Rogers v. J B Hunt Transport, Inc

649 N.W.2d 23, 466 Mich. 645
CourtMichigan Supreme Court
DecidedJuly 23, 2002
DocketDocket 118766
StatusPublished
Cited by45 cases

This text of 649 N.W.2d 23 (Rogers v. J B Hunt Transport, Inc) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rogers v. J B Hunt Transport, Inc, 649 N.W.2d 23, 466 Mich. 645 (Mich. 2002).

Opinions

Weaver, J.

In this wrongful death action, we address whether a default entered against an employee that conclusively determined the employee’s negligence for the purpose of the employee’s personal liability is also a proper foundation for an order holding [648]*648his employer vicariously liable. The Court of Appeals held that it was, thereby extending the effect of the default to the employer and precluding the employer from contesting its vicarious liability. We reverse the decision of the Court of Appeals and remand to the circuit court.

I

This action arises from an automobile accident that occurred in the early afternoon on June 17, 1996. The decedent, Daimon Rogers, was killed when his vehicle left the roadway and struck a tractor-trailer rig parked on the north shoulder of the westbound 1-96 expressway in Eaton County, Michigan. It is undisputed that defendant-appellant J. B. Hunt owned the tractor-trailer and that defendant Wesley Crenshaw had been operating the tractor-trailer in the course of his employment with J. B. Hunt.

J. B. Hunt terminated Crenshaw’s employment in July 1996. Subsequently, on July 23, 1996, the personal representative of Daimon Rogers’ estate filed a complaint against Crenshaw and J. B. Hunt. It alleged Crenshaw was negligent and that his negligence was a proximate cause of Daimon Rogers’ crash and death. It also alleged J. B. Hunt’s vicarious liability. J. B. Hunt filed an answer on its own behalf denying Crenshaw’s negligence and causation. However, Crenshaw failed to personally file an answer or appear in response to two summonses. On March 20, 1997, the Eaton Circuit Court issued a third summons and an order permitting alternative service of process by publication and by service on codefendant, J. B. Hunt. Thereafter, J. B. Hunt’s attorney purported to file an answer on behalf of Crenshaw.

[649]*649Crenshaw repeatedly failed to appear for depositions over a fourteen-month period. On August 6, 1998, plaintiff obtained an order of default pursuant to MCR 2.313(B) and (D) against Crenshaw. During the hearing on plaintiff’s motion for the default of Crenshaw, J. B. Hunt’s attorney moved to withdraw as counsel of record for Crenshaw. The trial court granted both motions. J. B. Hunt did not object to the entry of the order of default.

On December 15, 1998, plaintiff moved for partial summary disposition regarding the liability of J. B. Hunt. Plaintiff argued that the default that was entered against defendant Crenshaw settled the question of J. B. Hunt’s liability and, therefore, J. B. Hunt could not contest the issues of negligence and causation at trial. Plaintiff also argued that J. B. Hunt was precluded from presenting the affirmative defense of comparative negligence. The circuit court granted plaintiff’s motion in part, concluding that J. B. Hunt was vicariously liable for the negligence of Crenshaw and could not contest at trial the issues of negligence and proximate cause. However, the trial court also denied the motion in part, concluding that J. B. Hunt could raise the defense of the decedent’s comparative negligence and whether his comparative negligence was a proximate cause of the accident.

The Court of Appeals affirmed, citing “compelling policy consideration[s]” involving vicarious liability. 244 Mich App 600, 610; 624 NW2d 532 (2001). Specifically, the panel stated, “[e]mployers are held vicariously liable not because of their ability to control their employees’ conduct, but because they stand to profit from their employees’ conduct.” Id. at 610-611. With this, the panel discarded the linchpin justifying [650]*650vicarious liability between an employer and an employee—that the employee committed an act producing a claim in the scope of employment. The panel’s reasoning suggests that if the employer financially profits from an employee’s activities, the employer is vicariously liable not only for everything the employee does within the scope of employment, but also to all acts tangentially related to that employment or occurring outside the scope of employment, even if they occurred after the employee leaves the employment. We granted leave to appeal because the panel’s suggestion that an employer may be vicariously liable not only for employees’ torts committed within the scope of employment, but also for wrongful conduct outside the scope of employment is worthy of review.

II

The law regarding respondeat superior and, in particular, how the entry of a default against an employee affects the liability of an employer where the employer’s sole source of liability is vicarious are questions of law. We review questions of law de novo. Kelly v Builders Square, Inc, 465 Mich 29, 34; 632 NW2d 912 (2001). The grant of a motion for summary disposition is also reviewed de novo. MacDonald v PKT, Inc, 464 Mich 322, 332; 628 NW2d 33 (2001).

III

In addressing this issue as posed by the Court of Appeals, it is important to clarify why the courts have imposed liability on those who were not the actors, but merely the masters of the actors. The reason is [651]*651that “a master is responsible for the wrongful acts of his servant committed while performing some duty within the scope of his employment.” Murphy v Kuhartz, 244 Mich 54, 56; 221 NW 143 (1928). An employer is not vicariously liable for acts committed by its employees outside the scope of employment, because the employee is not acting for the employer or under the employer’s control. For example, it is well established that an employee’s negligence committed while on a frolic or detour, Drobnicki v Packard Motor Car Co, 212 Mich 133; 180 NW 459 (1920), or after hours, Eberle Brewing Co v Briscoe Motor Co, 194 Mich 140; 160 NW 440 (1916), is not imputed to the employer. In addition, even where an employee is working, vicarious liability is not without its limits. For example, we have held that “there is no liability on the part of an employer for torts intentionally or recklessly committed by an employee beyond the scope of his master’s business.” Bradley v Stevens, 329 Mich 556, 562; 46 NW2d 382 (1951).

Likewise, respondeat superior or vicarious liability principles do not support imposing liability on J. B. Hunt in the present case merely on the basis of Crenshaw’s default. When Crenshaw failed to participate in this litigation, he was not acting within the scope of employment. Rather, Crenshaw was acting on behalf of himself only in regard to the litigation. In fact, his procedural failures were committed when he was a former employee of J. B. Hunt. Because his nonparticipation was not in the course of his employment with J. B. Hunt, extending liability to J. B. Hunt for Crenshaw’s nonparticipation is beyond the scope of vicarious liability.

In this regard, we emphasize that the basis of vicarious liability is not merely that an employer typically [652]*652has a greater ability to pay than an employee. As a leading treatise on American tort law explains, additional rationales for vicarious liability for acts of agents within the scope of employment include providing an incentive for employers to attempt to reduce tortious conduct by their employees and the fair distribution of risk associated with activity characteristic of a business or other entity. See Dobbs, Torts, § 334, pp 908-910. Risks typically associated with operating trucks may fairly be said to be characteristic of J. B. Hunt’s business activities.

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649 N.W.2d 23, 466 Mich. 645, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rogers-v-j-b-hunt-transport-inc-mich-2002.