Jones Motor Group, Inc. v. Hotard

135 F. Supp. 3d 530, 2015 U.S. Dist. LEXIS 130202, 2015 WL 5725156
CourtDistrict Court, E.D. Louisiana
DecidedSeptember 28, 2015
DocketCivil Action No. 14-2739
StatusPublished
Cited by1 cases

This text of 135 F. Supp. 3d 530 (Jones Motor Group, Inc. v. Hotard) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jones Motor Group, Inc. v. Hotard, 135 F. Supp. 3d 530, 2015 U.S. Dist. LEXIS 130202, 2015 WL 5725156 (E.D. La. 2015).

Opinion

ORDER

NANNETTE JOLIVETTE BROWN, District Judge.

In this litigation, Plaintiffs and Counter-Defendants Jones Motor Group, Inc. and Genesis Motors, LLC (collectively “Plaintiffs”) allege that Defendant and Counter-Plaintiff Rossie P. Hotard (“Defendant”) negligently rear-ended the trailer of Plaintiffs’ tractor-trailer, causing significant damage.1 Defendant has filed a counterclaim against Plaintiffs, seeking personal injury and property damages.2 Defendant alleges that the collision was caused by the negligence of the driver of the tractor-trailer, Paul Ganucheau (“Ganucheau”), and his negligence is directly attributable to Plaintiffs.3 Pending before the Court is [532]*532Defendant’s “Motion for Partial Summary Judgment as to Claims of ‘Lost Profits’ of Jones Motor Group, Inc,”4 Having reviewed the motion, the memorandum in support, the memorandum in opposition, the record,, and .the applicable law, the Court will deny the motion.

I. Background

A. Factual Background

In Plaintiffs’ complaint, they allege that, on or about July 14, 2014, Ganucheau was driving a 2014 Volvo tractor-trailer owned by Plaintiffs and traveling in the right lane, eastbound on Highway 90 in Terre-bonne Parish, Louisiana.5 Defendant was driving eastbound on Highway 90, behind Ganucheau, in a 2009 Chevrolet Malibu.6 Plaintiffs allege that Defendant failed to brake or move into the left lane of traffic and rear-ended the trailer of Plaintiffs’ tractor-trailer.7 Plaintiffs allege that, as a result of the accident, they suffered property damage and -loss of use of the tractor-trailer.8

In his counterclaim, Defendant alleges that Ganucheau, traveling at an unreasonably slow and unsafe rate of speed, entered the lane of travel occupied by Ho-tard without warning and Defendant was unable to avoid the merging tractor-trailer due to traffic conditions.9 Defendant alleges that he suffered personal injuries and property damage as a,result of the accident.10

B. Procedural Background

Plaintiffs, alleging diversity jurisdiction, filed suit in this Court on December 3, 2014.11 In their complaint, Plaintiffs allege that, as a result of Defendant’s negligence, Defendant is liable for repair damages to their tractor-trailer, in addition to loss of use damages.12 On March 16, 2015, Plaintiffs filed an amended complaint to allege the citizenship of the parties in order to address the Court’s concerns about its subject matter jurisdiction.13 On March 25, 2015, Defendant filed a counterclaim, alleging that Plaintiffs are liable for personal injury and property damages as a result of the negligence of Ganucheau, the driver of the tractor-trailer.14 Defendant filed the instant motion on August 19, 2015.15 Plaintiffs filed their opposition on September 8,2015.16

II. Parties’ Arguments

A. Defendant’s Arguments in Support of His Motion for Partial Summary Judgment

Defendant moves for summary judgment on Plaintiffs’ claim for recovery of “lost profits.”17 Defendant contends that Plaintiffs have produced a declaration of the i Vice President of Jones Motor Group stating that the trailer at issue in this case could be reasonably expected to generate a profit of $1,000 a day during the time the trailer was not useable.18 Citing Alexan[533]*533der v. Qwik Change Car Center,19 Defendant asserts that, under Louisiana law, a loss of use claim is valued at the amount required to rent a substitute vehicle, and that there is no case law to support a corporation’s recovery of “lost profits.”20 Defendant contends that, in Alexander, the Louisiana Supreme Court also stated that a loss of use award need not be restricted to rental costs and much discretion is given to the trial court in making such an award.21 Defendant asserts that, although courts may exercise their discretion to extend a loss of use award beyond the cost of renting a substitute vehicle, “such extension must be reasonable under the circumstances and there is no requirement that any court do so.”22 According to Defendant, although courts have awarded incidental damages in cases where there is an undue delay in the time to repair a vehicle, courts have not awarded lost profits with respect to loss of use claims similar to this case.23 Defendant asserts that Plaintiffs cannot identify any extenuating circumstances that would warrant an award beyond rental costs.24 In support, Defendant contends that liability is in dispute, Plaintiff Jones Motor Group is a well-capitalized corporation capable of paying for its own repairs, and Plaintiffs failed to rent a substitute vehicle.25

Defendant also maintains that the evidence in this case indicates that Plaintiffs failed to mitigate their losses by choosing not to rent a substitute vehicle.26 In support, Defendant attaches a declaration from Daryn Spence, an employee at The Hanover Insurance Group.27 In the declaration, Spence attests that he spoke with Danny Love, the general manager at Ken-worth of South Louisiana who was responsible for the repairs on Plaintiffs’ trailer, and learned from Love that Kenworth could have supplied a rental trailer that would be a suitable substitute for Plaintiffs’ damaged trailer.28

B. Plaintiffs’ Arguments in Opposition

In opposition, Plaintiffs contend that: (1) statements made in the Declaration of Daryn Spence29 are predicated upon inadmissible hearsay and therefore should not be considered on a motion for summary judgment; (2) Plaintiffs can recover loss of use/lost profit damages; and (3) the damaged trailer had been specially modified and therefore Plaintiffs could not easily rent a replacement.30

First, Plaintiffs contend that, in the Declaration of Daryn Spence, Spence recounts what he was told by another individual, Danny Love, and therefore the declaration contains inadmissible hearsay that may not be considered on a motion for summary judgment.31 Furthermore, Plaintiffs contend that, even if the statement is admissible, the declaration creates issues of fact as to whether a substitute trailer was available and at what cost.32

[534]*534Second, Plaintiffs contend that an award of damages for loss of use of a vehicle is not limited to rental costs and trial courts retain discretion over such awards.33 Plaintiffs contend that Louisiana courts recognize a right to recover for loss of a vehicle even-when-a vehicle is totaled and even when a plaintiff does not rent a replacement.34

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Bluebook (online)
135 F. Supp. 3d 530, 2015 U.S. Dist. LEXIS 130202, 2015 WL 5725156, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-motor-group-inc-v-hotard-laed-2015.