WILLIAM D. QUARLES, JR., District Judge.
Joseph Wood sued Dean Walton and KMGP Services Company, Inc. ("KMGP") for negligence, and State Farm Mutual Automobile Insurance Company ("State Farm") for breach of contract. For the following reasons, KMGP's motion for summary judgment will be granted in part and denied in part.
KMGP operates a Baltimore facility that unloads cargo ships for a steel mill. Len
While in Baltimore, KMGP supplied Walton with a hotel room, allowances for meals, a rental car and fuel. Len Crescenzo Dep. 18:21-20:3, 59:1-17. The company allowed Walton to drive the rental car for personal use, and told Walton not to take out insurance for the rental car. Id. 40:1-21; Dean Walton Dep., 31:11-16.
A written KMGP policy prohibited alcohol on the job,
Despite the policy prohibiting drinking on the job, employees routinely drank alcohol during the night shift. Dean Walton Dep. 58:4-60:22. One employee regularly made and distributed "snow balls" — vodka or bourbon poured over shaved ice. Id. 58:4-60:1-9. Walton's shift supervisor, Mike Elias, knew of this custom and sometimes consumed snowballs while working. Id. 61:19-62:11. When a co-worker first offered Walton a snowball, Walton accepted, not knowing that it contained alcohol. Id. 59:9-15. Although Walton "wasn't into drinking like that," he "didn't want to hurt [the co-worker's] feelings." Id. 59:14-18. He "held [the snowball] for a while" then threw it away when the co-worker wasn't looking. Id. 59:18-19. Walton never took another bite of a snowball. Id. 60:22-61:6.
After the night shift, the crane operators, truck driver, and front-end loader regularly went to a bar called The Fort, and Elias would buy the first one or two rounds of drinks. Id. 34:21-35:9. Elias showed Walton how to get to the bar, and Walton joined his co-workers "a couple of times" to "get a couple beers." Id. 35:9-36:6. Walton would buy "the second round or the third round," and Elias "wasn't used to [anybody] else buying them." Id. 56:20-57:6.
On August 4, 2008, Walton joined his co-workers
On September 23 and November 13, 2009, Wood sued Walton for negligence, KMGP for vicarious liability and negligent entrustment and supervision, and others in the Circuit Court for Baltimore City. ECF Nos. 2, 6. Wood also sued his insurer, State Farm, for failing to honor his uninsured motorist coverage. Id. On December 18, 2009, the case was removed to this Court on the basis of diversity jurisdiction.
On May 21, 2010, 2010 WL 2106461, the Court granted summary judgment to Wood on the issue of Walton's liability, finding that Walton had negligently injured Wood. ECF No. 42 at 8.
On August 26, 2011, KMGP moved for summary judgment. ECF No. 74. On September 12, 2011, State Farm opposed that motion. ECF No. 75. On September 16, 2011, Wood and Walton opposed the motion. ECF Nos. 76, 77. On October 3, 2011, KMGP filed its reply. ECF No. 79.
Under Rule 56(c), summary judgment "should be rendered if the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine dispute as to any material fact and that the movant is entitled to judgment as a matter of law." Fed.R.Civ.P. 56(c). In considering a motion for summary judgment, "the judge's function is not ... to weigh the evidence and determine the truth of the matter but to determine whether there is a genuine issue for trial." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). A dispute about a material fact is genuine "if the evidence is such that a reasonable jury could return a verdict for the nonmoving party." Id. at 248, 106 S.Ct. 2505.
The Court must "view the evidence in the light most favorable to ... the nonmovant, and draw all reasonable inferences in her favor," Dennis v. Columbia Colleton Med. Ctr., Inc., 290 F.3d 639, 645 (4th Cir.2002), but the Court also "must abide by the affirmative obligation of the trial judge to prevent factually unsupported claims and defenses from proceeding to trial," Bouchat v. Bait. Ravens Football Club, Inc., 346 F.3d 514, 526 (4th Cir. 2003).
KMGP argues that it is entitled to summary judgment on the vicarious liability claim because, at the time of the accident, Walton was not acting within the scope of his employment, he lacked KMGP's authority to drive while intoxicated, and KMGP did not ratify his conduct. ECF No. 74-1 at 2. KMGP contends that Wood's negligent entrustment and supervision claims
The other parties counter that neither claim can be resolved by summary judgment because each involves a genuine dispute of material fact. ECF No. 75 at 7; ECF No. 76-1 at 4, 10/ ECF No. 77 at 4-5.
Under Maryland law,
Wood and Walton argue that Walton was acting within the scope of his employment during his entire stay in Maryland. ECF No. 76-1 at 6; ECF No. 77 at 15. Walton contends that, but for his employment with KMGP, he "would have [had] no reason to be in the State of Maryland" at the time of the accident. ECF No. 77 at 15. KMGP counters that no case supports "this unsubstantiated leap," and Maryland courts would likely follow other jurisdictions that have rejected "this `perpetual' scope of employment theory." ECF No. 79 at 5-8.
"Whether an ... individual's conduct falls within the scope of employment is normally a question for the jury." S. Mgmt. Corp. v. Taha, 378 Md. 461, 836 A.2d 627, 639 n. 6 (2003). "Nevertheless, where but one reasonable inference can be drawn from the undisputed material facts, the question is one of law for the court." Henderson v. AT & T Info. Sys., Inc., 78 Md.App. 126, 552 A.2d 935, 941 (Md.Ct. Spec.App.1989).
An employee's acts fall within the scope of his employment if "they were done by the [employee] in furtherance" of the employer's business, "and were such as may fairly be said to have been authorized by him."
"In applying this test, there are few, if any absolutes," Sawyer, 587 A.2d at 471, but Maryland courts have cited with approval the Restatements of Agency.
In cases involving negligent use of an automobile, Maryland courts have held that an employer may be vicariously liable if the employee is "engaged at the time in furthering the [employer's] business" and
Oaks, 660 A.2d at 426 (internal citation and quotation marks omitted). Thus, the Maryland Court of Appeals has found that a grocery store was not vicariously liable for the negligence of its employee while driving to work, in part because the employee "was not actually performing any of his designated job responsibilities at the time of the accident," and the company
Id. at 427. By contrast, the court has found a newspaper vicariously liable for the negligence of its reporter when the reporter was driving to a meeting in his own car, the newspaper instructed him to go to the meeting by a specific route, the reporter followed that route, and the newspaper paid for the fuel. Regal Laundry Co. v. A.S. Abell Co., 163 Md. 525, 163 A. 845, 847-48 (1933).
"Driving to and from work is generally not considered to be within the scope of ... employment because getting to work is the employee's own responsibility and ordinarily does not involve advancing the employer's interest." Oaks v. Connors, 339 Md. 24, 660 A.2d 423, 427 (1995). Thus, "absent special circumstances, an employer will not be vicariously liable for the negligent conduct of his employee occurring while the employee is traveling to or from work." Dhanraj v. Potomac Elec. Power Co., 305 Md. 623, 506 A.2d 224, 226 (1986).
In cases involving car accidents on business trips, courts applying Maryland law have determined the employer's liability by looking not to the overall purpose of the trip but whether the employee was engaged in his duties at the time of the accident. Thus, a software engineer was not acting in the scope of his employment when he struck another car while driving from New Jersey to Virginia to begin a year of graduate studies, even though his employer conditioned his employment on completing the studies and paid the tuition, moving expenses, and travel costs. Henderson, 552 A.2d at 941. The Maryland Court of Special Appeals emphasized that the employee was "not `on the job' at the time of the accident," and his business purpose was to "pursue a course of study," "not driv[e] his car for the benefit of [his employer]." Id. at 940.
The Court has not found any Maryland case holding that a person acts within the scope of his employment every moment of a business trip — no matter how long — merely because the employer provides lodging and transportation. But courts in other jurisdictions that apply the Restatement of Agency have expressly rejected this notion. Applying Hawaii law,
Looking at the undisputed facts here, the Court can draw only one reasonable inference: Walton was not acting within the scope of his employment at the time of the accident. Walton was hired as a temporary crane operator to unload coal from a ship. Dean Walton Dep. 6:12-13, 7:5-8, 19:22-20:4, 29:11-16. Driving a car from a bar to his hotel was neither incident to these duties nor conduct he was hired to perform. See Sawyer, 587 A.2d at 470-71. The accident occurred while Walton was off duty and away from his work site.
That KMGP provided a rental car and hotel room does not require a different result.
Neither actual nor apparent authority is present here. These concepts arise in contexts when a person represents, or purports to represent, another "in contractual negotiations or transactions akin thereto."
Ratification, another agency concept, is also inapplicable. "When the agent has no authority to do an act, the principal may later ratify the act, giving it the same effect as if it had been originally authorized."
Maryland has adopted the Restatement (Second) of Torts approach to negligent entrustment,
"There is no litmus test to determine whether a supplier had the requisite knowledge of an entrustee's propensity to use the entrusted chattel in an improper or dangerous manner."
In the case of drunk driving, "[n]o quantitative line can be drawn with respect to the amount of knowledge which an owner must have of a driver's propensity for drinking to make the owner negligent in entrusting a motor vehicle to him."
Here, the record shows that KMGP employees regularly went to a bar after the night shift and had several rounds of drinks, a KMGP manager customarily bought the first one or two rounds, Walton worked the night shift for 28 days and went to the bar "a couple of times" to "get a couple beers," he drove himself in the rental car provided by KMGP, and Walton had gotten drunk at the bar before causing the accident with Wood. Dean Walton Dep. 19:22-20:3, 34:21-36:6, 40:1-44:3. Emphasizing Walton's use of the word "couple," KMGP argues that nothing "suggests that Walton had ever overindulged" before the day of the accident or otherwise put the company on notice that he "should not have been entrusted with a vehicle." ECF No. 74-1 at 10; ECF No. 79 at 12-13.
Viewing the evidence in the light most favorable to the non-moving parties, a reasonable jury could conclude that Walton had been to The Fort two or more times
"To establish a cause of action for negligent hiring or supervision, the plaintiff must show that [his] injury was caused by the tortious conduct of an employee, the employer knew or should have known that the employee was capable of inflicting harm of some type, the employer failed to use proper care in hiring or training the employee, and the employer's breach was the proximate cause of the plaintiff's injury." Williams v. Cloverland Farms Dairy, Inc., 78 F.Supp.2d 479, 484 (D.Md. 1999) (applying Maryland law).
KMGP argues that Wood's negligent supervision claim lacks factual support because there is no evidence that KMGP failed to use proper care in hiring or training Walton.
For the reasons stated above, KMGP's motion for summary judgment will be granted in part and denied in part.