Donald E. Carlson v. FedEx Ground Package Systems, Inc.

787 F.3d 1313, 2015 WL 3405994
CourtCourt of Appeals for the Eleventh Circuit
DecidedMay 28, 2015
Docket13-14979
StatusPublished
Cited by51 cases

This text of 787 F.3d 1313 (Donald E. Carlson v. FedEx Ground Package Systems, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Donald E. Carlson v. FedEx Ground Package Systems, Inc., 787 F.3d 1313, 2015 WL 3405994 (11th Cir. 2015).

Opinion

JORDAN, Circuit Judge:

For customers who are regularly visited by the ubiquitous white trucks of FedEx Ground, with their familiar purple and green logos, the usual concern is whether packages are picked up on schedule and delivered on time. If asked, a good number of those customers would probably say that they believe (or reasonably assume) that the drivers of those white trucks are employed by FedEx. The law, however, sometimes has a funny way of making hard what would otherwise seem intuitively simple, and that is the case with the legal status of FedEx’s drivers. The drivers who work for FedEx in Florida say they are employees, while FedEx maintains that they are independent contractors, and the resolution of that dispute is critical to a class action lawsuit filed by those Florida drivers against FedEx. Applying Florida law, we conclude that, on this record, the issue is one for a jury to resolve.

I

Drivers who worked for FedEx in Florida filed suit in June of 2005, asserting a number of statutory and common-law claims against the company (statutory claims under Florida’s Deceptive and Unfair Trade Practices Act, see Fla. Stat. § 501.201 et seq., and common-law claims for false information negligently supplied, breach of contract, and fraud). Between 2003 and 2009, drivers in approximately 40 other states filed similar actions against FedEx. The Judicial Panel on Multidistrict Litigation consolidated these actions and transferred them to the Northern District of Indiana, which we will refer to as the MDL court. In these consolidated actions, the drivers alleged that, under their respective state laws, they were employees of FedEx and sought, among other things, reimbursement of business expenses and back pay for overtime. See In re FedEx Ground Package Sys., Inc., Emp’t Practices Litig., 758 F.Supp.2d 638, 654 (N.D.Ind.2010) (In re FedEx II).

The Florida drivers sought class certification in the MDL court, arguing that their status as employees would be demonstrated by the standard contract they exe *1317 cuted with FedEx — the “Operating Agreement” — and internal policies, practices, and procedures distributed by FedEx to its officers and employees. The MDL court agreed with the drivers and certified a Florida class under Federal Rule of Civil Procedure 23(b)(3), finding that the common question regarding FedEx’s right to control the work of its drivers predominated over other questions affecting members of the class. It determined that the extent of FedEx’s control would depend on an analysis of the terms of the standard Operating Agreement, as well as standard practices and procedures of FedEx that were systematically applicable to all of the Florida drivers.

Following discovery, the Florida drivers filed a motion for summary judgment, asserting that they were FedEx’s employees under Florida law. FedEx filed a cross-motion for summary judgment, arguing that the drivers were independent contractors. The MDL court, specifying that it was only considering “evidence common to the drivers’ relationships with FedEx on a nationwide basis” (i.e., the standard Operating Agreement and FedEx’s standard practices and procedures), granted FedEx’s motion for summary judgment and denied the drivers’ motion. Id. at 655.

In granting FedEx’s motion, the MDL court ruled that the drivers were independent contractors under Florida law because, under the Operating Agreement and FedEx’s standard practices and procedures, FedEx did not have the right to control the manner, method, and means by which the drivers did their jobs. See In re FedEx Ground Package Sys., Inc., Emp’t Practices Litig., 734 F.Supp.2d 557, 560-75 (N.D.Ind.2010) (In re FedEx I) (setting out the provisions of the standard Operating Agreement and FedEx’s standard practices and procedures in the course of analyzing similar claims by Kansas drivers); In re FedEx II, 758 F.Supp.2d at 676-78 (applying Florida law to those provisions, practices, and procedures). Incorporating its earlier decision in In re FedEx I concerning Kansas drivers, the MDL court concluded that “ ‘the only reasonable inference that can be drawn [from the Operating Agreement and FedEx’s standard practices and procedures] is that FedEx hasn’t retained the right to control the details of the [Florida drivers’] work methods on a class-wide basis.’ Whether the court looks only to the right to control, or to all the Restatement factors or some number of factors in-between, the result is the same.” In re FedEx II, 758 F.Supp.2d at 678 (quoting In re FedEx I, 734 F.Supp.2d at 589).

The MDL court then remanded the case to the Middle District of Florida for resolution of individual common-law claims (false information negligently-provided and breach of contract) asserted by plaintiffs Sheree Harting, Troy Upman, and David Mosher. FedEx prevailed on these individual claims in the Middle District, and ultimately obtained a final judgment in its favor. The Florida drivers now appeal.

II

We review a district court’s grant of summary judgment de novo, viewing the record and drawing all factual inferences in the light most favorable to the nonmoving parties. See Mazzeo v. Color Resolutions Int’l, LLC, 746 F.3d 1264, 1266 (11th Cir.2014). Summary judgment is appropriate when “there is no genuine dispute as to any material fact” and the moving party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(a). “[W]hether a genuine issue concerning a material fact exists is itself a question of law that must be decided by the court.” 10A Charles Alan Wright, ArthuR R. Miller, & Mary Kay *1318 Kane, Federal Practice and Procedure § 2720 (3d ed.1998).

“If reasonable minds could differ on the inferences arising from undisputed facts, then a court should deny summary judgment.” Allen v. Tyson Foods, Inc., 121 F.3d 642, 646 (11th Cir.1997) (internal quotation marks and citations omitted). This is because “the drawing of legitimate inferences from the facts are jury functions, not those of a judge.” Reeves v. Sanderson Plumbing Products, Inc., 530 U.S. 133, 150, 120 S.Ct. 2097, 147 L.Ed.2d 105 (2000) (citation and internal quotation marks omitted). Here, as we explain, the underlying facts are largely undisputed, but the inferences that can be drawn from those facts are not.

Ill

Everyone in this diversity case agrees that Florida substantive law governs. See generally Erie R.R. Co. v. Tompkins, 304 U.S. 64, 78, 58 S.Ct. 817, 82 L.Ed. 1188 (1938). In interpreting Florida law, we look first to precedent from the Florida Supreme Court.

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787 F.3d 1313, 2015 WL 3405994, Counsel Stack Legal Research, https://law.counselstack.com/opinion/donald-e-carlson-v-fedex-ground-package-systems-inc-ca11-2015.