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

CourtNew Jersey Superior Court Appellate Division
DecidedSeptember 27, 2022
DocketA-2883-20
StatusPublished

This text of 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)) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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

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NOT FOR PUBLICATION WITHOUT THE APPROVAL OF THE APPELLATE DIVISION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.

A-2883-20 2 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 3 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 4 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).

A-2883-20 5 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

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SCOTT C. MALZBERG v. CAREN L. JOSEY (L-7858-17, ESSEX COUNTY AND STATEWIDE), Counsel Stack Legal Research, https://law.counselstack.com/opinion/scott-c-malzberg-v-caren-l-josey-l-7858-17-essex-county-and-statewide-njsuperctappdiv-2022.