Cannon, L. v. Tre Racing Engines

Superior Court of Pennsylvania·Decided April 29, 2019·No. 243 EDA 2018·Unpublished

Opinion

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

LEO CANNON : IN THE SUPERIOR COURT OF : PENNSYLVANIA

Appellant :

:

:

v. :

:

:

TRE RACING ENGINES : No. 243 EDA 2018

Appeal from the Order December 14, 2017 In the Court of Common Pleas of Delaware County Civil Division at No(s): 2015-004590

BEFORE: PANELLA, J., DUBOW, J., and KUNSELMAN, J. MEMORANDUM BY DUBOW, J.: FILED APRIL 29, 2019 Leo “Rease” Cannon (“Appellant”) appeals from the Order granting Summary Judgment to Tre Racing Engines (“Appellee”). He also challenges the trial court’s order granting Appellee’s Petition to Open Default Judgment. We affirm.

The relevant facts are as follows. In 1997, Appellant purchased an engine for his 1969 Camaro. Appellant, who owns a business based in Haverford called B&R Auto, contacted Appellee, based in Texas, to repair the Camaro engine. Taylor Lastor (“Lastor”) owns Appellee.

The first time Appellant used Appellee to repair his engine was in 2009.

After contacting Appellee and reaching an agreement regarding the repair job, Appellant himself arranged the packing and shipping of the engine through R+L Carriers, and allegedly paid an additional fee to the shipping company for insurance to cover the engine during transit. See Complaint, ¶10. Upon

completion of the work, Appellee shipped the engine back to Appellant using its shipping agent, Unishippers, from whom it gets a volume discount rate.1 Appellant reimbursed Appellee for those shipping costs.2 In 2010, Appellant again needed work done on the engine and he contacted Appellee. Lastor agreed to install a fogger system in Appellant’s engine and arranged shipping through Unishippers so that Appellant could get the benefit of Appellee’s volume discounted shipping rate. Unishippers, through its subcontractor, picked up the engine in Haverford and shipped it to Texas. Upon completion, Appellee used Unishippers to ship the engine back to Appellant. The shipping charge appeared on the invoice/receipt that Appellee submitted to Appellant’s Company, B&R Auto, for the cost of repairs and shipping.3 There is no indication that insurance was part of the agreement.

1Unishipper utilizes subcontractors, including R+L Carriers, to render shipping services.

2 Appellant averred in his Complaint that he paid an additional fee to the shipping company to insure it “while in transit to Texas and during its return to Pennsylvania.” Complaint, ¶10. See also Appellant’s Response to Interrogatories, annexed as Exh. E to Appellee’s Motion for Summary Judgment, at ¶¶ 15(q) and 94 (asserting Appellant “assumed” and/or “believed” the shipment was insured). Appellant’s Complaint and his answers to the interrogatories do not indicate that he ever explicitly discussed insurance with Appellee in 2009.

3 Appellant asserted in his Complaint that “Lastor represented to [him] that Lastor “could arrange for the shipment of the … Engine in the same manner as that previously used by [Appellant], but at a lower cost than was available to” Appellant. Complaint, ¶15 (emphasis added).

Appellant again utilized Appellee to repair his engine in July 2013.

Lastor made the shipping arrangements with Unishippers and returned the engine to Appellant in 2014.

In December 2014, Appellant again spoke with Lastor about making modifications to the engine and Lastor again arranged the shipping through Unishippers for Appellant’s convenience. As part of the arrangement, Lastor downloaded Unishipper’s form Bill of Lading, filled out basic information, such as the name of the parties, where the engine was to be picked up, and how it was to be shipped. He then faxed the form Bill of Lading to Appellant for his review and completion. Nothing in the pleadings, admissions, and interrogatories indicates that the parties ever discussed insurance.

Appellant packed up the engine in a crate and confirmed the pick up date with R+L Carriers, Unishippers’ subcontractor. On December 9, 2014, R+L picked up the engine at Appellant’s business, B&R Auto in Haverford, for shipment to Texas. At that time, Appellant signed and handed the Bill of Lading to the driver. Neither Appellant nor Appellee had written a value of the engine on the Bill of Lading.4 The engine never arrived in Texas; it is

presumably lost.

4 According to Appellant, “Lastor knew that the tariff of the trucking company hired by Unishippers to transport the Camaro Engine . . . provided that . . . the value of the Camaro Engine would be calculated on a cents per pound basis unless a higher value was declared for the Camaro Engine on the trucking company’s Bill of Lading.” Complaint, ¶33.

Appellant sought reimbursement from Appellee for the lost engine, to no avail.5 In May 2015, Appellant filed a Complaint in the court of common pleas of Delaware County, asserting that Appellee was negligent in failing to purchase insurance for the engine, failing to declare the value of the engine on the Bill of Lading, failing to notify Appellant that it had not declared the full value of the engine on the Bill of Lading, and failing to notify Appellant that it had not purchased insurance for the full value of the engine from Unishippers, See Complaint, ¶39.

Appellant mailed the Complaint by certified mail in May 2015, but the post office returned it to Appellant’s counsel as “unclaimed.” Appellant reinstated the Complaint and on July 31, 2015, Appellant personally served Appellee. Appellee obtained an attorney, and in August 2015, counsel for the parties had two conversations. Appellee’s counsel did not enter an appearance of record.

On September 11, 2015, pursuant to Pa.R.C.P. 237.1, Appellant sent a Notice to Appellee of his intent to file a Praecipe for a Default Judgment.6 On

5 Prior to the filing of the Complaint, Appellant filed a claim with R+L Carriers, using R+L’s claim form, seeking $27,500.00, which Appellant represented was the value of the engine. Appellant alleged that “[p]ursuant to R+L Carriers’ tariff, R+L is obligated to pay Cannon only $77.50 for the lost or stolen Camaro Engine.” Complaint, ¶38.

6 Although Appellee’s counsel had been in contact with Appellant’s counsel, Appellant did not send the Notice to file Praecipe for Default Judgment to the attorney.

September 28, 2015, the court entered a Default Judgment in the amount of $80,000.00 against Appellee pursuant to Appellant’s Praecipe.

On November 2, 2015, Appellee filed a Petition to Open or Strike Default Judgment and for Leave to File Answer. On May 4, 2016, the court held a hearing. Appellant submitted evidence of mailings. Lastor testified that he never received mailings or USPS notices because he lives off a rural road in Texas behind an electric gate where mail carriers throw his mail over the gate, or pin USPS notices to the fence post. The court granted the Petition and entered an Order opening the Default Judgment.

Appellee subsequently filed an Answer with New Matter.7 Appellant responded on June 6, 2016. Discovery ensued, with Appellant responding to the interrogatories propounded by Appellee’s counsel. Neither party took depositions.

On September 19, 2017, Appellee filed a Motion for Summary Judgment and/or Judgment on the Pleadings, attaching copies of the Appellant’s responses to its Interrogatories, Bills of Lading, and invoices/receipts.

On December 12, 2017, the Hon. Christine Fizzano Cannon heard oral argument on the Motion for Summary Judgment, at which Appellant’s counsel agreed with the court that the failure to insure the engine did not cause the engine to get lost in transit. See N.T., 12/12/17, at 26. He also agreed that

the loss at issue is the monetary value of the engine, not the engine itself.

7Appellee did not file preliminary objections in the nature of a demurrer based on the failure of the Complaint to state a cause of action.

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