ESTES EXPRESS LINES v. U.S.A. LAMP AND BALLAST RECYCLING, INC.

CourtDistrict Court, W.D. Pennsylvania
DecidedAugust 15, 2024
Docket2:21-cv-00609
StatusUnknown

This text of ESTES EXPRESS LINES v. U.S.A. LAMP AND BALLAST RECYCLING, INC. (ESTES EXPRESS LINES v. U.S.A. LAMP AND BALLAST RECYCLING, INC.) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ESTES EXPRESS LINES v. U.S.A. LAMP AND BALLAST RECYCLING, INC., (W.D. Pa. 2024).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF PENNSYLVANIA

ESTES EXPRESS LINES, Plaintiffs, Civil Action No. 2:21-cv-609 v. Hon. William S. Stickman IV U.S.A. LAMP AND BALLAST RECYCLING, INC. d/b/a CLEANLITES RECYCLING, INC., Defendant.

MEMORANDUM OPINION WILLIAM S. STICKMAN IV, United States District Judge Pending before the Court is Plaintiff Estes Express Lines’ Motion for Prejudgment and Post-judgment Interest (the “Motion’”). (ECF No. 192). The facts underlying this action are well- known to the Court and to the parties. This dispute began after a mercury spill occurred at Plaintiff Estes Express Lines’ (“Estes”) terminal in Eighty Four, Pennsylvania (the “Terminal”). Defendant U.S.A. Lamp and Ballast Recycling Inc., d/b/a Cleanlites Recycling Inc. (“Cleanlites”) hired Estes to transport a container of mercury from Cincinnati, Ohio, to Hellertown, Pennsylvania, with a transfer of the container between trucks at Estes’s terminal in Eighty-Four, Pennsylvania. Somewhere between the Cincinnati and Eighty-Four terminals, the cargo inside the trailer violently shifted, upending the container of mercury, which was struck by a heavy drill press. While waiting for transport from Eighty-Four to its final destination, Estes workers discovered that mercury had leaked from the container and was present in various areas of the Terminal. Estes brought this action against Cleanlites, asserting a single count of negligence under Pennsylvania law. It later amended its complaint to add a common law strict liability claim and claims under the

Comprehensive Environmental Response, Compensation, and Liability Act, 42 U.S.C. 9601 et seq. (“CERCLA”) and the Pennsylvania Hazardous Sites Cleanup Act, 35 P.S. § 6020.101 et seq. (“HSCA”). (ECF No. 36). A jury trial was held on Estes’s negligence claim. The parties agreed to the amount of damages at issue for trial with respect to the cleanup costs of the Terminal - $591,744.99. (ECF No. 183, pp. 11-12); (ECF No. 191, pp. 3-4). The jury’s role was only to determine and apportion liability under Pennsylvania common law negligence principles. (See ECF Nos. 180, 181). On March 22, 2024, the jury returned its verdict finding that Estes and Cleanlites were each fifty percent responsible for the spill. (ECF No. 188). On May 22, 2024, the Court issued the apportionment of liability on Estes’s CERCLA and HSCA claims. (ECF No. 196). It held that Cleanlites was liable for 10% of Estes’s recoverable response costs, Estes was liable for 90% of its recoverable response costs, and that this apportionment did not apply to the negligence claim adjudicated by the jury pursuant to 42 U.S.C. § 9614(b). Estes’s current Motion seeks prejudgment and post-judgment interest on the jury’s award. For the following reasons, the Court will grant the Motion. I. ANALYSIS A. Delay damages will be awarded. Pennsylvania law governs awards of prejudgment interest, or delay damages, in federal diversity actions. Edward v. Wyatt, 330 F. App’x. 342, 352 (3d Cir. 2009) (citation omitted). Prevailing plaintiffs may be entitled to receive compensation for delay from two potential sources—prejudgment interest or delay damages. Nutrition Mgmt. Servs. Co. v. Harborside Healthcare Corp., No. 01-CV-0902, 2005 WL 1176048, *1, *7 (May 17, 2005, E.D. Pa.). Estes’s Motion asks for prejudgment interest or, in the alterative, delay damages. As explained below,

prejudgment interest is unavailable as a matter of law. Estes’s request for delay damages will be granted. 1. Estes is not entitled to prejudgment interest. Prejudgment interest was first recognized in the contract setting. In Fernandez v. Levin, 548 A.2d 1191 (Pa. 1988), the Pennsylvania Supreme Court adopted Section 354 of the Restatement (Second) of Contracts as the law of the Commonwealth with respect to the recovery of interest as damages in breach of contract actions. Section 354, titled “Interest As Damages,” provides: (1) If the breach consists of a failure to pay a definite sum in money or to render a performance with fixed or ascertainable monetary value, interest is recoverable from the time for performance on the amount due less all deductions to which the party in breach is entitled. (2) In any other case, such interest may be allowed as justice requires on the amount that would have been just compensation had it been paid when performance was due. Restatement (Second) of Contracts § 354. The purpose of awarding interest as damages, “is to compensate an aggrieved party for detention of money rightfully due him or her, and to afford him or her full indemnification or compensation for the wrongful interference with his or her property rights. The allowance of interest as an element of damages is not punitive, but is based on the general assumption that retention of the money benefits the debtor and injures the creditor.” TruSeryv Corp. v. Morgan’s Tool & Supply Co., 39 A.3d 253, 263 (Pa. 2012) (quoting 25 C.J.S. Damages, § 80). However, “as prerequisites to running of prejudgment interest, the debt must have been liquidated with some degree of certainty and the duty to pay it must have become fixed.” Id. at 264 (citation omitted). “Thus, even where the terms of a contract do not expressly provide for the payment of interest, a nonbreaching party has a legal right to recover interest, as damages, on a definite sum owed under the contract.” Id.

As a general rule, prejudgment interest is not recoverable in tort actions where the damages sought are unliquidated. See Marrazzo y. Cranton Nehi Bottling Co., 263 A.2d 336, 337 (Pa. Super. 1970); Robert Wooler Co. v. Fidelity Bank, 479 A.2d 1027, 1034 (Pa. Super. 1984). An exception to the general rule is made in cases where the tort remedy consists of compensation for the destruction of property and where it is possible to measure the amount of compensation by market value or other definite standard. Marrazzo, 479 A.2d at337. In-other words, prejudgment interest may be recoverable in tort-based cases where the damages are liquidated and, therefore, ascertainable with a great degree of certainty. Estes did not assert a breach of contract claim against Cleanlites. Its claims were premised in tort and both federal and state statutes. The trial, and the jury’s verdict, concerned only Estes’s negligence claim. Thus, as a general matter, prejudgment interest is not available. Estes’s negligence claim does not fall into the narrow exception which would permit the recovery of prejudgment interest—i.e., this is not a situation where there were liquidated damages.! To the extent that it seeks prejudgment interest, therefore, Estes’s Motion is denied. 2. Estes is entitled to delay damages. Even where prejudgment interest is not available, a successful plaintiff may still recover interest to compensate for delay caused by the defendant in the litigation process. As opposed to prejudgment interest, which arises from the common law of contract, delay damages are established by rule and expressly permit delay damages in tort actions. Pennsylvania Rule of Civil Procedure 238 (“Rule 238”) permits the award of delay damages in actions for bodily injury, death,

' The parties’ stipulation, at the time of trial, as to the amount of damages at issue does not render the damages liquidated. As explained above, liquidated damages are readily ascertainable at the beginning of litigation.

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Bluebook (online)
ESTES EXPRESS LINES v. U.S.A. LAMP AND BALLAST RECYCLING, INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/estes-express-lines-v-usa-lamp-and-ballast-recycling-inc-pawd-2024.