Atlantic Goods Services, Inc. v. Milan Express Co.
Atlantic Goods Services, Inc. v. Milan Express Co.
Opinion of the Court
The determinative issue on this appeal is whether the driver/tortfeasor of a tractor trailer engaged in interstate commerce which collided with another vehicle was an employee of the lessee or of the lessor of the vehicle or both for purposes of an indemnification agreement between the lessee and lessor.
Pursuant to a trip lease agreement, Milan Express Co. leased from Atlantic Goods Services, Inc. a tractor trailer for use in delivering goods of a customer from Tennessee to South Florida. Atlantic provided the driver, Gonzalez, who in fact executed the trip lease agreement on Atlantic’s behalf. Before reaching his destination in Florida, Gonzalez struck another tractor trailer in Osceola county, resulting in the death of its driver, Swan, as well as Gonzalez. Swan’s estate brought a wrongful death action against Atlantic and Milan.
After settling the estate’s claim for $60,-000 Milan sued Atlantic for indemnity or contribution pursuant to paragraph 10 of the trip lease agreement which provided:
10. Lessee [Milan] agrees to maintain insurance for the protection of the public in accordance with 49 C.F.R. § 1043 and 49 U.S.C. § 10927. However, lessor [Atlantic] hereby agrees that it will indemnify and save harmless Lessee through deduction or payment for any and all claims, suits, losses, fines or other expenses arising out of, based upon, or incurred because of injury to any person or persons or damage to property (other than cargo) and sustained or which may be alleged to have been sustained as result of the use of the equipment leased hereby during the term of the lease by reason of any negligence or alleged negligence on the part of the lessor, its agents, servants, or employees....
We reverse because the record establishes as a matter of law that for purposes of the indemnity provision between the lessor and lessee, Gonzalez was an employee of the lessor, Atlantic. While the federal scheme regulating interstate motor carriers imposes upon lessees such as Milan primary responsibility to the public for tort liability arising out of the operation of leased motor vehicles engaged in interstate commerce,
REVERSED AND REMANDED for entry of judgment in accordance with this opinion.
. See 49 U.S.C. §§ 10927(a)(1), 11107(a)(4), 49 C.F.R. §§ 1043, 1057.12(c)(j)(l). There is no dispute as to the fact that Milan complied with these federal dictates by procuring adequate liability insurance.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.