Barajas v. USA Petroleum Corp.

184 Cal. App. 3d 974, 229 Cal. Rptr. 513, 1986 Cal. App. LEXIS 1954
CourtCalifornia Court of Appeal
DecidedAugust 25, 1986
DocketB007404
StatusPublished
Cited by15 cases

This text of 184 Cal. App. 3d 974 (Barajas v. USA Petroleum Corp.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barajas v. USA Petroleum Corp., 184 Cal. App. 3d 974, 229 Cal. Rptr. 513, 1986 Cal. App. LEXIS 1954 (Cal. Ct. App. 1986).

Opinion

Opinion

YEGAN, J. *

On June 15, 1978, a fiery explosion occurred at USA Petroleum Corporation (hereinafter USA) which, inter alia, resulted in the death of Christopher Newman, personal injury to Harry Stallings and James Ledford, and property damage to Reagen’s Vacuum Truck Service, Inc. (hereinafter Reagen Trucking). Judgment was entered on jury verdicts in a bifurcated trial. First, a jury determined that Stallings and Newman were not special employees of USA, thus subjecting USA to tort liability. Finding USA 100 percent at fault, a second jury awarded $1 million in damages to the heirs of Christopher Newman, $853,263.04 to James Ledford, $377,673.05 to Harry Stallings, and $7,997.48 to Reagen Trucking. Truck Insurance Exchange was awarded $95,191.03 for workers’ compensation benefits paid to Ledford. 1

USA appeals, contending: “I The evidence shows as a matter of law that Stallings was defendant’s ‘special employee’ and his exclusive remedy should have been his workers’ compensation benefits. II Even if special employment had been a question of fact for the jury, uncertain and unduly limited instructions on the elements of special employment denied defendant a fair hearing on that issue. Ill The bifurcated trial on the issue of special employment was tainted by plaintiffs’ repeated references to irrelevant and prejudicial matters. IV Defendant was denied a fair trial on liability by the artificial realignment of the parties against defendant as a result of the bad faith sliding-scale settlements with other defendants. V Defendant was denied a fair trial on liability by the admission of speculative and conjectural expert opinions on purely hypothetical causes of the fire. VI Defendant was denied a fair trial on liability by the admission of irrelevant and prejudicial evidence of unrelated incidents.”

(1) We view the evidence in the light most favorable to the juries’ determinations as is required by the familiar rule governing appellate review. (Stevens v. Parke, Davis & Co. (1973) 9 Cal.3d 51, 63-64 [107 Cal.Rptr. 45, 507 P.2d 653, 94 A.L.R.3d 1059].) Allied Lyon Construction Company (hereinafter Allied) was in the business of supplying maintenance workers *981 for the oil industry for eight to ten oil companies in the Ventura County area. This maintenance work included assembly and disassembly of pipes, ditch digging, pouring concrete, carpentry, weed pulling, general clean-up, and assisting welders. Allied supplied the workers on an “as-needed” basis, and work for Allied was, therefore, not steady. Allied carried all of its union employees on its own payroll; provided health insurance, retirement benefits, workers’ compensation; had the exclusive right to hire and terminate its employees; provided hard hats, safety glasses, gloves and some of the work tools for tasks to be performed; had the exclusive right to determine at which oil facility its employees would work on any given occasion; and had the exclusive right to determine the amount of wages to be paid to its employees. Allied workers did not wear uniforms or other insignia affirmatively identifying them as Allied employees.

By way of contrast, USA, a nonunion company, had its own work force and uniformed maintenance workers. USA had its own payroll, provided benefits to its employees, had the exclusive right to hire and terminate its own employees, provided work tools for them, conducted its own safety meetings, and provided Nomex fire-retardant clothing to its employees only. Its employees had free access to the USA physical plant and keys thereto, while Allied employees did not and had to sign in at the USA gate. In fact, the benefits were so far superior at USA that Allied had difficulty in keeping its employees from quitting to become regular employees of USA. As a result of this problem, Allied and USA entered into an agreement that no former Allied employee would be hired by USA unless he was unemployed for 30 days. Although this was a disincentive for quitting Allied to go to work for USA, it was nevertheless worth it to some employees who did so because of reliability and continuity in employment, better pay, better facilities and better insurance benefits.

Stallings and Newman were Allied’s employees. Stallings had worked for Allied since 1970 and was vice president and shop steward for Oil Field Maintenance Laborers Union Local 1234. Stallings was one of the most experienced “as-needed” workers who needed no supervision whatsoever. In fact, he was responsible for the supervision of other Allied personnel who would accompany him to the subject worksites. One of his charges was Newman, who was, comparatively speaking, a novice in the oil field maintenance worker industry.

Between 1976 and 1978, USA had utilized the services of Allied’s employees at the USA plant. USA had requested the services of Stallings personally, and Allied acquiesced thereto. In fact, Stallings had worked continuously at USA for the six-month period immediately prior to the fire. As indicated, Stallings was so experienced that he needed virtually no *982 supervision by anyone at USA. When Stallings would report to USA for work, he would be given a task by USA. USA was concerned with the result they wanted, and the manner in which the task was accomplished was left to the discretion of Stallings and other Allied employees. For example, when Ron Simmons, USA foreman on the day of the fire, was asked: “So the manner and method that they [Allied employees] used to accomplish the task that they were assigned to accomplish was up to them; isn’t that correct?” he answered, “[y]es.”

On the day of the fire, June 15, 1978, consistent with the aforementioned procedure of assigning tasks to be performed by Allied employees, Stallings and Newman were assigned to clean residue from a tank. They were provided with USA tools to do the assigned job. The USA foreman did not advise Stallings the manner in which it was to be performed and left it to his discretion. Stallings admitted, however, that he would have done the task in any manner directed by USA.

In connection with the “scrubbing” of natural gas at the USA plant, a by-product, “spent caustic,” is produced which is disposed in some instances by way of tanker truck. The “spent caustic” contains hydrocarbons, here, pentane, which are flammable liquids and which, because they are lighter than the “spent caustic,” will rise to the top of any storage tank which contains them. On June 15, 1978, an unusual amount of hydrocarbons had accumulated in storage tank T-201 (hereinafter, the tank). The 18-foot tank contained 2,646 gallons or 4.6 feet of hydrocarbons floating on top of 8.2 feet of “spent caustic.” On the morning of June 15, 1978, USA decided to have Reagen Trucking vacuum the “spent caustic” from the bottom of the tank and arranged for vacuuming.

Unfortunately for everyone concerned, additional “spent caustic” was piped into the tank, raising the level of pentane in the tank, causing it to spill out through a two-inch vent pipe at the top of the tank. Prior to the spill, USA personnel checked the area with a gauge and determined that there were no flammable vapors present in the morning and even issued a welding permit for the area. No such checking occurred after the spill of pentane.

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Bluebook (online)
184 Cal. App. 3d 974, 229 Cal. Rptr. 513, 1986 Cal. App. LEXIS 1954, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barajas-v-usa-petroleum-corp-calctapp-1986.