Flowell Electric Ass'n v. Rhodes Pump, LLC

2015 UT 87, 361 P.3d 91, 796 Utah Adv. Rep. 14, 2015 Utah LEXIS 267, 2015 WL 5666969
CourtUtah Supreme Court
DecidedSeptember 25, 2015
DocketCase No. 20130834
StatusPublished
Cited by16 cases

This text of 2015 UT 87 (Flowell Electric Ass'n v. Rhodes Pump, LLC) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Flowell Electric Ass'n v. Rhodes Pump, LLC, 2015 UT 87, 361 P.3d 91, 796 Utah Adv. Rep. 14, 2015 Utah LEXIS 267, 2015 WL 5666969 (Utah 2015).

Opinion

Justice HIMONAS,

opinion of the Court:

INTRODUCTION

1 1 This case is about a demand for indemnification under the High Voltage Overhead Lines Act (HVOLA). Uran § § 54-8e-1 to -6. HVOLA prohibits any activity within ten feet of a high voltage overhead line unless the public utility operating the line has been notified of the "intended activity" and, together with the party responsible for the triggering activity, has implemented "mutually satisfactory" safety precautions. Id. § 54-8c-2(1). If the party responsible for the activity violates HVOLA and, as a result, a person or thing comes into contact with the line, then that party "is liable to the public utility ... for all lability incurred by the public utility as a result of [the] contact." Id. § 54-8c-4(8).

12 Based on these provisions, Flowell Electric Association, Inc. (FEA), and Dixie Escalante Rural Electric Association, Inc., (collectively, Flowell) sought indemnification from Rhodes Pump II, LLC, (Rhodes) for liability to Brian Wade incurred by Flowell. Mr. Wade, in the course of servicing a well situated under one of Flowell's high voltage lines, came into contact with the line, which resulted. in a severe electric shock and, ultimately, the amputation of both of his legs. Mr. Wade sought and received workers' compensation benefits from his employer, Rhodes, on whose behalf he was acting at the time of the accident. He also filed a tort suit against Flowell, alleging negligence and breach of warranty and requesting punitive damages. 1 A jury found that Flowell had acted negligently and awarded Mr. Wade both compensatory and punitive damages. Flowell then brought this action for HVOLA indemnification against Rhodes. The district court concluded that Rhodes had failed to give Flowell adequate notice of its intended activity and therefore granted Flowell summary judgment. Rhodes timely appealed.

13 We first address the legal challenges Rhodes brings to HVOLA and conclude that HVOLA does apply to Rhodes and is not unconstitutional. But because we conclude there exist genuine issues of material fact regarding Rhodes's notice, we reverse the grant of summary judgment and remand for further proceedings.

BACKGROUND

[ 4 On May 20, 2002, Mr. Wade and Darrin Rhodes went to service the Sundown Well, which is located in Meadow, Utah. 2 In the course of performing their work, they raised the boom on their well-servicing truck to within three or four feet of Flowell's high *95 voltage lines. At that point, Mr. Rhodes contacted Flowell and informed Flowell's operations manager and lineman, Steve Iver-son, that he had raised the boom near the high voltage lines. Mr. Iverson responded that he and another lineman, Neil Stevens, would come to the Sundown Well within a couple of hours to assist.

1 5 Mr. Iverson and Mr. Stevens arrived at the site and placed three "cover-ups" on the energized line to cover fifteen feet of the line, "centering them with the raised boom." Mr. Iverson testified that he instructed Mr. Rhodes and Mr. Wade "not to move the boom from its current position" and to contact him before lowering the boom so that he could return and "assist" the men in "safely lowering" it. Mr. Rhodes and Mr. Wade denied receiving the instruction. Mr. Rhodes and Mr. Wade "completed their work of installing the pipes and putting the well back together." Without moving the boom from its initial location, they loaded their equipment back onto Mr. Rhodes's truck. Then, without notifying anyone, they "began lowering" the boom. At that point, Mr. Wade noticed that they had forgotten to load certain equipment-the "well collars. 3 Mr. Rhodes again raised the boom into the air near the overhead line. 4 They loaded the well collars and began to lower the boom a second time. As they were lowering it, the boom came in contact with the power line, resulting in Mr. Wade's injury. 5

16 Mr. Wade and his wife filed the tort suit against Flowell in April 2006. The case went to trial in 2010. The jury found in favor of Mr. Wade and awarded him $9,841,627.03 in compensatory damages and $10,000 in punitive damages.

17 The following year, Flowell filed this action against Rhodes for indemnification under HVOLA. The parties filed cross-motions for summary judgment. On July 31, 2013, the district court entered summary judgment in favor of Flowell. Rhodes timely appealed. We have jurisdiction under Utah Code seetion 78A-83-102(8)(J).

STANDARD OF REVIEW

18 We review a district court's grant of summary judgment for correctness, giving no deference to its conclusions of law. Keith v. Mountain Resorts Dev., L.L.C., 2014 UT 82, ¶ 16, 337 P.3d 213. Summary judgment is appropriate when there is "no genuine issue as to any material fact" and "the moving party is entitled to a judgment as a matter of law." R. Civ. P. 56(c). When evaluating the propriety of summary judgment on cross-motions for summary judgment, we view the facts and any reasonable inferences to be drawn therefrom in the light most favorable to the losing party. Keith, 2014 UT 32, ¶ 16 n. 10, 337 P.3d 213.

ANALYSIS

T9 Rhodes contends that the district court erred in granting summary judgment in favor of Flowell for a variety of reasons. We first address Rhodes's claim that the indemnification action was not timely filed under the statute of limitations. Second, we address Rhodes's claim that the exclusive remedy provision of the Workers' Compensation Act (WCA) precludes Flowell from bringing an HVOLA indemnification action against Rhodes. Third, we address Rhodes's argument that, as applied, HVOLA violates the principles of due process and equal protection guaranteed under the United States and *96 Utah Constitutions. Fourth and finally, we analyze Rhodes's argument that summary judgment was improperly granted. Rhodes's argument on this issue is twofold. It contends: (1) Rhodes did not violate HVOLA and therefore cannot be required to indemnify Flowell; and (2) in a separate tort case against Flowell, a jury found that Flowell had caused Mr. Wade's injuries through gross negligence and thus Rhodes should not be required to indemnify Flowell for public policy reasons. We reject Rhodes's statute of limitations, WCA exclusive remedy, and constitutional arguments. We also hold that a public utility's gross negligence does not preclude indemnification under HVOLA. ~ But because we conclude that there are unresolved genuine issues of material fact regarding whether Rhodes violated HVOLA, we reverse the grant of summary judgment and remand for further proceedings.

I. FLOWELL TIMELY FILED ITS HVOLA INDEMNIFICATION ACTION

110 HVOLA grants public utilities a right of action for indemnification when a "responsible party" fails to follow HVOLA's requirements. Urax Cope $ 54-8c-4. The parties suggest the period of limitations applicable to an HVOLA indemnification action can be found at Utah Code section T8B-2-307(1)(a), which provides that an action based on a "liability not founded upon an instrument in writing" must be brought within four years. They are mistaken.

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

Related

State of Utah v. Ralph Leroy Menzies
2025 UT 52 (Utah Supreme Court, 2025)
State v. Menzies
2025 UT 38 (Utah Supreme Court, 2025)
Williamson v. Farrell
2024 UT App 111 (Court of Appeals of Utah, 2024)
Grillone v. Peace Officer Standards
2023 UT App 35 (Court of Appeals of Utah, 2023)
Pinder v. Duchesne
2020 UT 68 (Utah Supreme Court, 2020)
Scott Anderson Trucking v. Nielson Construction
2020 UT App 43 (Court of Appeals of Utah, 2020)
Kuchcinski v. Box Elder County
2019 UT 21 (Utah Supreme Court, 2019)
Bloom Master Inc. v. Bloom Master LLC
2019 UT App 63 (Court of Appeals of Utah, 2019)
Baker v. Carlson
2018 UT 59 (Utah Supreme Court, 2018)
Nau v. Safeco Insurance Company of Illinois
2017 UT App 44 (Court of Appeals of Utah, 2017)
Marziale v. Spanish Fork City
2016 UT App 166 (Court of Appeals of Utah, 2016)
Asset Acceptance LLC v. Utah State Treasurer
2016 UT App 25 (Court of Appeals of Utah, 2016)
Flowell v. Rhodes
2015 UT 87 (Utah Supreme Court, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
2015 UT 87, 361 P.3d 91, 796 Utah Adv. Rep. 14, 2015 Utah LEXIS 267, 2015 WL 5666969, Counsel Stack Legal Research, https://law.counselstack.com/opinion/flowell-electric-assn-v-rhodes-pump-llc-utah-2015.