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VEASLEY v. CRST INTERN.9/18/1996
Plaintiff, Calvin Veasley, and his wife, Sharon Veasley, (the Veasleys) appeal from an adverse summary judgment in their action against defendant Rapid Leasing, Inc. (Rapid Leasing). Calvin Veasley was a relief driver for a commercial trucking venture and was seriously injured when a truck, owned by Rapid Leasing and driven by Veasley's coemployee Richard Powlistha, overturned in Arizona. The Veasleys commenced an action against Rapid Leasing based on the theory that, under Iowa Code section 321.493 (1993), as the vehicle's owner, it was liable for the negligence of Powlistha. Rapid Leasing urged that this theory of recovery was subject to the coemployee gross negligence standard of Iowa Code section 85.20 (1993). The district court agreed with this contention, concluded that it could not be established that Powlistha was grossly negligent, and dismissed the Veasleys' claims against Rapid Leasing.
In Smith v. CRST International, Inc., 553 N.W.2d 890 (Iowa 1996), decided this same date, we hold that a coemployee defense, personal to a consent driver, may not be utilized by a motor vehicle owner in an action based on section 321.493. The district court's theory in dismissing the claims against Rapid Leasing was thus erroneous. We must consider, however, whether Rapid Leasing may nevertheless preserve its favorable judgment on other legal theories urged. These are its alternative claims that (1) Arizona law, which does not recognize the vicarious liability of a vehicle owner, should control; (2) because of the substantial relationship between the affiliated corporations, Rapid Leasing should be considered to be Calvin Veasley's employer; and (3) a 1995 amendment to section 321.493 should be applied retroactively to defeat the Veasleys' claim. We find no merit in any of these contentions and conclude that, under the authority of the Smith case, the judgment must be reversed.
In addition to Rapid Leasing , three other defendants were named in this action. The Veasleys' claims against the other three were denied on grounds not at issue on this appeal. The four corporate entities involved were CRST International, Inc., an Iowa corporation with its principal place of business in Cedar Rapids; CRST, Inc., an Iowa corporation with its principal place of business in Cedar Rapids; Lincoln Sales and Service, Inc., an Iowa corporation with its principal place of business in Cedar Rapids; and Rapid Leasing, a Montana corporation with its principal place of business in Cedar Rapids. Lincoln Sales and Service, Inc. hires truck drivers and contracts with CRST, Inc. for their services. Lincoln hired both Calvin Veasley and Richard Powlistha. Rapid Leasing owns trucks and leases them to CRST, Inc. The truck involved in the present case was titled in the name of Rapid Leasing, registered in the State of Iowa and bore Iowa license plates. Other facts relevant to deciding this appeal will be discussed in connection with the legal issues presented.
I. The Choice of Law Issue.
Rapid Leasing argues that Arizona law should apply in this case. That state has no owner liability statute and does not otherwise recognize vicarious liability based on vehicle ownership. Iowa has abandoned the lex loci delicti rule in which the law of the place of injury governs every issue in a tort action. We now follow the Restatement's "most significant relationship" methodology for choice of law issues. Cameron v. Hardisty, 407 N.W.2d 595, 597 (Iowa 1987); Berghammer v. Smith, 185 N.W.2d 226, 231 (Iowa 1971). The theory behind this approach is that rather than focusing on a single factor, "the court of the forum should apply the policy of the state with the most interest in the litigants and the outcome of the liti
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