Employers' Liability Assurance Corp. v. Excel Machine Works, Inc.

95 So. 2d 679, 1957 La. App. LEXIS 828
CourtLouisiana Court of Appeal
DecidedMay 27, 1957
DocketNo. 20822
StatusPublished
Cited by1 cases

This text of 95 So. 2d 679 (Employers' Liability Assurance Corp. v. Excel Machine Works, Inc.) 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
Employers' Liability Assurance Corp. v. Excel Machine Works, Inc., 95 So. 2d 679, 1957 La. App. LEXIS 828 (La. Ct. App. 1957).

Opinions

JANVIER, Judge.

Jessie N. White, employed by Eustis Engineering Company, hereinafter referred to as Eustis Company, as operator of a power plant on a drilling barge lying alongside other barges moored at the west bank of the Mississippi River opposite New Orleans, sustained injuries when the clevis or large hook, which was on the end of a cable used in pulling a large pipe from the bed of the river, became disengaged from the cable to which it was attached with the result that a large block or pulley fell from the top of a derrick and struck White on the head. He sustained a skull fracture which required two operations, and he was disabled for a few weeks. He then returned to work for his employer and has continued to do the same work in which he was previously engaged.

The employer, Eustis Company, had secured compensation insurance from Employers’ Liability Assurance Corporation, Ltd., and that company, hereafter referred to as Employers’ Company, paid to White compensation amounting to $100 covering the period of his disability, and it also paid various medical, hospital and other such bills made necessary by the accident.

Employers’ Company and White then brought this suit against Excel Machine Works, Inc., hereinafter referred to as Excel Company, and Michigan Mutual Liability Company, alleging that the latter was the liability insurer of the former and that the former had connected the clevis to the cable; that the connection had been defectively made and that the accident had resulted from this defective connection. Later it was conceded that the liability policy, which had been issued by Michigan Mutual Liability Company to Excel Company, did not cover the particular kind of liability which was involved here and, on joint agreement of counsel for all parties, the exception which had been filed by the “Michigan” Company was maintained and the suit as against that company was dismissed.

After filing an exception of vagueness, the Excel Company filed answer admitting that it had made the connection between the wire cable and the clevis, both of which had been furnished by the Eustis Company, that the accident had occurred, and that White had sustained injury. However, it denied that it was in any way liable for the injury to White, averring that the connection between the clevis and the cable had been made in accordance with specific instructions given to it by the Eustis Company. It also averred that the accident had resulted not from the defective connection between the clevis and the cable, but as a result of the fact that, in operating the machine by which the Eustis Company was attempting to pull the pipe from the bed of [681]*681the river, White had applied to the cable too much strain and pressure and that the connection had pulled apart as a result of this negligent operation of the machine and that, since the machinery was operated by White, no recovery could be had. Excel Company further specially pleaded that White was guilty of contributory negligence in that he failed to make use of a metal helmet provided by his employer and which, if used, would have prevented the injury to his head, which resulted when the block or pulley fell upon it.

While we do not find in the record any exception or plea which expressly raises the issue, we note in the briefs of all parties, and we were told in oral argument, that defendant contends that, as a matter of law, it cannot be held liable to White or to the Employers’ Company for the reason that there was no privity of contract between White, the injured third person, and defendant, Excel Company. In other words, it is now contended by Excel Company that, since the work which it did was done for the Eustis Company and not for White, and since the work was completed by it and then was accepted by the Eustis Company, there is no right of action in White, a third person, to hold Excel Company liable.

After a trial on the merits, there was judgment against Excel Company in favor of White for $1,500 and in favor of Employers’ Liability Assurance Corporation, Ltd., for $580.57, for amounts paid to White in compensation and to the various doctors,hospitals, etc. for services rendered to White.

Our addition of the amounts paid in compensation, $100, and for medical and related bills, $465.57, totals only $565.57 and not $580.57. However, no objection was directed at this fact and we shall accept the total as $580.57 as stipulated. De minimis non curat lex.

From that judgment Excel Company has appealed suspensively and White has answered the appeal, praying that the amount awarded to him be increased to $10,000 as originally prayed for.

Since the contention, that White has no right to proceed against Excel Company because there was no privity of contract between him and that company, raises a question of law which, if decided in favor of Excel Company, would result in the dismissal of the suit without requiring that the facts of the matter be investigated, we shall first consider that question of law.

It is conceded that Eustis Company employed Excel Company to connect the cable and the clevis, and that when the work was completed, the cable and connected clevis were received by the Eustis Company. The question of whether a manufacturer who has manufactured a defective article, or a contractor who has done defective work, which defect in either case has caused damage to some other person, may be sued by that other person is a much discussed one, and on it there have been, for a long time, two divergent views. We think it unnecessary to discuss the question at length. We did so in Marine Insurance Company v. Strecker, La.App., 89 So.2d 517, 521, and, with one Judge dissenting, held that, under the facts shown there, the third person, who had been caused loss, could not maintain an action against the contractor. We said:

“ * * * there is no liability here since there was no contractual relationship between the contractor, defendant, and the tenant [the third person.]” (Brackets ours.)

However, a writ of certiorari was applied for and was granted by the Supreme Court, and when the matter was heard in that Court our opinion and decree were reversed (April 1, 1957) and, with one Justice dissenting, the Supreme Court held that there could be liability under those facts. The Court discussed the question of possible liability, of a manufacturer of an article, which, if defective, may be [682]*682dangerous, and held that, if the manufacturer permits defects to be in the article, there may be liability to a third person injured as a result of the defects. The Court then said that there is a growing tendency to permit such third person to sue a manufacturer, or a vendor, or a contractor whether the defect be in the article or in the work performed by a contractor, and held that the contractor, under the facts shown in that case, might be held liable, saying:

“ * * * Several recent decisions have placed building contractors on the same footing as sellers of goods, and have held them to the general standard of reasonable care for the protection of anyone who may fore-seeably be endangered by the negligence, even after acceptance of the work. * * * ”

The Supreme Court has now granted a rehearing (May 6th, 1957) in that case and it may be that, on rehearing, it will adopt the views originally expressed by us.

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Bluebook (online)
95 So. 2d 679, 1957 La. App. LEXIS 828, Counsel Stack Legal Research, https://law.counselstack.com/opinion/employers-liability-assurance-corp-v-excel-machine-works-inc-lactapp-1957.