Brown v. Ethyl Corp.

222 F. Supp. 734, 1963 U.S. Dist. LEXIS 9765
CourtDistrict Court, E.D. Louisiana
DecidedSeptember 25, 1963
DocketCiv. A. Nos. 2257, 2258
StatusPublished

This text of 222 F. Supp. 734 (Brown v. Ethyl Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brown v. Ethyl Corp., 222 F. Supp. 734, 1963 U.S. Dist. LEXIS 9765 (E.D. La. 1963).

Opinion

AINSWORTH, District Judge.

These two diversity suits for damages were filed under the Louisiana Direct Action Statute,1 permitting suits direct[736]*736ly against a tort-feasor’s insurer, and were consolidated for trial to the court without a jury.2 They involve the claims of the widow and children of a deceased bricklayer and that of his helper, growing out of an accidental chlorine gas release which occurred on May 7, 1959 in the Baton Rouge, Louisiana, plant of Ethyl Corporation exhausting the deadly gas into an acid tower which the two men were repairing. Brown died and Scott suffered physical injury as a result of the accident.

The acid tower is a round steel vessel 25 feet in height and 3 feet in diameter. It is lined with brick. The only means of entrance and exit are from thei top. Brown, the bricklayer, was lowered down to the bottom to repair the brick lining by a hoisting device operated by his helper, Scott, who was stationed at the top of the tower. The chlorine was released into the working area immediately following a power interruption to an electric motor driving one of several compressors in service at the time. The pressure of gas being delivered by the other compressors forced chlorine gas backwards through the temporarily idled compressor. Gas also escaped from a “blank” (a steel plate placed over an opening in the system and covered with pitch to make an airtight seal) in the relief line situated near the opening of the tower causing a concentration of chlorine gas in the vicinity of the tower and the room in general. This blank was found ajar after the accident, and it is not known whether the gas surge knocked it loose or it was removed at some other time. Chlorine is several times heavier than air and it descended in fairly heavy concentration to the bottom of the tower where Brown was working.

Suits were filed against Ethyl Corporation and its public liability insurer, The Travelers Insurance Company; however, motion for summary judgment was granted in favor of Ethyl and Travelers as its insurer. The court retained jurisdiction against Travelers alone as the insurer of Ethyl’s officers, directors, agents, servants and employees.3

Hartford Accident and Indemnity Company has intervened, claiming reimbursement for Louisiana workmen’s compensation which it paid as insurer of Caldwell, in the stipulated sums of $10,-769.50 for the death of Brown and $807.75 for Scott’s injuries.

The workers, Brown and Scott, were employed by George A. Caldwell, a large industrial building contractor with operations in numerous places in Louisiana and headquarters at Baton Rouge. Caldwell, under written contract with Ethyl Corporation, was engaged to perform brick maintenance work in the large Chemical Plant of Ethyl at Baton Rouge.

Plaintiffs base their claims in tort against defendant, Travelers, under its public liability insurance policy in which Ethyl is the named insured, and the executive officers and employees of Ethyl while acting in the course and scope of their employment are set forth as additional insureds. Plaintiffs aver that the accident was caused by the negligence of Ethyl’s executive officers and employees in the operation and maintenance [737]*737of the plant. They have not sued the Ethyl executive officers and employees, but have sued only their insurance carrier as they have a right to do under the Louisiana Direct Action Statute.

Defendant contends that plaintiffs’ suits must fail because there is no insurance coverage under the Travelers liability policy in favor of an employee injured through the negligence of another employee of the named insured. Under the terms of the cross-employee exclusion in the policy, coverage is not afforded to any employee with respect to injury or death of another employee of the named insured injured in the course of his employment.4 Brown and Scott are claimed to be either statutory employees of Ethyl or employees under the doctrine of respondeat superior. Under either theory defendant says plaintiffs must lose because if Ethyl’s plant employees were negligent in plant operation or maintenance, they caused injury to fellow plant employees, Brown and Scott, and this contingency is not covered by the policy. Plaintiffs’ exclusive remedy, they contend, is under the Louisiana Workmen’s Compensation Law.

Therefore, the defense is that there is no insurance coverage because the injured employees were so-called statutory employees of Ethyl Corporation under, provisions of the Louisiana Workmen’s Compensation Act (LSA-R.S. 23:1061), and their claims are barred under the policy by the cross-employee exclusion as to torts by an Ethyl employee on a fellow employee. Under this section, where any person (as principal) undertakes to execute any work which is a part of his trade, business or occupation and contracts with any person (as contractor) for the execution of the whole or any part of the work undertaken by the principal, the principal shall be liable to pay an employee employed in the execution of the work, or his dependent, any compensation which he would have been liable to pay if the employee had been immediately employed by him; if the principal is required to pay compensation, he shall be entitled to indemnity from the contractor.

Alternatively, defendant contends that there is no coverage under the cross-employee exclusion because the injured employees were Ethyl employees under the doctrine of respondeat superior in that they were doing ordinary maintenance and repair work for Ethyl, under ■ its control and supervision, both as to time and manner of work.

Finally, defendant denies any negligence by Ethyl employees, averring that all reasonable measures had been taken by Ethyl to protect its employees and others from possible injury; alternatively, defendant pleads contributory negligence in bar of plaintiffs’ claims.

Caldwell’s maintenance contract is for a specialized kind of brickwork and has [738]*738been continuous at Ethyl for many years. Under its provisions the contractor has been paid on a 15% cost plus basis. Caldwell’s foreman at the plant would be notified from day to day by one of Ethyl’s superintendents of the need for brick maintenance work and the Caldwell men would be assigned to work accordingly. Wages would be paid to his workers by Caldwell who would in turn bill Ethyl for his out-of-pocket costs plus 15% for services rendered. Caldwell rarely, if ever, came on the job, relying entirely on his foreman. The foreman sent in his time sheets to Caldwell’s Baton Rouge office where payroll checks were made up and issued to the men. The two workers here had been engaged in ordinary maintenance work at the plant for many years and were paid by Caldwell on an hourly basis. Caldwell employees did not belong to the same unions as Ethyl employees, they were not eligible for Ethyl retirement benefits, and they did not participate in the accident and sickness benefit plan of Ethyl or any other special benefits provided for Ethyl employees. Caldwell employees were paid directly by Caldwell after Social Security and income tax withholding deductions were made.

Defendant contends that these Caldwell employees were under the direct supervision and control of Ethyl employees and that under the doctrine of respondeat superior they were in fact Ethyl employees.

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Related

Johnson v. Royal Indemnity Co.
206 F.2d 561 (Fifth Circuit, 1953)
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129 So. 2d 427 (District Court of Appeal of Florida, 1961)
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341 S.W.2d 830 (Supreme Court of Missouri, 1960)

Cite This Page — Counsel Stack

Bluebook (online)
222 F. Supp. 734, 1963 U.S. Dist. LEXIS 9765, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-ethyl-corp-laed-1963.