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What's Hot in Workers' Comp

The Appellate Division Affirms Summary Judgment for the Defendants, Partly Due to Special Employer Relationship.

Rodriguez v. Hartz Metro Fee II, LLC & N.Y. Mut. Trading, Inc., No. A-3083-19 (App. Div. May 27, 2022)

June 1, 2022

by Kiara K. Hartwell

The Appellate Division affirmed the dismissal of the plaintiff’s complaint via summary judgment filed by the defendants, Hartz Metro Fee II, LLC (warehouse owner) and N.Y. Mutual Trading, Inc. (tenant and “special employer”). In late August 2016, the plaintiff was working at New York Mutual’s warehouse, employed by a temporary staffing agency. He worked from noon to 8 p.m., loading and unloading container trucks. After punching in, he would report to his supervisor, a New York Mutual employee, who would provide him with his daily assignment. The staffing agency would use the timecards to bill New York Mutual and then pay the employees their wages. There was no dispute that New York Mutual could ask that an employee not be sent to their warehouse if they were unhappy with his/her performance.

While working, the plaintiff slipped and fell, noting the ramp where he fell was badly lit and rain had made it slippery. The plaintiff’s engineer expert opined that the lack of handrails and non-slip surface made its use unsafe. Although there were stairs with handrails next to the ramp, the plaintiff testified that most workers regularly used the ramp. He noted he had done so in the past, even in heavier rain, and consciously used the ramp the evening of the accident. The plaintiff received workers’ compensation benefits from the agency as there was no dispute his injury was work-related.

After discovery, the defendants filed a motion for summary judgment. After arguments, the judge found they were entitled to summary judgment. Specifically for Hartz, the judge noted there was no “landlord liability” in the case of a commercial tenant’s employee’s injuries where the lease places responsibility of maintenance on the tenant, relying on Geringer v. Hartz Mountain Dev. Corp., 388 N.J. Super. 392 (App. Div. 2006). The judge indicated Hartz’s lease with New York Mutual clearly assigned responsibility for maintenance on New York Mutual.

The judge rejected the plaintiff’s argument that a commercial landlord that reserved authority to approve design and construction should be responsible for the movable ramp because neither defendant had any hand in the design or construction of said ramp. The plaintiff’s argument that there was an issue of fact as to whether the loading dock/ramp was in a common area was also rejected as the lease specifically omitted this area from the definition of common area.

As for New York Mutual, the judge found the plaintiff was New York Mutual’s special employee under the five-pronged test established in Kelly v. Geriatric & Med. Servs., Inc., 287 N.J. Super. 567 (App. Div. 1996). This test analyzed whether: (1) there was a contract of hire; (2) the work done was essentially that of the special employer; (3) the special employer had the right to control the details of the work; (4) the special employer paid the wages; and (5) the special employer had the right to hire, discharge or recall the employee. In applying this test, the judge found the undisputed facts established an implied employment relationship, thus barring the negligence claim under the Workers’ Compensation Act.

The plaintiff appealed, arguing the lease was “not a true triple-net lease”; that Hartz violated the lease by negligently permitting New York Mutual to install a defective ramp and failed to take reasonable steps to remove the hazard; that New York Mutual was not his special employer and, even if it was, New York Mutual placed him in a situation that was substantially certain to cause him injuries; and, finally, that the judge erred in failing to consider that a wet surface was a de facto dangerous condition that was foreseeable and unreasonable.

The Appellate Division noted, none of these required extended discussion. It was noted the motion record established beyond any doubt that the ramp was neither designed nor constructed by either defendant and the lease language relieved Hartz of any responsibility. The Appellate Division also noted it was undisputed the plaintiff was a special employee. Finally, the Appellate Division mentioned the intentional wrong exception was not argued in trial court and indicated the fact that the plaintiff was “forced” to walk was not flagrant enough to constitute an intentional wrong, especially a ramp that he used regularly.
 

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Firm Highlights

Thought Leadership

U.S. Supreme Court Decides Key Issue Regarding Interstate Freight Broker Liability

Freight brokers are intermediaries.  They connect shippers of goods with trucking companies that transport those goods.  Freight brokers match a load of freight with a trucking company and oversee the logistics of the transportation. For a number of years there has been a division among the Federal Circuits regarding the potential liability of freight brokers when the trucking companies that they retain for interstate loads are involved in accidents.  At the center of this division was the Federal Aviation Administration Authorization Act of 1994 (FAAAA).  Some Federal Circuit Courts have held that state law negligent hiring claims against freight brokers were preempted by the FAAAA .  Other Federal Circuits Courts have held that even if preemption applied, the “safety exception” in the FAAAA saved state law negligent hiring claims from federal preemption.  On May 14, 2026, the U.S. Supreme Court addressed the conflict in Montgomery v. Caribe Transport II, LLC, et al, No24-1238. In that case freight broker C.H. Robinson selected Caribe Transport to haul an interstate load. The commercial truck driver employed by Caribe Transport allegedly caused an accident and the plaintiff, Montgomery, was seriously injured. Montgomery brought an action against the driver, Caribe Transport and C.H. Robinson. The allegation against C.H. Robinson was that it negligently retained Caribe Transport when it knew, or should have known, that it was an unsafe company. The Seventh Circuit Court of Appeals held that Montgomery’s claims against C.H. Robinson were preempted by the FAAAA. The plaintiff appealed to the U.S. Supreme Court.  The U.S. Supreme Court’s decision focused primarily on the safety exception in the FAAAA.  That provision provides that the FAAAA preemption “…shall not restrict the safety regulatory authority of a State with respect to motor vehicles.” C.H. Robinson argued, as freight brokers historically have, that their function was not “with respect to motor vehicles” because they do not own trucks or employ drivers. They are merely intermediaries, connecting entities who need freight moved with entities who can do that job. Therefore, C.H. Robinson argued that preemption applied, not the safety exception. The U.S. Supreme Court did not accept that argument. The Court focused on the meaning of the phrase “with respect to” in the safety exception. The Court held that it means “referring to”, “concerning” or “regarding”. Therefore, writing for a unanimous Court, Justice Barrett concluded that “[r]equiring C.H. Robinson to exercise ordinary care in selecting a carrier therefore “concerns” motor vehicles—most obviously, the trucks that will transport the goods. So, Montgomery’s negligent-hiring claim falls within the FAAAA’s safety exception, which saves it from preemption.” Justice Kavanaugh, in his concurring opinion, noted the effect this ruling may have on freight brokers and their insurers throughout the country: Importantly, the Court's decision today should not be read to mean that brokers will routinely be subject to state tort liability in the wake of truck accidents. As even plaintiff's counsel stressed, brokers should be able to successfully defend against state tort suits if the brokers have acted reasonably and arranged transportation with reputable trucking companies. Tr. of Oral Arg. 27-29. In plaintiff's counsel's words, the brokers "just have to hire carriers that actually have a reasonable policy," and "the broker is not going to have a problem if it's asking the hard questions of the carrier." Id., at 42, 45. In addition, the proximate-cause requirement in typical state tort law should help protect brokers from excessive liability. Id., at 25. That said, the brokers rightly caution against naivete. In the real world, as the brokers forcefully respond, state tort law can be unpredictable, and the costs to brokers of litigation and insurance may be significant even when brokers prevail in lawsuits. Moreover, the costs of litigation and insurance, as well as the costs of brokers' conducting more substantial inquiries into trucking companies, will cascade through the economy and be paid in part by American consumers in the form of higher prices. The concerns expressed by the brokers are legitimate and weighty. The key point here is that freight brokers can no longer claim they are protected from negligent retention claims by the FAAAA (in cases involving interstate transportation). The challenge will be to determine what is considered ”reasonable efforts” used by brokers when retaining transportation companies. 

Thought Leadership

PA Middle District Dismisses Claims Against School District and its Superintendent, Principal, Special Education Director, and Classroom Teacher

A five-year-old special education student was enrolled in the Wyoming Valley West School District and attended the State Street Elementary School during the 2024-2025 school year. The student refused to clean up classroom toys at dismissal. When his teacher allegedly grabbed him by the wrist to walk him back to his seat, the student dropped to the floor and began crying. The teacher then allegedly grabbed the student by the ankle and dragged him across the floor. Following an investigation, criminal charges were not advanced by the county DA, and the school permitted the teacher to return to the classroom. The student’s parents sued, lodging thirteen legal counts under both state and federal law, which sought monetary damages from the teacher, the school district, the superintendent, the principal, and the director of special education. The plaintiff’s 42 USC 1983 claims were dismissed as to the school district for failure to allege a policy or custom violation, and the failure to alleged deliberate indifference in the failure-to-train context. As to the superintendent, building principal, and special education director, the Section 1983 claims were also dismissed for failure to allege personal involvement on the part of the individuals. Regarding an equal protection claim asserted against all defendants, the motion to dismiss was also granted for a failure to advance a plausible equal protection claim, holding that “plaintiffs' single-act allegations do not include a factual basis to even infer that the act was motivated by discriminatory animus rather than some other non-discriminatory impulse.” The court further dismissed the plaintiff’s negligence-based claims including negligence against the teacher and district administrators, NIED, and vicarious liability under the Political Subdivision Tort Claims Act (PSTCA). The federal claims under the IDEA, Section 504, and the ADA were also dismissed in various respects. The IDEA claim was dismissed against all defendants with prejudice for failure to exhaust administrative remedies. The Section 504 claims against the individual defendants were also dismissed with prejudice, as districts, not individuals, are the recipients of federal funds under Section 504. However, the Section 504 and ADA claims were dismissed without prejudice as to defendant Wyoming Valley West, and the plaintiff was permitted leave to amend.

Result

No-Cause Jury Verdict Secured in Wrongful Death Trial

We successfully obtained a no-cause jury verdict in a 13-day wrongful death trial. The decedent, a 59-year-old man, was admitted to the emergency room on February 15, 2019, with complaints of abdominal pain, decreased appetite, and constipation, despite the use of laxatives. The patient did not complain of any nausea, vomiting, or diarrhea. He had a significant medical history including diabetes, hypertension, prior coronary artery stenting, morbid obesity (with past gastric bypass surgery), longstanding ventral hernia, and back pain. A CT scan revealed multiple hernias and a potential closed-loop bowel obstruction, leading to a surgery consultation. Our client, an emergency general surgeon, interpreted that the patient did not have a closed loop or any significant obstruction and recommended non-surgical management. The patient was approved to have clear liquids, and had a vomiting incident shortly after, but our client was not notified. The patient was returned to NPO status, and after improving overnight, he was returned to “clears” and additional medical and renal consults were ordered. Our client did not receive any communications from the residents/nurses of any changes in the patient’s condition. On February 18, 2019, two rapid responses were called due to increased heart rate and vomiting. It is believed that the vomiting resulted in aspiration, causing sepsis, ultimately leading to the patient’s death. During the trial, the plaintiff’s sole medical expert highlighted imaging on the wrong hernia, which called into question all of his opinions in the case. We made key objections related to the expert testimony, limiting what the allegations were, and preventing new allegations from being made. After approximately two and a half hours of deliberating, the jury returned a no-cause verdict.