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IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA LOUIS M. MARSON JR., INC., d/b/a : CIVIL ACTION GREENWOOD MUSHROOMS : : v. : : ALLIANCE SHIPPERS, INC. : NO. 19-1330 MEMORANDUM Padova, J. February 10, 2010 Plaintiff brings this action pursuant to the Carmack Amendment, 49 U.S.C. § 14706, and state law to recover losses it incurred as a result of the delayed delivery of a shipment of mushrooms from its location in Kennett Square, Pennsylvania to several locations around Atlanta, Georgia. Defendant has moved for summary judgment as to all of Plaintiffâs claims. For the following reasons, we grant the Motion in part and deny it in part. I. FACTUAL BACKGROUND On Tuesday, July 17, 2018, Plaintiff texted Alan Sweis, a Logistics Account Executive for Defendant, and asked him whether Defendant could cover Plaintiffâs Atlanta, Georgia run during the coming weekend. (Pl.âs Ex. B at 8; Sweis Aff. (Def.âs Mem. Ex. 1) ¶ 2.) âSweis confirmed that Alliance would be able to deliver that run.â (Pl.âs Ex. B at 8.) On the morning of Friday, July 20, 2018, Plaintiff emailed Sweis and told him that Plaintiff âwill need you to do the normal Saturday run tomorrow.â (Plâs Exs. D, E; Sweis Aff. ¶¶ 2, 11.) ââThe normal Saturday runâ included transportation of goods from Plaintiff to various locations within the State of Georgia.â (Sweis Aff. ¶ 13.) Sweis had arranged âthe normal Saturday runâ for Plaintiff approximately thirteen times prior to July 20, 2018. (Id.) Sweis was not able to complete arrangements for the July 21, 2018 shipment on the 20th, so he texted Matt Marson, a representative of Plaintiff, to let him know that he would âbe up tomorrow at 5 to work on it.â (Def.âs Reply Ex. 1.) On July 21, 2018, Defendant entered into an agreement with KGâs South East Trucking LLC (âKGâsâ) to transport Plaintiffâs shipment of mushrooms to Georgia. (Sweis Aff. ¶ 17; Def.âs Mem. Ex. 2.) Plaintiffâs shipment was supposed to be delivered to three locations in the Atlanta area on Sunday, July 22, 2018 and three additional locations in the Atlanta area on Monday, July 23, 2018. (Pl.âs Ex. E.) However, the shipment was delayed because the truck broke down and the original driver abandoned the load. (Pl.âs Exs. J, M; Sweis Aff. ¶ 26.) A new driver picked up the trailer on Tuesday, July 24, 2018 and attempted to deliver the mushrooms to Plaintiffâs customers. (Pl.âs Exs. H, N; Sweis Aff. ¶ 26.) However, the customers rejected delivery; one customer explained that the mushrooms were â2 days late with a 4 day shelf lifeâ and were âstarting to go bad in some areas.â (Pl.âs Ex. N; Sweis Aff. ¶ 27.) The Complaint alleges one claim against Defendant under the Carmack Amendment, 49 U.S.C. § 14706 (Count I) and, in the alternative, two claims under Pennsylvania law, a claim for breach of contract under Pennsylvania common law (Count II) and a claim for violation of the Pennsylvania Unfair Trade Practices and Consumer Protection Law (âUTPCPLâ), 73 Pa. Stat. Ann. § 201-1, et seq. (Count III). Plaintiff seeks to recover its actual losses of $39,689.01 (the value of the mushrooms in the July 21, 2018 shipment to Atlanta, Georgia) and $3,157.05 (the cost of replacement goods purchased by one of its customers to cover the goods that were not timely delivered), as well as its attorneyâs fees.1 1 Defendant has filed a Counterclaim, seeking the payment of unpaid invoices in the amount of $14,491.00 and its attorneyâs fees incurred in obtaining the payment of those invoices. Defendant has not moved for summary judgment with respect to its Counterclaim. II. LEGAL STANDARD Summary judgment is appropriate âif the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.â Fed. R. Civ. P. 56(a). An issue is âgenuineâ if âthe evidence is such that a reasonable jury could return a verdict for the nonmoving party.â Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). A factual dispute is âmaterialâ if it âmight affect the outcome of the suit under the governing law.â Id. â[A] party seeking summary judgment always bears the initial responsibility of informing the district court of the basis for its motion, and identifying those portions of [the record] which it believes demonstrate the absence of a genuine issue of material fact.â Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). Where the nonmoving party bears the burden of proof on a particular issue at trial, the movantâs initial Celotex burden can be met simply by âpointing out to the district courtâ that âthere is an absence of evidence to support the nonmoving partyâs case.â Id. at 325. After the moving party has met its initial burden, the adverse partyâs response âmust support the assertion [that a fact is genuinely disputed] by: (A) citing to particular parts of materials in the record . . .; or (B) showing that the materials [that the moving party has] cited do not establish the absence . . . of a genuine dispute.â Fed. R. Civ. P. 56(c)(1). Summary judgment is appropriate if the nonmoving party fails to respond with a factual showing âsufficient to establish the existence of an element essential to that partyâs case, and on which that party will bear the burden of proof at trial.â Celotex, 477 U.S. at 322. In ruling on a summary judgment motion, we consider âthe facts and draw all reasonable inferences in the light most favorable to . . . the party who oppose[s] summary judgment.â Lamont v. New Jersey, 637 F.3d 177, 179 n.1 (3d Cir. 2011) (citing Scott v. Harris, 550 U.S. 372, 378 (2007)). III. DISCUSSION A. Count I â The Carmack Amendment Defendant moves for summary judgment as to Plaintiffâs Carmack Amendment claim on two grounds. Defendant first argues that it is not subject to liability under the Carmack Amendment because it acted as a broker in connection with Plaintiffâs July 21, 2018 shipment. Defendant also argues that it is entitled to summary judgment with respect to the Carmack Amendment claim, even if the Carmack Amendment applies in this case, because Plaintiff cannot establish that it was damaged by the late delivery of its produce. 1. Application of the Carmack Amendment Defendant argues that it cannot be liable to Plaintiff under the Carmack Amendment for damages related to the July 21, 2018 shipment because it acted as a broker rather than a motor carrier with respect to that shipment. Defendant relies on Essex Insurance Company v. Barrett Moving & Storage, Inc., 885 F.3d 1292 (11th Cir. 2018). The Eleventh Circuit noted in Essex that, if the defendant âwas a âmotor carrier,â the Carmack Amendment applies, state-law claims are preempted, and [defendant] is strictly liable for the damage sustained by the [product] during transportation . . . . If [defendant] was a âbroker,â the Carmack Amendment does not apply . . . .â Id. at 1299; see also Factory Mut. Ins. Co. v. One Source Logistics, LLC, Civ. A. No. 16-6385, 2017 WL 2608867, at *7 (C.D. Cal. May 5, 2017) (stating that the Carmack Amendment does not âapply to brokersâ); Sompo Japan Ins. Co. v. B&H Freight, Inc., 177 F. Supp. 3d 1084, 1087 (N.D. Ill. 2016) (noting that âbrokers are not liable under the Carmack Amendmentâ); Total Quality Logistics, LLC v. OâMalley, Civ. A. No. 16-636, 2016 WL 4051880, at *2 (S.D. Ohio July 28, 2016) (âThe liability provisions within the Carmack Amendment do not apply to brokers and therefore, a broker is not a proper party in a Carmack Amendment cause of action.â (citation omitted)); Olympus Dairy USA Corp. v. Pavil Assocs., Inc., Civ. A. No. 12-1897, 2013 WL 6493482, at *2 (E.D.N.Y. Dec. 6, 2013) (âThe âCarmack amendment imposes liability on âcarriersâ [and freight forwarders] but not on âbrokers,â as those terms are defined by the statute . . . .ââ (first alteration in original) (quoting Nipponkoa Ins. Co., Ltd. v. C.H. Robinson Worldwide, Inc., Civ. A. No. 09-2365, 2011 WL 671747, at *3 (S.D.N.Y. Feb. 18, 2011))) (addâl citation omitted). Defendant maintains that it acted solely as a broker with respect to the July 21, 2018 shipment because it only arranged for the shipment of Plaintiffâs produce and KGâs transported the produce to Atlanta. The United States Court of Appeals for the Third Circuit has explained that â[u]nder the Carmack Amendment to the Interstate Commerce Act of 1887, a carrier is liable for damages incurred during a shipment of goods, whereas a brokerâsomeone who merely arranges for transportationâis not liable.â Tryg Ins. v. C.H. Robinson, Worldwide, Inc., 767 F. Appâx 284, 285 (3d Cir. 2019) (citing 49 U.S.C. § 14706). âThe definition of âcarrierâ includes âmotor carriers,â which are defined as âperson[s] providing motor vehicle transportation for compensation.ââ Id. at 286 (alteration in original) (citing 49 U.S.C. § 13102(3), (14)). âThe term âtransportationâ is then defined to include âservices related toâ (including âarranging forâ) the movement of property.â Id. (quoting 49 U.S.C. § 13102(23)). âThus, the definition of âcarrierâ encompasses entities that perform services other than physical transportation.â Id. â[I]n determining whether a party is a carrier or a broker, the crucial question is whether the party has legally bound itself to transport goods by accepting responsibility for ensuring the delivery of the goods.â Id. at 286-87 (citing Essex Ins. Co., 885 F.3d at 1301). âIf an entity accepts responsibility for ensuring the delivery of goods, then that entity qualifies as a carrier regardless of whether it conducted the physical transportation.â Id. at 287 (emphasis added). âConversely, if an entity merely agrees to locate and hire a third party to transport the goods, then it is acting as a broker.â Id. (citations omitted). âThis distinction âtracks longstanding common- law rulesâ and derives from the âcommonsense proposition that when a party holds itself out as the party responsible for the care and delivery of anotherâs property, it cannot outsource its contractual responsibility by outsourcing the care and delivery it agreed to provide.ââ Id. (quoting and citing Essex Ins. Co., 885 F.3d at 1301). âIn sum, if a party has accepted responsibility for transporting a shipment, it is a carrier.â Id. (emphasis added). When we analyze whether an entity acted as a carrier or a broker, we âlook to how the party acted during the âspecific transactionâ at issue, which includes âthe understanding among the parties involved [and] consideration of how the entity held itself out.ââ Richwell Grp., Inc. v. Seneca Logistics Grp., LLC, Civ. A. No. 17-11442, 2019 WL 3816890, at *3 (D. Mass. Aug. 14, 2019) (quoting ASARCO LLC v. England Logistics Inc., 71 F. Supp. 3d 990, 998 (D. Ariz. 2014) (additional citations omitted). â[C]ourts have found that a party is a carrier in a âspecific transactionâ if it takes responsibility for a shipment, whether or not it performed the actual transportation or labels itself as a broker.â Id. (citing Tryg, 767 F. Appâx at 287; Essex Ins., 885 F.3d at 1302; ASARCO, 71 F. Supp. 3d at 998; Lumbermens Mut. Cas. Co. v. GES Exposition Servs., 303 F. Supp. 2d 920, 921 (N.D. Ill. 2003)). Thus, ââ[w]hether a company is a broker or a carrier is not determined by what the company labels itself, but by . . . its relationship to the shipper.ââ Id. (first alteration in original) (quoting Hewlett-Packard Co. v. Brotherâs Trucking Enters., Inc., 373 F. Supp. 2d 1349, 1352 (S.D. Fla. 2005)). âFurther, the licenses that [the defendant] holds, its previous transactions with [the plaintiff], and its label in the Contract are not dispositive to its role during this specific transaction.â Id. (citations omitted). In Richwell, the court found that that defendant was a carrier even though it did not carry the load (lobsters) itself, but âhandled the route, the packing, the coordination of travel and release of the lobster[s] to another party without any involvement from [the shipper], rather than acting as the âgo-betweenâ to connect [the shipper] and [the third-party that supplied the truck and driver] to complete the shipment.â Id. at *4 (citing Essex Ins. Co., 885 F.3d at 1302; 49 US.C. 13102(23)). The Richwell court concluded that the defendant âdid not broker an agreement between a carrier and [the shipper]â because the defendant âand no other entity, arranged for all of the details relating to the pickup of the load of lobster.â Id. Specifically, the defendant âengaged the driver and truck on the morning of the scheduled pickup,â the shipper âhad no knowledge of who would be transporting the load of lobster, and [the defendant]âs representatives were the sole point of contact for the individuals who claimed to work for [the company that supplied the truck and driver].â Id. Because the analysis of whether defendant is a carrier or a broker is fact specific, it may not be appropriate for summary judgment. Essex, 885 F.3d at 1302 (âThis is necessarily a case- specific analysis, and as a result, summary judgment might not be appropriate in many cases.â (citing Nipponkoa Ins. Co., 2011 WL 671747, at *5)). Nonetheless, even a company that âcarries some shipments and brokers others, can insulate itself from strict liability with respect to a particular shipment if it makes clear in writing that it is merely acting as a go-between to connect the shipper with a suitable third-party carrier.â Id. However, â[w]here no such writing exists, . . . the operative inquiry is this: pursuant to the partiesâ agreement, with whom did the shipper entrust the cargo?â Id. The record contains no writing that clearly states that Defendant acted as a broker with respect to the July 21, 2018 shipment. Defendant relies, instead, on the Affidavit of Alan Sweis to support its position that it acted solely as a broker in connection with Plaintiffâs July 21, 2018 shipment. Sweis was Allianceâs contact with Plaintiff and arranged for KGâs to provide motor carrier services for the shipment of Plaintiffâs goods to locations in Georgia on July 21, 2018. (Sweis Aff. ¶¶ 3, 4.) He made arrangements for a total of 14 shipments for Plaintiff between May 8, 2018 and July 21, 2018 (including the July 21 shipment). (Id. ¶ 6.) In each instance, Sweis arranged for carriers other than Alliance to take Plaintiffâs shipments. (Id. ¶ 7.) Sweis asserts that he only provided brokerage services for Plaintiff and that he âwas very clear in [his] representations that Alliance Shippers, Inc. was serving as a broker to arrange a motor carrier to be engaged to transport Plaintiffâs mixed-load of goods pursuant to Plaintiffâs specific requirements.â (Id. ¶ 8.) Sweis states that, on July 20, 2018, he received an email from Plaintiff asking for the ânormal Saturday Run,â the transportation of goods from Plaintiff to various locations in Georgia. (Id. ¶¶ 11, 13.) Sweis responded by text that he âwould try to secure a driver/pickup for his shipment at his requested rate.â (Id. ¶ 11.) KGâs later accepted the rate and agreed to provide motor carrier services for Plaintiffâs shipment to Georgia. (Id. ¶ 17.) As part of his work for Alliance, Sweis tracked the location of his customerâs load and communicated that information to his customer once in the morning, he would also provide a second update in the early afternoon if requested. (Id. ¶ 23.) On July 21, 2018, Marson requested numerous updates of the location of Plaintiffâs shipment, which Sweis attempted to provide using âMacro Point.â (Id. 24.) However, at one point, KGâs driver disconnected from Macro Point and Sweis could no longer track the load using that system. (Id.) Sweis also contacted KGâs driver by telephone to provide updates to Marson. (Id. ¶ 25.) During the course of the shipment, KGâs driver abandoned the load and KGâs had to find a second driver. (Id. ¶ 26.) Plaintiff maintains that Alliance acted as a carrier with respect to the July 21, 2018 shipment because it took responsibility for that shipment. Plaintiff relies on Defendantâs website, which expresses its âCommitment to the Perfect ShipmentÂź.â (Pls.â Ex. A.) The website says that Alliance âha[s] dedicated [itself] to providing The Perfect ShipmentÂź to our customersâ and that âThe Perfect ShipmentÂź means: Pick up the shipment on time[;] Deliver the shipment at the time requested[;] Deliver the shipment without exception[;] Provide an accurate freight bill.â (Id.) Defendant also states on its website that it âmeasures all shipment activity from pickup to destinationâ and that â[t]his information is then reported and reviewed with our selected carriers to identify transportation events unique to each shipper. Our proprietary state-of-the art tracking system, has more than 60 distinct checkpoints ensuring on-time pickup and delivery.â (Id.) Plaintiff also cites to evidence that it âwas not advised that KGâs Southeast Trucking, LLC (âKGâsâ) would be involved in the transaction until significantly after the delivery window [for its goods] was missedâ and âPlaintiff has never spoken to a representative from KGâs.â (Pl.âs Ex. B at 10-11.) Plaintiff also points out that the invoice it received from Alliance billed it for âtransportation servicesâ from Greenwood Mushrooms to Atlanta and does not mention KGâs. (Pl.âs Ex. L.) Plaintiff further points to evidence that Sweis assured Greenwood that Alliance would take care of the delivery and evidence that Sweis assured Plaintiff that if he couldnât find a carrier on Friday evening (the 20th), he would be up at 5 a.m. on the 21st to work on it, and later confirmed via text that Alliance would deliver the Saturday load to Atlanta. (Pl.âs Ex. B at 8-9.) We conclude that Plaintiff has satisfied its burden on summary judgment of âciting to particular parts of materials in the record,â Fed. R. Civ. P. 56(c)(1)(A), that establish the existence of a genuine issue of material fact regarding whether Defendant acted as a broker with respect to Plaintiffâs July 21, 2018 shipment. Specifically, Plaintiff has cited to record evidence that Defendant âengaged the driver and truck on the morning of the scheduled pickupâ and Plaintiff âhad no knowledge of who would be transporting the [mushrooms], and [the defendant]âs representatives were the sole point of contact for the individuals who claimed to work for [the company that supplied the truck and driver].â Richwell, 2019 WL 3816890, at *4. Plaintiff has also cited to record evidence that could establish that Defendant âlegally bound itself to transport [Plaintiffâs] goods by accepting responsibility for ensuring the delivery of the goods.â Tryg, 767 F. Appâx at 287 (citing Essex Ins., 885 F.3d at 1301). Specifically, Plaintiff has cited the representations made by Defendant on its website regarding its âCommitment to the Perfect Shipmentâ and Sweisâs statements in his Affidavit that he repeatedly checked on the location of Plaintiffâs shipment after it was picked up by KGâs and communicated the results of those checks to Plaintiff. Accordingly, we conclude that there is a genuine issue of material fact regarding whether Defendant acted as a broker with respect to Plaintiffâs July 21, 2018 shipment of mushrooms to the Atlanta area and, consequently, whether Defendant may be subject to liability under the Carmack Amendment in connection with the July 21, 2018 shipment. 2. Damages Defendant also argues that, even if it could be subject to liability under the Carmack Amendment in this case, it is entitled to summary judgment with respect to Count I because Plaintiff cannot establish damages. âTo recover under the Carmack Amendment, a plaintiff must first establish a prima facie case by proving the following three elements: â(1) delivery of the goods to the initial carrier in good condition, (2) damage of the goods before delivery to their final destination, and (3) the amount of damages.ââ Mecca & Sons Trucking Corp. v. White Arrow, LLC, 763 F. Appâx 222, 225 (3d Cir. 2019) (quoting Paper Magic Grp., Inc. v. J.B. Hunt Transp., Inc., 318 F.3d 458, 461 (3d Cir. 2003)). âTo establish the damaged condition of the goods upon delivery, a plaintiff must present direct or circumstantial evidence that is âsufficient to establish by a preponderance of all the evidence the condition of the goods upon delivery.ââ Id. (quoting Beta Spawn, Inc. v. FFE Transp. Servs., Inc., 250 F.3d 218, 225 (3d Cir. 2001)). âFor the purpose of a Carmack Amendment claim, damages are ordinarily measured by âthe difference between the market value of goods at the time of delivery, and the time when they should have been delivered.ââ Id. at 226 (quoting Paper Magic, 318 F.3d at 461). âThe market value may be determined by the invoice price, or the contract price, less any recovered value from salvage or resale.â Id. (quotations omitted). Defendant argues that Plaintiff cannot establish the damaged condition of the goods because Plaintiff directed its customers to reject the mushrooms prior to their arrival and before anyone had an opportunity to inspect the mushrooms, thus making it impossible to determine the salvage value of the mushrooms at the time of delivery. (See Sweis Aff. ¶¶ 28-29 (stating that Marson told Sweis he was having the receivers reject the goods and that âno reasonable inspection of any of the mixed-load goods was ever performed prior to rejecting the mixed-load of goodsâ).) Plaintiff, however, maintains that the mushrooms in the July 21, 2018 shipment had no salvage value because they had begun to spoil by the time they reached their destinations, two days after they were supposed to be delivered. Plaintiff relies on an email from Restaurant Depot stating that it had rejected the mushrooms because they had begun to spoil. (Pl.âs Ex. N.) This email includes a picture of the mushrooms. (Id.) Plaintiff contends that, because its mushrooms were spoiled and had no salvage value at the time of delivery, its damages are determined by the invoice price of the spoiled mushrooms and its cost to cover the replacement mushrooms. See Mecca & Sons Trucking, 763 F.3d at 227 (concluding that the invoice price of the damaged goods was the âproper amount of damagesâ where the damaged goods had no salvage value). We conclude that Plaintiff has satisfied its burden on summary judgment of âciting to particular parts of materials in the record,â Fed. R. Civ. P. 56(c)(1)(A), specifically the email from the Restaurant Depot stating that the mushrooms had begun to spoil, that establishes the existence of a genuine issue of material fact regarding the amount of damages it suffered due to the late delivery of its mushrooms. As we have also concluded that there is a genuine issue of material fact regarding whether Defendant may be subject to liability under the Carmack Amendment in connection with the July 21, 2018 shipment, we deny the Motion for Summary Judgment with respect to Plaintiffâs Carmack Amendment claim in Count I of the Complaint. B. Counts II and III â The State Law Claims Defendant argues that Plaintiffâs state law claims should be dismissed because they are preempted by federal law, specifically the preemption provisions of the Interstate Commerce Commission Termination Act, 49 U.S.C. § 14501(b) (âICCTAâ) and the Federal Aviation Administration Authorization Act (âFAAAAâ), 49 U.S.C. § 14501(c)(1); as well as the Carmack Amendment. 1. The ICCTA and the FAAAA The ICCTA preemption provision states as follows: no State or political subdivision thereof and no intrastate agency or other political agency of 2 or more States shall enact or enforce any law, rule, regulation, standard, or other provision having the force and effect of law relating to intrastate rates, intrastate routes, or intrastate services of any freight forwarder or broker. 49 U.S.C. § 14501(b)(1). The FAAAAâs preemption provision similarly states that: a State, political subdivision of a State, or political authority of 2 or more States may not enact or enforce a law, regulation, or other provision having the force and effect of law related to a price, route, or service of any motor carrier (other than a carrier affiliated with a direct air carrier covered by section 41713(b)(4)) or any motor private carrier, broker, or freight forwarder with respect to the transportation of property.â 49 U.S.C. § 14501(c)(1). Defendant argues that these Acts preempt Plaintiffâs common law breach of contract and UTPCPL claims. See Alpine Fresh, Inc. v. Jala Trucking Corp., 181 F. Supp. 3d 250, 256 (D.N.J. 2016) (stating that âthe ICCTA expressly preempts state law claims as to brokers with respect to motor carrier arrangementsâ (citing Phoenix Ins. Co. Ltd. v. Norfolk S. R.R. Corp., 2014 WL 2008958, at *16-17 (D.N.J. May 16, 2014)); see also id. at 257 (concluding âthat the express prohibition against state regulation of âintrastate services of any . . . broker,â and ârelated to a price, route or service of any . . . broker,ââ precluded state law claims for negligence and breach of bailment (alterations in original) (citations omitted)); Krauss v. IRIS USA, Inc., Civ. A. No. 17-778, 2018 WL 2063839, at *5 (E.D. Pa. May 3, 2018) (concluding that common law claims against broker for negligent hiring (of the carrier) arising from dangerous loading of merchandise by carrier hired by broker were preempted by the FAAAA because the claim arose from the brokerâs core service, i.e., âhiring motor carriers to transport shipmentsâ (quotation omitted)). âHowever, the FAAAA and ICCTA do not preempt routine breach of contract claims.â Hartford Fire Ins. Co. v. Dynamic Worldwide Logistics, Inc., Civ. A. No. 17-553, 2017 WL 3868702, at *3 (D.N.J. Sept. 5, 2017) (citing Am. Airlines, Inc. v. Wolens, 513 U.S. 219, 229-230 (1995); LynâLea Travel Corp. v. Am. Airlines, 283 F.3d 282, 287 (5th Cir. 2002); Huntington Operating Corp. v. Sybonney Express, Inc., Civ. A. No. Hâ08â781, 2009 WL 2423860, at *1 (S.D. Tex. Aug. 3, 2009); Chatelaine, Inc. v. Twin Modal, Inc., 737 F. Supp. 2d 638, 643 (N.D. Tex. Aug. 20, 2010)); see also AMG Resources Corp. v. Wooster Motor Ways, Inc., Civ. A. No. 15- 3716, 2019 WL 192900, at *4 n.7 (D.N.J. Jan. 14, 2019) (recognizing that the ICCTA and FAAAA do not preempt âroutine[] breach of contract claimsâ (citing Mrs. Resslerâs Food Prods. v. KZY Logistics, LLC, Civ. A. No. 17-2013, 2017 WL 3868703, at *3 (D.N.J. Sept. 5, 2017); Hartford Fire Ins., 2017 WL 3868702, at *3). We conclude, accordingly, that the ICCTA and FAAAA do not preempt Plaintiffâs alternative claim for breach of contract under Pennsylvania common law in Count II. Defendant relies on Rowe v. New Hampshire Motor Transport Association, 552 U.S. 364 (2008), to support its argument that the FAAAA preemption provision applies to preempt state consumer fraud laws such as the UTPCPL. The Supreme Court noted in Rowe that it had previously examined an identical preemption provision in the Airline Deregulation Act of 1978 (âADAâ) and found that the ADA preempted âStates from enforcing their consumer-fraud statutes against deceptive airline-fare advertisements.â 552 U.S. at 371 (citing Morales v. Trans World Airlines, Inc., 504 U.S. 374, 391 (1992); American Airlines, Inc. v. Wolens, 513 U.S. 219, 226- 228 (1995)). The Rowe Court instructed that the preemption provision of the FAAAA should be interpreted in the same way as the preemption provision of the ADA. Id. at 370. We conclude, therefore, that the FAAAA preempts state consumer protection laws such as the UTPCPL to the extent that they have ââa connection with, or reference to,â carrier ârates, routes, or services,ââ even if the âstate lawâs effect on rates, routes, or services âis only indirect.ââ Id. (quoting Morales, 504 U.S., at 384, 386). Plaintiff contends that the FAAAA does not preempt its UTPCPL claim because this claim does not seek compensation for the damage to its shipment, but challenges misrepresentations allegedly made by Defendant in connection with its âCommitment to the Perfect Shipment.â2 However, the Plaintiffâs UTPCPL claim alleges that Defendant violated the UTPCPL claim because it did not deliver Plaintiffâs goods on time, notwithstanding its representations in its âCommitment to the Perfect Shipmentâ that it would do so. We conclude that Plaintiffâs UTPCPL 2 Plaintiff asserts in its Memorandum that its UTPCPL claim also seeks damages for Defendantâs alleged mismanagement of its investigation and response to Plaintiffâs claim for compensation in connection with the July 21, 2018 shipment. However, Count III of the Complaint does not mention this mismanagement and Plaintiffâs Memorandum does not explain the basis of a UTPCPL claim arising from such mismanagement. We conclude, accordingly, that Plaintiffâs UTPCPL claim in Count III of the Complaint pertains only to Defendantâs âCommitment to the Perfect Shipment.â claim pertains to Defendantâs services as a carrier or broker related to the transportation of property and is therefore preempted by the FAAAA, which preempts state laws that relate to a service provided by a motor carrier âwith respect to the transportation of property.â 49 U.S.C. § 14501(c)(1). Consequently, we grant the Motion for Summary Judgment with respect to Plaintiffâs UTPCPL claim in Count III of the Complaint. 2. The Carmack Amendment Defendant also argues that it is entitled to summary judgment as to Plaintiffâs breach of contract claim because that claim is preempted by the Carmack Amendment. âThere can be no doubt that â[t]he Carmack Amendment generally preempts separate state-law causes of action that a shipper might pursue against a carrier for lost or damaged goods.ââ Sompo Japan Ins. Co. of Am. v. B&H Freight, Inc., 177 F. Supp. 3d 1084, 1086 (N.D. Ill. 2016) (alteration in original) (quoting REI Transport v. C.H. Robinson Worldwide, Inc., 519 F.3d 693, 697 (7th Cir. 2008)). However, â[b]ecause brokers are not liable under the Carmack Amendment, it does not preempt a claim for failing to perform whatever duties they might have under state law.â Id. at 1087. See also Heliene, Inc. v. Total Quality Logistics, LLC, Civ. A. No. 18-799, 2019 WL 4737753, at *2 (S.D. Ohio Sept. 27, 2019) (concluding that, because the Carmack Amendment does not mention brokers, it âdoes not preempt state law claims against brokersâ and noting that the ââoverwhelming majorityâ of courts who have considered this issue have reached the same conclusionâ (listing cases)). We conclude, accordingly, that if the trier of fact finds that Defendant is a broker rather than a carrier with respect to Plaintiffâs July 21, 2018 shipment, Plaintiffâs alternative breach of contract claim is not preempted by the Carmack Amendment. As we have also concluded that Plaintiffâs alternative claim for breach of contract under Pennsylvania common law is not preempted by the ICCTA and FAAAA, we deny Defendantâs Motion for Summary Judgment as to Count II of the Complaint. IV. CONCLUSION For the reasons stated above, we grant Defendantâs Motion for Summary Judgment with respect to Count III of the Complaint and we deny it with respect to Counts I and II. An appropriate order follows. BY THE COURT: /s/ John R. Padova ____________________________ John R. Padova, J.
Case Information
- Court
- E.D. Pa.
- Decision Date
- February 10, 2020
- Status
- Precedential