Lisa Hearn and Daniel Hearn v. ABF Freight System, Inc.

Missouri Court of Appeals·Decided August 11, 2020·No. ED108315·Published

Opinion

In the Missouri Court of Appeals Eastern District

DIVISION TWO

LISA HEARN AND DANIEL HEARN, ) No. ED108315 )

Appellants, ) Appeal from the Circuit Court ) of the City of St. Louis vs. )

) Honorable Annette Llewellyn ABF FREIGHT SYSTEM, INC., )

)

Respondent. ) FILED: August 11, 2020

Introduction

Lisa and Daniel Hearn (“the Hearns”) appeal from the trial court’s judgment following a jury verdict in favor of ABF Freight System, Inc. (“ABF”) on the Hearns’ claims for negligence and loss of consortium arising out of a motor vehicle accident. In Point One, the Hearns allege the trial court erred in denying their motion for a directed verdict given ABF’s vicarious liability under the doctrine of logo-liability. In Point Two, the Hearns argue the trial court erred by instructing the jury that the Hearns had the burden of proving the agency relationship between ABF and the truck driver causing the accident because such instruction was inconsistent with the logo-liability doctrine. Because the logo-liability doctrine only applies to carrier-lessees and the record reveals no evidence that ABF operated as a carrier-lessee, the doctrine is inapplicable in this case, and the trial court correctly denied the motion for a directed verdict and correctly declined to instruct the jury on the logo-liability doctrine. Accordingly, we affirm the judgment of the trial court.

Factual and Procedural History Lisa Hearn was seriously injured in a car accident after she was struck by a vehicle being driven by Paulette Anthony (“Anthony”). Both the Hearns and Anthony alleged that Anthony struck Lisa Hearn due to the negligent operation of a truck bearing ABF signage. Specifically, the truck was alleged to have crossed into Anthony’s lane, either striking Anthony or causing her to swerve to avoid the truck, at which time Anthony collided head-on with Lisa Hearn. Lisa Hearn claimed to have interacted with the truck driver following the accident. However, the truck driver left the scene before police arrived, and the truck and driver were never identified beyond the claim that the truck bore ABF signage.

Both the Hearns and Anthony sued ABF for negligence, and the cases were tried together. The evidence presented by the Hearns, Anthony, and ABF at trial predominantly concerned whether the truck was an ABF truck and whether the driver of the truck was an employee of ABF.

At the close of evidence, the Hearns moved for a directed verdict in their favor.

Specifically, the Hearns asked the trial court to direct the jury to enter a verdict against ABF under the logo-liability doctrine if the jury found the truck in question bore ABF’s signage. The trial court treated the Hearns’ motion as a motion for summary judgment, or in the alternative, a motion for directed verdict. ABF countered that the logo-liability doctrine was inapplicable and that the traditional principles of agency and vicarious liability applied. In particular, ABF maintained that the logo-liability doctrine did not apply because ABF owned its trucks rather than leasing them and that the logo-liability doctrine applied only to carrier-lessee relationships. ABF also moved for a directed verdict, arguing that the Hearns had not submitted evidence to establish ABF’s vicarious liability for the actions of the truck driver. The trial court denied both motions and ruled that the issue of agency would be submitted to the jury.

During the jury-instruction conference, the Hearns objected to Instructions No. 9, 11, and 15, each of which addressed the issue of agency. Specifically, Instruction No. 9 provided:

Operating the truck was within the “scope and course of employment” as that phrase is used in these instructions if:

1. it was performed by the driver to serve the business of [ABF], according to an express or implied agreement with [ABF], and

2. [ABF] either controlled or had the right to control the physical conduct of the driver.

Instruction No. 11 provided that the jury must find the driver was driving the truck “within the scope and course of employment by [ABF], at the time of the collision,” in order to find ABF liable for negligence against the Hearns. Instruction No. 15 mirrored Instruction No. 11 but concerned Anthony rather than the Hearns. The Hearns specifically objected to the interjection of a traditional agency analysis through these proposed jury instructions. The Hearns tendered alternative instructions based upon the logo-liability doctrine, instructing the jury that it need only find the truck bore ABF’s signage, was negligent, and caused damage to the Hearns in order to find in favor of the Hearns and against ABF. The trial court overruled the Hearns’ objections and rejected their proposed instructions, reasoning that logo-liability doctrine applied only to a carrier-lessee relationship, evidence of which was lacking in the present case.

The jury returned a verdict in favor of ABF and against the Hearns. On Anthony’s claim, the jury also returned a verdict for ABF, specifically finding that neither Anthony nor ABF were at fault. The Hearns now appeal.

Points on Appeal

In Point One, the Hearns contend that the trial court erred in denying their motion for a directed verdict on agency because consideration of traditional agency principles was precluded under the logo-liability doctrine. In Point Two, the Hearns allege that the trial court erred in

instructing the jury that the Hearns had to prove the traditional requirements of agency because the less demanding doctrine of logo-liability applied.

Discussion

I. The History of the Logo-Liability Doctrine in Missouri Courts Both parties offer the public policy doctrine of logo-liability as support for their positions on appeal. Generally, the doctrine of logo-liability provides a means of imposing vicarious liability over carriers for the negligence of truck drivers other than through established agency principles. See Parker v. Midwestern Distribution, Inc., 797 S.W.2d 721, 724 (Mo. App. E.D. 1990) (citing Johnson v. Pac. Intermountain Express Co., 662 S.W.2d 237, 240, 246 (Mo. banc 1983)). Because the parties’ arguments largely focus on the significance—or lack thereof—of factual distinctions between past cases addressing the applicability of logo-liability, we will first examine the precise facts and holdings at issue and articulate a clear framework for the application of the logo-liability doctrine under Missouri law.

The doctrine of logo liability was first addressed by the Supreme Court of Missouri in Brannaker v. Transamerican Freight Lines, Inc., 428 S.W.2d 524 (Mo. 1968). Examining the history of carrier-lessee arrangements and related legislation, Brannaker noted that carrier- lessees would enter into leases with “often unreliable” independent contractors to haul cargo for single trips or short durations, allowing carrier-lessees to “evad[e] their public responsibilities.” Id. at 528–29. Some tractor-trailer truck owners would lease their trucks to common carriers who assumed control over transporting the goods being hauled. Under traditional agency principles, the common carrier was relieved of liability on return trips because the lessor had performed its one-way contract and was no longer engaged in business on behalf of the carrier. Duke v. Thomas, 343 S.W.2d 656, 659 (Mo. App. St. Louis 1961) (internal citation omitted).

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Lisa Hearn and Daniel Hearn v. ABF Freight System, Inc., (Mo. Ct. App. 2020).

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