Lott v. SWIFT TRANSPORTATION COMPANY, INC.

694 F. Supp. 2d 923, 2010 U.S. Dist. LEXIS 25654, 2010 WL 937769
CourtDistrict Court, W.D. Tennessee
DecidedMarch 17, 2010
DocketCase 2:09-cv-02287
StatusPublished
Cited by8 cases

This text of 694 F. Supp. 2d 923 (Lott v. SWIFT TRANSPORTATION COMPANY, INC.) is published on Counsel Stack Legal Research, covering District Court, W.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lott v. SWIFT TRANSPORTATION COMPANY, INC., 694 F. Supp. 2d 923, 2010 U.S. Dist. LEXIS 25654, 2010 WL 937769 (W.D. Tenn. 2010).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT SWIFT TRANSPORTATION COMPANY, INC.’S MOTION TO DISMISS

BERNICE BOUIE DONALD, District Judge.

Before the Court is Defendant Swift Transportation Company, Inc.’s (“Swift”) Motion to Dismiss filed on February 19, 2010. (D.E. #58.) Plaintiffs Gerald L. Lott et al. (collectively, “Plaintiffs”) filed a response in opposition on March 1, 2010. For the reasons stated below, Swift’s motion is GRANTED IN PART and DENIED IN PART.

I. BACKGROUND 1

Plaintiff Gerald Lott is a resident of Memphis, Tennessee, Plaintiff Francisco Armenia is a resident of Tobyhanna, Pennsylvania, and Plaintiff Ronda Kell is a resident of Horse Cave, Kentucky. (Pis.’ First Am. Class Action Compl. ¶¶ 11-13.) Plaintiffs bring this suit as a putative class action against Swift — a corporation organized under the laws of the State of Nevada with its principal place of business located in Phoenix, Arizona — and Commissioner David Mitchell (“Commissioner Mitchell”) of the Tennessee Department of Safety. (Id. ¶¶ 18, 20.)

Swift formerly operated the Swift Driving Academy (“Swift Academy”), a truck driver training school in Millington, Tennessee for individuals wishing to obtain Class A Commercial Driver’s Licenses (“CDLs”) from the State of Tennessee. (Id. ¶¶ 39, 43.) Swift and each of its students entered into a written contract governing the training provided by the Swift Academy. (Id. ¶ 47.) Swift charged $3,900 per student for tuition, an amount which students could elect to finance by authorizing Swift to make deductions from their future pay. (Id. ¶ 46.)

Apart from its role as a training school, Swift also administered official testing of CDL license applicants for the State of Tennessee from May 1, 2005 to January 31, 2008. (Id. ¶ 51-52, 58.) Students paid Swift $150 to receive the CDL test — a service not included in or governed by the written contract with Swift for training. (Id. ¶¶ 52-55.) As with all members of the putative class, Plaintiffs received CDLs from the State of Tennessee based upon their passage of CDL tests administered by Swift. (See id. ¶¶ 13-15.)

In December 2008, Commissioner Mitchell announced that Swift’s CDL testing failed to comply with applicable rules and regulations, though he did not specify in what respects Swift’s actions violated the law. (Id. ¶¶ 61-62.) Following this determination, Commissioner Mitchell revoked Swift’s authority to conduct CDL testing and nullified all test results and certifications from Swift issued between May 1, 2005 and January 31, 2008. (Id. ¶¶ 66-68.) Commissioner Mitchell also revoked all Tennessee CDL licenses that had been granted based on Swift’s testing during this time period. (Id. ¶ 68.) These revocations occurred without affording CDL license holders the opportunity to challenge the loss of their licenses. (Id. ¶ 71.) Many of the students whose Tennessee CDLs Commissioner Mitchell invalidated had previously moved from Tennessee and obtained CDLs in other states, and the validity of those licenses depended upon the validity of the original Tennessee CDL. (Id. ¶¶ 94, 96-99.) Commissioner Mitchell sent letters to the coordinators of *927 CDL testing programs in other states, notifying these officials of the revocations and advising them that drivers who had received their CDLs through testing by Swift should be required to submit to retesting. (Id. ¶¶ 94, 105-06.) The only redress offered to the affected license holders was the option of retaking the CDL test, using their own tractor trailer during the test — an extremely difficult undertaking for those who do not own their own truck. (Id. ¶¶ 116,120, 124.)

Plaintiffs filed the instant suit in the United States District Court for the Western District of Tennessee on May 7, 2009 and filed an amended complaint on January 25, 2010. Plaintiffs seek to have the case certified as a class action and allege causes of action under 42 U.S.C. § 1983 as well as under state law for unjust enrichment, negligence, breach of good faith and fair dealing, equitable, declaratory and injunctive relief, and breach of contract as to Plaintiffs as third-party beneficiaries.

II. LEGAL STANDARD

A. Legal Standard for Motion under Fed.R.Civ.P. 12(b)(1)

A motion to dismiss under Rule 12(b)(1) of the Federal Rules of Civil Procedure asserts that the court lacks subject matter jurisdiction. A motion to dismiss for lack of subject matter jurisdiction may challenge the sufficiency of the complaint itself — in which case it constitutes a facial attack — or it may challenge the factual existence of subject matter jurisdiction — in which case the motion constitutes a factual attack. United States v. Ritchie, 15 F.3d 592, 598 (6th Cir.1994). In ruling upon a facial attack, the court must take as true the allegations of the plaintiffs complaint and construe them in the light most favorable to the plaintiff, but in a factual attack, the court does not presume that the complaint’s allegations are true and instead considers other evidence bearing upon the question of subject matter jurisdiction. DLX, Inc. v. Kentucky, 381 F.3d 511, 516 (6th Cir.2004). When faced with a factual attack, the trial court may, at its discretion, consider affidavits and documents and even conduct a limited evidentiary hearing to resolve any disputes as to jurisdictional facts. Ohio Nat’l Life Ins. Co. v. United States, 922 F.2d 320, 325 (6th Cir.1990). The plaintiff bears the burden of proving jurisdiction on a motion to dismiss under Rule 12(b)(1). Rogers v. Stratton Indus., Inc., 798 F.2d 913, 915 (6th Cir.1986); see United Gov’t Sec. Officers of Am. v. Akal Sec., Inc., 475 F.Supp.2d 732, 736 (S.D.Ohio 2006).

B. Legal Standard for Motion under Fed.R.Civ.P. 12(b)(6)

A motion to dismiss a complaint under Rule 12(b)(6) of the Federal Rules of Civil Procedure only tests whether a cognizable claim has been pled. Scheid v. Fanny Farmer Candy Shops, Inc., 859 F.2d 434, 436 (6th Cir.1988).

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694 F. Supp. 2d 923, 2010 U.S. Dist. LEXIS 25654, 2010 WL 937769, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lott-v-swift-transportation-company-inc-tnwd-2010.