Coyote Logistics, LLC v. Mera Trucking, LLC

CourtDistrict Court, N.D. Georgia
DecidedAugust 19, 2020
Docket1:18-cv-03788
StatusUnknown

This text of Coyote Logistics, LLC v. Mera Trucking, LLC (Coyote Logistics, LLC v. Mera Trucking, LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coyote Logistics, LLC v. Mera Trucking, LLC, (N.D. Ga. 2020).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF GEORGIA ATLANTA DIVISION

Coyote Logistics, LLC,

Plaintiff, Case No. 1:18-cv-03788

v. Michael L. Brown United States District Judge Mera Trucking, LLC,

Defendant.

________________________________/

OPINION AND ORDER Plaintiff Coyote Logistics, LLC moves for summary judgment on Count One of its complaint.1 (Dkt. 38.) The Court grants that motion. I. Background Plaintiff Coyote is a property broker that arranges transportation of freight by motor carriers in interstate commerce. (Dkt. 43 ¶ 1.) Defendant Mera Trucking, LLC is a for-hire motor carrier that worked with Coyote. (Id. ¶ 2.) In February 2017, Procter and Gamble (“P&G”)

1 Count One asserts a claim under the Carmack Amendment, 49 U.S.C. § 14706. Counts Two through Four assert claims for breach of contract, vicarious liability, and attorneys’ fees. Plaintiff’s motion appears to address only Count One. contracted Coyote to arrange transportation of a cargo shipment from Pennsylvania to Massachusetts. (Id. ¶ 3.) Coyote hired Mera to

transport the items. (Id.) Mera’s driver was to pick up the shipment in Pennsylvania from P&G and deliver it the next day to a customer in Massachusetts. (Id. ¶ 18.)

Coyote’s and Mera’s contractual relationship was governed by an agreement called the Broker-Carrier Agreement. (Dkt. 38-15.) Under it,

Mera agreed to assume “the same liability as that of a common CARRIER for full actual loss” subject to the Carmack Amendment.2 (Id. at 5 § 9(A).) Mera also agreed that, if a sealed shipment arrived without the seal

intact, it would be liable for “any shortage or damage claims” and that “the shipper [had] the right in its sole discretion to deem the entire shipment damaged, contaminated and unsalvageable, without the need

for any inspection.”3 (Id. at 5 § 9(B).) The agreement stated that P&G

2 The Broker-Carrier Agreement states, “[e]xcept as otherwise specifically provided in this Agreement, CARRIER agrees that in the transportation of all goods hereunder, it assumes the same liability as that of a common CARRIER for full actual loss, subject to the provisions of 49 U.S.C. § 14706 (‘Carmack Amendment’) and 49 CFR Part 370 (claim regulations).” (Dkt. 38-15 at 5 § 9(A).) 3 The section states in full: “Seal Integrity: CARRIER agrees to maintain a continuous seal record during the time the trailer is in the custody and control of CARRIER. CARRIER agrees to have the seal verified and the could make this decision “to protect its brands and prevent potentially contaminated goods from entering into the stream of commerce,

regardless of any actual condition of the shipment which an inspection might have revealed.” (Id.) It further stated that, if P&G deemed the entire shipment unsalvageable, “the shipment [would] be considered

totally damaged and worthless for all purposes and [Mera would] be liable for the full value of the shipment.” (Id.) Finally, the agreement

provided that Mera would accept a bill of lading when picking up goods for transportation but that, if the terms and conditions of any bill of

seal number and condition of the seal noted on the bills of lading and/or delivery receipt. CARRIER also agrees to notify [Coyote] immediately (at time of first discovery) if the seal integrity is broken. In the event a shipment that was sealed at origin arrives at the destination with a tampered seal or without the seal intact then; i. the CARRIER shall be liable for any shortage or damage claims with respect to such shipment and ii. the shipper shall have the right, in its sole discretion, to deem the entire shipment damaged, contaminated, and unsalvageable, without the need for any inspection, in order to protect its brands and prevent potentially contaminated goods from entering into the stream of commerce, regardless of any actual condition of the shipment which an inspection might have revealed, in which case, the shipment shall be considered totally damaged and worthless for all purposes and the CARRIER shall be liable for the full value of the shipment. To the extent that this paragraph might conflict with 49 U.S.C. § 14706, this paragraph shall take precedence and said statute is considered waived.” (Dkt. 38-15 at 5 § 9(B).) lading conflict with the Broker-Carrier Agreement, “the terms and conditions of [the Broker-Carrier Agreement would] govern and take

precedence[,] except to the extent the Bill of Lading contains specific instructions directly from the Customer.” (Id. at 4 § 6.) P&G had a standard practice for tendering shipments to motor

carriers. It prepared an order, loaded the order into a motor carrier’s trailer, and created a bill of lading. (Id. ¶¶ 6–9.) The driver and a P&G

security employee then inspected the loaded trailer to ensure the order was complete.4 (Id. ¶ 8.) The driver and the security employee then signed the bill of lading, closed the trailer doors, and affixed a seal to the

door to monitor whether anyone opened the trailer during transit. (Id. ¶ 10.) The parties followed this process for the shipment at issue here.

P&G tendered the cargo to Mera and provided a bill of lading. (Dkts. 38-16 ¶ 13; 43 ¶ 13.)5 It was three pages long. (Dkt. 38-4.) Two pages

4 Mera disputes whether a driver can actually determine if an order is complete. (Dkt. 43 ¶ 12.) It does not, however, suggest that is a relevant issue here or otherwise challenge Coyote’s assertion as to goods included in the shipment. (Id. ¶ 36.) The sole issue is whether Mera is liable for the full value of those goods or some lesser amount. 5 Neither Mera’s driver nor P&G’s employee signed the copy of the bill of lading included at summary judgment. (Dkt. 38-4.) Initially, the parties had sections entitled “Special Shipping Instructions.” (Id. at 1–2.) Both were left blank. (Id.) On the third page, under a heading of “Terms,

Conditions And Limitations For Domestic U.S. Origin Shipments,” the bill of lading stated, “Shipper shall give Carrier credit for the reasonable salvage value of any damaged product which Shipper does not authorize

Carrier to resell.”6 (Id. at 3 § 4.)

made no issue about this or suggested P&G deviated from its normal practice. (Dkts. 38-1 at 3–4; 42 at 9.) In their summary judgment briefing, both parties agreed the copy of the bill of lading included in the record is the operative document and relied upon it in making competing arguments. (Dkt. 43 ¶ 13.) At oral argument, however, Coyote suggested (for the first time) that no evidence shows Mera actually received the bill of lading. Coyote explained that Mera was unable to present a copy of the bill of lading during discovery and that only P&G maintained a copy. But, Coyote’s summary judgment filing shows this issue is not in dispute. Indeed, P&G’s Rule 30(b)(6) deponent confirmed that it issued the bill of lading to Mera at the time of the shipment and relied upon it in determining the loss it suffered as a result of Mera’s failure to care for the cargo. (Dkt. 38-3 at 7:16–8:3.) 6 The full section states, “[c]arrier agrees to hold Shipper fully indemnified against loss, damage of injury to all goods which Carrier receives from shipper for disposition to Shipper’s order until same are signed for by the Consignee.

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Coyote Logistics, LLC v. Mera Trucking, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coyote-logistics-llc-v-mera-trucking-llc-gand-2020.