SCOTT C. MALZBERG v. CAREN L. JOSEY (L-7858-17, ESSEX COUNTY AND STATEWIDE)

New Jersey Superior Court Appellate Division·Decided September 27, 2022·No. A-2883-20·Published

Opinion

NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION

SUPERIOR COURT OF NEW JERSEY APPELLATE DIVISION

DOCKET NO. A-2883-20

SCOTT C. MALZBERG, a/k/a SCOTT MALZBERG, APPROVED FOR PUBLICATION

Plaintiff-Appellant, September 27, 2022

APPELLATE DIVISION

v.

CAREN L. JOSEY, JAMES RIVER INSURANCE COMPANY, PORTIER, LLC, and RIDER INSURANCE COMPANY,

Defendant-Respondents.

Submitted September 13, 2022 – Decided September 27, 2022 Before Judges Sumners, Geiger, and Susswein.

On appeal from the Superior Court of New Jersey, Law Division, Essex County, Docket No. L-7858-17.

Davis, Saperstein & Salomon, PC, attorneys for appellant (Grace E. Robol, of counsel and on the briefs).

Goetz, Schenker, Blee & Wiederhorn, attorneys for respondent James River Insurance Company (Daniel Szep, on the brief).

The opinion of the court was delivered by SUSSWEIN, J.A.D.

Plaintiff Scott C. Malzberg appeals from the January 25, 2019 Law Division order granting summary judgment in favor of defendant James River Insurance Company (James River), dismissing plaintiff's claim for underinsured motorist coverage. This case presents a question of first impression regarding the scope of the Transportation Network Company Safety and Regulatory Act (TNCSRA or Act), N.J.S.A. 39:5H-1 to -27. Plaintiff was injured in a motor vehicle accident while he was operating his motorcycle as an Uber Eats delivery driver. The sole legal issue raised in this appeal is whether the Act—which requires "transportation network companies" (TNCs) to provide at least $1.5 million in underinsured motorist coverage — applies to food delivery services, such as Uber Eats.

In granting summary judgment dismissal, Judge Stephen L. Petrillo held that the Act only regulates companies that use a digital network such as a mobile phone application (app) to connect a "rider" to a "prearranged ride." See N.J.S.A. 39:5H-2. Judge Petrillo concluded that the Act applies only to the prearranged transport of persons and not to the delivery of food. We agree. Nothing in the statutory text or legislative history of the TNCSRA suggests that the Legislature intended to regulate app-based food delivery services.

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I.

We discern the following pertinent facts and procedural history from the record. On June 30, 2017, plaintiff enrolled with defendant Portier, LLC (Portier) to use his personal vehicle—a motorcycle—to deliver food. Portier generates leads to independent food delivery service providers—the drivers— through a mobile phone application known as Uber Eats. 1 The Uber Eats app allows food delivery service providers and restaurants to connect with each other so that they can fulfill orders placed by consumers.

Plaintiff was required to sign a "Technology Services Agreement" with Portier. Section 8.3 of that agreement provides:

You understand and acknowledge that your own insurance policy (e.g., automobile or other liability insurance policy) may not afford liability, comprehensive, collision, medical payments, personal injury protection, uninsured motorist, underinsured motorist, damage to property in your care, custody and control, or other coverage for the Delivery Services you provide pursuant to this Agreement. If you have

1 Judge Petrillo noted that Portier is a:

[W]holly-owned subsidiary of Uber Technologies, hereinafter referred to as Uber, [which] provides lead generation services to independent providers of food delivery services through Uber's mobile application known as Uber Eats. That is, essentially, a spin-off of the ride sharing company which uses Uber's existing fleet of independent drivers to deliver food from participating restaurants directly to consumers.

A-2883-20

any questions or concerns about the scope or applicability of your own insurance coverage, it is your responsibility, not that of [Portier], to resolve them with your insurer(s).

Section 8.4 of the Services Technology Agreement further provides that:

[Portier] may maintain during the term of this Agreement insurance related to your provision of Delivery Services as determined by [Portier] in its reasonable discretion, provided that [Portier] and its Affiliates are not required to provide you with any specific insurance coverage for any loss to your Transportation Method or injury to you.

On August 17, 2017, plaintiff was in the process of making a food delivery for Uber Eats when a vehicle driven by defendant Caren L. Josey (Josey) made a left turn onto the Route 17 entrance ramp in Hackensack and collided with plaintiff's motorcycle. Plaintiff was thrown from the motorcycle and sustained significant injuries requiring multiple surgeries.

Josey was insured by CURE Auto Insurance with bodily injury liability coverage limited to $15,000 per person and $30,000 per accident. Plaintiff's injuries exceeded the limits of Josey's personal auto insurance policy.

Portier had procured a business auto insurance policy from James River.

That policy provides in pertinent part, "[w]e will pay all sums an 'insured' legally must pay as damages because of 'bodily injury' or 'property damage' to which this insurance applies, caused by an 'accident' and resulting from the ownership, maintenance or use of a covered 'auto.'" The James River policy A-2883-20

defines an "insured" to include "Delivery Drivers" who have entered into a contract to use the "UberPartner Application" and who have logged into the "UberPartner Application." Importantly, however, the James River policy does not provide underinsured motorist benefits.

On November 6, 2017, plaintiff filed a complaint against Josey claiming negligence. On December 28, 2017, plaintiff filed an amended complaint, adding James River as a defendant and seeking coverage from James River for plaintiff's injuries that exceeded the limits of Josey's personal auto insurance policy. On February 8, 2018, plaintiff filed a second amended complaint, adding Portier as a defendant. Plaintiff alleged in the second amended complaint that, at the time of the accident, he was "employed and/or insured with [Portier], the insured of defendant [James River]" and claimed that he is "entitled to underinsured motorist benefits from defendant [James River]." On April 16, 2018, plaintiff filed a third amended complaint, adding Rider Insurance Company as a defendant. 2

2 The complaint against Rider Insurance Company has no bearing on the substantive issue presented in this appeal and is pertinent only insofar as the date of its dismissal with prejudice determines when all complaints in the matter were finally resolved. See infra Section II (discussing James River's contention that the present appeal was not timely filed and should not be heard).

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On October 12, 2018, the complaint against Portier was dismissed without prejudice and that matter was compelled to arbitration. The complaints against the other defendants were not affected by the order to compel arbitration.

Following the exchange of discovery, James River filed a motion for summary judgment seeking dismissal of the complaint against it with prejudice. On January 25, 2019, Judge Petrillo convened oral argument on James River's motion for summary judgment. At the conclusion of the hearing, the judge rendered an opinion on the record and issued an order granting James River's motion for summary judgment and dismissing the complaint with prejudice as to all claims against James River. The January 25, 2019 order is the subject of the present appeal.

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SCOTT C. MALZBERG v. CAREN L. JOSEY (L-7858-17, ESSEX COUNTY AND STATEWIDE), (N.J. Ct. App. 2022).

SCOTT C. MALZBERG v. CAREN L. JOSEY (L-7858-17, ESSEX COUNTY AND STATEWIDE) (SCOTT C. MALZBERG v. CAREN L. JOSEY (L-7858-17, ESSEX COUNTY AND STATEWIDE)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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