Smith v. Swift Transportation Co.

915 F. Supp. 2d 766, 2013 WL 139897, 2013 U.S. Dist. LEXIS 4202
CourtDistrict Court, W.D. Louisiana
DecidedJanuary 9, 2013
DocketNo. 2:12-cv-2012-PM-KK
StatusPublished
Cited by3 cases

This text of 915 F. Supp. 2d 766 (Smith v. Swift Transportation Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Swift Transportation Co., 915 F. Supp. 2d 766, 2013 WL 139897, 2013 U.S. Dist. LEXIS 4202 (W.D. La. 2013).

Opinion

MEMORANDUM RULING

PATRICIA MINALDI, District Judge.

Before the court is the defendants,’ Christopher R. Klann and Swift Transportation Company of Arizona, LLC (“Swift”) Motion to Dismiss or Alternatively Motion to Stay and Compel Arbitration [Doc. 7]. The plaintiff, Wesley Smith, filed a response in opposition [Doc. 12], and the defendants filed a reply [Doc. 16], For the reasons stated herein, the defendants’ motion will be GRANTED.

BACKGROUND

The plaintiff filed this action in the Fourteenth Judicial District Court for the Parish of Calcasieu, Louisiana, against the defendants, Swift, “XYZ Insurance Company,” and Christopher R. Klann, asserting claims against them for damages allegedly sustained in a tractor-trailer accident on June 1, 2011 in Lake Charles, Louisiana.1 The defendants then removed this case to this court on the basis of diversity jurisdiction under 28 U.S.C. § 1332.2

At the time of his tractor-trailer accident, Smith was an owner/operator of an 18-wheeler tractor-trailer.3 He had entered into a Contractor Agreement with Swift on May 16, 2008, under which he would transport freight for Swift, with Swift reimbursing him pursuant to the agreed-upon mileage reimbursements.4 Later, the parties renewed the Contractor Agreement (with a new reimbursement rate schedule) on June 8, 2009, and this was the Contractor Agreement in effect at the time of Smith’s accident.5

As part of the Contractor Agreement, Swift required Smith to maintain his own insurance, provide and supervise employees as necessary, and cover his employees under his worker’s compensation program.6 The Contractor Agreement also contained a clause under which Smith agreed to indemnify, defend and hold Swift harmless for any and all claims involving [768]*768any injury or property damage he might suffer.7 Further, the Contractor Agreement included a forum selection clause, under which any legal proceeding (including arbitration) arising between Smith and Swift would be filed and/or maintained in either state or federal court in Phoenix, Arizona (where Swift is headquartered).8 In conjunction with this, the Contractor Agreement contained a choice of law clause which mandated that Arizona law would govern any disputes.9 Finally, the Contractor Agreement contained an arbitration clause which mandated that any dispute arising under or in any way related to the Agreement would be subject to binding arbitration by the parties, in accordance with the Federal Arbitration Act and/or Arizona’s Arbitration Act.10

As a part of his contract with Swift, Smith also agreed to participate in the Mentor Program, under which Smith would serve as a mentor to driver-trainees learning to operate tractor-trailers. Smith signed a “Mentor Addendum,” which became a part of his Contractor Agreement.11 This Addendum provided that Swift would compensate him for mentoring trainees by teaching them general driving skills and training them to drive a tractor-trailer.12 The Mentor Addendum included a clause which required Smith to indemnify, defend, and hold Swift harmless from any suit or claim arising against Swift from any damage suffered by Smith in connection with the mentoring program.13

Pursuant to this Mentoring Program, on June 11, 2011, Smith was training Christopher Klann, with Klann at the wheel of Smith’s tractor-trailer.14 Smith alleges that because Klann had “physical and mental infirmities,” he negligently operated the vehicle, which led to Klann crashing the tractor-trailer near the intersection of 1-210 and I — 10 in the Lake Charles area, causing both personal injuries and property damage to Smith.15

The defendants now bring their Motion to Dismiss. First, they argue that the Contractor Agreement’s forum selection clause is controlling, and thus Smith must instead bring his claims in Phoenix, Arizona.16 Second, they argue that the dispute between the parties must be stayed [769]*769and go through arbitration, as the provisions of the Federal Arbitration Act are expressly incorporated into the terms of the contract between Smith and Swift.17 They note that the Contractor Agreement contains a binding and enforceable arbitration clause, and that the scope of the arbitration agreement includes Smith’s claims for personal injury and property damage18 Finally, the defendants assert that Smith’s claims are alternatively governed by the Arizona Arbitration Act, which requires dismissal and a stay of further proceedings.19

In response, Smith argues that the forum selection clause and arbitration clause are not binding here, because he has sued the defendants for “things not covered by the contractual relationship between the parties or arising from the contract.”20 Smith alleges that it was Swift’s failure to properly screen Klann (which allegedly would have alerted Swift to the fact that Klann was using drugs and was subject to seizures), and that Smith was not given the ability to select his own mentees21 Extrapolating from this, he argues that his cause of action actually arises out of Swift’s negligent hiring of Klann, a claim which allegedly falls outside of the provisions of the Contractor Agreement.22

Further, Smith argues that transferring the case to Arizona would result in “undue hardship for all parties involved,” since his accident happened in Lake Charles, the police officers who investigated the aecident are in Lake Charles, and Smith’s treating physicians post-accident are all in Lake Charles.23 Smith also alleges that the arbitration clause included in the Agreement does not apply to “the duty of Swift to select and hire qualified persons to enter their mentor program.”24 Finally, he argues that Interstate Motor Common Carrier Act renders the indemnity clause in the Contractor Agreement invalid.25

In their reply, the defendants argue that Smith agreed to the forum selection clause in the Contractor Agreement, and that he has offered no proof that the forum selection clause is inapplicable or invalid.26 They further note that Arizona would not be an inconvenient forum, since Swift is headquartered in Arizona, all of the Swift witnesses are in Arizona, and all of the documents and evidence associated with the mentor program and Contractor Agreement are in Arizona27 Further, the defendants argue that the Contractor Agreement’s arbitration clause is broad enough to cover this dispute, particularly because, aside from his claim that Swift failed to screen mentee candidates, Smith makes several general negligence claims in his petition which fall directly under the provisions of the Contractor Agreement.28 Finally, they note that Smith’s reliance on the Interstate Motor Common Carrier Act is misplaced and has no bearing on the arbitration or forum selection clauses in the Contractor Agreement.29

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Bluebook (online)
915 F. Supp. 2d 766, 2013 WL 139897, 2013 U.S. Dist. LEXIS 4202, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-swift-transportation-co-lawd-2013.