Wiedeman v. Canal Insurance Company
1:15-cv-04182
N.D. Ga.Jun 16, 2017Background
- On August 8, 2014, Plaintiff Gregory Wiedeman (motorcyclist) collided with a truck operated by Walter Patrick Dorn, an H&F Transfer, Inc. employee; H&F leased the truck from Salem Leasing Corporation (Salem).
- The investigating officer attributed fault to Plaintiff for failing to yield at a red light; Plaintiff disputes the officer's conclusion.
- Dorn was employed, supervised, trained, and controlled by H&F, not by Salem; Salem did not employ or direct Dorn and does not operate as a motor carrier.
- Plaintiff sued Salem for respondeat superior, negligent hiring/retention/entrustment/supervision, and negligent failure to comply with motor-carrier safety regulations; he sued Wesco (Salem’s insurer) under Georgia’s direct-action statute, O.C.G.A. § 40-1-112.
- Salem and Wesco moved for summary judgment asserting (inter alia) lack of evidence that Salem employed or controlled Dorn and that Salem was a motor carrier; Plaintiff largely failed to oppose on the merits and pursued spoliation sanctions (denied).
- The Court granted summary judgment to Salem and Wesco, dismissed both defendants, and denied defendants’ requests for attorneys’ fees under O.C.G.A. § 9-15-14 because that statute does not authorize fees in federal court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Salem is vicariously liable under respondeat superior for Dorn's conduct | Wiedeman contends Salem (owner/lessor) had control/ability to direct Dorn | Salem shows Dorn was employed and controlled by H&F, not Salem; Salem never supervised or trained Dorn | Court: No respondeat superior liability; summary judgment for Salem |
| Whether Salem is liable for negligent hiring/retention/entrustment | Wiedeman alleges Salem entrusted the truck to Dorn and failed in hiring/supervision duties | Salem did not hire, retain, or know Dorn; no evidence of actual knowledge of incompetence | Court: Summary judgment for Salem on hiring/retention/entrustment claims |
| Whether Salem negligently failed to comply with federal/state motor-carrier regulations | Wiedeman alleges regulatory violations and industry-standard breaches by Salem | Salem: no evidence it violated regulations; Salem may not even qualify as a "motor carrier" | Court: Wiedeman submitted no evidence; claim deemed unopposed; summary judgment for Salem |
| Whether plaintiff may proceed in a direct action against Wesco under O.C.G.A. § 40-1-112 | Wiedeman joined Wesco under Georgia's direct-action statute | Wesco: direct action requires an underlying viable claim against a motor carrier/insured; Salem not liable here | Court: Because Salem's claims were dismissed, plaintiff cannot maintain direct action; summary judgment for Wesco |
Key Cases Cited
- Brown v. Who’s Three, Inc., 457 S.E.2d 186 (Ga. Ct. App. 1995) (defines "servant" for respondeat superior as party with right to direct time, manner, methods of work)
- Gunn v. Booker, 381 S.E.2d 286 (Ga. 1989) (negligent entrustment requires actual knowledge of incompetence)
- Sapp v. Canal Ins. Co., 706 S.E.2d 644 (Ga. 2011) (purpose and scope of Georgia direct-action statutes for motor carriers)
- Andrews v. Yellow Freight Sys., Inc., 421 S.E.2d 712 (Ga. 1992) (insurer under direct-action statute functions like substitute surety for carrier's liability)
- McGill v. Am. Trucking & Transp. Ins. Co., 77 F. Supp. 3d 1261 (N.D. Ga. 2015) (explaining requirements for direct action against carrier's insurer)
- Scott v. Harris, 550 U.S. 372 (2007) (at summary judgment, court need not adopt a version of facts blatantly contradicted by record)
- Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574 (1986) (nonmoving party must present more than metaphysical doubt to defeat summary judgment)
