Roadrunner Transportation Services, Inc. v. Bob White Express, Inc.

CourtDistrict Court, W.D. Texas
DecidedJuly 21, 2020
Docket5:17-cv-00457
StatusUnknown

This text of Roadrunner Transportation Services, Inc. v. Bob White Express, Inc. (Roadrunner Transportation Services, Inc. v. Bob White Express, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roadrunner Transportation Services, Inc. v. Bob White Express, Inc., (W.D. Tex. 2020).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF TEXAS SAN ANTONIO DIVISION

ROADRUNNER TRANSPORTATION SERVICES, INC.,

Plaintiff,

v. No. 5:17-cv-457-JKP

BOB WHITE EXPRESS, INC.,

Defendant / Third-Party Plaintiff,

v.

ASSOCIATED ACCEPTANCE, INC. d/b/a RUSH TRUCK INSURANCE SERVICES and GORDON RABE,

Third-Party Defendants.

ORDER

Before the Court are Plaintiff Roadrunner Transportation Services, Inc.’s First Amended Motion for Summary Judgment (ECF No. 58) and Third-Party Defendants Associated Acceptance, Inc. and Gordon Rabe’s Motion for Summary Judgment (ECF No. 57). Defendant and Third-Party Plaintiff Bob White Express, Inc. (“BWE”) responded to each motion (ECF Nos. 61, 62). Associated Acceptance (“Associated”) and Gordon Rabe (“Rabe”) replied (ECF No. 63). The Court heard the arguments of the parties on June 30, 2020. Supplemental briefs were filed on July 7, 2020 (ECF Nos. 68, 69). The motions are ripe for ruling. After due consideration, the Court grants Plaintiff Roadrunner Transportation Services, Inc.’s First Amended Motion for Summary Judgment (ECF No. 58) and defers ruling on Third-Party Defendants Associated Acceptance, Inc. and Gordon Rabe’s Motion for Summary Judgment (ECF No. 57). BACKGROUND On March 31, 2009, Roadrunner Transportation Services, Inc. (“Roadrunner”) and Bob White Enterprises, BWE’s predecessor, entered into a Cartage Agreement (the “Agreement”) whereby Bob White Enterprises agreed to provide local pick-up and delivery services for Roadrunner. As part of the Agreement, Bob White Enterprises unloaded freight from

Roadrunner’s trailers at Bob White Enterprises’ facility and transported this freight for local delivery. The Agreement required Bob White Enterprises to name Roadrunner as an additional insured on its insurance policies. In 2010, BWE purchased Bob White Enterprises. As part of the purchase, BWE ratified and adopted the Agreement. BWE and Roadrunner have executed several addenda and continue to operate under the Agreement. On September 23, 2014, BWE employee, Robert Serna (“Mr. Serna”) was injured while unloading freight from a Roadrunner trailer. ECF No. 58-1 at 20. Mr. Serna sued Roadrunner in Texas state court on July 1, 2016. Id. at 26. Roadrunner tendered a defense and indemnity request to BWE on August 5, 2016; BWE forwarded the same to its insurer Sentry Select

Insurance Company (“Sentry”). Id. at 56. Sentry denied the tender on October 26, 2016. Id. at 66. Roadrunner settled the lawsuit for $150,000. Id. at 75-81. Roadrunner then initiated this action, bringing a breach of contract claim against BWE for its failure to name Roadrunner as an additional insured on BWE’s insurance policy as required by the Agreement. ECF No. 1. In turn, BWE filed a third-party action against Associated and Rabe, the insurance broker and sales agent that procured the Sentry insurance policy. ECF No. 8. In the third-party action, BWE brings breach of contract and negligence claims for Associated and Rabe’s failure to procure a policy that named Roadrunner as an additional insured. Id. at 3-4. APPLICABLE LAW “Under the Erie doctrine, federal courts sitting in diversity apply state substantive law and federal procedural law.” Gasperini v. Ctr. for Humanities, Inc., 518 U.S. 415, 427 (1996); accord Erie R.R. Co. v. Tompkins, 304 U.S. 64, 78 (1938). Because jurisdiction in this case is based on diversity of citizenship, the Court must “apply Texas law,” including its law regarding

statutes of limitations. Ocwen Loan Servicing, L.L.C. v. Berry, 852 F.3d 469, 473 (5th Cir. 2017); accord West v. Conrail, 481 U.S. 35, 39 n.4 (1987). SUMMARY JUDGMENT STANDARD “The court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.”1 Fed. R. Civ. P. 56(a). “As to materiality, the substantive law will identify which facts are material” and facts are “material” only if they “might affect the outcome of the suit under the governing law.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). Disputes over material facts qualify as “genuine” within the meaning of Rule 56 when “the evidence is such that a reasonable

jury could return a verdict for the nonmoving party.” Id. Given the required existence of a genuine dispute of material fact, “the mere existence of some alleged factual dispute between the parties will not defeat an otherwise properly supported motion for summary judgment.” Id. at 247-48. A claim lacks a genuine dispute for trial when “the record taken as a whole could not lead a rational trier of fact to find for the nonmoving party.” Scott v. Harris, 550 U.S. 372, 380 (2007) (quoting Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586-87 (1986)).

1The summary judgment standard “remains unchanged” despite 2010 amendments to Fed. R. Civ. P. 56 that replaced “issue” with “dispute.” Fed. R. Civ. P. 56 advisory committee notes (2010 amend.). Although the standard remains the same, the Court utilizes the amended terminology even when relying on caselaw that predates the amendments. The “party seeking summary judgment always bears the initial responsibility of informing the district court of the basis for its motion.” Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). When seeking summary judgment on an affirmative defense, such as claims being barred by a statute of limitations, the movant “must establish beyond peradventure” each essential element of the defense. Fontenot v. Upjohn Co., 780 F.2d 1190, 1194 (5th Cir.1986);

accord Hagan v. Mazda Motor Co. of Am., Inc., 690 F. App’x 242, 243 (5th Cir. 2017) (per curiam) (“Under Texas law, a defendant moving for summary judgment on an affirmative defense must irrefutably establish its elements.”). Once the movant has carried the burden to establish that “claims are time-barred as a matter of law,” the burden shifts to the non-movant to establish a genuine dispute of material fact on the timeliness of asserted claims. Dommert v. Raymond James Fin. Servs., Inc., No. 1:06-CV- 102, 2009 WL 275440, at *8 (E.D. Tex. Feb. 3, 2009) (adopting recommendation of Mag. J.). With this shifting burden, the nonmoving party “must do more than simply show that there is some metaphysical doubt as to the material facts.” Matsushita, 475 U.S. at 586. When

considering a motion for summary judgment, courts view all facts and reasonable inferences drawn from the record “in the light most favorable to the party opposing the motion.” Heinsohn v. Carabin & Shaw, P.C., 832 F.3d 224, 234 (5th Cir. 2016) (citation omitted). DISCUSSION A. Roadrunner’s Motion for Summary Judgment 1. Declaratory Relief Roadrunner’s original complaint, the operative complaint in this action, sought declaratory relief. ECF No. 1. By the time Roadrunner filed its motion for summary judgment, the underlying litigation had been resolved.

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Roadrunner Transportation Services, Inc. v. Bob White Express, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/roadrunner-transportation-services-inc-v-bob-white-express-inc-txwd-2020.