Wyckoff Trucking, Inc. v. Marsh Bros. Trucking Service, Inc.

569 N.E.2d 1049, 58 Ohio St. 3d 261, 1991 Ohio LEXIS 919
CourtOhio Supreme Court
DecidedApril 10, 1991
DocketNo. 89-1746
StatusPublished
Cited by38 cases

This text of 569 N.E.2d 1049 (Wyckoff Trucking, Inc. v. Marsh Bros. Trucking Service, Inc.) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wyckoff Trucking, Inc. v. Marsh Bros. Trucking Service, Inc., 569 N.E.2d 1049, 58 Ohio St. 3d 261, 1991 Ohio LEXIS 919 (Ohio 1991).

Opinions

Sweeney, J.

The determinative issue in this appeal is whether a carrier-lessee of a motor vehicle engaged in interstate commerce is liable under Interstate Commerce Commission (“I.C.C.”) regulations for any accidents caused by the negligence of the driver while the lease is in effect and while the motor vehicle displays the carrier-lessee’s I.C.C. placards or identification numbers, even though the driver is not the lessee’s employee. For the reasons that follow, we answer such inquiry in the affirmative, and thereby reverse the judgment rendered by the court of appeals below.

The court of appeals below relied on this court’s prior pronouncement in Thornberry v. Oyler Bros., Inc. (1955), 164 Ohio St. 395, 58 O.O. 189, 131 N.E. 2d 383, in finding, inter alia, that traditional common-law doctrines, such as respondeat superior, are to be used in determining liability in interstate carrier accident cases involving leased vehicles. However, Thornberry was decided prior to the amendments to the Interstate Commerce Act (former Section 304, Title 49, U.S. Code, Ch. 928, Pub. Law 957, 70 Stat. 983, 1 U.S. Code Cong. & Adm. News [1956] 1163), which, as amended, are now codified at Section 11107, Title 49, U.S. Code. At the time Thomberry was handed down, the I.C.C. rules provided that the carrier-lessee had merely the right to direct and control the operation of the leased motor vehicle. Former Administrative Rule No. 4, quoted in Behner v. Indus. Comm. (1951), 154 Ohio St. 433, 438-439, 43 O.O. 360, 363, 96 N.E. 2d 403, 406. However, the new I.C.C. rule provides that the lessee shall have exclusive possession and control of the vehicle and shall assume complete responsibility for the operation of the vehicle. Section 1057.12(c)(1), Title 49, C.F.R.1

The policy rationale behind the change in I.C.C. regulations was succinctly explored by the federal court in Empire Fire & Marine Ins. Co. v. Guaranty Natl. Ins. Co. (C.A. 10, 1989), 868 F. 2d 357, 362:

“In the past, the use by truckers of leased or borrowed vehicles led to a number of abuses that threatened the public interest and the economic stability of the trucking industry. See, e.g., American Trucking Ass’ns. v. United States, 344 U.S. 298, 304-05, 73 S. Ct. 307, 311-12, 97 L.Ed. 337 (1953). In some cases, ICC-licensed carriers used leased or interchanged vehicles to avoid safety regulations governing equipment and drivers. Id. at 305, 73 S. Ct. at 312. In other cases, the use of non-owned vehicles led to public confusion as to who was financially responsible for accidents caused by those vehicles. See, e.g., Mellon Nat’l. Bank & Trust Co. v. Sophie Lines, Inc., 289 F. 2d 473, 477 (3d Cir. 1961).
“In order to address these abuses, Congress amended the Interstate Commerce Act to allow the ICC to prescribe regulations to insure that motor carriers would be fully responsi[265]*265ble for the operation of vehicles certified to them. 49 U.S.C. § 304(e) (1956). This section was revised and reenacted in 1978. See 49 U.S.C. § 11107; see also 49 U.S.C. § 10927. In response to this mandate, the ICC promulgated regulations requiring that every lease entered into by an ICC-licensed carrier must contain a provision stating that the authorized carrier maintain ‘exclusive possession, control, and use of the equipment for the duration of the lease,’ and ‘assume complete responsibility for the operation of the equipment for the duration of the lease.’ 49 C.F.R. § 1057.12(c). Further, the ICC requires that all ICC-certified carriers maintain insurance or other form of surety ‘conditioned to pay any final judgment recovered against such motor carrier for bodily injuries to or the death of any person resulting from the negligent operation, maintenance, or use of motor vehicles’ under the carrier’s permit. 49 C.F.R. § 1043.1(a).”

As mentioned before, leasing arrangements between interstate motor carriers are now governed by Section 11107, Title 49, U.S. Code, as well as the regulations promulgated thereunder, Part 1057, Title 49, C.F.R. Under these provisions, the lessee is required to display on the vehicle its I.C.C. identification number in order for the vehicle to lawfully carry freight in interstate commerce. Sections 1057.11(c)(1) and 1058.2, Title 49, C.F.R.

Nevertheless, the determination of tort liability arising out of accidents involving leased vehicles of interstate motor carriers under I.C.C. regulations has led to the emergence of two differing points of view. Under the minority view, a written lease in combination with the display of I.C.C. placards creates only a rebuttable presumption of an employment relationship between the driver of the vehicle and the carrier-lessee indicated on the placards. Thus, the carrier-lessee’s liability is ultimately determined by resort to common-law doctrines such as respondeat superior. At least one federal court opined that our decision in Thornberry, supra, has placed Ohio law within this line of reasoning. See Wilcox v. Transamerican Freight Lines, Inc. (C.A.6, 1967), 371 F. 2d 403, certiorari denied (1967), 387 U.S. 931. See, also, Pace v. Southern Express Co. (C.A.7, 1969), 409 F. 2d 331.

On the other hand, the majority view holds that Section 1057.12(c)(1), Title 49, C.F.R. creates an irrebuttable presumption of an employment relationship between the carrier-lessee and the driver of the vehicle that displays the I.C.C. placards of the carrier-lessee. This irrebuttable presumption is also referred to as the doctrine of statutory employment. The majority viewpoint strictly construes the I.C.C. regulations and essentially states that if the driver is negligent, the carrier-lessee is liable as a matter of law for accidents that occur while a lease is still in effect and its I.C.C. placards are displayed on the vehicle. See, e.g., Rodriguez v. Ager (C.A.10, 1983), 705 F. 2d 1229; Wellman v. Liberty Mut. Ins. Co. (C.A.8, 1974), 496 F. 2d 131; Simmons v. King (C.A.5, 1973), 478 F. 2d 857; Proctor v. Colonial Refrigerated Transp., Inc. (C.A.4, 1974), 494 F. 2d 89; Mellon Natl. Bank & Trust Co. v. Sophie Lines, Inc. (C.A.3, 1961), 289 F. 2d 473. Such liability attaches, under the majority interpretation, even if the driver embarks on an undertaking of his or her own while using the carrier-lessee’s I.C.C. authority. See Rodriguez, supra; Mellon, supra. In fact, the Geauga County Court of Appeals adopted this precise position in Jerina v. Schrock (1987), 37 Ohio App. 3d 171, 525 N.E. 2d 524.

After careful consideration of the [266]*266competing points of view within this particular area of law, we believe it is time to abandon the law as articulated in Thornberry, supra, and Wilcox, supra,

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Alexander v. Davis
2022 Ohio 2345 (Ohio Court of Appeals, 2022)
Beavers v. Victorian
38 F. Supp. 3d 1260 (W.D. Oklahoma, 2014)
UPS Ground Freight, Inc. v. Farran
990 F. Supp. 2d 848 (S.D. Ohio, 2014)
Duhart v. Lawson
928 N.E.2d 459 (Ohio Court of Appeals, 2010)
Bays v. SUMMITT TRUCKING, LLC
691 F. Supp. 2d 725 (W.D. Kentucky, 2010)
Cincinnati Insurance Company v. Stacey, Ca2008-06-019 (12-22-2008)
2008 Ohio 6761 (Ohio Court of Appeals, 2008)
Thompson v. Eroglu, Unpublished Decision (12-29-2006)
2006 Ohio 7060 (Ohio Court of Appeals, 2006)
Bookwalter v. Prescott
859 N.E.2d 978 (Ohio Court of Appeals, 2006)
Pouliot v. Paul Arpin Van Lines, Inc.
292 F. Supp. 2d 374 (D. Connecticut, 2003)
Diamond State Insurance v. Ranger Insurance
47 F. Supp. 2d 579 (E.D. Pennsylvania, 1999)
Leach v. Walls
993 F. Supp. 1103 (N.D. Ohio, 1997)
Cincinnati Insurance v. Haack
708 N.E.2d 214 (Ohio Court of Appeals, 1997)
Empire Fire and Marine Ins. Co. v. Liberty Mutual Ins. Co.
699 A.2d 482 (Court of Special Appeals of Maryland, 1997)
Gilstorff v. Top Line Exp., Inc.
106 F.3d 400 (Third Circuit, 1997)

Cite This Page — Counsel Stack

Bluebook (online)
569 N.E.2d 1049, 58 Ohio St. 3d 261, 1991 Ohio LEXIS 919, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wyckoff-trucking-inc-v-marsh-bros-trucking-service-inc-ohio-1991.