Great W. Cas. Co. v. Maric Transp., Inc.

628 F.Supp.3d 754

GREAT WEST CASUALTY COMPANY, Plaintiff, v. MARIC TRANSPORTATION, INC., et al., Defendants.

Case No. 1:21-cv-00441

United States District Court, N.D. Ohio, Eastern Division

Signed September 16, 2022

Brian Douglas Sullivan, Brianna M. Prislipsky, Reminger Co., Cleveland, OH, for Plaintiff.

Christopher J. Van Blargan, Kisling, Nestico & Redick, Akron, OH, Michael J. Maillis, Kisling, Nestico & Redick, Poland, OH, for Defendants.

Maric Transportation, Inc., Franklin, WI, Pro Se.

Predrag Maric, Franklin, WI, Pro Se.

Olanyanju Ladejo, Snellville, GA, Pro Se.

MEMORANDUM OPINION AND ORDER

PAMELA A. BARKER, UNITED STATES DISTRICT JUDGE

Currently pending are (1) Plaintiff and Counter-Defendant Great West Casualty Company's ("Great West") Motion for Summary Judgment filed on March 15, 2022 ("Great West's Motion") (Doc. No. 39); and (2) Defendants and Counter-Claimants Susan Quinones's and Joyce McKenzie's (together "Defendants") Cross-Motion for Partial Summary Judgment filed on April 12, 2022 ("Defendants' Motion") (Doc. No. 41). Great West filed a combined Brief in Opposition to Defendants' Motion and Reply in Support of its Motion on May 12, 2022 ("Great West's Opposition") (Doc. No. 44), and Defendants filed a Reply in Support of their Motion on May 24, 2022 ("Defendants' Reply") (Doc. No. 45).

For the following reasons, Great West's Motion is GRANTED, and Defendants' Motion is DENIED.

I. Background

A. Stipulated Facts

Great West and Defendants (together, the "parties") have stipulated to the following facts. (Doc. Nos. 38, 43, 46.)

i. The Accident

On April 7, 2018, Olanyanju Ladejo ("Ladejo") was operating a 2007 Freightliner tractor with VIN 1FUJA6CVX6PU98227 owned by Wisconsin Trucks, Inc. ("Wisconsin Trucks"), Jovo Mihic, and White Eagles. (Doc. No. 38, ¶ 2.) At the same time, Ladejo was hauling a 2012 Great Dane Trailer VIN 1GRAP0620CT564202 owned by M&M Express, Inc. (together, with the Freightliner, the "Vehicle"). (Id.) While doing so, Ladejo negligently rear-ended a van operated by David Scheehle ("Scheehle"). (Id.) A true and accurate copy of a portion of the Ohio Highway Patrol Crash report is attached as Exhibit B to the Stipulations of Facts and the parties stipulate to the facts contained therein. (Id. & Ex. B.)

At the time of the accident, Ladejo was transporting cargo under a contract between Wisconsin Trucks and ProServ Logistics, Inc. ("ProServ Logistics"), a third-party freight broker. (Id. at ¶ 5.) The contract between ProServ Logistics and Wisconsin Trucks is presumed to be valid and was in effect at the time of the accident. (Id. at ¶ 7.) A true and accurate copy of the agreement between Wisconsin Trucks and ProServ Logistics is attached as Exhibit G to the Amended Supplemental Joint Stipulations of Facts. (Doc. No. 46, ¶ 2 & Ex. G.)

Ladejo was engaged in the interstate transportation of goods on behalf of Wisconsin Trucks at the time of the accident. (Doc. No. 38, ¶ 6.) Ladejo was driving a vehicle used in the business of the person or entity to whom the vehicle was rented, leased, or loaned at the time of the accident. (Id. at ¶ 9.)

ii. The Insurance Policies

Effective February 1, 2018 through February 1, 2019, Great West issued a "Non-Trucking Use" ("NTU") Commercial Lines Policy numbered ICP00366M to the Independent Contractors of Wisconsin Truck Owner Operators Association (the "NTU Policy"). (Doc. No. 38, ¶ 1.) The NTU Policy was issued to the insured in New Berlin, Wisconsin. (Id.) A true and accurate copy of the NTU Policy is attached as Exhibit A to the Stipulations of Facts. (Id. & Ex. A.)

Maric Transportation, Inc. ("Maric Transportation") is a member of the Independent Contractors of Wisconsin Truck Owner Operators Association and is an insured under the Great West NTU Policy. (Id. at ¶ 4.) A certificate of insurance for the Great West NTU Policy, a true and accurate copy of which is attached as Exhibit D to the Stipulations of Facts, identifies Wisconsin Trucks as the motor carrier. (Id. at ¶ 4 & Ex. D.) The contract or agreement between Maric and Wisconsin Trucks, a true and accurate copy of which is attached as Exhibit F to the Amended Supplemental Joint Stipulations of Facts ("the Independent Contractor and Policy Agreement"), is presumed to be valid and was in effect at the time of the accident. (Id. at ¶ 7; Doc. No. 46, ¶ 1; Doc. No. 46-1.)

The Independent Contractor and Policy Agreement contains the following relevant provisions:

Predrag Maric UNDERSTAND AND AGREE TO THE TERMS IN THIS CONTRACT DATED Jan[.] 13, 2018

1. I understand that I am an Independent Contractor/Owner Operator. This agreement shall remain in full force and effective for a 1 year period beginning on the date first written above and continuing thereafter on a year to year basis. Either Party may terminate this Agreement at any time, with or without cause.

* * *

13. I understand that taking the tractor and trailer anywhere other than agreed upon trip origin route and destination or my personal use or place of residence requires verbal notification/disclosure to Wisconsin Trucks, Inc.

* * *

15. It iss [sic] my responsibility to make and keep copies of the Vehicle Trip Report, Vehicle Expense Report, Bill of Lading and all receipts of each trip until Wiscosnin [sic] Trucks, Inc. has been paid by the broker or shipper and I have been paid by Wisconsin Trucks Inc. If the original copies are lost in the mail or due to my negligence and I cannot provide copies, I will be responsible for all expenses and lost earnings to Wisconsin Trucks, Inc. as well as my loss of pay for said load.

16. I understand, acknowledge and give Wisconsin Trucks, Inc. permission to withdraw and/or deduct monies from my net revenue/pay for the following conditions:

a. Cash Advances.

b. Shortages in trip funds by my failure to provide receipts for fuel, supplies or other items and services that I have been advanced monies to purchase on behalf of Wisconsin Trucks, Inc[.]

c. My failure to provide copies of BOL, Trip Sheet, Expense Report and all receipts for load.

d. Any charges or penalties to pick up or deliver load on time scheduled.

e. Any physical damage on the tractor and trailer assigned to me if any accidents occur.

f. Any towing charges for vehicles that I own or assigned to me if I am found at fault in an accident.

g. Fees and penalties assessed by the US DOT due to driver qualification violations.

h. I understand that this is not a complete list of items that may arise that could effect [sic] deductions from my revenue and that I have the right to submit a written rebuttal to Wisconsin Trucks Inc[.] for consideration of reversal of deductions from wages for items listed and not listed.

17. I understand that Wisconsin Trucks will provide Cargo and Liability coverage for me, the truck and trailer that I will be using while working for Wisconsin Trucks, Inc[.]

18. I understand that I will be provided with the Certificate of Insurance and will have to be responsible to keep with me at all times proving that the truck, trailer and driver are covered under Cargo and Liability Insurance that is offered by carrier Wisconsin Trucks Inc.

19. Wisconsin Trucks Inc[.] will provide coverage for Cargo up to $100,000 as stated on the certificate of insurance given to me.

20. Wisconsin Trucks Inc[.] will provide coverage for Liability up to $1,000,000 as stated on the certificate that was given to me.

21. I understand that in case of an accident that Wisconsin Trucks will cover cargo damages and losses and liability demages [sic] of bodily injury or property demage [sic] caused by and [sic] accident up to their limits.

22. I understand that if there is any other excess of the policy limit I as contractor/owner operator will be liable for any such amount above that limit . . . .

(Doc. No. 46-1, PageID # 520-22.)

The signature line above "Contrac[t]or/Owner Operator, Maric Transportation Inc., Predrag Maric on the last page of the Independent Contractor and Policy Agreement contains a handwritten signature of Predrag Maric. (Id. at PageID # 522.)

Neither the 2007 Freightliner identified as VIN 1FUJA6CVX6PU98227 nor the 2012 Great Dane Trailer identified as VIN 1GRAP0620CT564202 that Ladejo was driving at the time of the accident were listed under the NTU Policy on file with Great West. (Doc. No. 38, ¶ 13.)

Wisconsin Trucks was insured for trucking liability under a policy of insurance issued by Spirit Commercial Auto Risk Retention Group ("Spirit") at the time of the crash. (Id. at ¶ 10.) The policy issued by Spirit provided coverage for any negligence alleged on the part of Ladejo or Wisconsin Trucks giving rise to Defendants' claims. (Id. at ¶ 11.) Spirit was placed in receivership by the Nevada Department of Insurance, is insolvent, and is in the process of liquidation. (Id. at ¶ 12.)

iii. The Underlying Lawsuit

On July 30, 2020, Defendants Quinones (as Scheele's legal guardian) and McKenzie (Scheehle's mother) filed a complaint, a true and accurate copy of which is attached as Exhibit C to the Stipulations of Facts, against numerous individuals and entities, including Ladejo, Maric Transportation and Predrag Maric ("Maric"), for injuries and damages arising out of the April 7, 2018 accident in the Trumbull County Court of Common Pleas bearing case number 20CV00883 ("Trumbull County Action"). (Doc. No. 38, ¶¶ 3-4 & Ex. C.)

Great West is currently providing Maric Transportation, Maric, and Ladejo with a defense to the claims asserted against them in the Trumbull County Action pursuant to a reservation of rights. (Id. at ¶ 14.)

B. NTU Policy Language

Section I, titled "Covered Autos," of the "Commercial Auto Cover Part Wisconsin Non-Trucking Use Coverage Form" of the NTU Policy reads in relevant part as follows:

59= INDEPENDENT CONTRACTOR COMMERCIAL AUTOS. Only those trucks, tractors and "trailers" on file with us that are leased by the "motor carrier" shown in the Declarations under this symbol and only while under a written lease agreement of thirty (30) days

...