Alyce Couch v. United States

694 F.3d 852, 2012 WL 3990695, 2012 U.S. App. LEXIS 18643
CourtCourt of Appeals for the Seventh Circuit
DecidedSeptember 5, 2012
Docket12-1107
StatusPublished
Cited by14 cases

This text of 694 F.3d 852 (Alyce Couch v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alyce Couch v. United States, 694 F.3d 852, 2012 WL 3990695, 2012 U.S. App. LEXIS 18643 (7th Cir. 2012).

Opinion

HAMILTON, Circuit Judge.

This case presents a recurring issue under the Federal Tort Claims Act and Illinois law, and one that has divided federal district courts in Illinois. The question is whether a driver employed by a private trucking company with a “Highway Contract Route” or “HCR” contract with the U.S. Postal Service is also a “borrowed employee” of the Postal Service for purposes of the Federal Tort Claims Act and the Illinois Workers Compensation Act (IWCA). We conclude that the answer is no. The private trucking company does not merely “lend employees” to the Postal Service but provides mail transportation and delivery services. The company trains, equips, pays, and supervises its own employees using its own equipment to provide these services. We therefore reverse the district court’s grant of judgment for the government in this case. Our decision is consistent with decisions in many cases in which injured persons have sued the Postal Service for injuries caused by the negligence of HCR drivers. In those cases the Postal Service has successfully argued that the HCR drivers are independent contractors rather than borrowed employees for whose negligence the Postal Service could be held liable.

I. Factual and Procedural Background

The relevant facts are undisputed. In 2008, Billy Couch was employed as a truck driver by B & B Trucking, a private company that has HCR contracts with the Postal Service. While Couch was making a delivery to a Postal Service facility in Elk Grove, Illinois, a U.S. Postal Service employee ran over his foot with a forklift. Two years later, Couch died, allegedly as a result of complications from the injury. For purposes of this appeal, we must assume that the Postal Service employee was negligent and that the negligence caused Couch’s injury and later death.

B & B Trucking provided its drivers with workers’ compensation insurance, which covered Couch’s medical expenses. After her husband died, plaintiff Alyce Couch brought this action against the United States under the Federal Tort Claims Act (FTCA), which provides a cause of action for personal injuries negligently caused by federal employees acting within the scope of their employment. 28 U.S.C. § 1346(b)(1). Under the FTCA, the United States is liable to the same extent as a private entity under the law of the state where the allegedly tortious act occurred — in this case, Illinois. 28 U.S.C. § 2674.

Without addressing the merits, the United States moved for summary judgment on the theory that Couch was a “borrowed *855 employee” whom the Postal Sendee had borrowed from B & B Trucking. If he was a borrowed employee of the Postal Service, then workers’ compensation would provide Couch’s only remedy against both the borrowing and lending employers, and the tort case would have to be dismissed. For reasons we detail below, the borrowed employee question here turns on the nature and terms of the HCR contract between the Postal Service and B & B Trucking.

Through HCR contracts, the Postal Service has outsourced to private companies certain mail delivery services that were once performed by its own employees. B & B Trucking is one such HCR contractor. B & B Tracking also works for FedEx and other private carriers, but it derives at least 90 percent of its revenue from its contracts with the Postal Service.

B & B Tracking owns its own delivery trucks for local, regional, and long-haul mail transportation. It also screens, hires, trains, supervises, and pays its own drivers to transport mail between Postal Service facilities. B & B Trucking also employs dispatchers, custodians, mechanics, and administrative staff, but the vast majority of its 275 employees are drivers. Under an HCR contract, B & B Trucking drivers need not wear uniforms, but they must display a badge that identifies them as a “Non Postal Service Contractor Employee.” The Postal Service does not train or manage the contractor employees in any way, but it does conduct background checks, and the HCR contract bars B & B Tracking from employing “any individual who ... lack[s] sufficient ability to perform properly the required duties, [is] not a reliable and trustworthy person of good moral character,” or is “barred by law or Postal Service regulations from performing such duties.” B & B Tracking conducts a two- to three-day mandatory general training program for its drivers. Drivers communicate via their onboard truck computers with B & B Trucking’s dispatcher, who in turn radios the Postal Service when necessary. The Postal Service requires contractor drivers to have cell phones in case the Postal Service or the driver needs to “initiate two-way communications” directly.

When bidding for an HCR contract, B & B Tracking provides an estimate of the number of employees it would require and the associated costs of the transportation services. Once the contract is performed, the Postal Service reimburses B & B Trucking for those costs. The contract at issue in this case was labeled one “For mail service,” with the “type of service” described as “Transportation.” The contract did not specify the number of B & B Trucking drivers required to perform, only the number and types of vehicles. About 60 percent of the estimated cost was allocated to wages and employee benefits. These labor costs included a line-item estimate for workers’ compensation insurance, which B & B Tracking purchased and for which the Postal Service reimbursed it.

As required under the IWCA, B & B Trucking’s workers’ compensation insurance paid Couch’s medical bills. After Couch died, his widow filed this action against the United States for negligence, seeking damages that included pain and suffering, lost wages, and loss of consortium. After answering, the United States moved for summary judgment on the ground that workers’ compensation provided the exclusive remedy available for the decedent’s on-the-job injuries because the Postal Service was his borrowing employer for the purposes of the IWCA.

The district court relied on our decisions in Luna v. United States, 454 F.3d 631 (7th Cir.2006), and Belluomini v. United States, 64 F.3d 299 (7th Cir.1995), and framed the key issue as follows: whether *856 the Postal Service was a borrowing employer depended on whether B & B was a “loaning employer” under the IWCA, and that question turned on whether “a substantial part of’ B & B’s “business is ... furnishing employees to do jobs for governmental and private” employers. Couch v. United States, No. 11 C 2536, 2011 WL 6318943, at *4-5 (N.D.Ill. Dec. 14, 2011). The district court said yes, reasoning that because its drivers perform work typically done by the Postal Service itself (namely, delivering mail), B & B Trucking “furnished” its employees to do the work of the Postal Service and other employers.

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694 F.3d 852, 2012 WL 3990695, 2012 U.S. App. LEXIS 18643, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alyce-couch-v-united-states-ca7-2012.