Freightliner Custom Chassis Corporation v. Landstar Ranger Inc.

CourtDistrict Court, N.D. New York
DecidedJanuary 27, 2022
Docket8:20-cv-01390
StatusUnknown

This text of Freightliner Custom Chassis Corporation v. Landstar Ranger Inc. (Freightliner Custom Chassis Corporation v. Landstar Ranger Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Freightliner Custom Chassis Corporation v. Landstar Ranger Inc., (N.D.N.Y. 2022).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF NEW YORK

FREIGHTLINER CUSTOM CHASSIS CORPORATION,

Plaintiff,

v. 8:20-CV-1390 (FJS/CFH) LANDSTAR RANGER INC.; ROSE'S MOBILE1 ENTERPRISES LTD.; and AARON GILLIS,

Defendants.

APPEARANCES OF COUNSEL

WEBSTER SZANYI LLP KEVIN A. SZANYI, ESQ. 1400 Liberty Building STEVEN R. HAMLIN, ESQ. Buffalo New York 14202 THOMAS S. LANE, ESQ. Attorneys for Plaintiff

BENNETT SCHECHTER PETER D. CANTONE, ESQ. ARCURI & WILL LLP 701 Seneca Street Suite 609 Buffalo, New York 14210 Attorneys for Defendant Landstar Range, Inc.

BLANK ROME LLP WILLIAM R. BENNETT, III, ESQ. 1271 Avenue of the Americas New York, New York 10020 Attorneys for Defendant Rose's Mobile1 Enterprises, Ltd.

AARON GILLIS NO APPEARANCE Defendant

SCULLIN, Senior Judge MEMORANDUM-DECISION AND ORDER I. BACKGROUND Plaintiff, a Delaware corporation with its principal place of business in South Carolina, manufactures custom chassis for vehicles at its South Carolina facility. See Dkt. No. 23,

Amended Compl., at ¶¶ 1, 8. Plaintiff contracted with non-party Brinks Security to manufacture five custom chassis for armored vehicles and to ship those chassis from South Carolina to Brinks's location in Canada. See id. at ¶ 9. To transport the chassis to Canada, Plaintiff used Defendant Landstar Ranger Inc.'s ("Landstar") services. See id. at ¶¶ 10-12; Dkt. No. 23-1, Ex. A, Bill of Lading, at 2. Defendant Landstar, a Florida corporation with its principal place of business in that state, is a "provider of transportation services," including shipment between the United States and Canada. See Dkt. No. 23 at ¶¶ 2, 10. Defendant Landstar allegedly arranged for Defendant Rose's Mobile1 Enterprises Ltd. ("Rose's"), a freight carrier and Canadian corporation with its principal place of business in Stephenville, Newfoundland, Canada, to ship the custom chassis to Canada. See id. at ¶¶ 3, 12. Defendant

Rose's employed Defendant Aaron Gillis, a Canadian citizen, to drive the truck transporting the custom chassis to Canada. See id. at ¶¶ 4, 14. Plaintiff alleges that, on March 16, 2018, Defendant Gillis was involved in an accident while driving through the Town of Lewis, New York, which resulted in substantial damages to each of the five custom chassis he was transporting. See id. at ¶ 16. The New York State Police prepared a report that allegedly indicated that Defendant Gillis was "operating a [commercial motor vehicle] while fatigued" and in violation "of hours of service rules," among other things, and the police issued him a ticket for moving from a lane unsafely. See id. at ¶¶ 17-18. Plaintiff alleges that the damaged chassis were returned to South Carolina where they "await disposal or sale for scrap because they were deemed a total loss because of the damage, including internal damage[.]" See id. at ¶ 19. Plaintiff asserts that it cost it $153,687.50 to replace the custom chassis, and Plaintiff also incurred damage to its reputation and goodwill as a result of the end customer's delayed receipt of the chassis. See id. at ¶¶ 22-23. Plaintiff

claims that it tendered the loss to Defendants and their insurance carriers but has not received any response, and each Defendant has refused Plaintiff's demands for full payment. See id. at ¶¶ 21, 24. Based on these allegations, Plaintiff asserts a cause of action for breach of contract against Defendants Landstar and Rose's, a cause of action for negligence and gross negligence against all Defendants pursuant to the Carmack Amendment to the Interstate Commerce Act, 42 U.S.C. § 14706 ("Carmack Amendment"), and a cause of action for bailment against Defendants Rose's and Gillis. See id. at ¶¶ 25-45.1 Pending before the Court is Defendant Landstar's motion to dismiss Plaintiff's complaint against it for failure to state a claim pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure and pursuant to the doctrine of federal preemption. See Dkt. No. 17.2

1 Although Plaintiff relies on diversity of citizenship as a basis for subject matter jurisdiction, the Court notes that it also has federal question jurisdiction over this matter because one of Plaintiff's claims is based on a federal statute.

2 Plaintiff filed an amended complaint as of right after Defendant Landstar filed its motion to dismiss. See Dkt. No. 23; Fed. R. Civ. P. 15(a)(1)(B). Plaintiff's amended complaint contained the same three causes of action as its original complaint. See Dkt. No. 1. However, Plaintiff's amended complaint also included some changes that were relevant to Defendant Landstar's motion to dismiss; and, therefore, Defendant Landstar directed its reply to Plaintiff's opposition to its motion to Plaintiff's amended complaint. II. DISCUSSION A. Motion to dismiss standard Defendant Landstar's motion to dismiss first relies on the doctrine of federal preemption. See Dkt. No. 17-1 at 8-14. "'[A] district court may grant a motion to dismiss based on federal preemption, if the defense can easily be determined from the pleadings.'" Anderson Trucking Serv. v. Eagle Underwriting Grp., Inc., No. 3:17-cv-000817 (CSH), 2018 U.S. Dist. LEXIS

11841, *11 (D. Conn. Jan. 25, 2018) (quoting Marentette v. Abbott Labs., Inc., 201 F. Supp. 3d 374, 377 (E.D.N.Y. 2016) (quotation marks and citations omitted)). In the alternative, Defendant Landstar moves to dismiss for failure to state a claim. See Dkt. No. 17-1 at 15-17. "When considering a motion to dismiss pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure, the court must accept the material facts alleged in the complaint as true and draw all reasonable inferences in the plaintiff's favor." LMC Indus. Contractors, Inc. v. Dominion Energy Transmission, Inc., No. 5:20-CV-677 (FJS/ATB), 2021 U.S. Dist. LEXIS 159441, *3 (N.D.N.Y. Aug. 24, 2021) (Scullin, S.J.) (citing Interpharm, Inc. v. Wells Fargo Bank, Nat'l Ass'n, 655 F.3d 136, 141 (2d Cir. 2011) (citation omitted)). However, the court is not required to credit legal conclusions, bare assertions, or conclusory

allegations. See Ashcroft v. Iqbal, 556 U.S. 662, 678-81 (2009) (citations omitted). As such, "[t]o survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to 'state a claim to relief that is plausible on its face.'" Id. at 678 (quoting [Bell Atl. Corp. v. Twombly, 550 U.S.] at 570, 127 S. Ct. 1955, 167 L. Ed. 2d 929 [2007]). B. Whether the Carmack Amendment and Interstate Commerce Commission Termination Act of 1995 protect Defendant Landstar from liability for Plaintiff's damages under the doctrine of federal preemption Defendant Landstar first argues that the Court should dismiss Plaintiff's complaint against it because the Carmack Amendment prevents carriers from being liable for state-law claims based on the doctrine of federal preemption. Defendant Landstar similarly contends that the Interstate Commerce Commission Termination Act of 1995, 49 U.S.C. § 10101 et seq.

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Freightliner Custom Chassis Corporation v. Landstar Ranger Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/freightliner-custom-chassis-corporation-v-landstar-ranger-inc-nynd-2022.