Sparks v. M&D Trucking, L.L.C. , 921 N.W.2d 110 ( 2018 )


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  • Nebraska Supreme Court Online Library
    www.nebraska.gov/apps-courts-epub/
    12/28/2018 08:08 AM CST
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    Nebraska Supreme Court A dvance Sheets
    301 Nebraska R eports
    SPARKS v. M&D TRUCKING
    Cite as 
    301 Neb. 977
    Stephanie A. Sparks, Personal R epresentative of
    the Estate of Gary W. Isom, deceased, et al.,
    appellants and cross-appellees, v.
    M&D Trucking, L.L.C., appellee
    and cross-appellant.
    ___ N.W.2d ___
    Filed December 28, 2018.   No. S-17-1209.
    1.	 Summary Judgment: Appeal and Error. An appellate court will
    affirm a lower court’s grant of summary judgment if the pleadings and
    admitted evidence show that there is no genuine issue as to any material
    facts or as to the ultimate inferences that may be drawn from those facts
    and that the moving party is entitled to judgment as a matter of law.
    2.	 ____: ____. In reviewing a summary judgment, an appellate court views
    the evidence in the light most favorable to the party against whom the
    judgment was granted and gives that party the benefit of all reasonable
    inferences deducible from the evidence.
    3.	 Statutes: Appeal and Error. Statutory interpretation presents a question
    of law, for which an appellate court has an obligation to reach an inde-
    pendent conclusion irrespective of the decision made by the court below.
    4.	 Summary Judgment. On a motion for summary judgment, the question
    is not how a factual issue is to be decided, but whether any real issue of
    material fact exists.
    5.	 Employer and Employee: Independent Contractor: Master and
    Servant. Ordinarily, a party’s status as an employee or an independent
    contractor is a question of fact. However, where the facts are not in
    dispute and where the inference is clear that there is, or is not, a master
    and servant relationship, the matter is a question of law.
    6.	 Contracts: Parties: Words and Phrases. By stating “where the infer-
    ence is clear,” the Nebraska Supreme Court means that there can be no
    dispute as to pertinent facts pertaining to the contract and the relation-
    ship of the parties involved and only one reasonable inference can be
    drawn therefrom.
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    SPARKS v. M&D TRUCKING
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    301 Neb. 977
    7.	 Employer and Employee: Independent Contractor. A determination
    of a party’s status as an employee or an independent contractor is deter-
    mined from all the facts in the case and depends on the facts underlying
    the relationship of the parties irrespective of the words or terminology
    used by the parties.
    8.	 ____: ____. No single test exists for determining whether one performs
    services for another as an employee or as an independent contractor,
    and the following 10 factors must be considered: (1) the extent of
    control which, by the agreement, the potential employer may exercise
    over the details of the work; (2) whether the one potentially employed
    is engaged in a distinct occupation or business; (3) the type of occu-
    pation, with reference to whether, in the locality, the work is usually
    done under the direction of the potential employer or by a specialist
    without supervision; (4) the skill required in the particular occupation;
    (5) whether the potential employer or the one potentially employed sup-
    plies the instrumentalities, tools, and the place of work for the person
    doing the work; (6) the length of time for which the one potentially
    employed is engaged; (7) the method of payment, whether by the time
    or by the job; (8) whether the work is part of the regular business of the
    potential employer; (9) whether the parties believe they are creating an
    agency relationship; and (10) whether the potential employer is or is not
    in business.
    9.	 ____: ____. The extent of control is the chief factor distinguishing an
    employment relationship from that of an independent contractor.
    10.	 ____: ____. In examining the extent of a potential employer’s control
    over the worker, it is important to distinguish control over the means
    and methods of the assignment from control over the end product of the
    work to be performed.
    11.	 Independent Contractor: Words and Phrases. An independent con-
    tractor is one who, in the course of an independent occupation or
    employment, undertakes work subject to the will or control of the person
    for whom the work is done only as to the result of the work and not as
    to the means or methods used.
    12.	 Independent Contractor: Contracts. Even the party contracting with
    an independent contractor may, without changing the status, exercise
    such control as is necessary to assure performance of the contract in
    accordance with its terms.
    13.	 Negligence: Liability: Contractors and Subcontractors. Generally,
    one who employs an independent contractor is not liable for physical
    harm caused to another by the acts or omissions of the contractor or
    its servants.
    14.	 ____: ____: ____. A party contracting with an independent contractor
    can be liable for physical harm caused to another if (1) the contracting
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    SPARKS v. M&D TRUCKING
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    party retains control over the contractor’s work, (2) the contracting party
    is in possession and control of premises, (3) a statute or rule imposes
    a specific duty on the contracting party, or (4) the contractor’s work
    involves special risks or dangers. Courts often refer to the latter three
    exceptions as involving nondelegable duties.
    15.	 Negligence: Liability: Contractors and Subcontractors: Words and
    Phrases. A nondelegable duty means that a contracting party to an
    independent contractor, by assigning work consequent to a duty, is not
    relieved from liability arising from the delegated duties negligently
    performed.
    16.	 Contractors and Subcontractors: Liability. To fall within the control
    exception to the general rule of nonliability, the contracting party’s
    involvement in overseeing the work must be substantial.
    17.	 ____: ____. To fall within the control exception to the general rule
    of nonliability, control must directly relate to the work that caused
    the injury.
    18.	 ____: ____. The key element of control must exist with respect to the
    very thing from which the injury arose.
    19.	 ____: ____. To impose liability, the contracting party must have (1)
    supervised the work that caused the injury, (2) actual or constructive
    knowledge of the danger that ultimately caused the injury, and (3) the
    opportunity to prevent the injury.
    20.	 Negligence: Contractors and Subcontractors. Having the right to
    control and supervise the work implies having the ability to oversee
    and direct the manner in which the work which caused the injury is car-
    ried out.
    21.	 Federal Acts: Motor Carriers: Judgments: Proof. The federal Motor
    Carrier Safety Improvement Act of 1999 and the Federal Motor Carrier
    Safety Regulations generally require that a commercial motor carrier
    operate only if registered and that such registration requires proof of
    financial responsibility in order to ensure collectability of a judgment
    against the motor carrier.
    22.	 Federal Acts: Motor Carriers: Intent. The federal Motor Carrier
    Safety Improvement Act of 1999 and the Federal Motor Carrier Safety
    Regulations protect the public and provide financial responsibility for
    motor carrier accidents by creating a legal right and a duty to control
    vehicles operated for the regulated motor carrier’s benefit.
    23.	 Motor Carriers: Brokers: Liability. When distinguishing between a
    motor carrier and a broker, the determinative question is whether the
    disputed party accepted legal responsibility to transport the shipment.
    24.	 Motor Carriers: Brokers. A transportation company may have author-
    ity to act as a shipper, broker, or carrier, and a court must focus on the
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    specific transaction at issue—not on whether the transportation company
    acts as a motor carrier in other transactions.
    25.	 Negligence: Liability: Employer and Employee: Independent
    Contractor. An employer is subject to liability for physical harm to
    third persons caused by the employer’s failure to exercise reasonable
    care in selecting an employee, even if such employee is an indepen-
    dent contractor.
    26.	 Federal Acts: Motor Carriers: Records. The federal Motor Carrier
    Safety Improvement Act of 1999 and the Federal Motor Carrier Safety
    Regulations require motor carriers to obtain and maintain records on
    each of the drivers they employ, such as driving and medical records.
    Appeal from the District Court for Douglas County: Timothy
    P. Burns, Judge. Affirmed.
    Patrick R. Turner, Steven G. Emerson, Thomas H. Davis,
    and Bradley J. Yeretsky, of Stinson, Leonard & Street, L.L.P.,
    for appellants.
    Thomas A. Grennan and Adam J. Wachal, of Gross &
    Welch, P.C., L.L.O., for appellee.
    Heavican, C.J., Miller-Lerman, Cassel, Stacy, Funke,
    Papik, and Freudenberg JJ.
    Funke, J.
    Stephanie A. Sparks, as personal representative of the estate
    of Gary W. Isom and as temporary guardian of Justin W. Isom;
    Melanie Crosby, as personal representative of the estate of
    Tiffany R. Isom; and Nancy Ragains, as personal representa-
    tive of the estate of Susan G. Isom (appellants), appeal the dis-
    trict court’s order granting the motion for summary judgment
    of M&D Trucking, L.L.C. (M&D). M&D cross-appeals. For
    the reasons set forth herein, we affirm.
    I. BACKGROUND
    1. Facts
    Around 5 a.m. on August 28, 2014, Kenneth Bryan Johnson
    was driving a truck and trailer and failed to stop at a stop sign,
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    striking a vehicle carrying members of the Isom family: Gary,
    Susan, their son Justin, and Gary’s adult daughter Tiffany. Gary,
    Susan, and Tiffany died as a result of the collision, and Justin
    was seriously injured. Johnson had been driving longer than
    permitted under applicable law, and Johnson had consumed
    alcohol less than 4 hours before going on service. Johnson had
    a criminal history relating to the operation of motor vehicles,
    including driving on a suspended license, driving without a
    license, and driving under the influence of alcohol.
    Johnson contracted with Turbo Turtle Logistics LLC (Turbo
    Turtle) and was driving a truck and trailer with Turbo Turtle
    signage on the date of the accident. According to deposition
    testimony from Turbo Turtle president Robert Brackett, Turbo
    Turtle is a logistics and brokerage company; logistics mean-
    ing the physical transportation of products, and brokerage
    meaning the arranging of transportation of freight by others.
    At the time of the accident, Turbo Turtle was a motor carrier.
    At all relevant times, Brackett testified that he was the only
    employee of Turbo Turtle and that the drivers were indepen-
    dent contractors. Brackett explained Johnson had been one of
    Turbo Turtle’s independent contractor drivers approximately
    30 days prior to the accident and that he leased a truck and
    trailer from Turbo Turtle during that time. Johnson was not
    allowed to use Turbo Turtle’s equipment for any work that was
    not dispatched through Turbo Turtle or M&D, the company
    which was hired to transport the load Johnson carried during
    the accident.
    Turbo Turtle had had a business relationship with M&D
    since Turbo Turtle’s creation in 2012. Brackett testified that
    Turbo Turtle got involved with M&D because Turbo Turtle was
    trying to add trucks and did not have time to look for work.
    Brackett opined that, likely, M&D worked with Turbo Turtle
    to add to its capacity in using Turbo Turtle’s drivers, trucks,
    and trailers. From its inception until the end of its relationship
    with M&D, Brackett explained that about 98 percent of Turbo
    Turtle’s work came from M&D.
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    SPARKS v. M&D TRUCKING
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    301 Neb. 977
    M&D operates as a brokerage and trucking company. M&D
    did not have an ownership interest in Turbo Turtle. At the time
    of the accident, Michael Plambeck was the manager and Dan
    Rudnick assisted. According to Plambeck, through its trucking
    division, M&D employed four to five drivers who drove trucks
    and trailers owned by M&D. Through its brokerage division,
    M&D got orders from customers and then sent the load infor-
    mation out to M&D drivers or other carriers. According to
    Rudnick, M&D’s customers did not know which loads would
    be assigned to M&D drivers and which would be assigned to
    other carriers. The customers would be billed the same amount
    regardless of which type of driver was used. While not separate
    companies, M&D had separate licensing for its brokerage and
    trucking services and separate insurance plans.
    M&D and Turbo Turtle signed a contract detailing the rela-
    tionship between the companies titled “Contract for Dispatch
    Services at Reduced Rate With Mutual Non-Competition Upon
    Early Termination by Either Party.” The contract provided that
    M&D would be the exclusive dispatch servicer for Turbo
    Turtle with an exception for summer and fall harvesttime in
    South Dakota. As to Turbo Turtle’s drivers, the contract stated,
    “[Turbo Turtle] will assure that at least 42 weeks of the yearly
    hauling in total for all of the [independent contractors] under
    contract with [Turbo Turtle] results from M&D dispatch serv­
    ices”; “[Turbo Turtle] will maintain at least one [independent
    contractor] under dispatch by M&D at all times”; and “this
    contract does not require the dedication by [Turbo Turtle] of
    a particular [independent contractor] to dispatch by M&D.”
    It additionally applied a 2-year, noncompetition agreement
    should the parties prematurely break the contract. By opera-
    tion of this contract, Brackett claimed M&D was leasing his
    four Turbo Turtle trucks. Plambeck, in turn, asserted that
    any drivers arranged through Turbo Turtle were Turbo Turtle
    employees or contractors and, as such, M&D never conducted
    background checks, criminal history background checks,
    review of a driver’s driving record or traffic violations, or
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    review of the performance of Turbo Turtle’s drivers. Instead,
    Plambeck testified, M&D requested and received from Turbo
    Turtle various legal forms necessary for work between a bro-
    ker and carrier, including a “DOT motor carrier number” say-
    ing Turbo Turtle is legally allowed to haul freight, insurance
    verification, and W-9 forms for tax purposes. Brackett alleged
    the contract between M&D and Turbo Turtle was in effect at
    the time of the accident. Plambeck claimed that M&D ter-
    minated the contract on August 28, 2014, once they became
    aware that Turbo Turtle hauled a load for a different company,
    while Brackett opined that the contract was terminated in con-
    nection with the accident.
    Brackett, Plambeck, and Rudnick explained the general pro-
    cedure between M&D and Turbo Turtle for assigning and
    transporting hired loads. Plambeck described that a customer
    would communicate the details of a load to M&D; M&D
    would document the information on a “load sheet” with the
    load number, pickup location, destination, telephone numbers,
    and load quantity; M&D would communicate to Turbo Turtle
    or a specific driver the load information; and the driver would
    receive a paper at the pickup and destination and that paper
    would be sent to M&D for billing purposes. Brackett explained
    M&D would communicate the load information to Turbo Turtle
    by sending the individual drivers text messages and Turbo
    Turtle a copy of those messages. According to Brackett, Turbo
    Turtle would have no knowledge of who the actual customers
    were. For payment on loads carried by Turbo Turtle drivers,
    M&D would charge the customer the same amount as it would
    have if it used its own driver, M&D would keep a percentage
    of the total and pay the rest to Turbo Turtle, and Turbo Turtle
    would keep a percentage of the amount provided by M&D and
    pay the rest to the driver.
    Specifically, on the facts surrounding the accident at issue,
    M&D had a telephone conversation with Northern Ag Service,
    Inc., now known as NORAG LLC (Northern Ag), about pick-
    ing up fracking sand from Genoa, Nebraska, to transport to
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    Blackwell, Oklahoma. Northern Ag is a freight broker, mean-
    ing vendors call Northern Ag about moving various loads
    and Northern Ag then matches the vendor with a carrier or,
    sometimes, with another broker who contacts another carrier.
    M&D did not tell Northern Ag which of the ordered loads
    would be handled by M&D and which would be handled by
    outside drivers.
    Plambeck testified that Northern Ag was fully aware that
    M&D was a brokerage and trucking company and that it used
    its own company drivers as well as drivers from other com-
    panies to haul loads for Northern Ag. However, there was no
    written contract in place detailing the relationship between
    M&D and Northern Ag, and a manager for Northern Ag testi-
    fied during a deposition that M&D never informed Northern
    Ag that it was working with outside drivers. He explained
    that he believed Northern Ag thought it was dealing only with
    M&D, not knowing Turbo Turtle was handling some of its
    loads, and that Northern Ag hired M&D to be the carrier. In
    various records of pickup and destination locations created by
    Northern Ag for its use, Northern Ag repeatedly listed M&D
    as the carrier. In the origin ticket/origin bill of lading created
    by Northern Ag for the load carried during the accident, M&D
    was listed as the carrier on the pickup.
    On August 27 and 28, 2014, M&D, Turbo Turtle, and
    Johnson had various cell phone communications. Plambeck
    testified that around 11 p.m., someone from M&D text mes-
    saged either Turbo Turtle or Johnson about carrying one of
    the Northern Ag loads. Rudnick explained that he had contact
    with either Turbo Turtle or Johnson that night, because a load
    number did not work and Rudnick had to provide a new num-
    ber. Plambeck testified Johnson was not required to call M&D
    once he picked up the load. From information obtained from
    Johnson’s cell phone, the following communications occurred:
    • 
    At 9:01 a.m. on August 27, 2014, M&D text messaged
    Johnson and canceled a load that he was carrying for M&D
    due to rain.
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    • Approximately 30 minutes later, M&D text messaged Johnson
    and dispatched him and his truck to transport a load of sand
    from Genoa, Nebraska, to Waterford City, North Dakota.
    • At 10:47 a.m., Johnson made a short telephone call to M&D.
    • At 10:53 a.m., Johnson text messaged Turbo Turtle and
    informed it that M&D had dispatched him on a load from
    Genoa to Waterford City.
    • At 11:43 p.m., Johnson received a text message from Turbo
    Turtle stating, “Genoa, NE Sand to Blackwell, OK.”
    • At 12:09 a.m. on August 28, 2014, Johnson received a tele-
    phone call from M&D lasting approximately 1 minute 41
    seconds.
    • At 12:41 a.m., Johnson received a telephone call from M&D
    lasting approximately 8 minutes 41 seconds.
    • From 12:54 a.m. to 12:58 a.m., Johnson and Turbo Turtle
    exchanged six text messages, including discussions about
    truckstops available en route to Blackwell.
    The accident between the Isom family and Johnson occurred
    around 5 a.m. on August 28, 2014. A police report from the
    accident listed Turbo Turtle as the motor carrier.
    2. A ppellants’ Claims
    Appellants brought the instant action against Turbo Turtle,
    Johnson, and M&D. Pursuant to a stipulation and joint motion,
    the court dismissed the claims against Turbo Turtle and Johnson.
    On the claims against M&D, the stipulation and motion to dis-
    miss provided: “This Dismissal does not involve any other
    defendant or potential tortfeasor. The Plaintiffs reserve all
    claims against M&D . . . and the claims against it remain pend-
    ing and are not dismissed.” The order dismissing the claims
    against Turbo Turtle and Johnson confirmed: “This Dismissal
    does not extend to M&D . . . . The Plaintiffs’ claims against
    M&D [remain] pending . . . .”
    As to M&D, appellants alleged that (1) Johnson was an agent
    of M&D, and M&D was liable for his negligence through the
    doctrine of respondeat superior; (2) M&D was negligent in hir-
    ing, training, or supervising Johnson given Johnson’s unfitness
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    to operate motor vehicles on public roads and a criminal history
    regarding the operation of motor vehicles; and (3) M&D was
    negligent per se in that M&D was the operator and/or statutory
    lessee of the truck and trailer driven by Johnson under the fed-
    eral Motor Carrier Safety Improvement Act of 1999 (FMCSA)
    and Federal Motor Carrier Safety Regulations (FMCSR) and,
    thus, liable for Johnson’s and its own negligence.
    3. Summary Judgment
    M&D filed a motion for summary judgment claiming there
    was no genuine issue of material fact and that M&D was
    entitled to summary judgment as a matter of law. In support
    of the motion, M&D asserted Johnson was not an employee
    of M&D, Johnson was an independent contractor of Turbo
    Turtle who was in turn an independent contractor of M&D,
    and M&D did not have sufficient control over Johnson to be
    vicariously liable.
    Following a hearing on the motion, the district court granted
    M&D summary judgment as to all three claims. On the claim
    of respondeat superior, the court first determined appellants’
    claim is not barred by the prior settlement with Turbo Turtle and
    Johnson through operation of 
    Neb. Rev. Stat. § 25-21
    ,185.11(1)
    (Reissue 2016) (“[a] release, covenant not to sue, or similar
    agreement entered into by a claimant and a person liable shall
    discharge that person from all liability to the claimant but shall
    not discharge any other persons liable upon the same claim
    unless it so provides”). The court then determined that Johnson
    was not an employee of M&D and that M&D did not exert
    sufficient control over Johnson to establish appellants’ claim of
    respondeat superior. On the claim of negligent hiring, training,
    or supervising, the court determined M&D complied with its
    reasonable duty of care as a broker in that the record did not
    support a finding that M&D knew or should have known Turbo
    Turtle had an inadequate safety record or that Turbo Turtle
    hired an unsafe driver in Johnson. Finally, the court noted
    that negligence per se is not recognized as a separate cause of
    action in Nebraska for a violation of FMCSA and FMCSR.
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    II. ASSIGNMENTS OF ERROR
    Appellants assign, restated, that the district court erred in
    granting summary judgment, because there was a genuine issue
    of material fact of (1) whether M&D was Johnson’s common-
    law or statutory employer and (2) whether M&D negligently
    hired, trained, or supervised Johnson.
    On cross-appeal, M&D assigns, restated, that the district
    court erred in finding that appellants’ decision to settle with
    Turbo Turtle and Johnson does not operate as a release of
    M&D in the event that Turbo Turtle or Johnson are deemed
    agents of M&D.
    III. STANDARD OF REVIEW
    [1-3] An appellate court will affirm a lower court’s grant
    of summary judgment if the pleadings and admitted evidence
    show that there is no genuine issue as to any material facts or
    as to the ultimate inferences that may be drawn from those
    facts and that the moving party is entitled to judgment as a
    matter of law.1 In reviewing a summary judgment, an appel-
    late court views the evidence in the light most favorable to the
    party against whom the judgment was granted and gives that
    party the benefit of all reasonable inferences deducible from
    the evidence.2 Statutory interpretation presents a question of
    law, for which an appellate court has an obligation to reach an
    independent conclusion irrespective of the decision made by
    the court below.3
    IV. ANALYSIS
    1. Employee Versus Independent
    Contractor
    Appellants first assign the district court erred in its deter-
    mination that Johnson was an independent contractor and
    not M&D’s employee. Appellants claim there is substantial
    1
    Estermann v. Bose, 
    296 Neb. 228
    , 
    892 N.W.2d 857
     (2017).
    2
    
    Id.
    3
    
    Id.
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    evidence that M&D controlled Johnson’s work, as well as
    other relevant factors to create a question of fact as to whether
    M&D was Johnson’s common-law employer.
    [4-6] On a motion for summary judgment, the question is
    not how a factual issue is to be decided, but whether any real
    issue of material fact exists.4 Ordinarily, a party’s status as an
    employee or an independent contractor is a question of fact.5
    However, where the facts are not in dispute and where the
    inference is clear that there is, or is not, a master and servant
    relationship, the matter is a question of law.6 By stating “where
    the inference is clear,” this court means that there can be no
    dispute as to pertinent facts pertaining to the contract and the
    relationship of the parties involved and only one reasonable
    inference can be drawn therefrom.7
    In this matter, the material facts are not in dispute. Rather,
    the parties argue about the inferences to be drawn from those
    facts concerning the legal relationships of the parties. We
    determine these inferences are clear and can be determined as
    a matter of law.
    [7,8] A determination of whether Johnson was M&D’s
    employee or an independent contractor is determined from
    all the facts in the case and depends on the facts underly-
    ing the relationship of the parties irrespective of the words
    or terminology used by the parties.8 No single test exists for
    determining whether one performs services for another as an
    employee or as an independent contractor, and the following
    10 factors must be considered: (1) the extent of control which,
    by the agreement, the potential employer may exercise over the
    details of the work; (2) whether the one potentially employed
    is engaged in a distinct occupation or business; (3) the type of
    4
    Kime v. Hobbs, 
    252 Neb. 407
    , 
    562 N.W.2d 705
     (1997).
    5
    
    Id.
    6
    
    Id.
    7
    
    Id.
    8
    See 
    id.
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    occupation, with reference to whether, in the locality, the work
    is usually done under the direction of the potential employer
    or by a specialist without supervision; (4) the skill required in
    the particular occupation; (5) whether the potential employer
    or the one potentially employed supplies the instrumentalities,
    tools, and the place of work for the person doing the work; (6)
    the length of time for which the one potentially employed is
    engaged; (7) the method of payment, whether by the time or by
    the job; (8) whether the work is part of the regular business of
    the potential employer; (9) whether the parties believe they are
    creating an agency relationship; and (10) whether the potential
    employer is or is not in business.9
    (a) Extent of Control
    [9-12] The extent of control is the chief factor distinguishing
    an employment relationship from that of an independent con-
    tractor.10 In examining the extent of the potential employer’s
    control over the worker in this context, it is important to dis-
    tinguish control over the means and methods of the assign-
    ment from control over the end product of the work to be per-
    formed.11 An independent contractor is one who, in the course
    of an independent occupation or employment, undertakes work
    subject to the will or control of the person for whom the work
    is done only as to the result of the work and not as to the
    means or methods used.12 Even the party contracting with an
    independent contractor may, without changing the status, exer-
    cise such control as is necessary to assure performance of the
    contract in accordance with its terms.13
    Appellants contend several facts support a finding that M&D
    exerted sufficient control over Johnson for a determination that
    9
    See Mays v. Midnite Dreams, 
    300 Neb. 485
    , 
    915 N.W.2d 71
     (2018).
    10
    See Kime, 
    supra note 4
    .
    11
    
    Id.
    12
    
    Id.
    13
    See 
    id.
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    the relationship went beyond that of an independent contrac-
    tor to an employer-employee. Specifically, appellants point to
    the text messages and cell phone calls between M&D, Turbo
    Turtle, and Johnson representatives on August 27 and 28, 2014;
    the contract between M&D and Turbo Turtle which provided
    M&D would be the exclusive dispatch servicer for Turbo
    Turtle; and the agreement between Turbo Turtle and Johnson
    that Johnson could not drive the leased equipment for loads
    outside those for M&D and Turbo Turtle.
    However, these factual allegations do not lead to a deter-
    mination that M&D and Johnson’s relationship went beyond
    that of an independent contractor. The text messages cited
    by appellants show that M&D canceled a load due to rain at
    9:01 a.m. on August 27, 2014; that M&D provided Johnson
    load information for a different load to North Dakota 30 min-
    utes later; and that Turbo Turtle provided load information to
    Johnson about the Northern Ag load at 11:43 p.m. By provid-
    ing only the pickup and destination locations, these messages
    go to the result of the work and not the means or methods
    used.14 Additionally, the fact that M&D text messaged Johnson
    the North Dakota load information directly rather than Turbo
    Turtle is not at odds with an independent contractor relation-
    ship. M&D and Turbo Turtle had a history of M&D’s mak-
    ing direct communications with Turbo Turtle’s drivers; Turbo
    Turtle was informed of the North Dakota load by Johnson;
    and M&D communicated with Turbo Turtle directly about the
    Northern Ag load, which Turbo Turtle then communicated to
    Johnson. Through the text messages, the record demonstrates
    only that M&D was controlling Johnson as to the end product
    of the work to be performed and did so pursuant to its agree-
    ment with Turbo Turtle.
    The cell phone calls also do not provide sufficient support
    that M&D controlled Johnson’s actions as to the means and
    methods to be used. Appellants argue the timing of these calls
    14
    See 
    id.
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    implies M&D was directing Johnson on the routes to take or
    the means in which to haul the load, because they occurred
    after he had the load information, but there is no evidence
    in the record as to the subject or content of the cell phone
    calls. Instead, the only information available about the con-
    tent of the calls is from M&D representatives who testified
    that, while they do not remember the content of these specific
    calls, they contacted Johnson only concerning load informa-
    tion. Additionally, it is not a clear inference from the timing
    of these calls that they were instructing Johnson on the routes
    to take or the means to haul the load. These cell phone calls
    occurred relatively soon after Turbo Turtle text messaged
    Johnson the Northern Ag load information which could imply
    the conversations were merely communications expanding on
    the load information. The conversations could also have been
    concerning the status of other loads or a variety of other topics.
    Without further evidence on the subject of the calls, there is
    no clear implication that, as appellants suggest, the calls were
    M&D’s instructing Johnson on the means or methods in which
    to drive the load.
    As to the contract between M&D and Turbo Turtle and
    the agreement between Turbo Turtle and Johnson, appellants
    argue these agreements lead to the conclusion that Johnson
    was permitted to drive only M&D’s loads, which was evidence
    that M&D exercised control over Johnson under an employer-
    employee relationship. However, the record does not lead to
    such conclusion. Johnson never contracted with M&D; instead,
    Turbo Turtle contracted with M&D and Turbo Turtle con-
    tracted with Johnson. According to the contract between M&D
    and Turbo Turtle, M&D was to provide exclusive dispatch
    services to Turbo Turtle with an exception for periods in which
    Turbo Turtle was carrying loads related to harvesttime. While
    the contract required at least one of Turbo Turtle’s drivers be
    available for dispatch by M&D, the contract stated that it did
    not “require the dedication by [Turbo Turtle] of a particu-
    lar [independent contractor] to dispatch by M&D.” Johnson’s
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    agreement with Turbo Turtle, in turn, provided that Johnson
    could not drive Turbo Turtle’s equipment for any load other
    than those issued by Turbo Turtle or M&D but did not prevent
    Johnson from using other equipment to carry outside loads.
    There is also nothing in the record that the agreement prohib-
    ited Johnson from carrying loads for Turbo Turtle that were
    unrelated to M&D, and Turbo Turtle was permitted under the
    M&D contract to assign non-M&D loads during harvesttime.
    Therefore, appellants’ contention that Johnson could carry only
    M&D loads is refuted by the record.
    In consideration of all of the above and in review of the
    record, there is insufficient evidence to create a genuine issue
    of material fact that M&D exerted the extent of control nec-
    essary over Johnson for a determination that the relation-
    ship went beyond that of an independent contractor to an
    employer-employee.
    (b) Other Factors
    Appellants contend additional factors weigh toward a deter-
    mination that Johnson and M&D had an employer-employee
    relationship: whether the one potentially employed is engaged
    in a distinct occupation or business, the length of time for
    which the one potentially employed is engaged, whether the
    work is part of the regular business of the potential employer,
    and whether the potential employer is or is not in business.15
    To support this contention, appellants note M&D, Turbo Turtle,
    and Johnson were engaged in the same business of transport-
    ing goods; M&D was hired to transport the load in question by
    Northern Ag, which believed M&D would be the sole carrier
    of the loads; and M&D’s own drivers were transporting other
    loads in the same order for Northern Ag. Appellants claim these
    factors, when added to the cell phone calls and text messages
    between M&D and Johnson and the exclusive language of the
    Turbo Turtle agreements with M&D and Johnson, create an
    issue of fact as to whether Johnson was an employee of M&D.
    15
    See Mays, 
    supra note 9
    .
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    However, along with the analysis in the previous section,
    these additional factors do not determine Johnson was M&D’s
    employee. The fact that M&D had a trucking division as well
    as a brokerage division is not determinative of an employer-
    employee relationship. Johnson was in a distinct business from
    M&D in that M&D operated a brokerage division within its
    company utilizing outside drivers; Johnson was not exclusively
    bound to M&D’s shipments and could take other work from
    Turbo Turtle, including during harvesttime; and Johnson did
    not use M&D’s equipment and leased the equipment from
    Turbo Turtle instead. Johnson contracted with Turbo Turtle and
    not M&D and had driven for Turbo Turtle for only approxi-
    mately 30 days prior to the accident, a relatively short amount
    of time. Additionally, while M&D did drive some of the
    Northern Ag loads utilizing its own drivers, it was also com-
    mon for M&D to dispatch outside companies and drivers for
    the Northern Ag loads.
    Considering all of the above, the record is insufficient
    to create a genuine issue of material fact that the relation-
    ship went beyond that of an independent contractor to an
    employer-employee.
    2. Liability as Independent
    Contractor
    Appellants next argue M&D would be liable for Johnson’s
    negligence, even if Johnson were an independent contractor.
    [13-15] Generally, one who employs an independent con-
    tractor is not liable for physical harm caused to another by
    the acts or omissions of the contractor or its servants.16 Our
    case law has recognized four exceptions to the general rule.17
    Specifically, a party contracting with an independent contrac-
    tor can be liable for physical harm caused to another if (1) the
    contracting party retains control over the contractor’s work, (2)
    the contracting party is in possession and control of premises,
    16
    Gaytan v. Wal-Mart, 
    289 Neb. 49
    , 
    853 N.W.2d 181
     (2014).
    17
    
    Id.
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    (3) a statute or rule imposes a specific duty on the contracting
    party, or (4) the contractor’s work involves special risks or dan-
    gers.18 We often refer to the latter three exceptions as involving
    nondelegable duties.19 A nondelegable duty means that a con-
    tracting party to an independent contractor, by assigning work
    consequent to a duty, is not relieved from liability arising from
    the delegated duties negligently performed.20
    (a) Retention of Control
    While M&D did not retain sufficient control over Johnson’s
    work to subject M&D to liability for Johnson’s negligence as
    an agent or employee, appellants allege that M&D retained
    some control over the relevant work and that M&D is therefore
    liable for a failure to exercise reasonable care in the use of
    that control.21
    [16-19] To fall within this exception to the general rule of
    nonliability, the contracting party’s involvement in overseeing
    the work must be substantial.22 Furthermore, that control must
    directly relate to the work that caused the injury.23 In other
    words, the key element of control must exist with respect to
    the very thing from which the injury arose.24 To impose liabil-
    ity, the contracting party must have (1) supervised the work
    that caused the injury, (2) actual or constructive knowledge
    of the danger that ultimately caused the injury, and (3) the
    opportunity to prevent the injury.25
    Appellants argue M&D acted in a supervisory role when
    it assigned Johnson the load from Northern Ag, had actual
    18
    See   
    id.
    19
    See   
    id.
    20
    See   
    id.
    21
    See   Restatement (Second) of Torts § 414 (1965).
    22
    See   Gaytan, supra note 16.
    23
    See   id.
    24
    See   Cutlip v. Lucky Stores, 
    22 Md. App. 673
    , 
    325 A.2d 432
     (1974).
    25
    See   Gaytan, supra note 16.
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    and/or constructive knowledge that Johnson was unavailable
    for driving under the hours-of-service requirements of FMCSA
    and FMCSR,26 and had the opportunity to use a different driver
    who was not in violation of those requirements but failed to
    do so. Specifically, appellants point to the communication
    between M&D and Johnson on August 27, 2014, where M&D
    text messaged to cancel a load Johnson was carrying at 9:01
    a.m., text messaged to dispatch him on a load from Nebraska
    to North Dakota 30 minutes later, and communicated with
    Turbo Turtle to dispatch Johnson on the load carried during
    the accident at 11:43 p.m.
    [20] The record does not support appellants’ contention that
    M&D had sufficient supervision of Johnson’s work. Having
    the right to control and supervise the work in this context
    implies having the ability to oversee and direct the manner
    in which the work that caused the injury is carried out.27 As
    we have already concluded, M&D did not have control of
    the method or means in which Johnson performed his work.
    Furthermore, concerning the Northern Ag load specifically,
    the text messages indicate that Johnson was provided, at that
    time, with only the pickup, destination, and content details of
    the load. The messages did not direct Johnson on the timing
    of the load, the route, and what stops to make. Without more,
    nothing in the record indicates that Johnson was required to
    drive beyond the hours-of-service restriction and that M&D
    had control and supervision of Johnson to direct him to make
    such a violation.
    (b) Control of Premises
    Appellants argue M&D is liable as the party in posses-
    sion and control of premises where physical harm is caused.
    26
    See 
    49 C.F.R. § 395.3
    (2) (2017).
    27
    Kime, 
    supra note 4
    . See, also, Harris v. Velichkov, 
    860 F. Supp. 2d 970
     (D.
    Neb. 2012), affirmed sub nom. Harris v. FedEx Nat. LTL, Inc., 
    760 F.3d 780
     (8th Cir. 2014); Gaytan, supra note 16.
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    Appellants allege M&D had a lease agreement with Turbo
    Turtle and, as a result, was in control of Johnson and the truck
    and trailer.
    Under 
    49 C.F.R. § 376.2
    (e) (2016), a “lease” is defined
    as “[A] contract or arrangement in which the owner grants
    the use of equipment, with or without [a] driver, for a speci-
    fied period to an authorized carrier for use in the regulated
    transportation of property, in exchange for compensation.” In
    addition, 
    49 C.F.R. §§ 376.12
     and 376.22 (2017) require that
    a lease contain the following provisions: provide the lessee
    exclusive possession, control, and use of the equipment for
    the duration of the lease and the lessee shall assume com-
    plete responsibility for the operation of the equipment for
    the duration of the lease; clearly specify the legal obligation
    of the lessee to maintain insurance coverage for the protec-
    tion of the public; and provide that control and responsibility
    for the operation of the equipment shall be that of the lessee
    from the time possession is taken until possession is returned.
    Further, 
    49 C.F.R. §§ 376.11
     and 376.22 (2017) provide spe-
    cific requirements for the operation of a lease, including that
    receipts are to be provided from the lessee to the lessor when
    possession is taken, the equipment must be identified as being
    operated by the lessee, and the equipment must carry a copy
    of the lease.
    This contract was not a lease agreement whereby M&D
    was leasing Turbo Turtle’s drivers, trucks, and trailers when
    it communicated a job. Here, Turbo Turtle and Johnson main-
    tained control over the use of the truck and trailer. Turbo
    Turtle was responsible for the equipment’s upkeep, insur-
    ance, and signage, as well as the hiring of the drivers, and
    Johnson and Turbo Turtle were free to coordinate the means
    and manner in which they accomplished the loads M&D pro-
    vided to them. Moreover, there was no evidence in the record
    that either Turbo Turtle or Johnson received receipts when
    M&D allegedly took possession of the equipment, that the
    equipment displayed any identifying information that it was
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    being operated by M&D, or that Johnson carried a copy of
    the contract.
    Appellants cite to Plambeck’s deposition for the proposition
    that the contract was a lease. During that deposition, Plambeck
    made two comments regarding a lease agreement and indicated
    that prior to the contract, M&D had two other agreements
    with Turbo Turtle. The first contract he described as a “lease
    agreement that M&D . . . used as a standard lease agreement
    for any companies that [M&D] brokered loads to.” The second
    contract he described as a “trailer lease” which allowed Turbo
    Turtle to pull one of M&D’s trailers.
    The record before us is void of the first contract of which
    Plambeck testified. As a result, we cannot determine the terms
    or conditions of that agreement and whether it would qualify
    as a lease under FMCSA and FMCSR. Upon a question as to
    whether the trailer lease was still in effect in 2014, Plambeck
    stated that “I would call [the contract] a lease agreement too,
    so which one do you mean?” Plambeck then testified that
    Turbo Turtle’s right to lease a trailer from M&D continued on
    an as-needed basis. The contract itself authorized Turbo Turtle
    to lease one of M&D’s trailers. However, later in his deposi-
    tion, Plambeck testified that none of the equipment involved in
    the accident was being leased from M&D. Noting the failure
    of the contract to comply with FMCSA and FMCSR require-
    ments for a lease, Plambeck’s statement, without more, does
    not imply that M&D treated the contract as a lease agreement
    for Turbo Turtle’s drivers and equipment, nor does it make the
    contract such a lease agreement.
    (c) Statute or Rule
    (i) Statutory Employer-Employee
    Under FMCSA and FMCSR
    Appellants argue FMCSA and FMCSR impose liability on
    M&D, because Johnson was a driver being controlled exclu-
    sively by M&D at the time of the accident and, as such,
    Johnson was M&D’s statutory employee.
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    In support of their argument, appellants cite to several
    definitions within the FMCSR. Specifically, 
    49 C.F.R. § 376.2
    (d)(2) which defines “owner” as someone “who, with-
    out title, has the right to exclusive use of equipment,” and
    
    49 C.F.R. § 390.5
     (2017) which defines an “employer” as
    someone “who owns or leases a commercial motor vehicle in
    connection with [a business affecting interstate commerce]”
    and “employee” as someone “employed by an employer” and
    can include “an independent contractor while in the course
    of operating a commercial motor vehicle.” Appellants claim
    M&D had the right to exclusive use of Johnson and his equip-
    ment, M&D had this right to exclusive use in connection with
    its interstate trucking business, and, thus, Johnson was an
    M&D employee under FMCSR, even if considered an inde-
    pendent contractor.
    However, appellants are incorrect in their claim that M&D
    was the owner of the equipment. As analyzed above, Johnson
    and his equipment were not exclusively controlled by M&D
    at the time of the accident, Johnson’s equipment was owned
    by Turbo Turtle who was responsible for its maintenance
    and insurance, and the contract between M&D and Turbo
    Turtle was not a lease agreement for that equipment. Because
    M&D was not the owner of Johnson’s equipment and did not
    lease Johnson’s equipment, M&D does not meet the defini-
    tion of employer and Johnson does not meet the definition of
    employee under FMCSA and FMCSR.
    (ii) Motor Carrier Under
    FMCSA and FMCSR
    Appellants argue that FMCSA and FMCSR impose liability
    on M&D, because M&D was the motor carrier of the Northern
    Ag load. M&D, in turn, argues it was acting as a broker of
    the load in question and, thus, did not have liability under
    FMCSA and FMCSR.
    [21,22] FMCSA and FMCSR generally require that a com-
    mercial motor carrier operate only if registered and that such
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    registration requires proof of financial responsibility in order
    to ensure collectability of a judgment against the motor car-
    rier.28 This act and these regulations protect the public and
    provide financial responsibility for motor carrier accidents by
    creating a legal right and a duty to control vehicles operated
    for the regulated motor carrier’s benefit.29
    [23] The FMCSR, at 
    49 C.F.R. § 390.5
    , codified as 
    Neb. Rev. Stat. § 75-362
    (31) (Cum. Supp. 2014), defines “motor
    carrier” as
    a for-hire motor carrier or a private motor carrier. The
    term includes a motor carrier’s agents, officers and rep-
    resentatives as well as employees responsible for hiring,
    supervising, training, assigning, or dispatching of drivers
    and employees concerned with the installation, inspec-
    tion, and maintenance of motor vehicle equipment and/
    or accessories. . . . [T]his definition includes the terms
    employer and exempt motor carrier.
    For purposes of federal interstate transportation law, a “bro-
    ker” means:
    a person, other than a motor carrier or an employee or
    agent of a motor carrier, that as a principal or agent
    sells, offers for sale, negotiates for, or holds itself out by
    solicitation, advertisement, or otherwise as selling, pro-
    viding, or arranging for, transportation by motor carrier
    for compensation.30
    The FMCSR, at 
    49 C.F.R. § 371.2
    (a) (2017), distinguishes
    motor carriers from brokers by stating:
    Motor carriers, or persons who are employees or bona
    fide agents of carriers, are not brokers within the meaning
    28
    See, 
    49 U.S.C. §§ 13901
     and 13906 (2012 & Supp. V 2017); Harris, supra
    note 27.
    29
    See, e.g., 
    49 U.S.C. § 14102
    (a)(4) (2012); Crocker v. Morales-Santana,
    
    854 N.W.2d 663
     (N.D. 2014); Tamez v. Southwestern Motor Transport,
    Inc., 
    155 S.W.3d 564
     (Tex. App. 2004).
    30
    
    49 U.S.C. § 13102
    (2) (2012). See, also, 13 C.J.S. Carriers § 87 (2017).
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    of this section when they arrange or offer to arrange the
    transportation of shipments which they are authorized to
    transport and which they have accepted and legally bound
    themselves to transport.
    As such, when distinguishing between a motor carrier and
    a broker, the determinative question is whether the disputed
    party accepted legal responsibility to transport the shipment.31
    In arguing M&D was acting as a motor carrier on Johnson’s
    Northern Ag load, appellants allege M&D was a licensed
    motor carrier, M&D was Northern Ag’s exclusive point of
    contact, Northern Ag identified M&D as the motor carrier on
    internal documents, M&D solicited the loads from Northern
    Ag for its own account, M&D directly dispatched Johnson, and
    M&D had control over Johnson and his truck and trailer.
    [24] Whether M&D was also a licensed motor carrier is
    indeterminative to the question whether M&D was the motor
    carrier for purposes of liability for Johnson’s negligence.
    Instead, this question requires inquiry into M&D’s actions with
    regard to the particular load at issue.32 A transportation com-
    pany may have authority to act as a shipper, broker, or carrier,
    and a court must focus on the specific transaction at issue—not
    on whether the transportation company acts as a motor car-
    rier in other transactions.33 At the time of the accident, M&D
    had both a trucking and a brokerage division to its company
    with separate licenses and insurance plans, while Turbo Turtle
    was a licensed motor carrier with its own license and insur-
    ance. M&D gave the load in question to Turbo Turtle and its
    31
    See Essex Ins. Co. v. Barrett Moving & Storage, Inc., 
    885 F.3d 1292
     (11th
    Cir. 2018).
    32
    See, e.g., Mass v. Braswell Motor Freight Lines, Inc., 
    577 F.2d 665
     (9th
    Cir. 1978); Hewlett-Packard v. Brother’s Trucking Enterprises, 
    373 F. Supp. 2d 1349
     (S.D. Fla. 2005); Nipponkoa Ins. Co., Ltd. v. C.H. Robinson
    Worldwide, Inc., No. 09 Civ. 2365(PGG), 
    2011 WL 671747
     (S.D.N.Y. Feb.
    18, 2011) (unpublished memorandum and order).
    33
    Harris, supra note 27.
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    driver. There is no evidence M&D instructed Johnson beyond
    providing pickup and destination information. Johnson drove
    Turbo Turtle’s truck and trailer, and Turbo Turtle’s signage
    and motor carrier number were displayed on the equipment.
    After the accident, the police report listed Turbo Turtle as the
    motor carrier.
    The fact that M&D held itself as Northern Ag’s exclusive
    source of contact is insufficient to convert M&D into a motor
    carrier under FMCSA and FMCSR.34 There is no requirement
    under FMCSA and FMCSR that a broker cannot be the exclu-
    sive source of contact for a transportation customer. The record
    further demonstrates this is a normal practice of the trucking
    industry. For example, Northern Ag was a freight brokerage
    company that arranged loads for transport with customers to
    whom M&D and other of Northern Ag’s brokers and carriers
    had no direct contact.
    Appellants contend that M&D solicited the loads from
    Northern Ag for its own account and that, as a result, M&D
    was a motor carrier for the load at issue. In support of their
    contention, appellants rely on Schramm v. Foster 35 for the
    holding that an entity may be treated as a motor carrier, as
    opposed to a broker, if it engages in solicitation for its own
    account. However, there was no evidence that M&D was
    contractually obligated to transport the Northern Ag loads
    exclusively and there was no evidence that M&D conveyed
    to Northern Ag that it would be transporting the load itself.
    In fact, a Northern Ag manager testified that on behalf of
    Northern Ag, he solicited brokers as well as carriers to fill
    shipping orders. In addition, Plambeck testified that Northern
    Ag was aware that M&D was a brokerage company and that
    M&D was using M&D drivers and also using brokered carri-
    ers for Northern Ag loads. Plambeck also testified that M&D
    34
    See Schramm v. Foster, 
    341 F. Supp. 2d 536
     (D. Md. 2004).
    35
    
    Id.
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    never told Northern Ag that it would haul all of the offered
    loads through M&D’s trucking division. As a result, there is no
    evidence that M&D solicited the Northern Ag loads as a motor
    carrier for its own account.
    M&D did not directly dispatch Johnson on the load in ques-
    tion. Instead, Northern Ag contacted M&D with the load infor-
    mation, M&D communicated that information to Turbo Turtle,
    and Turbo Turtle communicated that information to Johnson.
    Johnson’s cell phone records indicate Turbo Turtle was the
    one who contacted Johnson about the Northern Ag load, while
    M&D had directly dispatched Johnson on a previous North
    Dakota load. Johnson communicated with Turbo Turtle about
    routes and stops but there was no evidence in the record estab-
    lishing that Johnson communicated with M&D about the means
    and method of the load. However, even if M&D had directly
    dispatched Johnson on the Northern Ag load, such an action
    would not determine M&D was a motor carrier. The text mes-
    sages in which M&D instructed Johnson on the North Dakota
    load and the text messages in which Turbo Turtle instructed
    Johnson on the Northern Ag load provided only pickup and
    destination information. The provision of such information is
    consistent with the role of a third-party logistics company with
    the responsibility of coordinating shipment of the freight rela-
    tive to the customer’s needs.36
    While relevant to the question of whether M&D legally
    bound themselves to transport the Northern Ag loads, Northern
    Ag listing M&D on the bill of lading and other pickup/dropoff
    records is not dispositive evidence M&D was acting as the
    motor carrier. The identification of a transportation company
    as the “carrier” on the bill of lading does not prove that the
    transportation company was in fact the carrier in this transac-
    tion. In Schramm, the court found that a bill of lading pre-
    pared by a third party, which identified the defendant as the
    36
    See 
    id.
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    “carrier” of the load was insufficient to establish the defend­
    ant’s carrier status, because the defendant played no role in
    its preparation.37
    In the instant matter, the record indicates that typically two
    different documents were generated for each load shipped:
    one by the customer when the load was picked up and one by
    Northern Ag when the load was dropped off. Nothing in the
    record indicates that M&D had any involvement in prepar-
    ing either document. For the load involved in the accident,
    only the pickup document was generated, because the load
    was not dropped off. The pickup document listed M&D as
    the carrier and was created by the customer. However, as
    discussed above, when the load was picked up, the truck and
    trailer displayed Turbo Turtle’s signage and carrier number.
    M&D’s sign­   age and carrier number were not displayed on
    the truck and trailer, and there is no evidence in the record
    indicating that Johnson was carrying any sort of lease agree-
    ment for M&D to use Turbo Turtle’s truck. As such, Turbo
    Turtle’s involvement with the shipment would have been read-
    ily apparent to the customer at the pickup location. Similarly,
    the Northern Ag manager’s testimony that Northern Ag had no
    knowledge M&D was assigning loads to Turbo Turtle does not
    account for this readily apparent information from the dropoff
    locations. When considering these factors in the context of the
    entire record, Northern Ag’s internal records and its manager’s
    testimony listing M&D as the motor carrier are insufficient on
    their own to lead a reasonable trier of fact to determine M&D
    was the carrier.
    Appellants’ contention that M&D had control over Johnson
    and his equipment fails to support a finding that M&D was a
    motor carrier for the load in question. The record on appeal
    does not indicate that M&D had exclusive control over Johnson
    and his equipment. As analyzed above, the contract between
    M&D and Turbo Turtle did not create or operate as a lease
    37
    Schramm, supra note 34.
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    agreement, Turbo Turtle was not required to make specific
    drivers available to M&D, Johnson did not directly contract
    with M&D, Johnson’s agreement with Turbo Turtle was that
    he could drive only Turbo Turtle’s equipment for loads issued
    by Turbo Turtle or M&D but there was no such restriction
    if Johnson used other equipment, there was an exception
    in the M&D and Turbo Turtle contract where Turbo Turtle
    could drive outside loads for harvesttime, and Turbo Turtle
    owned and was responsible for maintenance and insurance on
    the equipment.
    Based upon our review of the record, all of the above fac-
    tors indicate that there is insufficient evidence to present a
    genuine issue of material fact that M&D was the motor carrier
    of the load at issue.
    3. Negligent Hiring, Training,
    or Supervision
    Appellants argue that the district court erred in dismissing
    their claim that M&D negligently hired, trained, or supervised
    Johnson. Under this assignment, appellants contend that the
    district court’s reasoning was tainted by its incorrect determi-
    nation that M&D was a broker and not a motor carrier.
    [25] We have previously held that an employer is subject
    to liability for physical harm to third persons caused by the
    employer’s failure to exercise reasonable care in selecting
    an employee, even if such employee is an independent con-
    tractor.38 However, as we determined above, the record fails
    to provide sufficient evidence to present a genuine issue of
    material fact that Johnson was M&D’s employee or that M&D
    negligently hired, trained, or supervised Johnson.
    [26] FMCSA and FMCSR require motor carriers to obtain
    and maintain records on each of the drivers they employ, such
    as driving and medical records.39 However, as we determined
    38
    Kime, supra note 4.
    39
    See 
    49 C.F.R. §§ 391.25
     (2017) and 391.51(a) (2014).
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    above, the record also fails to provide sufficient evidence to
    present a genuine issue of material fact that M&D was the
    motor carrier of the load at issue and instead demonstrates
    M&D was acting as a broker.
    Thus, the district court did not err in dismissing appel-
    lants’ claim that M&D negligently hired, trained, or supervised
    Johnson.
    4. Cross-A ppeal
    Because we determine the district court did not err in grant-
    ing M&D’s motion for summary judgment and dismissing
    appellants’ claims, we need not address M&D’s cross-appeal
    that the district court erred in failing to find appellants’ claim
    of respondeat superior was barred by the settlement between
    appellants, Turbo Turtle, and Johnson.
    V. CONCLUSION
    For the reasons stated above, there are no genuine issues
    of material fact. M&D is entitled to a judgment as a matter
    of law, because Johnson’s relationship with M&D was that
    of an independent contractor; M&D did not have liability
    under that independent contractor relationship for Johnson’s
    negligence; and M&D was a broker of the load at issue and
    not a motor carrier responsible for Johnson’s hiring, training,
    or supervision. Thus, the district court did not err in granting
    M&D’s motion for summary judgment and dismissing appel-
    lants’ claims.
    A ffirmed.