. Hodes, 2001 PA Super 261, 784 A.2d 144, 145 (Pa. Super. 2001), this appeal is properly before us. The law is clear that an order overruling a preliminary objection that asserts that the claims cannot be litigated in court because they are subject to an arbitration agreement is an interlocutory order appealable as of right pursuant to 42 Pa.C.S. § 7320(a)(1) and Pa.R.A.P. 311(a)(8). In re Estate of Atkinson, 2020 PA Super 87, 231 A.3d 891, 896-97 (Pa. Super. 2020); Saltzman v. Thomas Jefferson University Hospitals, Inc., 2017 PA Super 206, 166 A.3d 465, 468 n.1 (Pa. Super. 2017); Provenzano v. Ohio Valley General Hospital, 2015 PA Super 179, 121 A.3d 1085, 1089 n.1 (Pa. Super. 2015). This rule, moreover, applies even where the preliminary objection that asserted that the claim was subject to arbitration did not specifically request an order compelling arbitration. Estate of Atkinson, 231 A.3d at 896-97; Provenzano, 121 A.3d at 1089 n.1, 1093; Gaffer Insurance Co., Ltd. v. Discover Reinsurance Co., 936 A.2d 1109, 1110 n.2, 1111 & n.5 (Pa. Super. 2007).

The Equipment Lease and Transportation Agreement and its arbitration clause provide that the agreement and any arbitration under it shall be governed by Mississippi law. Equipment Lease and Transportation Agreement ¶¶17, 20(B). The parties, however, have argued Pennsylvania law, do not contend that Mississippi law governs the determination of whether Plaintiff’s claim must be arbitrated, and do not cite to any Mississippi law on interpretation and application of arbitration clauses or contend that it is different from Pennsylvania law. Moreover, it appears that Mississippi law, like Pennsylvania law, favors arbitration and applies the same two-part test that is at issue here, whether there is a valid arbitration agreement and whether the dispute falls within the scope of the arbitration agreement, to determine whether a claim must be arbitrated. Harrison County Commercial Lot, LLC v. H. Gordon Myrick Inc., 107 So.3d 943, 949 (Miss. 2013); South Central Heating Inc. v. Clark Construction Inc. of Mississippi, 342 So.3d 160, 165 (Miss. App. 2022). Because there is no claim or showing that Mississippi and Pennsylvania law differ in any way that is material to the issue before us, we apply Pennsylvania law. Highmark Inc. v. Hospital Service Association of Northeastern Pennsylvania, 2001 PA Super 278, 785 A.2d 93, 97 (Pa. Super. 2001).

Plaintiff’s claims against the other defendant, Express, are not subject to arbitration.

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