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McMahon v. Continental Express, Inc.

Court of Appeals of Ohio,Sixth District, Wood County.

Sean McMAHON, Appellant

v.

CONTINENTAL EXPRESS, INC., Appellee.

Decided Jan. 11, 2008.

SINGER, J.

Appellant appeals a summary judgment issued by the Wood County Court of Common Pleas in favor of a trucking company in a suit for injuries sustained because of the acts of one of the company’s employees. For the reasons that follow, we reverse.

Appellant, Sean McMahon, was a long-haul trucker. On April 21, 2002, appellant was in the cab of his truck at the Stony Ridge Truck Stop in northern Wood County. As he listened to his CB radio, appellant heard two other truckers, later identified as Elmer DeForge and James Blake, arguing. As the verbal altercation escalated, appellant later reported, “one gentleman said, well, if you want to fight, you know where I’m at, I’m over here.”According to appellant, upon hearing this, DeForge left his truck and came to appellant’s vehicle, “ * * * and started yelling and screaming at me .”At this point, appellant advised DeForge that he’d come to the wrong truck and that the driver he sought was “ * * * seven or eight trucks down * * *.”

Appellant left his truck and accompanied DeForge to the truck occupied by Blake. In his deposition testimony, appellant described what happened next:

So I took him down there, showed him where the guy was. When I walked up to the truck, I put my right foot on the [running board]. And put my hand on handle up here, on the running board, and asked the guy why he’s sending this guy to my truck. * * * At that time this other guy that came to my truck [DeForge] jumped up on the running board and started fighting with the guy in the truck [Blake].

“Then [Blake] put the truck in gear and I got completely away from the truck. He went forward and I remember him stopping, trying to knock the guy off of his truck. Then I remembered him going forward again and slamming on the brakes. Then he went forward again and [DeForge] fell off the truck and landed on the ground. At that time I could see the trailer was in the path of where he was laying on the ground. I ran up, grabbed the guy, pushed him out of the way as I heard from behind me a truck hood being ripped off by the trailer that was coming to us. And I pushed him out of the way and tried to get out of the way at the same time and got my leg ran over and he [Blake] fled the scene of the accident.”

Appellant’s leg was severed and a portion of his leg eventually amputated.

On May 23, 2003, appellant sued Blake and his employer, appellee Continental Express, Inc. When Blake did not respond to appellant’s complaint, appellant obtained a default judgment against him. On February 10, 2005, appellant dismissed appellee from the original suit pursuant to Civ.R. 41(A) and, following hearing, won an award of compensatory and punitive damages against Blake.

On February 7, 2006, appellant refiled its action against appellee, seeking damages against Blake’s employer for Blake’s negligence pursuant to the doctrine of respondeat superior.Appellee denied liability and moved for summary judgment, asserting that Blake was not acting within the scope of his employment when appellant was injured. In support, appellee submitted the affidavit of its human resources manager who averred that the company did not consider talking rudely on the CB radio or fighting with other truck drivers to be in the furtherance of its interests or in the scope of a driver’s employment. Moreover, according to the human resources manager, Blake was “off duty” when the incident occurred as evidenced by pages from his logbook attached to the affidavit.

Appellant added causes of action for negligent hiring, negligent entrustment and vicarious punitive damages for intentional acts. These causes are not part of his appeal.

Appellant moved to strike the logbook pages and that portion of the human resources manager’s affidavit purporting to ascribe intent to Blake. Appellant argued that appellee could not authenticate the logs and since, according to the human resources manager’s deposition testimony, Blake never returned to the company, it could not with any certainty explain how it came into possession of logbook pages. Moreover, appellant insisted that any account of the events relied upon by the human resources manager was hearsay. With its memorandum in opposition, appellant submitted the police report for the incident, showing that Blake was later arrested and charged with driving under the influence of alcohol and leaving the scene of an accident.

The trial court granted appellant’s motion to strike those portions of the human resources manager’s affidavit based on hearsay accounts of the events, but let stand a statement that appellee does not condone or consider fighting with other truck drivers as being within the scope of employment. Based on this, appellant’s deposition testimony and the “damages hearing testimony,” the court found that Blake was not acting within the scope of his employment. Thus, the court concluded, the doctrine of respondeat superior was inapplicable in this matter and appellee was entitled to summary judgment.

The court did not expressly rule on the issue of the logbook pages, but presumably the log pages would fall within the hearsay classification absent authentication.

From this judgment, appellant appeals, setting forth the following single assignment of error:

“The trial court erred to the prejudice of the plaintiff when it granted defendant Continental Express Inc.’s motion for summary judgment.”

On review, appellate courts employ the same standard for summary judgment as trial courts. Lorain Natl. Bank v. Saratoga Apts.(1989), 61 Ohio App.3d 127, 129. The motion may be granted only when it is demonstrated:

that there is no genuine issue as to any material fact; (2) that the moving party is entitled to judgment as a matter of law; and (3) that reasonable minds can come to but one conclusion, and that conclusion is adverse to the party against whom the motion for summary judgment is made, who is entitled to have the evidence construed most strongly in his favor.”Harless v. Willis Day Warehousing Co. (1978), 54 Ohio St.2d 64, 67,Civ.R. 56(C).

When seeking summary judgment, a party must specifically delineate the basis upon which the motion is brought, Mitseff v. Wheeler (1988), 38 Ohio St.3d 112, syllabus, and identify those portions of the record that demonstrate the absence of a genuine issue of material fact. Dresher v. Burt (1996), 75 Ohio St.3d 280, 293. When a properly supported motion for summary judgment is made, an adverse party may not rest on mere allegations or denials in the pleading, but must respond with specific facts showing that there is a genuine issue of material fact. Civ.R. 56(E); Riley v. Montgomery (1984), 11 Ohio St.3d 75, 79. A “material” fact is one which would affect the outcome of the suit under the applicable substantive law. Russell v. Interim Personnel, Inc. (1999), 135 Ohio App.3d 301, 304;Needham v. Provident Bank (1996), 110 Ohio App.3d 817, 826, citing Anderson v. Liberty Lobby, Inc. (1986), 477 U.S. 242, 248.

Respondeat Superior

“A master is subject to liability for the torts of his servants committed while in the scope of their employment.”Osborne v. Lyles (1992), 63 Ohio St.3d 326, 329, quoting Restatement of the Law 2d, Agency (1958) 481, Section 219(1).

“(1) To be within the scope of the employment, conduct must be of the same general nature as that authorized, or incidental to the conduct authorized.

“(2) In determining whether or not the conduct, although not authorized, is nevertheless so similar to or incidental to the conduct authorized as to be within the scope of employment, the following matters of fact are to be considered:

“(a) whether or not the act is one commonly done by such servants;

“(b) the time, place and purpose of the act;

“(c) the previous relations between the master and the servant;

“(d) the extent to which the business of the master is apportioned between different servants;

“(e) whether or not the act is outside the enterprise of the master or, if within the enterprise, has not been entrusted to any servant;

“(f) whether or not the master has reason to expect that such an act will be done;

“(g) the similarity in quality of the act done to the act authorized;

“(h) whether or not the instrumentality by which the harm is done has been furnished by the master to the servant;

“(i) the extent of departure from the normal method of accomplishing an authorized result; and

“(j) whether or not the act is seriously criminal.”Restatement, supra, 506, Section 229. Also quoted at Osborne, supra, 331, fn. 4.

Whether an employee is acting within the scope of his employment is ordinarily a question of fact reserved for a jury. Osborne at 330, citing Posin v. A.B.C. Motor Court Hotel (1976), 45 Ohio St.2d 271. Only when reasonable minds can come to but one conclusion may the issue be determined as a matter of law. Id.

Even were the disputed log book pages proper evidence, they would not be dispositive of whether Blake was within the scope of his employment. Blake, as his employment agreement reveals, was hired by appellee to “ * * * operate company controlled vehicles [and to] travel regularly in the service of his/her employer in Arkansas and one or more other states.”If we credit the log pages at all, they show that Blake was en route from Atwater, California, to Edison, New Jersey, when the incident occurred. Reasonable minds could certainly conclude that a stop-even an extended one-on a cross-continental delivery for appellee was within the scope of his employment. See, e.g., McNair v. Lend Lease Trucks, Inc. (1996), 95 F.3d 325, 329. Appellee hired Blake to drive its truck. He was driving its truck when appellant was injured.

With respect to appellee’s disapproval of its driver’s rude speech on the radio or its fighting prohibition, “[t]he fact that the servant’s act is expressly forbidden by the master, or is done in a manner which he has prohibited, is to be considered in determining what the servant has been hired to do, but it is usually not conclusive, and does not in itself prevent the act from being within the scope of employment. A master cannot escape liability merely by ordering his servant to act carefully.”Keeton, Prosser and Keeton on Torts (5 Ed.1984) 502. Even, “[t]he willful and malicious character of an employee’s act does not always, as a matter of law, remove the act from the scope of employment.”Osborne at 330, citing Stranahan Bros. Catering v. Coit (1896), 55 Ohio St. 398, 410.

It is only when the employee’s act is, “ * * * so divergent that its very character severs the relationship of employer and employee,* * * ” that it constitutes an abandonment of an employee’s responsibility and service to his employer so as to be deemed outside the scope of employment. Osborne, supra, citing Wiebold Studio v. Old World Restorations, Inc. (1985), 19 Ohio App.3d 246, 250. The willful and intentional act which would represent a clear departure from an employee’s employment and absolve the employer from vicarious liability must be an attack committed by the employee to vent his own spleen or malevolence against the injured person. Id. at 329.

The trial court concluded that Blake engaged in such an attack when he attempted to run DeForge down with his trailer. The only problem with this conclusion is that the record, properly considered, is devoid of evidence of Blake’s intent to injure DeForge or anyone else. No affidavit, deposition or other testimony from Blake was introduced into this matter. The sole account of the events underlying the suit comes from the deposition testimony of appellant which is reproduced almost in its entirety in the facts stated above. The most that can reasonably be concluded from that testimony is that Blake and DeForge fought, Blake attempted to get DeForge off his running board, succeeded in doing so, then drove away. There is no testimony or other evidence of record that Blake knew or intended that DeForge or appellant would be imperiled by this act.

In its decision and judgment entry, the trial court states that it relied on the evidence presented and the findings resulting from the damages hearing against Blake. The case against Blake, however, was an entirely separate case from the present matter and no part of that case was ever introduced into this proceeding. A court is not permitted to take judicial notice of proceedings in another case, Woodman v. Tubbs (1995), 103 Ohio App.3d 577, 580, even a prior proceeding before the same court involving the same parties. Diversified Mtge. Investors, Inc. v. Athens Cty. Bd. of Revision (1982), 7 Ohio App.3d 157, 159; cf. State ex rel. Coles v. Granville, Slip Opinion No.2007-Ohio-6057.

Moreover, since no part of the earlier proceeding was introduced into the present matter, in our obligation to review this matter de novo we are without any evidence to support an undisputed conclusion that Blake acted intentionally to injure anyone. Consequently, we must conclude that there is a question of material fact as to whether Blake was acting within the scope of employment when he injured appellant. A question of material fact precludes a summary judgment. Civ.R. 56(C). Accordingly, appellant’s sole assignment of error is found well-taken.

On consideration whereof, the judgment of the Wood County Court of Common Pleas is reversed. This matter is remanded to said court for further proceedings consistent with this decision. Appellee is ordered to pay the costs of this appeal pursuant to App .R. 24. Judgment for the clerk’s expense incurred in preparation of the record, fees allowed by law, and the fee for filing the appeal is awarded to Wood County.

JUDGMENT REVERSED.

A certified copy of this entry shall constitute the mandate pursuant to App.R. 27. See, also, 6th Dist.Loc.App.R. 4.

MARK L. PIETRYKOWSKI, P.J., ARLENE SINGER, J., THOMAS J. OSOWIK, J., Concur.

Lincoln General Ins. Co. v. Autobuses Tierra Caliente, Inc.

United States District Court,N.D. Texas,Dallas Division.

LINCOLN GENERAL INSURANCE CO., Plaintiff,

v.

AUTOBUSES TIERRA CALIENTE, INC., Defendant.

Jan. 15, 2008.

MEMORANDUM OPINION AND ORDER

SAM A. LINDSAY, District Judge.

Before the court are: (1) Plaintiff’s Brief in Support of Court Vacating the September 13, 2005 Order, filed November 9, 2007; and (2) Defendant’s Position in Light of the 5th Circuit’s Decision in Garcia Tours, filed November 9, 2007. After considering these briefs and the applicable law, the court reopens this case, vacates in part its September 13, 2005 Memorandum Opinion and Order, and grants Lincoln General Insurance Company’s Motion for Summary Judgment, filed January 28, 2005.

Plaintiff in this case seeks a declaratory judgment that: (1) there is no coverage under an insurance policy for damages sought by injured persons who filed a state court action arising out of a bus accident in Mexico (the “Intervenors”);  and (2) it has no duty to defend Defendant Autobuses Tierra Caliente, Inc. for claims arising out of the accident in question. Pl.’s Orig. Compl. and Request for Decl. Relief (“Compl.”) ¶ 16. Because the parties agreed to stipulate to certain facts, the court issued a scheduling order that allowed the parties to move directly to summary judgment briefing. Scheduling Order (Oct. 28, 2004). Plaintiff moved for summary judgment on January 28, 2005, and argued that it was entitled to relief because a policy endorsement, the MCS-90B endorsement, does not apply to accidents that occur outside of the United States. On September 13, 2005, the court denied Plaintiff’s motion, found that the endorsement applied in this case, and ordered Defendant and Intervenors to file motions for summary judgment. Defendant and Intervenors filed motions for summary judgment on October 3, 2005.

Plaintiff seeks a declaration regarding the damages sought by plaintiffs in a state court action in the 298th Judicial District Court in Dallas, Texas. These plaintiffs are: Maria Lopez, individually and as next friend of Rolando Mejia, and Luis Enrique Alvarez, individually and as next friend of Vanessa Alanis and of Carlos Benitez, and as representative of Ramona Patricia Alanis and of Ramona Patricia Alanis’s unborn child. Lopez and Alvarez were granted leave to intervene as parties in this action on February 16, 2005.

On October 19, 2005, Plaintiff filed a motion to reconsider the denial of its summary judgment motion and argued that the court should reconsider its order in light of a decision in the Southern District of Texas in a case involving the same plaintiff and the same insurance endorsement. That court reached the opposite conclusion and held that the endorsement did not apply to the accident in that case. Before the court ruled on the motion for reconsideration, Plaintiff filed a motion to stay or abate, asking the court to stay the case because the Southern District case had been appealed to the Fifth Circuit Court of Appeals, in the case Lincoln General Insurance Co. v. Maria de la Luz Garcia (“Garcia Tours” ). The court denied without prejudice the motion for reconsideration, granted the motion to stay, and denied without prejudice Defendant and Intervenors’ pending motions for summary judgment. Intervenors then moved the court to reconsider its order on the motion to stay. The court denied this second motion to reconsider on August 28, 2006.

On July 3, 2007, the court administratively closed this case and directed the parties to inform it when the appellate court ruled in Garcia Tours.The court has now issued its decision in Garcia Tours, 501 F.3d 436 (5th Cir.2007). The court concluded:

Because the … accident occurred in Mexico, a place where the for-hire motor carrier was not subject to the minimum financial responsibility requirements of federal law, the MCS-90B endorsement is not applicable and does not provide coverage for the … accident. Thus, the district court did not err in concluding that the MCS-90B endorsement does not apply.

*2Id. at 442.The court informed the parties that it believed that the Garcia Tours decision required it to vacate its September 13, 2005 order and directed the parties to submit briefing on their positions. The parties’ briefing is now before the court.

Plaintiff argues that the court should vacate the September 13, 2005 order and grant its motion for summary judgment. Defendant attempts to distinguish Garcia Tours and argues that it is an improper party in the underlying state court action. Defendant states that the proper party is a Mexican entity named Autobuses de Guerrero, S.A. de C.V., and that Plaintiff has a duty to defend it because it is improperly named as a Defendant.

The court determines that Garcia Tours is directly on point and in light of this authority, it is clear that the MCS-90B endorsement does not apply to the accident in question and there is no coverage. Accordingly, there is no genuine issue of material fact that the MCS-90B endorsement does not apply and that Plaintiff has no duty to defend Defendant in the underlying state lawsuit, and Plaintiff is entitled to judgment as a matter of law.

Defendant’s eleventh-hour argument that the true issue is whether Plaintiff must defend it as an improperly-named party does not save the day. Defendant pleaded in its Answer that it was misnamed:

The state court action is mistakenly directed to Autobuses Tierra Caliente, Inc. The proper Defendant is a related company, Autobuses de Guerrero, S.A. de C.V., which operates all of the tours within Mexico, which maintains the necessary licenses to operate in Mexico and which has insurance for its operations in Mexico. If Defendant is actually the real party in the State Court Suit, then Plaintiff must provide coverage under applicable Federal law as described herein below and this matter should be decided in the state court.

Def.’s Amend. Orig. Answer and Counterclaim ¶ 18. Defendant stated in both its response to Plaintiff’s motion for summary judgment and its motion for summary judgment that once in Mexico, the bus was operated by the Mexican entity, and filed an affidavit in support of this statement. Its briefing, however, focuses on whether the Department of Transportation has jurisdiction outside of the United States, and whether the particular endorsement applies to an accident that occurred in Mexico. The issue of whether Defendant was the proper party was not briefed by the parties when the court considered Plaintiff’s or Defendant’s motion for summary judgment. Defendant’s focus was whether the endorsement applied, and it did not argue that Plaintiff had a duty to defend it as an improperly sued party.

The court determines that Defendant’s argument at this stage that it is an improperly-named party and that there is an issue regarding Plaintiff’s duty to defend it as an improperly-named party comes too late. Defendant failed to raise this issue-even though it had two distinct opportunities to do so: in responding to Plaintiff’s motion for summary judgment and in its own motion for summary judgment-until the appellate court held that its substantive position on the applicability of the endorsement was incorrect. Because Defendant did not raise this issue in response to Plaintiff’s motion for summary judgment or as part of its motion for summary judgment, the court concludes that its last minute attempt at a “Hail Mary” to save its defense comes too late and is waived. Moreover, even if Defendant did not waive this argument, it does not alter the outcome. If the policy does not does not provide for coverage of the bus accident in Mexico, that a party is properly or improperly named is of no moment, as it does not alter the nonapplicability of the policy endorsement.

The court directs the clerk of the court to reopen this case. The court determines that for the relief sought by Plaintiff in its original motion for summary judgment, the Garcia Tours decision mandates that the court vacate sections II(B)(2) and III of its September 13, 2005 Memorandum Opinion and Order. The court grants Plaintiff’s motion for summary judgment because there is no genuine issue of material fact regarding the applicability of the MCS-90B endorsement. Accordingly, the court determines that the MCS-90B endorsement does not apply to the bus accident in question and declares that: (1) there is no coverage under Policy Number LPA101811 for any damages claimed by: Maria Lopez, individually, and as next friend of Rolando Mejia, and Luis Enrique Alvarez, individually, and as next friend of Vanessa Alanis and of Carlos Benitez, and as representative of Ramona Patricia Alanis and of Ramona Patricia Alanis’s unborn child, and (2) Plaintiff has no duty to defend Defendant against any such claims under the terms of Policy Number LPA101811. The court will issue judgment by separate order pursuant to Rule 58 of the Federal Rules of Civil Procedure.

It is so ordered.

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