Empire Trucking Co. v. Reading Anthracite Coal Co.

71 A.3d 923, 2013 Pa. Super. 148, 2013 WL 3129493, 2013 Pa. Super. LEXIS 1157
CourtSuperior Court of Pennsylvania
DecidedJune 21, 2013
StatusPublished
Cited by67 cases

This text of 71 A.3d 923 (Empire Trucking Co. v. Reading Anthracite Coal Co.) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Empire Trucking Co. v. Reading Anthracite Coal Co., 71 A.3d 923, 2013 Pa. Super. 148, 2013 WL 3129493, 2013 Pa. Super. LEXIS 1157 (Pa. Ct. App. 2013).

Opinion

OPINION BY WECHT, J.:

Reading Anthracite Company [“Appellant”] appeals the March 7, 2012 judgment entered following a jury verdict. The jury found Appellant in breach of its contract with Empire Trucking [“Empire”] in the amount of $299,495.18 and found Appellant to have intentionally interfered with Empire’s contractual relationships. The jury awarded Empire $271,000 in compensatory damages and $1.5 million in punitive damages. Appellant asks that we reverse the trial court’s denial of judgment notwithstanding the verdict [“JNOV”] or, in the alternative, grant a new trial. We affirm.

The trial court summarized the factual history of this case as follows:

There is no factual dispute about the background information related to the business relationship between [Appellant] and Empire.
According to the evidence, [Appellant] is one of a number of companies owned and operated by the Rich family. [Appellant] is in the coal business. It operates numerous mining sites from which it extracts raw coal to be sized and processed for sale to its customers at its coal processing facility known as a breaker. Other than some stock trucks to move coal stock around its breaker property, [Appellant] has no trucks of its own to haul the coal from its mining sites to the breaker, and from the breaker to its customers. For approximately eighteen years leading up to the summer of 2008, it contracted with Empire to fulfill its trucking needs. (N.T. p. 230-32). Empire had some trucks of its own which were used to haul [Appellant’s] coal, but it also entered into agreements with a number of other companies to use their trucks for hauling [Appellant’s] coal.
Empire had written agreements with each of its subcontractors (hereinafter “subs”) by which they leased their trucks to Empire and placed their trucks and their drivers under Empire’s control. The agreements all provided for an initial term of one year and continued unless and until terminated by either of the parties. The subs operated under Empire’s P.U.C. license and insurance and paid eight percent of their base trucking rates to Empire.
The base rate was an amount which Empire was to be paid per ton for hauling a particular material over a specified route. Every time a new hauling route was established, Gary Lorenz for Empire and William Cox (and later Jeff Gliem) for [Appellant] would negotiate and agree on a base rate per ton for that trip.
When hauling processed coal, Empire billed [Appellant] for each load hauled by its trucks and those of its subs. [Appellant], in turn, added the amount it was paying Empire to its customers’ bills as [Appellant’s] fee for transporting the coal to the customer’s location.
When hauling raw coal, Empire did not invoice [Appellant] for the loads. Instead, the tonnage and trip were recorded by the weighmaster at [Appellant’s] breaker on raw coal worksheets. The worksheets were forwarded to [Appellant’s] central office, from where checks were then issued to Empire. The subs were paid only by Empire after Empire was paid by [Appellant]. Empire paid [927]*927its subs the base rates assigned for the loads they hauled, less Empire’s eight percent in accordance with the agreements between them.
A number of the subs had worked with Empire, hauling [Appellant’s] raw and processed coal, for more than ten years. They had become very familiar with [Appellant’s] operations, and [Appellant’s] employees had come to know some of them quite well.
In 2000, the price of diesel fuel began to spike, which greatly increased the operating costs for Empire and its subs. At the time, William Cox was [Appellant’s] director of operations. Lorenz of Empire sent Cox a fax requesting a fuel surcharge.
The fax included a schedule, which Lorenz said he obtained from the Department of Energy website. The schedule set forth the percentages to be used for a fuel surcharge based upon different price levels for diesel fuel. Cox agreed that the percentage would be applied to the base rate for each trip, and the fuel prices were based on the price of diesel fuel at Jack Rich, Inc., another one of the Rich family’s companies. The fuel surcharge was only applied when Empire and its subcontractors were hauling processed coal. [Appellant’s] customers were notified that they would be billed for the fuel surcharge as part of the delivery cost.
[Appellant] has asserted that it was error to admit into evidence the schedule that the parties had used to calculate the fuel surcharge, because it was not authenticated as having come from the Department of Energy. Lorenz had testified that he had downloaded the schedule from a website that represented the schedule to be from the Department. [Appellant] objected on the basis that the website had not been properly authenticated.
[Appellant] has misinterpreted the court’s ruling regarding the admissibility of the schedule in question. In the view of this court, it did not matter whether the Department of Energy had actually issued the schedule to be used for fuel surcharges. Testimony revealed that Lorenz had sent the schedule to Cox and proposed that it be used to calculate fuel surcharges. Cox accepted that proposal by a fax marked as Plaintiffs Exhibit No. 8. The undisputed testimony was that this schedule was used by both parties to calculate fuel surcharges to be added to the cost of transporting processed coal without interruption over the following eight years. There was no evidence that [Appellant’s] acceptance of the surcharge schedule was dependent on the schedule having been created by the Department. The parties accepted the schedule as the appropriate level of surcharge to be used whatever the source of the schedule. At the- time the surcharge was imposed, the price of fuel at Jack Rich, Inc. was $1.22 per gallon. As it rose from there, the percentage of the base rate billéd to [Appellant’s] customers as a fuel surcharge also rose. Each week, Empire would get the price of fuel from Jack Rich, Inc. and refer to the accepted schedule for the percentage to be applied to the base rate as a fuel surcharge. That- surcharge was added to Empire’s invoices to [Appellant]. [Appellant] then collected it from its customers. When Empire was paid on its invoices, it passed that surcharge onto whichever subcontractors hauled to the customers named on the invoices. This allowed Empire and its subs to recoup some of their increased fuel costs. Empire only kept the surcharge if one of its own trucks had made the delivery.
[928]*928The fuel surcharge on hauling loads of processed coal continued to be calculated in this manner and passed on to [Appellant’?] customers through at least the summer of 2008. Even though Empire and its subs were purchasing the same diesel fuel for their trucks when hauling raw coal from the mines, no fuel surcharge was paid to them on those trips until 2004.
In September of 2004, the price of fuel had risen high enough that a fuel surcharge of thirteen percent was being charged to [Appellant’s] customers for processed coals. Lorenz sent Cox a letter asking that the fuel surcharge be added to loads of raw coal as well. Cox .agreed, .and [Appellant] started adding the fuel surcharge on its raw coal worksheets.

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Bluebook (online)
71 A.3d 923, 2013 Pa. Super. 148, 2013 WL 3129493, 2013 Pa. Super. LEXIS 1157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/empire-trucking-co-v-reading-anthracite-coal-co-pasuperct-2013.