Fuller v. US Aircraft Ins. Group

530 So. 2d 1282, 1988 WL 85620
CourtLouisiana Court of Appeal
DecidedAugust 17, 1988
Docket19,805-CA
StatusPublished
Cited by26 cases

This text of 530 So. 2d 1282 (Fuller v. US Aircraft Ins. Group) 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
Fuller v. US Aircraft Ins. Group, 530 So. 2d 1282, 1988 WL 85620 (La. Ct. App. 1988).

Opinion

530 So.2d 1282 (1988)

Deborah Hanson FULLER, Individually and as Provisional Tutrix of the Minor, Jay Brian Fuller, Plaintiff/Appellee,
v.
UNITED STATES AIRCRAFT INSURANCE GROUP, Defendant/Appellant and
Chicago Insurance Company, Defendant/Appellee.

No. 19,805-CA.

Court of Appeal of Louisiana, Second Circuit.

August 17, 1988.
Rehearing Denied September 15, 1988.

*1283 McGlinchey, Stafford, Mintz, Cellini & Lang, New Orleans by Kenneth H. LaBorde, for U.S. Aircraft Ins. Group.

Lunn, Irion, Johnson, Salley & Carlisle, Shreveport by Frank M. Walker, Jr., for Commercial Union Ins. Co.

Nelson, Hammons & Johnson, Shreveport by Sydney B. Nelson, for Deborah Hanson Fuller.

Bodenheimer, Jones, Klotz & Simmons, Shreveport by J.W. Jones, for Chicago Ins. Co.

*1284 Before MARVIN, NORRIS and LINDSAY, JJ.

NORRIS, Judge.

This is a suit for wrongful death resulting from the crash of a private Beech Bonanza A36TC airplane. The plaintiff's decedent, Doug Fuller, was a passenger in Blanco Oil Company's plane that crashed shortly after takeoff on May 28, 1981. The litigation encompassed many parties and incidental actions, but by the time the case went to the jury after a long trial, the only remaining defendants were Blanco Oil's primary insurer, United States Aircraft Insurance Group ("USAIG"), and its umbrella insurer, Chicago Insurance Company ("Chicago"). The jury rendered verdict in favor of the plaintiff and assessed 57% of the fault to the defendants' insured, Blanco Oil, and Blanco's president, Mr. Joe Bob White. The jury set damages slightly in excess of $1,000,000, including $400,000 and $200,000 to Mrs. Fuller and her minor son respectively for loss of support. After rendition of verdict but before entry of judgment, the claims against Chicago were settled, leaving only USAIG cast for White's and Blanco's portion of the damages. USAIG has appealed, and Mrs. Fuller has answered the appeal, raising the following issues:

(1) Was the jury clearly wrong in finding that Mr. Fuller was an independent contractor for, rather than an employee of, White or Blanco?
(2) Was the trial court's jury charge as to distinguishing between an independent contractor and an employee unclear? and
(3) Was the award of $600,000 for loss of support inadequate?

Concluding that USAIG's arguments have merit, we reverse and render.

FACTS

In the late 1970s Joe Bob White, an oil man of long standing, started a number of companies in the petroleum business. His oil development company, White & Bancroft, was in the business of exploring for oil and drilling wells. Blanco Oil was established to operate and manage the completed wells. Banjo Inc. was to provide oilfield services. These entities were closely allied and were practically White's alter ego. Most of their activities were in a field near Haynesville. Although White was quite knowledgeable about the oil patch, he was not himself a petroleum engineer.

In early 1980 White announced he would be hiring his "close friend," Doug Fuller, as petroleum engineer. White had known Fuller for several years, since Fuller had been in college and engaged to White's daughter's roommate. White apparently agreed to hire Fuller after he completed his term in the air force in 1980. Several witnesses testified that Fuller, the younger man, looked to White as a "second father." Starting in February 1980, Fuller worked, without a written contract, for White's companies in Shreveport and at the Haynesville field, and for no one else. Mrs. Fuller testified that White's enterprises kept her husband very busy during this time. White paid Fuller a specified semimonthly sum (at the time of his death it was $1,500 twice a month) with no withholdings for income taxes or FICA. He also did not pay unemployment tax for Fuller. Fuller filed tax returns as a selfemployed professional person, submitting quarterly estimates for income tax and self-employment tax.

In most other respects, however, the arrangement appeared to be a typical employment relation. White provided Fuller with office space, supplies and secretarial help without requiring reimbursement. He also provided free of charge a car, auto insurance and gas company credit card. White even carried Fuller on Blanco's hospitalization plan and provided him life insurance at no charge. At the same time White was also carrying several employees of an unrelated company, Lu-Chem, on Blanco's hospitalization plan, but this was for the latter's convenience and with the clear understanding that Lu-Chem was to repay White in the future. The premiums were in fact repaid. Fuller put in regular hours and worked very closely with White. As to the nature of Fuller's work, Blanco's secretary-treasurer, Mr. Ferguson, testified that *1285 although Fuller's work was result-oriented, White retained the primary responsibility and authority as to what was done and when. R.p. 1896.

In early 1981, Fuller's actual father, an operations manager for Gulf Oil, gave Fuller a lead on some subleases in Midland, Texas, that Gulf was about to let. Fuller passed on this information to White; it represented a potentially profitable expansion that they wanted to explore. Blanco bought a used Beech A36TC to facilitate travel. White was a certified pilot but had not flown in over three years, except for a biennial recertification session with flight instructor Gene Rosa a few days before the fatal crash. Fuller was also a certified pilot, having flown a KC135 in the air force, but he never flew Blanco's Beechcraft. On May 28, 1981, White and Fuller boarded the plane to fly to Midland. Apparently White was the pilot and Fuller was in the front; Blanco's rig superintendent and his wife, Mr. and Mrs. McDonald, were passengers in the rear. They took off from Shreveport downtown airport, Runway 23, at 8:32 that morning.

Shortly after takeoff the pilot radioed the tower that his cockpit door was open and he needed to land the craft. Permission was granted to return to Runway 23 and the airplane began a turnaround maneuver that appeared somewhat irregular to the air traffic controllers, who radioed him that he could return to either Runway 23 or Runway 14. Two or three times they advised him to watch his altitude. The plane stalled at about 500 feet and crashed in a field one-half mile northwest of the airport, killing all the occupants.

Mrs. Fuller brought suit individually and on behalf of her minor son, Jay Fuller, who was only a few months old at the time of the accident. As noted, she sued USAIG and Chicago, the insurers of Blanco and Joe Bob White. She also sued Beech Aircraft Company, alleging the company had known for years that its cockpit doors did not close satisfactorily, thus creating a hazard especially at takeoff; and Gene Rosa's insurer, Employers Casualty Company, alleging that Rosa's recertification flight did not adequately address emergency procedures. There were numerous incidental demands, notably the intervention of Commercial Union, Blanco's workers comp carrier; Mrs. Fuller had brought a separate suit against Commercial Union in the event her husband was determined to have been Blanco's employee. As noted, all claims were settled except the principal demand against USAIG and Chicago, reducing the issues to Fuller's status as an employee or independent contractor; the allocation of fault, if any, to White and Fuller; and quantum.

The jury found that Fuller was an independent contractor for Blanco and therefore not confined to the exclusive remedy of workers compensation.

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Bluebook (online)
530 So. 2d 1282, 1988 WL 85620, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fuller-v-us-aircraft-ins-group-lactapp-1988.