Quinones v. Ladejo ( 2021 )

[Cite as Quinones v. Ladejo, 2021-Ohio-1988.]
IN THE COURT OF APPEALS OF OHIO
ELEVENTH APPELLATE DISTRICT
TRUMBULL COUNTY
SUSAN QUINONES, AS LEGAL CASE NO. 2021-T-0003
GUARDIAN OF DAVID N.
SCHEEHLE, et al.,
Civil Appeal from the
Plaintiffs-Appellants, Court of Common Pleas
-v-
Trial Court No. 2020 CV 00883
OLANYANJU LADEJO, et al.,
Defendants,
PROSERV LOGISTICS LLC,
Defendant-Appellee.
OPINION
Decided: June 14, 2021
Judgment: Reversed and remanded.
Christopher J. Van Blargan, Kisling, Nestico & Redick, LLC, 3412 West Market Street,
Akron, OH 44333 (For Plaintiffs-Appellants).
Kurt D. Anderson and Patrick M. Roche, Collins, Roche, Utley & Garner, LLC, 875
Westpoint Parkway, Suite 500, Cleveland, OH 44145 (For Defendant-Appellee).
THOMAS R. WRIGHT, J.
{¶1} Appellants, Joyce McKenzie and Susan Quinones, the mother and the
guardian of David N. Scheehle, respectively, appeal from the judgment dismissing their
complaint. We reverse and remand.
{¶2} This case stems from a vehicle collision on the Ohio Turnpike where a
commercial tractor-trailer operated by an employee of Wisconsin Trucks, Inc. (“Wisconsin
Trucks”) rear-ended Scheehle’s vehicle. As a result of the collision, Scheehle sustained
serious injuries. Appellants filed a complaint against several parties including Wisconsin
Trucks and its freight broker, ProServ Logistics, LLC (“ProServ”). Appellants maintained
that Wisconsin Trucks, ProServ, and others were vicariously liable for the truck driver’s
negligence, that they negligently entrusted the truck driver with the tractor-trailer, and that
they breached their duties as “employers, brokers, or shippers to exercise reasonable
care in hiring competent drivers’ and/or carriers and in instructing, training, supervising,
and retaining driver and/or carriers.”
{¶3} Thereafter, ProServ filed a motion to dismiss, arguing that appellants’
claims against it were preempted by the Federal Aviation Administration Authorization Act
(“FAAAA”).
{¶4} On December 23, 2020, the trial court dismissed appellants’ claims against
ProServ. On January 8, 2020, the trial court entered an entry nunc pro tunc to the
December 23, 2020 judgment finding there was no just cause for delay pursuant to Civ.R.
54(B).
{¶5} Appellants assign one error:
{¶6} “The trial court erred in finding the FAAAA preempted Quinones’ claim of
vicarious liability and negligent selection, supervision, and retention, and in dismissing
those claims for lack of subject matter jurisdiction under Civil Rule 12(B)(1).”
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{¶7} We review a trial court’s dismissal pursuant to Civ.R. 12(B)(1) de novo.1
Jones v. Ohio Edison Co., 2014-Ohio-5466, 26 N.E.3d 834, ¶ 7 (11th Dist.), citing
Washington Mut. Bank v. Beatley, 10th Dist. Franklin No. 06AP-1189, 2008-Ohio-1679,
¶ 8.
{¶8} The Supremacy Clause of the United States Constitution provides that the
U.S. Constitution and “the Laws of the United States which shall be made in Pursuance
thereof; and all Treaties made, or which shall be made, under the Authority of the United
States, shall be the supreme Law of the Land; and the Judges in every State shall be
bound thereby, any Thing in the Constitution or Laws of any State to the Contrary
notwithstanding.” U.S. Constitution, Article VI, cl. 2. The Supremacy Clause gives
Congress the power to preempt state law. Minton v. Honda of Am. Mfg., Inc., 80 Ohio
St.3d 62, 68, 684 N.E.2d 648 (1997), abrogated on other grounds as stated in Geier v.
Am. Honda Motor Co., Inc., 529 U.S. 861, 120 S.Ct. 1913, 146 L.Ed.2d 914 (2000).
However, “[i]t has ‘long been settled’ that a preemption analysis begins with the
presumption that federal statutes do not preempt state law.” (Emphasis added.) State
v. CSX Transp., Inc., 2020-Ohio-2665, 154 N.E.3d 327, ¶ 13 (3d Dist.), appeal allowed,
159 Ohio St.3d 1486, 2020-Ohio-4232, 151 N.E.3d 635, ¶ 13, quoting Bond v. United
States, 572 U.S. 844, 858, 134 S.Ct. 2077, 189 L.Ed.2d 1 (2014); Minton at 69 (“[I]n
considering issues arising under the Supremacy Clause, courts must start with the
1. In the trial court, appellants maintained that the more appropriate procedure to challenge their
complaint would have been through a Civ.R.12(B)(6) motion for failure to state a claim on which
relief could be granted. However, because appellants have not raised this issue as error, and
because the parties do not appear to presently dispute the relevant facts required for review, we
do not pass upon this issue. See Washington Mut. Bank v. Beatley, 10th Dist. Franklin No. 06AP-
1189, 2008-Ohio-1679, ¶ 8-13 (noting that trial court may consider facts outside of the allegations
of the complaint when deciding a motion for dismissal pursuant to Civ.R. 12(B)(1), whereas the
court is confined to the four corners of the complaint when deciding a motion for dismissal pursuant
to Civ.R. 12(B)(6)).
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assumption that the historic police powers of the states are not to be superseded by
federal law unless that is the clear and manifest purpose of Congress.” (Citations
omitted.)).
{¶9} At issue here is the preemptive effect of the FAAAA:
After deregulating trucking through the Motor Trucking Act of
1980, Congress enacted the Federal Aviation Authorization
Administration Act (“FAAAA”) in 1994 in an effort to avoid “a
State’s direct substitution of its own governmental commands
for ‘competitive market forces’ in determining (to a significant
degree) the services that motor carriers will provide.”
Creagan v. Wal-Mart Trans., LLC, 354 F.Supp.3d 808, 812 (N.D.Ohio 2018), quoting
Rowe v. New Hampshire Motor Transport Assn., 552 U.S. 364, 368, 372, 128 S.Ct. 989,
169 L.Ed.2d 933 (2008). The general express preemption clause of the FAAAA provides
in relevant part: “Except as provided in paragraphs (2) and (3), a State * * * may not enact
or enforce a law, regulation, or other provision having the force and effect of law related
to a * * * service of any * * * broker * * * with respect to the transportation of property.” 49
U.S.C. 14501(c)(1); see also Minton at 69 (state law may be preempted through express,
field, or conflict preemption). Common law duties are within the scope of the “law[s],
rule[s], regulation[s], or other provision[s] having the force of law” for purposes of the
FAAAA. See Krauss v. IRIS USA, Inc., E.D.Pennsylvania No. 17-778, 2018 WL 2063839,
*4 (May 3, 2018); see also Gillum v. High Std., LLC, W.D.Texas No. SA-19-CV-1378-XR,
2020 WL 444371, *3 (Jan. 27, 2020); see also Cipollone v. Liggett Group, Inc., 505 U.S.
504, 522, 112 S.Ct. 2608, 120 L.Ed.2d 407 (1992) (“the phrase ‘state law’ [includes]
common law as well as statutes and regulations”).
{¶10} Here, the parties do not dispute that ProServ is a “broker” for purposes of
the FAAAA. See 49 U.S.C. 13102(2) (broker is “a person, other than a motor carrier * *
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* that as a principal or agent sells, offers for sale, negotiates for, or holds itself out * * * as
selling, providing, or arranging for, transportation by a motor carrier for compensation”).
Instead, the parties argue whether the negligence claim is “related to” a broker’s
“services” with respect to the transportation of property.
{¶11} “The FAAAA’s preemption provision was modeled on similar language in
the Airline Deregulation Act of 1978, which had already been interpreted by the Supreme
Court in Morales v. Trans World Airlines, Inc., 504 U.S. 374 (1992).” Krauss at *3, citing
Rowe at 368. Therefore, courts similarly interpret the preemption provisions of the
FAAAA and the ADA. Id. In interpreting these provisions, the phrase “related to” is
broadly construed in accordance with its ordinary usage: “‘to stand in some relation; to
have bearing or concern; to pertain; refer; to bring into association or connection with.’”
United Parcel Serv., Inc. v. Flores-Galarza, 318 F.3d 323, 335 (1st Cir.2003), citing
Morales at 383, quoting Black’s Law Dictionary 1158 (5th ed.1979). Therefore, if the state
law at issue “refers to and has a forbidden significant effect” on the “service of [a] broker
* * * with respect to the transportation of property,” such a law would come within the
scope of the general preemption provision. See United Parcel Serv. at 335; Dan’s City
Used Cars, Inc. v. Pelkey, 569 U.S. 251, 260, 133 S.Ct. 1769, 185 L.E.2d 909 (2013).
See also Rowe at 375, quoting Morales at 388 (“[S]tate laws whose ‘effect’ is ‘forbidden’
under federal law are those with a ‘significant impact’ on carrier rates, routes, or services.”
(Emphasis sic.)).
{¶12} However, “‘the breadth of the words “related to” does not mean the sky is
the limit.’” Loyd v. Salazar, 416 F.Supp.3d 1290, 1295-96 (W.D.Oklahoma 2019), quoting
Dan’s City Used Cars at 260. “The Supreme Court has ‘cautioned that [section]
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14501(c)(1) does not preempt state laws affecting carrier prices, routes, and services in
only a tenuous, remote, or peripheral manner.’” Loyd at 1295, quoting Dan’s City Used
Cars at 261. “Federal district courts are sharply divided on how to apply these guiding
principles to personal injury claims alleging negligence by brokers in selecting motor
carriers for the transportation of property.” Loyd at 1295. See, e.g., Ciotola v. Star
Transp. & Trucking, LLC, 481 F.Supp.3d 375, 390 (M.D.Pennsylvania 2020) (negligence
claim not preempted because claim “does not directly reference prices, routes, or services
of a broker or motor carrier, and does not place a significant financial impact on a broker
or motor carrier’s prices, routes, or services”). But see, e.g., Loyd at 1297-1298 (state-
law negligent brokering claim is directly “related to” a broker’s “services” of arranging for
motor carriers to transport property).
{¶13} Appellants contend that because “[n]egligence claims alleging personal
injury result[ing] from the failure of a business to use reasonable or ordinary care are
generally applicable to all businesses,” and because “such claims do not target the motor
carrier industry,” the claims only tangentially affect a broker’s services. This argument
finds support in the decisions of several federal district courts as discussed above and is
consistent with the principle that “[i]n the interest of avoiding unintended encroachment
on the authority of the States, * * * a court interpreting a federal statute pertaining to a
subject traditionally governed by state law will be reluctant to find pre-emption.” CSX
Transp., Inc. v. Easterwood, 507 U.S. 658, 663-664, 113 S.Ct. 1732, 123 L.Ed.2d 387(1993). “There could be no better example of a subject which is ‘traditionally governed
by state law’ than a common-law tort claim.” In re Miamisburg Train Derailment Litigation,
68 Ohio St.3d 255, 261, 626 N.E.2d 85 (1994).
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{¶14} However, given the broad language employed in the general preemption
provision, and because the negligence claim pertains to the selection of carriers, which
is the core function of a broker by statutory definition, we are persuaded by the analysis
of Creagan, 354 F.Supp.3d at 813, on this issue. Therein, the court reasoned with respect
to the general preemption provision:
While the FAAAA provides no definition of “services,” it
defines transportation to include “services related to th[e]
movement [of passengers or property], including arranging
for” the transportation of passengers or property. 49 U.S.C. §
13102(23)(B). A broker does just that– “arrange for” the
transportation of a shipment by a motor carrier. See 49 U.S.C.
§ 13102(2). Regardless of whether the broker’s alleged
negligence in its choice of motor carrier results in property
damage or personal injury, the service remains the same. * *
* Further, because the negligent hiring claim seeks to enforce
a duty of care related to how Kirsch (the broker) arranged for
a motor carrier to transport the shipment (the service), the
claim falls squarely within the preemption of the FAAAA.
(Footnotes and internal citations omitted.) Id. See also Loyd, 416 F.Supp.3d at 1297;
Gillum, 2020 WL 444371, at *4. Moreover, the only federal circuit court to have reviewed
this issue has also found that such negligence claims against a broker fall within the scope
of the general preemption provision. See Miller v. C.H. Robinson Worldwide, Inc., 976
F.3d 1016, 1023 (9th Cir.2020).
{¶15} Nonetheless, appellants argue that even should the negligence claims
relate to the broker’s services and fall within the general preemption provision, the claims
are saved by 49 U.S.C. 14501(c)(2)(A), which excepts from preemption
the safety regulatory authority of a State with respect to motor
vehicles, the authority of a State to impose highway route
controls or limitations based on size or weight of the motor
vehicle or the hazardous nature of the cargo, or the authority
of a State to regulate motor carriers with regard to minimum
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amounts of financial responsibility relating to insurance
requirements and self-insurance authorization[.]
“Congress’ clear purpose in § 14501(c)(2)(A) is to ensure that its preemption of States’
economic authority over motor carriers of property, § 14501(c)(1), ‘not restrict’ the
preexisting and traditional state police power over safety.” City of Columbus v. Ours
Garage & Wrecker Serv., Inc., 536 U.S. 424, 439, 122 S.Ct. 2226 (2002).
{¶16} As with interpretation of section 14501(c)(1), there is a split in the federal
district courts as to whether the safety regulation exception in section 14501(c)(2)(A)
saves negligence claims against brokers when the contracted carrier is involved in a
vehicle collision. See, e.g., Lopez v. Amazon Logistics, Inc., 458 F.Supp.3d 505, 515
(N.D.Texas 2020) (“Because it is feasible to read ‘state safety regulatory authority’ as
encompassing common law claims, the Court declines to adopt a plausible but narrower
construction.”). But see, e.g., Krauss, 2018 WL 2063839, at *5 (“The Court concludes
that it is more true to persuasive precedential and common-sense analysis to hold that
the claim for personal injuries arising out of the shipment in this case is preempted.”).
{¶17} The best evidence of Congress’ pre-emptive intent is statutory language.
Dan’s City Used Cars, 569 U.S. at 260. Based upon the language of the safety regulatory
exception, the Creagan court concluded that the exception did not save a negligence
claim against a broker. The court reasoned, “Because the negligent hiring claim seeks to
impose a duty on the service of the broker rather than regulate motor vehicles, * * * this
claim is not within the safety regulatory authority of the state and the exception does not
apply.” (Emphasis added.) Creagan, 354 F.Supp.3d at 814.
{¶18} However, in Miller, 976 F.3d at 1026, the Ninth Circuit concluded that the
safety regulatory exception saved negligence claims against brokers. The Miller court
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emphasized that in enacting the FAAAA, “Congress was primarily concerned with the
States regulating economic aspects of the trucking industry by, for example, enacting
tariffs, price regulations, and other similar laws” and not with restricting the safety
authority of the state. (Emphasis sic.) Id. The Miller court reasoned that the state’s
authority over safety matters includes “the ability to regulate safety through common-law
tort claims.” Id. Further, the court found that nothing in the FAAAA’s legislative history
suggested that “Congress intended to eliminate this important component of the States’
power over safety.” Id.
{¶19} Moreover, the Miller court noted that, “while it is possible to construe ‘the
safety regulatory authority of a State’ more narrowly, ‘when the text of a pre-emption
clause is susceptible of more than one plausible reading, courts ordinarily “accept the
reading that disfavors pre-emption.”’” Id. at 1027, quoting CTS Corp. v. Waldburger, 573
U.S. 1, 19, 134 S.Ct. 2175, 189 L.Ed.2d 62 (2014), quoting Altria Grp., Inc. v. Good, 555
U.S. 70, 77, 129 S.Ct. 538, 172 L.Ed.2d 398 (2008). The court then determined:
Because a narrower construction of this clause would place a
large body of state law beyond the reach of the exception, we
find it appropriate to interpret the clause broadly. See id.(describing this approach as “consistent with both federalism
concerns and the historic primacy of state regulation of
matters of health and safety[.]”).
Miller at 1028, quoting Medtronic, Inc. v. Lohr, 518 U.S. 470, 485, 116 S.Ct. 2240, 135
L.Ed.2d 700 (1996). The Miller court rejected the broker’s argument that the U.S.
Supreme Court’s use of the term “police power” in Ours Garage when describing the
state’s safety regulatory authority indicated that the exception extends only to positive
legislative enactments. Miller at 1028, citing Ours Garage, 536 U.S. at 439. The Miller
court concluded:
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[T]his argument reads too much into Ours Garage. At issue
in that case were municipal regulations governing tow truck
operations—an undisputed exercise of the “safety regulatory
authority of a State” and of the “police power.” The Supreme
Court therefore had no reason to consider whether the safety
exception is broader than this language suggests. And, as
noted, we have found no indication in the FAAAA’s legislative
history that Congress intended to limit the safety exception in
this way.
Miller at 1028.
{¶20} Further, the Miller court explained that the safety regulatory exception for
negligence claims against brokers is with respect to “motor vehicles”:
We have previously held that the phrase “with respect to” in
the safety exception is synonymous with “relating to.”
[California Tow Truck Assn. v. City & Cty. of San Francisco,
807 F.3d 1008, 1021 (9th Cir.2015), quoting In re Plant
Insulation Co., 734 F.3d 900, 910 (9th Cir.2013)].
“Consequently, the FAAAA’s safety exception exempts from
preemption safety regulations that ‘hav[e] a connection with’
motor vehicles,” whether directly or indirectly. Id. at 1021-22[,
quoting] Dan’s City Used Cars, 569 U.S. at 260, 133 S.Ct.
1769[.] For example, we have held that the safety exception
applies to municipal regulations governing who may obtain a
tow truck permit, including a requirement that permit
applicants disclose their criminal history. Id. at 1026-27. In
reaching this conclusion, we rejected the argument that the
“valid safety rationales” in this context are limited “to those
concerned only with the safe physical operation of the tow
trucks themselves.” Id. at 1023. “Rather, regulations that are
‘genuinely responsive’ to the safety of other vehicles and
individuals involved in the towing process may also be
exempted from preemption.” Id.
(Footnotes omitted.) Miller at 1030.
{¶21} We find Miller persuasive. Accordingly, we conclude that the safety
regulatory exception in 49 U.S.C. 14501(c)(2)(A) saves the negligence claims at issue
here.
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{¶22} Nonetheless, ProServ maintains that we should afford the Creagan decision
comity because Creagan is the only decision from the Northern District of Ohio to speak
to the issue presented. ProServ’s argument in this regard has evolved from its argument
before the trial court, where ProServ maintained that the Creagan decision was binding.
Regardless, ProServ has not cited any convincing authority persuading this court to
provide comity to a federal district court merely because it is located within the geographic
territory of the federal circuit where the underlying incident occurred.
{¶23} Therefore, the assigned error has merit, and the judgment is reversed. This
matter is remanded for further proceedings consistent with this opinion.
MARY JANE TRAPP, P.J.,
CYNTHIA WESTCOTT RICE, J.,
concur.
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