Certain v. Equitable Equipment Co.

453 So. 2d 292
CourtLouisiana Court of Appeal
DecidedJune 6, 1984
Docket13150
StatusPublished
Cited by17 cases

This text of 453 So. 2d 292 (Certain v. Equitable Equipment Co.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Certain v. Equitable Equipment Co., 453 So. 2d 292 (La. Ct. App. 1984).

Opinion

453 So.2d 292 (1984)

Charles Joseph CERTAIN
v.
EQUITABLE EQUIPMENT COMPANY and Allen Bradley Company.

No. 13150.

Court of Appeal of Louisiana, Fourth Circuit.

June 6, 1984.
Rehearings Denied July 24, 1984.
Writ Denied November 9, 1984.

*294 Orlando G. Bendana, Wayne H. Carlton, Jr., New Orleans, for appellant.

R.K. Christovich, New Orleans, for appellees.

Wayne J. Fontana, New Orleans, for intervenor.

Before GULOTTA, GARRISON, BARRY, BYRNES and WARD, JJ.

GULOTTA, Judge.

Plaintiff, injured in an elevator accident arising out of and in the course of his employment, appeals from the dismissal of his tort suit against the elevator owners on exceptions of no right and no cause of action. In maintaining the exceptions, the trial judge concluded that plaintiff's exclusive remedy was in workers' compensation and that defendants, therefore, were immune from tort liability. We affirm.

Charles J. Certain, a laborer employed by Prestressed Concrete Products Company, Inc. (Prestressed), which manufactures concrete construction pilings and components, was injured at his employer's plant on November 6, 1976, when the "elevator" or mechanized work platform on which he was standing fell to the ground. The elevator was owned by Mandeville Properties, a joint venture of defendants Brown & Root, Inc. (Brown & Root) T.L. James & Company, Inc. (T.L. James) and Raymond International, Inc. (Raymond), and was leased to Prestressed. The three defendants were also the sole stockholders of Prestressed, and used Prestressed's concrete components in the construction of bridges and highways.

Plaintiff's suit is based on negligence, products liability, and strict liability under LSA-C.C. Arts. 2317 and 2322. Plaintiff asserts that his injury was caused by the defective and dangerous design and construction of the elevator, and defendants' failure to warn of the defects.[1]

In exceptions of no cause and no right of action, defendants claimed they were immune *295 from tort liability to plaintiff as the sole stockholders of Prestressed, and as plaintiff's statutory employer. The exceptions were referred to the merits and maintained after trial. In written reasons, the trial judge characterized the relationship between the parties as one of "a stockholder who is an employer of an individual", and concluded that plaintiff's case against defendants must therefore be dismissed.

Appealing, plaintiff contends that defendants cannot invoke the tort immunity of LSA-R.S. 23:1032[2] as "principals" or "statutory employers" of plaintiff since the evidence did not establish that he was injured while doing work that is part of defendants' "trade, business or occupation". Plaintiff further argues that defendants are not immune as "stockholders" of Prestressed since they were not engaged in the "normal course and scope" of their employment at the time of the injury. Certain claims his immediate employer Prestressed, a separate corporate entity from defendants, had exclusive use of the equipment and plant leased from Mandeville, (owned by defendants), and was simply acting as a fabricator and vendor of concrete parts for defendants' use in building bridges. We disagree.

PRINCIPAL OR STATUTORY EMPLOYER

LSA-R.S. 23:1032 provides that an action in worker's compensation shall be the exclusive remedy of an injured employee against any "principal". The statute defines "principal" as "... any person who undertakes to execute any work which is a part of his trade, business or occupation in which he was engaged at the time of the injury, or which he had contracted to perform and contracts with any person for the execution thereof."

A principal is considered the employer of a contractor's employee when that employee is engaged in work that is part of the principal's regular business. Barnes v. Sun Oil Co., 362 So.2d 761 (La. 1978); Fontenot v. Andrus Homes, Inc., 391 So.2d 42 (La.App. 3rd Cir.1980). This "statutory employment" consists of two essential elements: 1) the "work" must be part of the principal's "trade, business or occupation", and 2) the principal must have been engaged in that trade, business or occupation at the time of the injury. Lewis v. Exxon Corp., 441 So.2d 192 (La.1981), on rehearing.

Defendants' tort immunity in the instant case as a "principal" or "statutory employer" under LSA-R.S. 23:1032, therefore, requires a finding that plaintiff's work at Prestressed is part of defendants' regular trade, business or occupation. This issue is a factual question. See Lewis v. Exxon Corp., supra; Dixon v. Tugwell, 409 So.2d 343 (La.App. 1st Cir.1982); Sisk *296 v. Insurance Co. of North America, 356 So.2d 1109 (La.App. 2nd Cir.1978).

The elevator involved in plaintiff's accident was designed by Raymond Concrete Pile Co. (now Raymond International) and was originally operated by Louisiana Bridge Company (a joint venture composed of defendants Brown & Root, T.L. James and Raymond) in the fabrication of concrete pilings for its own use in constructing the Lake Pontchartrain Causeway in the 1950's.

Louisiana Bridge Company thereafter leased its plant and equipment to Prestressed Concrete Company, a corporation wholly owned by Brown & Root, T.L. James, and Raymond International as equal shareholders. Mandeville Properties, the successor to Louisiana Bridge Company and likewise owned by defendants, continued to lease the land and equipment to Prestressed. At the time of plaintiff's accident, Prestressed had "two major contracts" for fabrication and delivery of concrete bridge components for use by defendants in construction projects in Louisiana and Alabama. One construction project was a causeway over Mobile Bay, and the other was the Louisiana I-55 elevated highway.

Although Prestressed daily maintained and operated the elevator and plant, defendants received dividends from the company as its sole stockholders, and held periodic board meetings. Occasionally, tours of the Prestressed plant were conducted for defendants' prospective clients and visitors.

Prestressed, owned solely and entirely by the three defendants, fabricated concrete components that were an essential and integral part of defendants' bridge and roadway construction business. Certain, a Prestressed employee, was injured while fabricating components for use in defendants' two construction contracts.

This evidence considered, we conclude that plaintiff's employment was part of defendants' business, trade or occupation, and that defendants are plaintiff's statutory employer.

In so holding, we reject plaintiff's argument that the relationship between defendants and Prestressed is one of vendor-vendee, not principal-contractor. According to plaintiff, defendants only leased the elevator and plant to Prestressed and purchased components from the company, but did not engage, as a usual and customary business practice, in Prestressed's activity as a manufacturer of concrete components.

Where an employee is injured when undertaking work that is part of the trade, business or occupation of the principal, the mere fact that elements of sale are present in the relationship is not fatal to a finding of statutory employment. Hart v. Richardson, 272 So.2d 316 (La.1973).

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