Hird v. Resource Drilling, Inc.

514 F. Supp. 114, 1981 U.S. Dist. LEXIS 9578
CourtDistrict Court, E.D. Louisiana
DecidedApril 16, 1981
DocketCiv. A. No. 80-1972
StatusPublished

This text of 514 F. Supp. 114 (Hird v. Resource Drilling, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hird v. Resource Drilling, Inc., 514 F. Supp. 114, 1981 U.S. Dist. LEXIS 9578 (E.D. La. 1981).

Opinion

CASSIBRY, District Judge:

MOTION FOR SUMMARY JUDGMENT

Plaintiff’s deceased husband, Timothy Hird, was employed by Air Engineering Systems and Services, Inc. On January 22, 1980, Hird was fatally injured while working on a compressor owned by the defendant, Resource Drilling Company (Resource), and located on a Resource oil rig near Frost, Louisiana. Hird’s widow and children brought this action in tort against Resource Drilling.

Resource has filed a motion for summary judgment, claiming that the plaintiff has no right of action in tort against it because it is the “statutory employer” of the decedent and the employer’s compensation remedy is the exclusive action against his employer or any principal.

Section 1061 of the Louisiana Workmen’s Compensation Act provides that a principal who hires a contractor to perform work which is part of the principal’s “trade, business, or occupation” shall be liable for workmen’s compensation benefits as if he was the plaintiff’s employer.1 The statute was [116]*116originally designed to insure that injured employees of minor contractors could recover against the principal employer even if their immediate employer was financially irresponsible, and to prevent principals from escaping workmen’s compensation liability by “farming” out their work to independent contractors.

Subsequent events, however, have now made § 1061 a classic example of a double-edged sword. The development of tort immunity for the principal, even if it has not paid out compensation benefits, makes the position of statutory employer particularly attractive. Professor Wex Malone has described the curious result of this turn of events:

It then developed that almost all the cases brought by the injured worker against the principal were cases sounding in tort, and in most instances the worker had already received compensation from his immediate employer. Section 1061 then was being interpreted in a context for which it was never intended: how should the question of a principal’s tort liability to the employee of a contractor be resolved? The section makes no indication that this subject was intended to be resolved by its provisions, and until the jurisprudence established the principal’s tort immunity, no one would have concluded that it should be so used. The difficulty posed for the student of the Act is, of course, that one wonders about the strength of interpretations of a section which were compelled by legal demands which the section was never intended to resolve.
W. Malone & H. Johnson, Workers’ Compensation Law & Practice, § 126 at 251 (1980).

Perhaps with a view of the anomaly caused by the expansive interpretations of § 1061, the Fifth Circuit recently developed a statutory employer test somewhat narrower than the traditional test. In Blanchard v. Engine & Gas Compressor Services, Inc., 613 F.2d 65 (5th Cir. 1980), Blanchard, an employee of Engine & Gas Compression Services, was injured while working on a compressor at a pumping station owned by Gulf Oil. The court initially certified the issue of the scope of the statutory employer doctrine to the Louisiana Supreme Court in the hope of getting a definitive ruling on the proper test to use in interpreting § 1061.2 But the Louisiana Supreme Court invoked its discretion not to answer the question. In lieu of a definitive state court ruling, the court set out to find its own test.

The court noted that one traditional test employed by Louisiana. courts is whether the activity performed by the contractor is “essential to the business” of the principal. However, after analyzing the decisions cited by the Louisiana Supreme Court in its remand to the Fifth Circuit — Reeves v. Louisiana & Arkansas Railway, 282 So.2d 503 (La.1973), and Lushute v. Diesi, 354 So.2d 179 (La.1978) — the court concluded that more recently Louisiana courts have focused on whether the work is customarily done by the employer or whether it is specialized work usually given to outsiders. Accordingly, it redefined the test as “whether the activity done by the injured employee or his actual immediate employer is part of the usual and customary practice of the principal or others in the same operational business.” Blanchard, supra, at 71. The court went on to indicate the particulars of any inquiry as to a principal’s “customary practice”:

More specifically, we should first consider whether the particular principal involved in the case customarily does the type of work performed by the contractor and whether the contractor’s work is an integral part of the work customarily performed by the principal. If either of these situations exist, then there is a stat[117]*117utory employment relationship, and the inquiry ends there. If, however, the principal does not normally engage in this type of activity, or if it is not normally a part of his practices, then it is necessary 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. If either of these inquiries yields an affirmative answer, then the general custom of the trade will control to make the relationship between the principal in question and his contractors’ employees that of statutory employer and employee. Id.

It therefore appears that this formulation of the statutory employer test sets forth two disjunctive criteria: (1) whether the work is customarily done by the principal’s employees; or (2) whether that activity is an integral part of the employer’s business.3

The first criterion appears to be the most useful test since it can be proved by objective evidence of the principal’s or industry practice.4 However, the second criterion may be necessary to handle those situations where the principal or perhaps the industry may attempt to contract out a task which is clearly part of the principal’s business to escape liability under the Workmen’s Compensation Act. This principle is illustrated in Barnes v. Sun Oil Company, 362 So.2d 761 (La.1978). In Barnes the plaintiff was injured while repairing the defendant’s pipeline. The court held that even though the defendant contracted out all its repair work, the repair work “was an integral and essential part of Sun’s business” and therefore the defendant was the statutory employer of the defendant.

Applying the two criteria set out in Blanchard to the facts in the instant case as revealed so far does not provide any clear answer to the question whether Resource Drilling was a statutory employer of the decedent. In his deposition, Lewellyn Fickes, maintenance superintendent for Resource, indicates that outside service companies almost always did the type of work— balancing and setting cut-in and cut-out switches — that Hird was doing when he was killed. Thus it appears that this was work not customarily done by Resource employees. The question whether the type of work Hird was doing was a part of or integral to Resource’s business is more difficult. While I might be inclined to find that maintenance of compressors is an integral part of the oil drilling business,5 in the Blanchard

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

Related

Reeves v. Louisiana and Arkansas Railway Company
282 So. 2d 503 (Supreme Court of Louisiana, 1973)
Lushute v. Diesi
354 So. 2d 179 (Supreme Court of Louisiana, 1978)
Barnes v. Sun Oil Co.
362 So. 2d 761 (Supreme Court of Louisiana, 1978)
Perry v. Texaco Company
320 So. 2d 310 (Louisiana Court of Appeal, 1975)
Broussard v. Heebe's Bakery, Inc.
268 So. 2d 656 (Supreme Court of Louisiana, 1972)
Calcote v. Century Indemnity Company
93 So. 2d 271 (Louisiana Court of Appeal, 1957)
Hart v. Richardson
272 So. 2d 316 (Supreme Court of Louisiana, 1973)
Allen v. United States Fire Insurance Company
222 So. 2d 887 (Louisiana Court of Appeal, 1969)

Cite This Page — Counsel Stack

Bluebook (online)
514 F. Supp. 114, 1981 U.S. Dist. LEXIS 9578, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hird-v-resource-drilling-inc-laed-1981.