Here we are into our second week of a new semester! How are you doing? I want to remind you that you are doing great! Keep working hard and know you can conquer any hardships that come your way! This week, I want to share a case with you where an executive traveling from the U.S. to Germany was injured in a car crash after being picked up from an airport in Germany. The predominant issue in this case was to determine who was liable: the Massachusetts Transportation Company, the German Transportation Company, or both? Keep reading to find out!
The Plaintiff is a 50-year-old executive whose work requires him to travel. The Plaintiff’s assistant called one of the world’s largest transportation companies, located in Massachusetts, to drive the Plaintiff from his home to Logan International Airport and then for a driver to pick him up from Frankfurt Airport in Germany and drop him off at his ultimate destination.
On September 23, 2015, the Plaintiff arrived at the Frankfurt Airport and was picked up by a driver with a Tesla Sedan. During the drive to the Plaintiff’s final destination, the driver passed out and the car veered off through a fence, across a field, at a high rate of speed. Eventually, the care struck a tree and the Plaintiff was badly injured requiring him to be air-flighted to a German hospital.
A lawsuit was filed by the Plaintiff in Norfolk Superior Court against the Massachusetts Transportation Company arguing that it had “responsibility for the accident in that it should have vetted the German driver better.” The Massachusetts Transportation Company never answered the complaint, but rather filed a Motion to Dismiss. The company argued that the accident happened in Germany, that it was subject to German law, and any and all witnesses were residents of Germany. Furthermore, the company argued that the German company was an independent contractor and that any case would have to be pursued in Germany.
The Plaintiff still persisted and obtained a copy of a contract that existed between the Massachusetts Transportation Company and the German company. “The document stated that the German company had to adhere to strict guidelines set by the American company. In short, the contract dictated the color of the car that would have to be used in Germany; what the drivers could wear; what they could and could not talk about; what needed to be in the car; what time they would have to arrive at a job; how they would bill; a prohibition against tips; and a requirement that the German driver carry place cards that identified the drivers as part of the American company. It even stated that the drivers could not give out business cards other than that of the American company.”
After all these findings, the Plaintiff argued that the American company exercised significant control over the German company and pointed out the contract even stated that in the event a dispute arose, the German company agreed to submit to the Massachusetts jurisdiction. Shortly before the Motion to Dismiss was to be heard, the Defendant Transportation company agreed to mediate the case. After a long day of mediation, the parties settled at $2.5 million dollars on October 8, 2020.
Do you think the Massachusetts Transportation Company was rightfully held
to be vicariously liable for the German Company’s actions? Why or Why Not?