Rothwell v. Werner Enterprises, Inc.Rothwell v. Werner Enterprises, Inc.
MEMORANDUM AND ORDER
7. INTRODUCTION
On July 17, 1991, plaintiff, John M. Roth-well, was working on a construction site when he was hit by a semi-tractor and trailer driven by defendant Ronald P. Cavender, an employee of defendant Werner Enterprises, Inc. (“Werner Enterprises”) at the time. Plaintiff was rendered a paraplegic as a result of the tragic incident. He brings this action against Mr. Cavender, Werner Enterprises, Drivers Management, Inc. (“Drivers Management”), and Progressive Casualty Insurance Co., in an attempt to recover for his injuries.
Defendants have moved for partial summary judgment (Docs. # 53 & 62) on various claims asserted by plaintiff. Defendants seek summary judgment on plaintiffs claim for compensatory damages for negligent hiring, training, retaining and/or supervising and on plaintiffs claim for punitive damages (Doc. # 62). Defendants farther seek summary judgment on plaintiffs claim under K.S.A. 66-176 on the theory that it is barred by the applicable statute of limitations (Doc. # 53). Plaintiff seeks to amend, by supplement, his response to defendants’ second motion for partial summary judgment (Doc. # 103). For the reasons set forth below, the court grants in part and denies in part defendants’ motion for partial summary judgment regarding plaintiffs claims for compensatory and punitive relief (Doc. #62) and grants defendants’ motion for summary judgment regarding plaintiffs claim under K.S.A. 66-176 (Doc. # 53). Plaintiffs motion to amend his response is denied as moot (Doe. # 103).
II. FACTS
The following facts are either uneontro-verted, or are facts considered by the court in the light most favorable to plaintiff, for purposes of this motion. At the time of the events which are the subject of this action, plaintiff, John M. Rothwell, was a journeyman lineman for Delta-Tee Construction Co., and had held the position for about four months. On July 17, 1991, he was working on a construction project known as the 119th Street and Pflumm Project, which included construction improvements on 119th Street both east and west of the intersection of 119th and Pflumm.
Mr. Rothwell was assigned to mount a left hand turn traffic signal on a pole on the west median of the intersection and was then to check the signal head bulbs to ensure that the proper bulbs had previously been installed. He parked his company pickup truck in the eastbound left turn lane on 119th Street (facing west), and backed the “bucket truck” into the eastbound left turn lane to the east of the pickup. The left rear tire of the bucket truck rested against the west median curb line of the intersection.
After installing the left turn signal onto the pole, Mr. Rothwell swung the articulating boom of the bucket truck out over the westbound inside lane of 119th Street so that he could check the wattage of the bulbs in the previously installed traffic signal head. Mr.
At the time of the incident, Mr. Cavender was an employee of Werner Enterprises, Inc., whose services as a driver had been leased to Drivers Management, Inc. Drivers Management is a subsidiary corporation of Werner Enterprises and hires all of the drivers used by that corporation. Mr. Cavender had been granted authority by Werner Enterprises as of January 9,1991, to operate its tractors and trailers as a solo driver.
Mr. Rothwell was rendered a paraplegic as a result of the impact with the tractor and trailer.
III. SUMMARY JUDGMENT STANDARD
When considering a motion for summary judgment, the court must examine all the evidence in the light most favorable to the nonmoving party.
Langley v. Adams County, Colorado,
Once the movant meets these requirements, the burden shifts to the party resisting the motion to “set forth specific facts showing that there is a genuine issue for trial.”
Anderson v. Liberty Lobby, Inc.,
TV. DISCUSSION
A Claims Based On a Theory of Negligent Hiring, Training, Retention or Supervision
Defendants Werner Enterprises and Drivers Management have admitted that Mr. Ca-vender was either an employee or was their agent and was acting within the scope of his employment at the time of the incident which is the subject of this action. Defendants candidly concede that if Mr. Cavender was negligent, they are hable on a theory of respondeat superior. They, of course, deny that Mr. Cavender was negligent.
Defendants argue that under these circumstances, where a defendant employer has admitted responsibility for the employee’s actions, the majority of courts across the country have held that it is improper to also allow a plaintiff to proceed against the employer on a separate theory of negligent hiring, training, retention or supervision. Defendants urge the court to find that Kansas courts, if faced with the issue, would agree with the clear majority rule and would bar plaintiff in this case from proceeding on a theory of negligent hiring or retention.
Plaintiff argues that an independent claim of negligence against an employer based on a theory of negligent hiring or retention is a valid and proper claim for relief under Kansas law. He contends that the negligent and wanton conduct of Werner Enterprises and Drivers Management in hiring or retaining Mr. Cavender was a proximate cause of plaintiffs injuries separate and apart from the negligent and wanton conduct of Mr. Cavender on July 17, 1991. Plaintiff contends he should be permitted to pursue his theory of negligent hiring or retention as a
A clear majority of courts have held, when faced with factual circumstances analogous to this ease, that if a defendant admits liability on a theory of respondeat superior, it is improper to permit plaintiff to also proceed on a theory of liability of the employer under the doctrine of negligent hiring, training, retention or supervision.
See McHaffie v. Bunch,
Courts which have prohibited plaintiffs from asserting negligent hiring, training, retention or supervision where the employer has admitted vicarious liability have done so based on the following reasoning:
In cases where A is sought to be held for an injury caused by B, the employer-en-trustor in this case, the “breach of duty” by A is nothing more than a theory under which responsibility for B’s conduct is tacked on to A. The result is the same whether A’s “duty” is to be called primary or vicarious. If, then, the only purpose and relevance of evidence showing the employee’s incompetence and the employer’s knowledge thereof is to show a liability link from the employee to the employer, and this link is admitted to exist, the evidence should be excluded under the general rule regarding undisputed matters, leaving as the only question the one contested issue — whether the employee’s negligence caused the injury.
See Wise,
The court is not aware of any Kansas case which has specifically addressed this issue. However, the Kansas Supreme Court has recently analyzed the theory of negligent hiring, training, retention or supervision in the context of a claim for punitive damages. In
Smith v. Printup,
In
Smith,
the court found that regardless of whether an employer’s liability is premised on the principle of negligent hiring or retention or on the principle of respondeat superi- or, the employer’s liability is based on the acts of an agent or employee.
It is important to point out that this court does not now find that a claim for negligent hiring, training, retention or supervision can
never
be an independent basis for compensatory relief.
See McHaffie,
1194 WL at *8 (under the appropriate evidentiary setting it is possible to prove liability under both scope of employment and negligent hiring, prove one but not the other, or prove neither)
4
;
Wise,
Plaintiff’s claim for relief turns on the appropriateness of the acts of Mr. Cavender as the driver of the vehicle which hit Mr. Roth-well and cannot be disconnected from them. If, in fact, Mr. Cavender did not act in a negligent or wanton manner when he drove through the intersection at 119th Street and Pflumm, or if his conduct was not the proximate cause of Mr. Rothwell’s injury, it is irrelevant whether or not he was negligently hired or retained, for then there is no basis to conclude that defendants’ negligent hiring or retention proximately caused plaintiffs injuries. Under the facts as presented, plaintiffs negligent hiring or retention theory is simply an alternative basis for linking the liability of Mr. Cavender to defendants Wer-ner Enterprises and Drivers Management.
See Foster v. Bd. of Trustees of Butler County Community College,
B. Claim for Punitive Damages
Plaintiff asserts he is entitled to punitive damages because defendants Werner Enterprises and Drivers Management acted in a wanton manner in hiring, training, retaining and supervising Mr. Cavender, and because defendants ratified or authorized the wanton conduct of their employee. Defendants argue first that punitive damages may not be claimed on a theory of negligent hiring or retention as a matter of law. Second, defendants argue that there exists no genuine issue of material fact as to whether Werner Enterprises and Drivers Management authorized or ratified the conduct of Mr. Caven-der, and, thus, that plaintiffs claim for punitive damages be dismissed altogether. The court finds that plaintiff may not claim punitive damages on a theory of negligent hiring or retention; however, genuine issues of material fact exist regarding plaintiffs claim that Mr. Cavender’s allegedly wanton conduct was ratified or authorized, precluding summary judgment on this claim.
Once again the court turns to
Smith v. Printup
for an answer to the questions presented. In
Smith,
the court reasoned that the enactment of K.S.A. 60-3701(d)(l)
5
changed the previously valid grounds upon which a plaintiff could sustain a claim for punitive damages against an employer for the acts of its employee. The court held that the statute specifically limited the circumstances in which a corporation could be liable for punitive damages to those in which an employer either authorized or ratified the tortious acts of its employee and, therefore, closed the door to seeking punitive damages on a theory of negligent hiring training, retention or supervision.
Smith,
Plaintiff is not prohibited, however from pursuing his claim that defendants Werner Enterprises and Drivers Management ratified or authorized the allegedly wanton conduct of Mr. Cavender. Plaintiff has produced sufficient evidence to raise an issue of faet that Mr. Cavender’s conduct was ratified or authorized by his employers or principals. 7
Authorization under K.S.A. 60-3701(d)(1) may be either express or implied.
Smith,
For instance, plaintiff has proffered that Mr. Cavender’s supervisor believed a driver in Mr. Cavender’s position had the right to assume that the boom bucket occupied by Mr. Rothwell was positioned above the height of the tractor and trailer. Such evidence would be admissible to show that Mr. Cavender’s actions were “authorized.” It might also be proper to offer evidence that Mr. Cavender violated certain safety regulations and that Werner Enterprises or Drivers Management knew or should have known that the regulations were violated.
See Smith,
Thus, the court finds that plaintiff is entitled, at this juncture, 9 to proceed on his claim for punitive damages. Defendants’ motion for summary judgment is denied to the extent that it sought to preclude plaintiff from offering evidence at trial that defendants Werner Enterprises and Drivers Management authorized or ratified Mr. Cavender’s conduct. 10 Defendants’ motion is granted to the extent that plaintiff is prohibited from pursuing a punitive damage claim on a theory of negligent hiring or retention.
C. Claims Under KS.A 66-176
Plaintiff pursues relief under K.S.A. 66-176, alleging that, as a result of the conduct of defendants, he is entitled to recover three times the actual damages he has suffered, the costs of suit and reasonable attorney fees. Defendants argue that plaintiffs claim is one upon penalty or forfeiture and that plaintiff failed to bring this action within the one-year statute of limitations attributable to such claims. The court agrees with defendants that K.S.A. 66-176 provides a remedy in the nature of a penalty, that a one-year statute of limitations is applicable, and that plaintiffs claim under the provision is time barred.
Defendants contend that the one-year statute of limitations of K.S.A. 60-514(3) which applies to “an action upon statutory penalty or forfeiture” is the appropriate period. Plaintiff contends, however, that 66-176 is compensatory in nature and does not constitute an action upon a penalty. It is plaintiffs assertion that the appropriate statute of
K.S.A. 66-176 provides in pertinent part:
Forfeiture for violations; attorney’s fee. Any public utility or common carrier which shall violate any of the provisions of law for the regulation of such public utilities or common carriers shall forfeit, for every offense, to the person, company or corporation aggrieved thereby, three times the actual damages sustained by the party aggrieved, together with the costs of suit, and reasonable attorney fee, to be fixed by the court....
The statute does not specifically provide for a limitations period, so the court must look to the nature of the cause of action in order to select the appropriate one.
Chilson v. Capital Bank of Miami, Florida,
On its face, K.S.A. 66-176 appears to be a penalty provision. The use of the words “forfeiture” and “forfeit” in the statute would seemingly place this provision in the “statutory forfeiture” category.
See Phillips v. Vieux,
The Kansas Supreme Court has, in fact, found 66-176 “penal” in nature.
Kearney v. Kansas Public Service Co.,
Both
Dietz
and
Western Kansas Express
cite with approval
Beadle v. Kansas City, Fort Scott & Memphis R.R. Co.,
Plaintiff argues that since
Beadle,
the scope of the liability imposed by 66-176 has been expanded greatly. This expansion, he contends, coupled with the recent recognition by Kansas Courts of an individual right of action in 66-176, is evidence that 66-176 is no longer purely a penalty or forfeiture statute. The fact that the statute provides an individual right of action, however, does nothing to show that K.S.A. 66-176 is other than in the nature of a penalty or forfeiture. An individual right of action under 66-176 was contemplated and recognized in 1883, by the
Beadle
court, which in
any
event held the one-year limitation period applicable.
See Beadle,
The only remaining issue is whether plaintiff filed his action in time. The court finds that plaintiff did not file his action pursuant to K.S.A. 66-176 in a timely manner. Plaintiffs cause of action began to accrue no later than July 17, 1991, the date of plaintiffs injury. Plaintiff did not file his claim until June of 1993. Plaintiff argues he was unaware of any violations which would form the basis of this cause of action until discovery in this case was in progress. This alone does not “toll” the running of the statute of the limitations. It was plaintiffs responsibility to be aware of his right to bring an action under 66-176 or to conduct an investigation into the cause of his injuries in such a manner as to enable himself to take advantage of the provision.
See Smith,
V. CONCLUSION
IT IS THEREFORE ORDERED BY THE COURT that defendants’ motion for partial summary judgment (Doc. # 62) is granted in part and denied in part.
IT IS FURTHER ORDERED that defendants’ motion for partial summary judgment on plaintiffs claim under K.S.A. 66-176 (Doc. # 53) is granted.
IT IS FURTHER ORDERED that plaintiffs motion for leave to amend, by supplementation (Doc. #103) is denied as moot.
IT IS SO ORDERED.
Notes
. Cases which have dealt with this question have examined the viability of bringing an independent claim based on negligent hiring or retention where no punitive damages are sought.
See, e.g., Wise,
. Jurisdiction in this action is based on diversity of citizenship. Accordingly, the court must apply Kansas law in an effort to reach the same result a Kansas court would reach.
See Adams-Arapahoe Sch. Dist. No. 28-3 v. GAF Corp.,
. The court stated that there are "several theories under which an employer may be liable for its employee's misconduct.”
Smith,
. The Missouri court provided the following hypothetical:
If there were in this record evidence ... that Farmer was unable to control his truck immediately before the accident because he was suddenly stricken by a fainting spell or loss of consciousness from a cause unforeseen by him, Farmer would not be found negligent. Under respondeat superior principles, Rumble and Bruce then would be exonerated as a matter of law although they admitted Farmer was their employee acting within the course and scope of his employment. Rumble could nevertheless be liable under a negligent hiring theory if there was also evidence ... that Rumble hired and retained Farmer knowing through the ... medical examination that Farmer suffered from an illness that Rumble should have foreseen might cause Farmer to unexpectedly faint or black out. Under the example Rumble's independent act could impose liability on Rumble separate and apart from Farmer’s act.
. K.S.A. 60-3701 (Supp.1993) states in pertinent part:
(d) in no case shall exemplary or punitive damages be assessed pursuant to this Section against: (1) a principal or employer for the acts of an agent or employee unless the questioned conduct was authorized or ratified by a person expressly empowered to do so on behalf of the principal or employer.
. In their motion, defendants move that the court specifically find that plaintiff is precluded from offering evidence as to certain facts alleged in his amended complaint in paragraphs 27 A, B, and C. The court declines to make such a specific ruling. As the court explains further below, plaintiff may, at trial, be entitled to present evidence of its claims under these paragraphs in support of its theory that defendants Werner Enterprises and Drivers Management ratified or authorized Mr. Cavender’s conduct.
.The court finds that plaintiff has met its burden of proof on his punitive damages claim for purposes of this motion. The court deems it premature, however, to address each and every theory plaintiff could be interpreted to be pursuing in an attempt to prove ratification or authorization or to limit further plaintiff's right to offer evidence on these theories at trial. Motions now pending before the court could conceivably alter the scope of evidence to be admitted at trial on the issue of ratification or authorization.
. The requisite causal connection between certain evidence of ratification or authorization and plaintiff's injuries will necessarily be established by particular expert testimony, some of which has already been proffered by plaintiff. The court notes that the admissibility of portions of this expert testimony remains subject to motions in limine or objection by the defendants.
. This issue may be revisited at trial on a motion under Fed.R.Civ.P. 50 if the circumstances so warrant.
. Plaintiff moved for leave to supplement his response to defendants’ motion seeking partial summary judgment on his punitive damage claim. The amendment sought to provide the court with additional evidence of defendants’ alleged wanton conduct in hiring or retaining Mr. Cavender or their alleged ratification or authorization of Mr. Cavender’s conduct. Because the court finds that plaintiff produced sufficient evidence to support its punitive damage claim in its original response, the court deems the filing of the supplement unnecessary. Thus, the court denies plaintiff’s motion as moot. The court does not pass on the ultimate admissibility of this evidence at trial.
. The
Beadle
court found that the action should be brought under "subdivision 4 of section 18 of the code within one year," not three years. Section 18, subdivision four of the General Statutes in effect at the time, provided as follows:
. Because the court finds that plaintiff's claim under K.S.A. 66-176 is barred, defendants' other motions pertaining to this claim are considered moot.