Action Towing, Inc. v. the Mint Leasing, Inc.

451 S.W.3d 525, 2014 WL 6462372
CourtCourt of Appeals of Texas
DecidedNovember 18, 2014
Docket01-13-00868-CV
StatusPublished
Cited by7 cases

This text of 451 S.W.3d 525 (Action Towing, Inc. v. the Mint Leasing, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Action Towing, Inc. v. the Mint Leasing, Inc., 451 S.W.3d 525, 2014 WL 6462372 (Tex. Ct. App. 2014).

Opinion

OPINION

EVELYN V. KEYES, Justice.

Appellee, The Mint Leasing, Inc. . (“Mint”), sued appellant, Action Towing, Inc. (“Action”), for conversion and theft of property under the Texas Theft Liability Act. 1 Action argued that the Federal Aviation Administration Authorization Act of 1994 2 (“FAAAA” or “the Act”) preempted Mint’s causes of action. Both parties moved for summary judgment. The trial court denied Action’s summary judgment motion and granted Mint’s. After a trial on damages, the trial court rendered judgment in favor of Mint, ordering Action to pay $18,496.96 in actual damages, $1,000 in statutory damages under the Theft Liability Act, attorney’s fees, court costs, and *527 post-judgment interest. In one issue, Action contends that the trial court erred in granting summary judgment in favor of Mint because (1) it raised fact issues on each element of its affirmative defense of preemption and (2) the trial court improperly required it to disprove the applicability of the statutory “safety exception” to its preemption defense.

We affirm.

Background

In late 2007, Mint, a vehicle leasing company located in Houston, leased a 2008 Pontiac to Albert and Anita Martinez, a married couple who have since divorced. Albert and Anita leased the vehicle for approximately three and a half years, but they stopped making lease payments in April 2011. In July 2011, Anita took the vehicle to El Paso, where it broke down. Albert, who worked for AA Superior Services, a towing company, had the vehicle towed back to Houston. After Anita failed to pay him for the towing costs, Albert delivered the vehicle to Action’s vehicle storage facility in League City.

On July 26, 2011, Action sent an invoice to Mint for $1,735 in towing and storage fees. Mint refused to pay these charges, asserting that it was not liable for the fees incurred by Martinez. Mint sent two letters to Action demanding return of the vehicle. Mint asserted that, to the extent Action claimed a lien on the vehicle, the lien was not valid under the Texas Property Code because Action was not storing the vehicle with the consent of the owner, Mint. Action refused to return the vehicle to Mint; instead, it sold the vehicle at public auction. Mint then filed suit against Action for conversion and civil theft under the Theft Liability Act. 3

Action answered and asserted several affirmative defenses. It first asserted that the FAAAA preempted Mint’s claims. It also asserted that it had a valid garage-man’s lien on the vehicle pursuant to Property Code section 70.003(c) and pursuant to Occupations Code chapter 2303.

Mint moved for traditional summary judgment on the issue of Action’s liability for conversion and civil theft and requested that the trial court hold a separate hearing at a later date regarding its damages. Mint argued that Action had wrongfully exercised dominion and control over the vehicle because it did not have any valid liens on the vehicle. Mint asserted, and attached evidence reflecting, that it did not request towing or storage of the vehicle and that it did not consent to the storage of the vehicle after Martinez delivered it to Action’s facility. It argued that retaining possession of property under an invalid lien constituted both conversion and civil theft.

In response, Action argued that the FAAAA preempted both of Mint’s claims. It argued that section 14501(c) of the Act provides that, generally, a State “may not enact or enforce a law, regulation, or other provision having the force and effect of law related to a price, route, or service of any ... broker ... with respect to the transportation of property.” 49 U.S.C. § 14501(c). It further argued that it qualified as a “broker” under the statute because, as part of its business, it “offers for sale and negotiates for providing and arranging for towing and storage services (transportation) by motor carrie[r]s (tow trucks) for compensation.” Specifically, it contended that it provided transportation services in the present case when it received and stored Mint’s vehicle.

*528 Action attached the affidavit of Hiatham Baqdounes, a corporate officer, to establish its entitlement to the preemption affirmative defense. Baqdounes averred:

Action Towing, Inc., operates a state licensed vehicle storage facility. As part of its vehicle storage services, Action stores vehicles towed by other tow truck operators to be picked up by the vehicle owner or later towed to another location. Additionally, Action offers the service of making arrangements for the stored vehicle to be towed from the vehicle storage facility.
Typically, the tow truck service delivers the vehicle and presents the towing bill for collection by Action. Action then stores the vehicle for a fee and sends the required notices of the location of the vehicle and the towing and storage fees owed to both the vehicle owner and lien holder. If the vehicle is not claimed and the towing and storage fees paid in the required time period, the vehicle can be sold at a public auction. The towing company is paid by Action from the collected towing fees or from the auction proceeds.
This procedure was exactly what happened in this ease. Defendant Albert Martinez towed the vehicle that is the subject of this lawsuit to Action’s vehicle storage facility in July of 2011. Defendant Albert Martinez was working for and operating a tow truck owned by defendant Erik Palma d/b/a AA Superi- or Services, which the tow bill stated.... Defendant Albert Martinez represented to Action that defendant Anita Martinez or Mint Leasing would pick up the vehicle and pay the towing and storage fees. Action accepted the vehicle for storage, timely sent out the required notices to plaintiff Mint Leasing, Inc., (the vehicle owner) and the lien holder, Sterling Bank. Because Mint Leasing refused to pay the towing and storage fees owed, it was refused release of the vehicle. With the towing and storage charges not being paid the vehicle was sold at a public auction.

In reply, Mint argued that the trial court should grant summary judgment in its favor because the FAAAA has four specific statutory exceptions to preemption, including a “safety exception” that allows states to exercise their “safety regulatory authority ... with respect to motor vehicles,” and Action had offered no summary judgment evidence to support the argument that “the laws that [Action] claims are preempted do not fall under one of the statute’s regulatory exceptions” to preemption. Mint argued that Action needed to present evidence raising a fact issue “on the non-applicability of each one of’ the statutory exceptions to preemption, but because it did not, the trial court should render summary judgment in Mint’s favor. Mint further argued that it would likely prevail on the “safety” exception to preemption.

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Bluebook (online)
451 S.W.3d 525, 2014 WL 6462372, Counsel Stack Legal Research, https://law.counselstack.com/opinion/action-towing-inc-v-the-mint-leasing-inc-texapp-2014.