Garcia v. Steele

CourtMassachusetts Supreme Judicial Court
DecidedJune 27, 2023
DocketSJC 13378
StatusPublished

This text of Garcia v. Steele (Garcia v. Steele) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Garcia v. Steele, (Mass. 2023).

Opinion

NOTICE: All slip opinions and orders are subject to formal revision and are superseded by the advance sheets and bound volumes of the Official Reports. If you find a typographical error or other formal error, please notify the Reporter of Decisions, Supreme Judicial Court, John Adams Courthouse, 1 Pemberton Square, Suite 2500, Boston, MA, 02108-1750; (617) 557- 1030; SJCReporter@sjc.state.ma.us

SJC-13378

MARIA BLANCA ELENA GARCIA & another1 vs. SHANITQUA STEELE & others.2

Suffolk. March 8, 2023. - June 27, 2023.

Present: Budd, C.J., Gaziano, Lowy, Cypher, Kafker, Wendlandt, & Georges, JJ.

Motor Vehicle, Dealer, Entrustment. Negligence, Motor vehicle, Vicarious liability, Entrustment. Contract, Consideration, Lease of equipment. Federal Preemption. Statute, Federal preemption, Construction. Practice, Civil, Summary judgment.

Civil action commenced in the Superior Court Department on July 27, 2018.

The case was heard by David A. Deakin, J., on motions for summary judgment.

The Supreme Judicial Court on its own initiative transferred the case from the Appeals Court.

Peter Antonelli (Thomas H. Curran also present) for the plaintiffs.

1 José Fafián Seijo.

2 Kolawole Oke; MBB Auto, LLC, doing business as Mercedes Benz of Brooklyn; and MBF Auto, LLC, doing business as Mercedes Benz of Caldwell. 2

Michael S. Melville for MBB Auto, LLC, & another. David M. Lentini, II, for Kolawole Oke.

WENDLANDT, J. This case presents the question whether an

automobile dealership that includes an automotive service center

and provides a "courtesy" vehicle to its customer while

conducting repair work on the customer's car is entitled to the

protection set forth in 49 U.S.C. § 30106 (Graves Amendment).

The Graves Amendment generally protects rental car companies

from being held vicariously liable for torts committed by

customers driving their rental vehicles. Where a rental car

company demonstrates that it falls within the scope of the

Federal statute, including, inter alia, by showing that the

vehicle at issue was "rent[ed] or lease[d]," the Graves

Amendment preempts State laws such as G. L. c. 231, § 85A

(§ 85A), which sets forth a rebuttable presumption that the

owner of a vehicle is vicariously liable for injuries caused by

the driver of the vehicle.

In the present case, a New Jersey-based automobile

dealership that includes an automotive service center provided a

courtesy vehicle to a customer while it serviced the customer's

vehicle. Contrary to the terms of the courtesy vehicle

agreements, the customer drove the vehicle beyond the permitted

radius of travel and into the Commonwealth. While in Boston, he

left the vehicle illegally parked with the key in the ignition 3

and the engine running as he conducted an errand; his then-wife,

who did not have a driver's license and was not an authorized

driver under the courtesy vehicle agreements, remained in the

vehicle. When a parking officer required that the vehicle be

moved, the wife moved into the driver's seat and pushed a

button. The vehicle rolled forward through a red light and

struck one of the plaintiffs, causing serious injuries.

The plaintiffs brought a negligence claim against, inter

alia, the automobile dealership. In opposition to the

automobile dealership's motion for summary judgment, the

plaintiffs relied on § 85A, contending that, as the owner of the

courtesy vehicle, the dealership was presumptively vicariously

liable for the injuries caused by the customer's wife.

We conclude that, under the circumstances, the Graves

Amendment protects the automobile dealership from being held

vicariously liable for the tortious conduct of the driver of its

courtesy vehicle. In particular, the record on summary judgment

indisputably demonstrates that the dealership provided the

courtesy vehicle in consideration for the customer's over-all

service repair business, and thus it "rent[ed]" or "lease[d]"

the vehicle even though it did not charge the customer for his

use of the vehicle as a line item separate from the service

work. Further concluding that the record is devoid of any basis

whatsoever for liability against a second dealership defendant 4

and that there is a dispute of material fact as to the negligent

entrustment claim against the customer, we affirm the grant of

summary judgment in favor of the dealership defendants, vacate

the grant of summary judgment insofar as it pertains to the

customer, and remand the matter to the Superior Court for

further proceedings.

1. Background. a. Facts. "The following facts are

either undisputed 'or viewed in the light most favorable to

. . . the party against [whom] summary judgment entered.'" HSBC

Bank USA, N.A. v. Morris, 490 Mass. 322, 323 (2022), quoting

Berry v. Commerce Ins. Co., 488 Mass. 633, 634 (2021).

In August 2016, the defendant Kolawole Oke brought his car

to the defendant MBF Auto, LLC, doing business as Mercedes Benz

of Caldwell (MBF Auto), in New Jersey to be serviced . Because

the service work was expected to require MBF Auto to hold Oke's

car for more than three hours, MBF Auto provided a courtesy

vehicle to Oke for his use while his car was being serviced.

The courtesy vehicle was owned by and registered to MBF Auto,

one of approximately 125 vehicles in the "loaner car fleet"

maintained by the dealership.

Prior to supplying the courtesy vehicle, MBF Auto required

Oke to provide his driver's license, proof of insurance, and a

credit card. Oke also signed a document entitled "loaner car

authorization form," pursuant to which, inter alia, he 5

represented that he had a valid driver's license, he agreed that

he would return the courtesy vehicle within twenty-four hours of

notification that repairs had been completed on his car, and he

acknowledged both that he would be charged a daily fee if he

failed to return the courtesy vehicle timely and that he would

be responsible for all third-party claims arising from his use

of the courtesy vehicle.

In addition, Oke signed a document entitled "courtesy car

agreement" on which Oke's driver's license number, his insurance

carrier and policy number, and the last four digits of his

credit card number were recorded. The agreement specified the

make, model, year, license plate number, and "car number" of the

courtesy vehicle and set forth a "rate" of "$0.00" per mile for

the vehicle, with no "net amount due." The agreement provided

additional terms of the courtesy vehicle arrangement, including

that the vehicle was "[l]imited to operation within 100 mile

radius of Mercedes-Benz of Caldwell[, New Jersey]." Just above

Oke's name and signature, in a font that was noticeably larger

than the other provisions in the agreement, the agreement

provided: "UNDERSIGNED CLIENT IS THE ONLY PERSON AUTHORIZED TO

OPERATE VEHICLE." This term was boldfaced and in all capital

letters. Oke again acknowledged that he would be charged a

daily rate should he fail to return the courtesy vehicle within

twenty-four hours of receiving notice that repairs had been 6

completed on his own car; and he again agreed "[t]o hold Lessor

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