Chavers v. Exxon Corp.

716 F.2d 315
CourtCourt of Appeals for the Fifth Circuit
DecidedOctober 3, 1983
DocketNos. 81-3664, 81-3734 and 81-3692
StatusPublished
Cited by11 cases

This text of 716 F.2d 315 (Chavers v. Exxon Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chavers v. Exxon Corp., 716 F.2d 315 (5th Cir. 1983).

Opinion

POLITZ, Circuit Judge:

These consolidated diversity cases occasion an examination and application of the statutory-employer provision of the Louisiana Workmen’s Compensation Act, La.R.S. 23:1061. If defendants are deemed statutory employers, their responsibility for the injuries and losses at issue in these eases is prescribed exclusively by the Workmen’s Compensation Act and they are shielded from all other liability.1

Section 1061

The statutory-employee section, La.R.S. 23:1061, pertinently provides:

Where any person (in this section referred to as principal) undertakes to execute any work, which is a part of his trade, business, or occupation or which he had contracted to perform, and contracts with any person (in this section referred to as contractor) for the execution by or under the contractor of the whole or any part of the work undertaken by the principal, the principal shall be liable to pay to any employee employed in the execution of the work or to his dependent, any compensation under this Chapter which he would have been liable to pay if the employee had been immediately employed by him .... [Emphasis added.]

The statutory language vital to the current inquiry is found in the phrase: “part of his trade, business or occupation.” We recently noted that for years this language “has been subjected to conflicting interpretations.” Penton v. Crown Zellerbach Corp., 699 F.2d 737, 740 (5th Cir.1983). Beginning with Blanchard v. Engine & Gas Compressor Services, Inc., 613 F.2d 65 (5th Cir.1980), we have sought to minimize these conflicts.

In Blanchard we held the applicable yardstick to be:

whether the activity done by the injured employee or his actual immediate employer is part of the usual or customary prac[317]*317tice of the principal or others in the same operational business.

Id. at 71. By way of further explanation we stated that the court “should first consider whether the particular principal involved in the case customarily does the type of work performed by the contractor.” Id. If that answer is in the affirmative, the principal is a statutory employer with resulting workmen’s compensation obligations and a concomitant liability shield. If the answer is negative, the court must continue the inquiry “to determine if others engaged in businesses similar to that of the principal customarily do this type of work or if it is an integral part of their businesses.” Id. If this query results in an affirmative response the principal is a statutory employer. In sum, the core inquiry is whether the employees of the principal or employees of other employers engaged in similar operations customarily perform the work at issue. In either instance, the principal will be deemed a statutory employer.

This test is essentially factual. “Typically, whether the work performed by the injured worker’s employer is part of the trade or business of the ostensible statutory employer is an issue of fact to be determined according to the circumstances of each case.” Ortego v. Union Oil Company of California, 667 F.2d 1241, 1242 (5th Cir. 1981). This does not preclude summary resolution, however, in a proper case.

In Penton we reflected on Blanchard and its progeny and held that “a statutory employment relationship will be found only in those instances where the injured employee’s employer is contracted to perform work which is so closely allied to that of the principal employer that it is in fact either an extension or component of the principal’s commonly relied upon resources.” 699 F.2d at 741. In so observing, we made clear that we were not re-embracing the “essential to business” test specifically rejected in Blanchard. Id. at n. 5. Penton did not involve the more frequently posed § 1061 problem; the employees in Penton were engaged in new construction and were not performing work inherent in the employer’s operation. Nonetheless, the opinion is instructive and is a guide to our decision today.

In Ortego we examined workover operations by Union Oil Company of California. Similarly, in Darville v. Texaco, Inc., 674 F.2d 443 (5th Cir.), cert. denied, -U.S. -, 103 S.Ct. 298, 74 L.Ed.2d 280 (1982), we considered the problem presented by ordinary maintenance. In each instance we found the work being done by the contractor’s employees to be work customarily performed by the employees of the principal. Accordingly, the principal assumed statutory employer status with its resultant tort immunity. We upheld summary judgment for the defendants.

In Williams v. Shell Oil Co., 677 F.2d 506 (5th Cir.), cert. denied,-U.S.-, 103 S.Ct. 570, 74 L.Ed.2d 933 (1982), which involved major repairs, we found summary judgment in favor of the defendant inappropriate. Affidavits of representatives of the principal attested to the fact that employees of the principal did not customarily perform the work in question. Indeed, the affidavits informed that “it is customary within the petroleum refining industry to employ independent contractors” to do that work. Id. at 509-10. Under those circumstances, we concluded that we could not hold as a matter of law that the statutory employer status governed the case.

Recently, in Fomo v. Gulf Oil Corp., 699 F.2d 795 (5th Cir.1983), we found the employees of a painting contractor to be statutory employees of the principal despite the fact that at the facility in question the principal generally contracted for painting services. The evidence reflected that at its other plants throughout the country, Gulf Oil often utilized its own employees for painting maintenance; indeed, at one facility it used its employees exclusively for such maintenance. Summary judgment in favor of defendant, dismissing plaintiff’s tort claim, was affirmed.2

[318]*318The fact that most contests over statutory-employee status occur in the context of third-party liability claims can be misleading. The purpose of the statutory-employee provision is to assure complete compensation coverage. That it affects tort liability is incidental. As earlier noted, an integral part of making employees of individual contractors (who might not be able or willing to provide coverage) the employees of the principal for compensation purposes is the insulation of the principal from third-party liability for any injury sustained. The decision to so structure the law was a conscious legislative act.

Against this backdrop, we turn to the cases before us today.

Chavers v. Exxon

Nina Sue Chavers, widow of Max L. Chavers, individually and on behalf of two minor children, brought an action against Exxon because of the death of her husband.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
716 F.2d 315, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chavers-v-exxon-corp-ca5-1983.