Estate of Judy Milburn v. Colonial Freight Systems Inc

District Court, E.D. Texas·Decided June 30, 2020·No. 2:19-cv-00233·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS MARSHALL DIVISION

ESTATE OF JUDY MILBURN, ROSA § BRANNEN, INDIVIDUAL (DAUGHTER § . OF DECEDENT) AND AS § ADMINISTRATOR TO THE ESTATE OF § JUDY DARLENE MILBURN; AND JAIME § GARCIA, INDIVIDUAL (SON OF § DECEDENT); § § Plaintiffs, § § v. § CIVIL ACTION NO. 2:19-CV-00233-JRG § COLONIAL FREIGHT SYSTEMS INC, § DOES 1 TO 5, § § Defendants. §

MEMORANDUM OPINION AND ORDER Before the Court is Defendant Colonial Freight Systems, Inc.’s (“Colonial”) Motion for Summary Judgment (Dkt. No. 55) (the “MSJ”) and Colonial’s Supplemental Motion for Partial Summary Judgment on Issues of (1) Gross Negligence; (2) Negligent Entrustment; (3) Negligent Hiring, Retention, Training and Supervision; and (4) Negligent Inspection, Maintenance and Repair Allegations (Dkt. No. 101) (the “Supplemental MSJ”) (collectively, the “Motions for Summary Judgment”). Having considered the Motions for Summary Judgment, the subsequent briefing, the oral arguments from the parties at the Pretrial Conference held June 19, 2020, and for the reasons set forth herein, the Court is of the opinion that the Motions for Summary Judgment should be and hereby are GRANTED. I. BACKGROUND This cause of action arises out of a motor vehicle accident that occurred on January 4, 2018. At the time of the accident, Judy Milburn was asleep in the sleeping berth of a tractor trailer which collided with other vehicles stopped on Interstate 20. (Dkt. No. 66 ¶¶ 9–20.) The truck was driven by Jimmy Crisenberry, who was a driver for Colonial. (Id. ¶ 10.) Ms. Milburn worked for Mr. Crisenberry as a co-driver. (Dkt. No. 72 at 9.) Plaintiffs Rosa Brannen, individually and as Administrator of the Estate of Judy Milburn, and Jaime Garcia, individually (collectively, the

“Plaintiffs”) assert that Colonial is liable for Ms. Milburn’s injuries due to the negligence of Mr. Crisenberry and Colonial’s own negligence. (Dkt. No. 66.) Mr. Crisenberry entered into a contract (the “Lease Agreement”) on November 29, 2011 with Colonial whereby he agreed to serve as an independent contractor operating under the authority of Colonial. (Dkt. No. 101, Exh. 20.) The Lease Agreement provided that if Mr. Crisenberry “determines that it is necessary to use drivers, driver helpers, laborers or others to perform the work under this agreement, they shall be employed at Contractor’s [Mr. Crisenberry] expense. Such employees shall be qualified under and meet all requirements of company and company insurance policies . . .” (Id. at Page ID #: 1416.) The Lease Agreement further provided the following:

8. Contractor agrees to and shall comply with all applicable Workman’s Compensation statutes concerning covering its employees and Contractor shall indemnify and hold Carrier [Colonial] harmless from all claims and demands thereof that may be made against Carrier. The laws of the state of Tennessee shall govern interpretation, enforcement and the determination of all benefits payable pursuant to workman’s compensation insurance subject to the all [sic] contractual agreements between the parties.

. . .

10. Carrier will maintain insurance coverage for the protection of the public, pursuant to all applicable federal regulations. However, Contractor shall maintain at its own expense insurance with limits and terms satisfactory to Carrier pursuant to all applicable regulations as follows:

. . . (b) A worker’s compensation insurance policy covering Contractors and their employees employed in connection with the performance of this Agreement which shall include an “All States Endorsement.” The Contractor may elect to enroll in the worker’s compensation program offered through Carrier for himself/herself and/or all Contractor’s employees and have all costs deducted from Contractor’s settlement.

(Id. at Page ID#: 1416–17.) Mr. Crisenberry performed under the Lease Agreement until the date of the accident on January 4, 2018. (Dkt. No. 101, Aff. of Ruby McBride, ¶ 20.) On September 6, 2013 Ms. Milburn, Mr. Crisenberry, and Colonial executed a Workers’ Compensation Contractual Agreement (the “Workers’ Compensation Agreement”). (Dkt. No. 55, Exh. A-1.) The Workers’ Compensation Agreement purports to provide workers’ compensation coverage to both Mr. Crisenberry, as an owner/operator with Colonial, and Ms. Milburn, as a driver for Mr. Crisenberry. (Id.) The Workers’ Compensation Agreement further provides that workers’ compensation shall constitute an exclusive remedy for injuries incurred while in the execution of duties for Colonial. (Id.) Ms. Milburn affirmed her coverage for workers’ compensation with the Tennessee Department of Labor and Workforce Development. (Dkt. No. 55, Exh. A-2.) Following the accident, which is the subject of this action, a workers’ compensation claim was opened, adjudicated, and paid to Mr. Crisenberry’s estate. (Dkt. No. 75, Exh. A.) However, no such claim was processed on the behalf of Ms. Milburn’s estate. Instead, this action was filed and Colonial now seeks summary judgment that the Plaintiffs’ exclusive remedy is workers’ compensation. II. LEGAL STANDARD Summary judgment is warranted when the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, show that “there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a); Celotex Corp. v. Catrett, 477 U.S. 317, 322 (1986). “By its very terms, this standard provides that the mere existence of some alleged factual dispute between the parties will not defeat an otherwise properly supported motion for summary judgment; the requirement is that there be no genuine issue of material fact.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247–48 (1986). A dispute is genuine only “if the evidence is such that a reasonable jury could return a verdict for

the non-moving party.” Id. at 248. To resolve the Motions for Summary Judgment, the Court must construe the Workers’ Compensation Agreement and, by extension, the Lease Agreement, which by their terms are governed by the laws of Tennessee. Summary judgment is permissible when the language of the contractual provisions at issue is unambiguous or when the contractual language is ambiguous but the extrinsic evidence creates no genuine issue of material fact and permits interpretation of the agreement as a matter of law. Gonzalez v. Denning, 394 F.3d 388, 392 (5th Cir. 2004). Under Tennessee law, the primary rule of contract interpretation is to ascertain and give effect to the intent of the parties. Garrison v. Bickford, 377 S.W.3d 659, 664 (Tenn. 2012). If the contract language at issue is clear and unambiguous, the literal meaning controls the outcome of the dispute.

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Estate of Judy Milburn v. Colonial Freight Systems Inc, (E.D. Tex. 2020).

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