Opinion ID: 2383188
Heading Depth: 1
Heading Rank: 2

Heading: P.I.E.'s Liability

Text: The question of P.I.E.'s liability requires a more intricate legal analysis. There is no claim, and no evidence, that the truck was on a mission for P.I.E. at the time of the fatal accident. The plaintiffs, rather, seek to establish the vicarious liability of P.I.E. through the provisions of the Interstate Commerce statutes, and regulations adopted by the Interstate Commerce Commission pursuant to those statutes, governing the use by certified carriers of rolling stock belonging to others. The verdict directing instruction [11] required findings on disputed issues as follows:       Second, Pacific Intermountain Express Company leased the truck driven by Lee Brown, Jr. and provided a sign to be displayed on the truck identifying Pacific Intermountain Express Company as the carrier, and Third, Pacific Intermountain Express Company failed to remove the sign from the truck before the collision of November 19, 1978, and       All hypotheses of this instruction are supported by the evidence. The question is whether the instruction submits all the contested facts necessary to support a recovery against P.I.E. Motor carriage of freight in interstate commerce is closely regulated. Regulation of leases of rolling stock by a certified carrier for use in operations under its certificate is especially strict. [12] One important purpose of the regulatory scheme is to protect persons who are injured in highway accidents, [13] by increasing the likelihood that a substantial entity will be available to respond to any judgment rendered. The federal statute and regulations have been held, in numerous cases from different jurisdictions, to have a definite and substantial impact on tort liability. These holdings are not mandated by any controlling authority from the Supreme Court of the United States, but rather represent the consensus of judicial authority based on analysis of statutory policy and implementing regulations. This Court has spoken on the subject only in Brannaker v. Transamerican Freight Lines, Inc., 428 S.W.2d 524 (Mo.1968). Both the plaintiff and P.I.E., understandably, try to glean support in Brannaker for their respective positions. There the plaintiff sued for damages sustained in a collision with a tractor-trailer unit owned by Murray, but bearing signs indicating operation under the authority of Sykes Transport Company, a certified carrier. Murray had leased the unit to Sykes for two years and customarily drove the truck while hauling freight at Sykes' direction. Sykes and Murray had a disagreement and, after a point, Murray did no more hauling on direct orders from Sykes. The tractor continued to display Sykes' sign, however, and Murray hauled loads for other certified carriers, under trip leases, which were permitted under the lease and governing regulations. The Court found that all trip leases had terminated at the time of the accident. There was disputed evidence as to Sykes' efforts to terminate its lease and to reclaim its licenses and signs. The Court found that there was a jury issue as to whether the lease was still in effect, so that Murray would be operating under Sykes' authority. The Court also found, in Brannaker , a jury issue as to whether Murray, at the time of the accident, was engaged in Sykes' business, or was engaged in a purely personal mission in returning to his home. We held that the maximum effect of ICC regulations would be to make the certified carrier liable as owner, and that the owner would not be responsible for the employee's use of the vehicle in a purely personal mission. This holding is more restrictive of liability than some courts would decree. [14] But this part of the opinion is not pertinent, in the view we take of the case, because here the evidence shows beyond dispute that the unit was hauling regulated dry freight at the time of the accident. P.I.E. argues that it has only trip leases for rolling stock it does not own and that any trip lease for the 1978 Kenworth expired when the cargo reached its distination. Trip leases are valid under the governing statute and regulations only in isolated situations, one of which involves back hauling after transporting a load of produce, which enjoys an agricultural exemption. [15] Other leases of rolling stock by a certified carrier must be for a minimum 30-day period. The plaintiffs argue that it must be assumed that there was a minimum 30-day lease which had not expired because P.I.E. did not meet the burden of showing that there was a valid trip lease. In the view we take of the case we do not have to resolve their conflicting positions but rather assume, for purposes of this opinion, that the last journey of the 1978 Kenworth under P.I.E.'s authority was covered by a valid trip lease. The signs or placards are essential parts of any lease of rolling stock by a certified carrier. They must show the lessee carrier's name and operating number, and must be serially numbered in the carrier's own series. [16] The regulation [17] provides that, at the termination of the trip, The authorized carrier operating equipment under this part shall remove any legend, showing it as the operating carrier, displayed on such equipment, and shall remove any removable device showing it as the operating carrier, before relinquishing possession of the equipment. P.I.E., of course, offered no evidence of any attempt to retrieve the signs, because it disclaimed knowledge of any dealing with Tabor or his associates. Brannaker suggests that evidence of such efforts, or of reporting the loss of serially numbered signs to appropriate authorities, would be significant in support of the carrier's theory that the lease had terminated. See also Atlantic Truck Lines, Inc. v. Kersey, 387 So.2d 411 (Fla.App.1980). P.I.E. was operating at a distinct disadvantage in trial after the jury found that there had been a lease of the 1978 Kenworth to it, but we must proceed on the assumption that the signs were furnished and never returned, and that no effort was made to reclaim them. P.I.E., citing Brannaker , argues that the bare existence of a lease and the failure to reclaim the signs following termination is not sufficient to found liability, in the absence of a finding that Brown was operating the truck within the scope and course of employment by an agency of P.I.E. Judge Flanagan of the Court of Appeals adopted this position. Brannaker does support the proposition that the mere presence on a vehicle of a placard furnished by a carrier is not conclusive of the carrier's vicarious liability, but it involves two factual possibilities not here present, as follows: (1) the carrier may have made reasonable efforts to terminate the lease and to reclaim its identifying signs; or (2) the vehicle may have been used on a mission personal to the driver, not involving the hauling of freight for the benefit of the lessee carrier or anyone else, at the time of the accident. There is no basis in the evidence in this case for consideration of either of these theories, or any similar theories. Brannaker emphasizes the great importance of the sign in giving an appearance of operating authority, and other courts have emphasized this circumstance. [18] In Mellon National Bank & Trust Co. v. Sophie Lines, 289 F.2d 473 (3d Cir.1961), frequently cited, a carrier leased a truck from an owner-driver and furnished signs. When the lease was still in effect, the truck, displaying the carrier's signs, was used for an illegal back haul of lumber in which the carrier had no interest. The court found the carrier liable, nonetheless, observing that the presence of the signs made it appear that the shipment was moving under its certificate. That case is similar to this one, but is not completely in point because there a continuing lease was in effect and the parties contemplated shipments by the lessee's order at the conclusion of the illegal back haul. A very recent case discussing the importance of the signs and consistent with the result we reach is Rodriguez v. Ager, 705 F.2d 1229 (10th Cir.1983). Judge Doyle's comprehensive opinion discusses the purpose of the regulatory scheme and analyzes the leading cases. We conclude that the instruction here given properly stated the essential disputed elements of the case and was supported by the evidence. P.I.E. could probably have obtained the signs easily by holding up payment until they were returned. By allowing the trucker to retain the signs, it contributed to the appearance that the unit was operating under P.I.E.'s authority. There is no evidence that Marlo thought that it was arranging a shipment under that authority, or that it dealt with Brown or Singleton because they were apparently able to palm themselves off as having authority from P.I.E., but it is quite possible that a truck with unauthorized signs might be able to attract freight business which would not otherwise fall to it. Singleton's testimony made it very clear, furthermore, that he considered the sign useful in making it easier to navigate without interference from the constabulary. It may be assumed that checks for the presence of operating authority are made by responsible officials and that signs may be of substantial assistance in avoiding arrest or challenge. Viewed in this light, the requirements of retrieval of a sign has great substantive importance in the regulatory scheme. It is more likely that freight will be carried by certified, responsible carriers if their signs are controlled. We conclude that P.I.E. may be held liable for the truck driver's negligence, without regard to the continuing force of the lease, if the jury finds: (1) that a sign or identifying legend was furnished by the carrier in connection with a lease; (2) that the sign was on the truck at the time of the accident; and (3) that the truck was hauling regulated freight at the time of the accident. [19] Instruction # 7 submitted the first two elements and the jury necessarily found these in reaching its verdict. The instruction might be found deficient, in a vacuum, by not requiring a finding that the truck was hauling regulated freight at the time but, if there is indeed any genuine issue of fact in this matter, it was effectively resolved by the jury's finding that the unit was being operated in Marlo's interest. Only issues of fact which are genuinely in dispute need be submitted to a jury. [20] All instructions must be read together. [21] The conclusion we reach is based on statutory policy rather than a conventional respondeat superior theory. It is based on the failure to comply with an explicit provision of the governing regulations, designed to identify the responsible carrier and to inhibit the shipment of hot freight, rather than on a holding that the latest lease was not properly terminated. No issue is presented as to the effect of an attempt by P.I.E. to retrieve the signs, as no such attempt was shown by evidence. We of course express no opinion on the effect of failure to comply with the governing regulation in other respects. Nor do we have to decide what P.I.E.'s liability would have been had the truck been operating under lease to another certified carrier at the time of the accident. Our holding centers on the appearance of authority created and maintained when a sign is issued and not retrieved. It was not necessary, then, for the plaintiff to show that the truck was on an actual mission for P.I.E. at the time of the accident. Rodriguez v. Ager, supra . P.I.E.'s liability is based on appearances, not on actualities. It is clear that the unit was hauling freight for Franklin, and so the personal mission facet of Brannaker has no application. The judgment is affirmed. RENDLEN, C.J., and GUNN and BILLINGS, JJ., concur. HIGGINS, J., concurs in part and dissents in part in separate opinion filed. DONNELLY, J., dissents in separate opinion filed. WELLIVER, J., dissents in separate opinion filed and concurs in separate dissenting opinion of DONNELLY, J. WELLIVER, J., withdraws previously filed dissent and files substitute dissenting opinion and concurs in separate dissenting opinion of DONNELLY, J., on December 20, 1983. HIGGINS, Judge, concurring in part and dissenting in part. I concur in the opinion insofar as it affirms plaintiffs' judgment against Marlo Transport Corporation. I cannot join the opinion in its affirmance of plaintiffs' judgment against Pacific Intermountain Express Company because I cannot find any evidence to show defendant vicariously liable to the plaintiffs. The majority opinion concedes there is no evidence that the fatal trip was carried on under P.I.E.'s authority or its knowledge or that it had any interest in the revenues connected to the trip. The case against P.I.E. was submitted on a theory that failure of P.I.E. to remove an identifying sign covering a previous bona fide lease somehow provided the evidence of vicarious liability otherwise lacking. It is undisputed that there was no lease or other enterprise arrangement existing between P.I.E. and Tabor to provide a right of control on the trip in question as a basis for vicarious liability. In these circumstances, plaintiffs failed to make a submissible case against P.I.E. and the judgment against it should be reversed. DONNELLY, Judge, dissenting. Today, the Court ignores settled Missouri law and implants, again without a rationale, a scheme for redistribution of property. See Virginia D. v. Madesco Investment Corp., 648 S.W.2d 881 (Mo. banc 1983). The principal opinion holds P.I.E. vicariously liable on the basis of a regulation adopted by the Interstate Commerce Commission and governing leases of rolling stock by a certified carrier. In so doing, it imposes a liability on P.I.E. when using leased equipment greater than its liability when operating its own equipment. I cannot agree. The essential questions in this case are (1) whether P.I.E. is vicariously liable under the Missouri doctrine of joint enterprise; and (2) whether Marlo is vicariously liable under the Missouri doctrine of joint enterprise. In Herrell v. St. Louis-San Francisco Ry. Co., 324 Mo. 38, 45, 23 S.W.2d 102, 105 (banc 1929), this Court declared `that negligence in the conduct of another will not be imputed to a party if he neither authorized such conduct, nor participated therein, nor had the right or power to control it.' See Restatement (Second) of Torts § 491, Comments b & c (1965). In my view, respondents failed to make a submissible case. I respectfully dissent. WELLIVER, Judge, dissenting. I respectfully dissent. The Court today strains prior conceptions of vicarious liability in order to uphold plaintiffs' judgment against defendants. Unquestionably, plaintiffs have suffered a tragic wrong, but it is apparent to me that the tortfeasor is not before the Court. While I emphathize with plaintiffs, I cannot subscribe to assessing tort liability ... based on appearances, not on actualities. Appearances have nothing to do with who caused or may have been responsible for plaintiffs' injuries and damages. Because I cannot justify holding parties so remotely related to a negligent act responsible, I would reverse the judgment rendered against both Pacific Intermountain Express (P.I.E.) and Marlo Transport Corp. (Marlo). The Court defends the judgment against P.I.E. on the basis of a contrived agency relationship imposed by the Court as a matter of policy, theoretically to promote the objectives of a federal regulatory scheme. We previously have interpreted the Interstate Commerce Commission (I.C.C.) regulations relied on in this case as imposing no greater degree of liability than the carrier's liability for the negligence of its driver when operating its own equipment. Brannaker v. Transamerican Freight Lines, Inc., 428 S.W.2d 524, 529 (Mo.1968). It is apparent that, despite its claims to the contrary, the majority has rejected the teaching of Brannaker and in its stead, has embraced a view that the court defined policy objectives underlying the regulatory scheme warrant imposing something resembling strict liability for trucking carriers. I believe the majority's decision is neither supported by the law of this state nor justifiable as a matter of policy. I believe we are compelled to look to the law of this state when determining whether P.I.E. is liable for the truck driver's negligence. Our federal Constitution leaves to the control of state authorities the regulation of civil relationships of the type encompassed by the law of agency. Because of the absence of any state legislation modifying the relationship between P.I.E. and the truck driver involved in the accident, this Court should utilize this state's common law of agency. It is clear that under the doctrine of respondeat superior this defendant could not be found liable. The majority tacitly concedes this fact, but nevertheless affirms the judgment against P.I.E. for policy reasons. I do not believe it is desirable to hold interstate trucking carriers, such as P.I.E., liable under the circumstances of this case. The imposition of liability because of the presence of a placard on the truck will not encourage carrier-lessees to lease equipment from safer operators. Rather, it will lead only to stricter control of identification placards. This is not a valid reason for abandoning this state's long established rules of agency. The Court's decision with respect to Marlo is equally tenuous. We previously have described a joint venture as an association of persons to carry out a single business enterprise for profit, for which purpose they combine their property, money, effects, skill, and knowledge. Bell v. Green, 423 S.W.2d 724, 731 (Mo. banc 1968), quoting 48 C.J.S. Joint Adventures § 1a. Bell further provides that [a]s a general rule, in order to constitute a joint adventure, there must be a community of interest in the accomplishment of a common purpose, a mutual right of control, a right to share in the profits and a duty to share in the losses as may be sustained. 423 S.W.2d at 731. See also Howard v. Winebrenner, 499 S.W.2d 389, 396 (Mo.1973). I do not believe the evidence in the record supports the majority's conclusion that Marlo was participating in a joint venture as our prior decisions have defined that term. In analyzing Marlo's culpability, it is necessary to understand the nature of its business. As a freight broker, Marlo assisted in locating available truckers for companies needing materials shipped. In return for a percentage of the shipping fee, Marlo placed truckers in contact with its clients. Under this arrangement, Marlo earned its fee upon obtaining a truck to haul the freight. While Marlo may have had a commercial interest in seeing its client's freight delivered, it had no legal interest at stake with respect to the fee once the trucker agreed to haul freight. Because Marlo's participation in the transaction ended at this point, the Court errs when it finds that [t]he parties undertook a particular project, for mutual benefit and profit. 662 S.W.2d at 241. Nor do I see any basis whatsoever for the finding that Marlo had an equal right of control. Id. at 241. There is positively no evidence in the record to support a conclusion that Marlo, through the exercise of reasonable care, could have controlled the operation of the truck. On the contrary, the degree of autonomy with which the driver of the truck in this case chose his route convinces me that he acted as an independent contractor. The Court notes that [t]his is not a situation in which Marlo should be allowed to escape liability by asserting independent contractor status, 662 S.W.2d at 242, citing Marlo's dealings with a trucker operating without proper I.C.C. registration. If the Court truly intends to assess tort liability on the basis of appearances, not on actualities, then I believe it is somewhat incongruous to state on the one hand that a truck bearing P.I.E.'s placard was thereby leased to P.I.E. at the time of the accident but that, on the other hand, the same truck bearing the same placard lacked I.C.C. certification at the time of Marlo's involvement with it. The result reached by the majority cannot be viewed as other than basing liability for damages on the depth of the defendant's pocket without regard to the degree of defendant's fault. I also concur in the dissent of DONNELLY, J.