Douglas Speltz v. Interplastic Corporation, and third party v. Egan Company, Respondent./li>

Court of Appeals of Minnesota·Decided September 8, 2014·No. A13-2185·Unpublished

Opinion

This opinion will be unpublished and may not be cited except as provided by Minn. Stat. § 480A.08, subd. 3 (2012).

STATE OF MINNESOTA

IN COURT OF APPEALS

A13-2185

Douglas Speltz, et al.,

Respondents,

vs.

Interplastic Corporation, defendant and third party plaintiff, Appellant,

vs.

Egan Company,

Respondent

Filed September 8, 2014

Affirmed

Peterson, Judge

Dissenting, Johnson, Judge

Hennepin County District Court File No. 27-CV-12-22268

Eric J. Magnuson, David E. Bland, Robins, Kaplan, Miller & Ciresi LLP, Minneapolis, Minnesota (for respondents Douglas and Jennifer Speltz)

Timothy J. Leer, Brian Michael McSherry, O’Meara, Leer, Wagner & Kohl, P.A., Minneapolis, Minnesota (for appellant)

Paula Duggan Vraa, Larson King LLP, St. Paul, Minnesota (for respondent Egan Company)

Considered and decided by Peterson, Presiding Judge; Schellhas, Judge, and Johnson, Judge .

UNPUBLISHED OPINION

PETERSON, Judge Appellant challenges the district court’s denial of its summary-judgment motion seeking dismissal of respondent-employee’s personal-injury claims on the basis that the claims are barred by the exclusivity provision of the workers’ compensation act. Appellant argues that the district court erred by determining that fact issues exist regarding whether it was engaged in a joint enterprise with respondent-employer. We affirm.

FACTS

Appellant Interplastic Corporation operates a plant in Minneapolis where it manufactures resins that are sold to third parties for use in fiberglass items, such as hot tubs and shower surrounds. Respondent Egan Company is a contractor that employed respondent Douglas Speltz as a welder. In December 2009, Interplastic and Egan entered into a contract for Egan to perform work on Interplastic’s piping system, including the piping system for the chemical phthalic anhydride (PA).

After Egan completed the initial work on the PA system, it still was not performing as expected. Travis Rudoll, a chemical engineer employed by Interplastic, determined that the system’s return line needed to be rerouted to the top of the PA tank for the system to function properly. Egan agreed to do the rerouting, and Rudoll testified in a deposition that an Egan employee determined that the rerouting could be accomplished by cutting a hole in the manway cover on top of the PA tank and running the return line through the manway cover with a stinger pipe.

Egan assigned welders Speltz and Michael Posusta to the project. Speltz, a stainless-steel-welding specialist, worked under Posusta’s direct supervision. Interplastic Maintenance Supervisor Pat Gaulke assigned Interplastic employee Roshon Lewis to provide support to Speltz and Posusta on the PA rerouting project.

As required by law, Interplastic has a corporate safety procedure governing hot work that requires all employees and contractors to obtain a hot-work permit before beginning hot work in the facility. Hot work is “any activity which can cause sufficient heat to ignite nearby combustible or flammable materials,” including welding. Because the PA rerouting project required cutting and welding, hot-work permits were required.

When a hot-work permit is requested, an Interplastic employee inspects the area where the hot work is to be performed to ensure that the site is safe and that all appropriate precautions are taken. Both the employee who inspects the area and a work- area or shift supervisor are required to sign the hot-work permit. The hot-work procedure also requires a fire watcher to be present whenever there could be flames or sparks. The fire watcher is required to sign the hot-work permit before the work is performed and one hour after the work is completed, certifying that the fire watcher has inspected the area and that it is safe. The person performing the hot work is also required to sign the hot- work permit.

Egan’s safety director Larry Hanson testified that Egan’s workers depended on Interplastic employees to provide training on hot work because Interplastic employees are most familiar with the plant and its hazards. Egan stated in answers to interrogatories that Lewis was the fire watcher for Interplastic on the PA rerouting project. Speltz

testified that Lewis was the main Interplastic employee who worked with him and Posusta on the rerouting project.

Work on the rerouting project began on June 7, 2010. Interplastic maintenance worker Dave Johnson went over the June 7 hot-work permit with Speltz and Posusta, confirmed that the work area was safe for hot work and signed the permit as the hot-work supervisor. Jack Doughty signed the permit as the work-area supervisor. Interplastic’s safety manager reviewed the permit with Speltz and Posusta. Speltz signed the permit as the person performing work and Posusta signed the permit as the observer or fire watcher.

Lewis estimated that he was with Speltz and Posusta for six hours during the June 7 workday. He testified that his supervisor had not assigned him to watch them but was aware that he was there. Lewis described his role as helping Speltz and Posusta “with what they needed to check the piping for the clog or what is going on or whatever they needed as far as needing to know about something.” Posusta performed the final fire check of the work area after work was completed on June 7 and signed the hot-work permit. Posusta testified that he and Speltz met with Lewis at the end of each day to report on the day’s events, which Lewis then reported to Rudoll.

On June 8, 2010, Speltz and Posusta obtained another hot-work permit. Lewis filled out the permit, went over it with Speltz and Posusta, and signed the permit as the hot-work supervisor. Lewis again spent about six hours with Speltz and Posusta.

Because hot work was being performed inside the facility, lower explosive limit (LEL) readings were required before welding could begin and while welding was being

performed. Although Egan owned LEL meters, it did not provide one to Speltz and Posusta because it was unaware that one would be required for the rerouting project and, in any event, Egan believed that Interplastic would provide one if needed. Interplastic also provided Speltz with protective equipment when needed.

On June 9, 2010, Speltz and Posusta obtained two hot-work permits from Interplastic, both of which were signed by Johnson as work-area supervisor. Lewis estimated that he spent six or seven hours of the workday with Speltz and Posusta. Speltz testified that, in the morning, he, Lewis, and Posusta worked to unclog the return line of the PA system. Speltz testified that the three of them “were all working on [removing the clog]” by “heating it up,” “putting different stuff in [the pipe],” using “a cold chisel,” hammering on it, and drilling a hole through it. Lewis also testified that he helped Speltz and Posusta with that work.

Later that day, Rudoll and Egan employee Andy Gross were present when Speltz was welding a flange onto the PA pipe. Rudoll had instructed them to inert the piping with nitrogen before welding but approved Speltz and Posusta’s request to use argon instead.

Near the end of the June 9 workday, Lewis helped Posusta remove the manway cover from the top of the PA tank. Posusta testified that Lewis removed the cover and brought it to the maintenance shop to drill a hole in it. Lewis testified that he removed the bolts from the cover but that Posusta removed the cover. In the maintenance shop, Lewis helped Posusta set up Interplastic’s drill press, so Posusta could drill the hole in the cover. Lewis also sprayed the cover with cutting oil as Posusta drilled the hole. Posusta

then put the cover back on the tank and put a piece of wood on the cover. Posusta signed off on the June 9 hot-work permits, confirming that he had performed a final fire check of the work area one hour after work was completed.

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Douglas Speltz v. Interplastic Corporation, and third party v. Egan Company, Respondent./li>, (Mich. Ct. App. 2014).

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