Peoples Gas Sys. v. Posen Constr., Inc.
Peoples Gas Sys. v. Posen Constr., Inc.
Opinion of the Court
This matter comes before the Court
BACKGROUND
This is an action under Florida's Underground Facility Damage Prevention and Safety Act, Fla. Stat, §§ 556.101 -106 (the "Act"). Peoples Gas System ("PGS") owns *1364and maintains natural gas distribution facilities throughout Florida, including a natural gas pipeline in Lee County. (Doc. 1 at 2). Posen is a road construction contractor. (Id .). In 2009, the Lee County Board of County Commissioners solicited bids for a lane expansion/drainage system project in east Fort Myers, Florida. (Id. at 3). Posen submitted a bid and was awarded general contractor of the project. (Id. at 4). Construction began in August 2009. (Id. ).
PGS maintained the pipeline underneath the project, which provided natural gas to Lee County residents. (Id. ). This was a "critical line" and required caution when working around it. (Id. ). PGS marked the pipeline with flags and paint and installed testing stations. (Id. at 5). As the project continued, the parties learned that, at certain locations, construction would be impossible unless PGS removed the pipeline ahead of Posen's work. (Id. at 4).
In October 2010, Posen submitted a request to Sunshine One, which is a notification system by which excavators obtain the location of underground utilities before excavating. (Id. at 8).
This incident triggered several years of litigation. First, in 2011, Santos sued PGS and Posen in Florida state court. (Docs. 1 at 12; 11-1). Several years later, Santos voluntarily dismissed Posen as a defendant to the action. (Doc. 11-3). In 2017, Santos and PGS ultimately settled. (Doc. 1 at 12). Around the same time Santos filed his state action, PGS sued Posen in federal court for the same incident, seeking damages for the cost to repair its pipeline and facilities under claims of negligence. (Doc. 11-4). In response, Posen filed counterclaims against PGS. (Doc. 16-1). The parties ultimately settled and stipulated for dismissal with prejudice. (Doc. 16-2).
Now, PGS sues Posen under § 556.106(2)(a) and makes an alternative claim for statutory indemnity under the Act. (Doc. 1). In essence, Posen asserts both counts are duplicative because, under both counts, PGS relies on the Act to receive the same remedy: indemnification for the settlement amount it paid to Santos (Docs. 1 at 12-13; 10 at 7). Posen moves to dismiss the complaint for failure to state a claim, and both parties move the Court to take judicial notice of court filings.
STANDARD OF REVIEW
When considering a motion to dismiss under Rule 12(b)(6), the court must accept all factual allegations as true and view them in a light most favorable to the plaintiff. See Ashcroft v. Iqbal ,
DISCUSSION
Posen presents two arguments as grounds for dismissing both counts of the Complaint. (Doc. 10 at 6-13). First, it argues that the damage PGS seeks is not a "loss" under the statute. (Id. at 10-13). Second, it asserts there is no statutory right to indemnification under the Act. (Id. at 7-10). PGS avers that it has a right to indemnification under the broad language of the statute. (Doc. 17 at 12-14). For the reasons stated below, the Court agrees with Posen.
As a preliminary matter, Florida substantive law binds the Court on these state law issues. The Eleventh Circuit summarized the precedent:
In rendering a decision based on state substantive law, a federal court must decide the case the way it appears the state's highest court would. Where the state's highest court has not spoken to an issue, a federal court must adhere to the decisions of the state's intermediate appellate courts absent some persuasive indication that the state's highest court would decide the issue otherwise.
Ernie Haire Ford, Inc. v. Ford Motor Co. ,
The Act was enacted, in part, to "aid the public by preventing injury to persons or property and the interruption of services resulting from damage to an underground facility caused by excavation or demolition operations." § 556.101(3)(a). Excavators are required to notify member operators (utilities) of their activities so operators can identify the locations of their underground utility lines and prevent damage to their lines. See § 556.105. If damage occurs despite the lines being properly marked, the Act creates a rebuttable presumption of negligence and the excavator is liable "for the total sum of the losses to all member operators involved as those costs are normally computed." § 556.106(2)(a).
Here, the parties disagree on the definition of the words "losses" and "costs" under the statute. Unfortunately, these terms are not defined under the Act, and state and federal courts have grappled with their definitions. Compare A & L Underground, Inc. v. City of Port Richey ,
"In matters of statutory construction ... legislative intent is the polestar that guides the Court." Jimenez v. State ,
Language is ambiguous if "reasonable persons can find different meanings in the same language." Blanton v. City of Pinellas Park ,
Here, the Act provides that if an excavator is found liable, he "is liable for the total sum of the losses to all member operators involved as those costs are normally computed." § 556.106(2)(a). PGS contends that because the legislature has imposed liability under the statute "for the total sum of the losses" incurred, such total costs should include the amount PGS paid Santos to settle his claim for bodily injury in state court. (Doc. 17 at 12-14).
First, the statute provides liability for "costs" as they are "normally computed,"
*1367such as losses of revenue and use.
In addition, other sections of the Act do not support PGS' interpretation. PGS argues that because § 556.106(2)(c) provides liability for injuries, it can recover the amount it paid to Santos to settle his personal injury claim. (Doc. 17 at 12-14). However, PGS conflates a claim for personal injury with an indemnification claim based on a personal injury. Here, PGS is not claiming it suffered a personal injury as a result of Posen's breach of duty under the statute. Rather, it makes a claim for indemnity based on a previous personal injury suit. PGS interpretation mischaracterizes the statutory language. While the statute provides liability for bodily injuries, the plain language creates no duty to indemnify a member operator for money it paid during the settlement of a third-party bodily injury claim.
Last, the Court finds that PGS' interpretation of the statute would force it to infringe on the duties and powers of the Florida legislature. See Hill v. Davis ,
The Court finds two Florida statutes illustrative here. First, under
In sum, PGS seeks a remedy under the Act that does not exist based upon the plain language of the statute. Because Posen has met its burden of establishing that *1368PGS has no right to indemnification under the Act, Counts I and II are dismissed.
Accordingly, it is now
ORDERED:
1. Defendant Posen Construction, Inc.'s Motion to Dismiss (Doc. 10) is GRANTED .
2. Plaintiff Peoples Gas System's Complaint (Doc. 1) is DISMISSED with prejudice.5
3. Defendant Post Construction, Inc.'s Motion to Take Judicial Notice (Doc. 11) and Plaintiff Peoples Gas System's Request to Take Judicial Notice (Doc. 16) are DENIED as moot.
4. The Clerk is directed to enter judgment terminate all pending motions and deadlines, and close the file.
DONE and ORDERED in Fort Myers, Florida this 26th day of June, 2018.
Plaintiff initially filed this action in the Middle District of Florida, Tampa Division. (Doc. 1). The Tampa Division later transferred the case to this Court because the factual allegations occurred in Fort Myers, Florida. (Docs. 18; 19; 20).
The Court presents the facts as alleged in PGS' Complaint. (Doc. 1). At this stage, the Court must accept the facts set forth in the Complaint as true. See Anza v. Ideal Steel Supply Corp. ,
In light of the Court's decision to grant Posen's Motion to Dismiss (Doc. 10), both parties' pending motions to take judicial notice (Docs. 11; 16) are denied as moot.
"A district court need not ... allow an amendment ... where [such] an amendment would be futile." Bryant v. Dupree ,
Reference
- Full Case Name
- PEOPLES GAS SYSTEM, A DIVISION OF TAMPA ELECTRIC COMPANY, a Florida corporation v. POSEN CONSTRUCTION, INC.
- Cited By
- 3 cases
- Status
- Published