Holt v. Walsh Grp.

316 F. Supp. 3d 274
CourtCourt of Appeals for the D.C. Circuit
DecidedJuly 11, 2018
DocketCase No. 17–cv–1173 (GMH)
StatusPublished
Cited by5 cases

This text of 316 F. Supp. 3d 274 (Holt v. Walsh Grp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holt v. Walsh Grp., 316 F. Supp. 3d 274 (D.C. Cir. 2018).

Opinion

G. Michael Harvey, United States Magistrate Judge

Before the Court is Third-Party Defendants' motion to dismiss Third-Party Plaintiff's claims for contractual and equitable indemnification and contribution on the grounds that they are barred by the District of Columbia's Workers' Compensation Act ("WCA"), D.C. Code § 32-1504. Upon consideration of the entire record,1 and for the reasons set forth below, Third-Party Defendants' motion to dismiss will be GRANTED IN PART and DENIED IN PART .

I. BACKGROUND

On April 21, 2014, Plaintiff Cecil Holt ("Holt") was injured while working on a construction site at 402 Tingey Street SE, Washington, D.C. when he fell through a hole in the roof he alleges was improperly covered. Holt is an employee of Tradesmen International, LLC ("Tradesmen"), a corporation that provides temporary, unskilled labor to its clients. In April 2014, Tradesmen entered into a Client Services Agreement with Third-Party Defendant AES Clean Technology, Inc. ("AES"), in which Tradesmen agreed to assign Holt to AES on a permanent basis. AES, in turn, assigned Holt to work for Third-Party Defendant Unified Building Systems, Inc. ("UBS"), a division of AES. UBS, through AES, was a subcontractor of Third-Party Plaintiff Walsh Construction Company II, LLC ("Walsh"), the general contractor of the construction project at 402 Tingey Street SE. UBS and Walsh have a signed Subcontract Agreement ("Subcontract") dated August 15, 2012, that governed the nearly $3,000,000 of work UBS completed for Walsh on the project, namely, installing metal wall panels and louvers.

Holt originally filed his action in the D.C. Superior Court, naming Walsh *277(among others) as a Defendant, alleging that Walsh's negligent control of the construction premises and project contributed to his injury. The action was subsequently removed to this Court on diversity jurisdiction. Holt had also named AES as a Defendant in the original action, but that claim was dismissed with Plaintiff's consent. Minute Order on July 27, 2017 granting Dkt. 19. On January 31, 2018, Walsh filed a Third-Party Complaint against AES and UBS (among others), seeking, in the event Walsh is found liable to Holt, (1) contractual indemnification (Counts VII and X), (2) equitable indemnification (Counts VIII and XI), and (3) contribution (Counts IX and XII2 ) pursuant to the Subcontract, in which Walsh contends that UBS agreed to defend, indemnify, and hold harmless Walsh in and against all claims or actions arising out of work performed under the Subcontract. [Dkt. 37 at 13-17].

In the pending motion to dismiss, Third-Party Defendants AES and UBS ("AES/UBS") argue that Walsh's claims for indemnification and contribution are barred by the WCA, D.C. Code §§ 32-1501 et seq. , specifically, section 32-1504, which provides that an employee's exclusive remedy against an employer for accidental injuries on the job is through the WCA.3 [Dkt. 52-1 at 9]. Walsh counters that its contractual indemnification claim falls within an exception to section 32-1504, which allows for express indemnification provisions. [Dkt. 55 at 7]. Walsh also contends that the Subcontract contains an express waiver of section 32-1504, which should operate to allow its indemnification and contribution claims to proceed. Id.

II. LEGAL STANDARD

A motion to dismiss under Rule 12(b)(6) challenges the sufficiency of a complaint on the basis that it fails to state a claim upon which relief can be granted. Fed. R. Civ. P. 12(b)(6). A court reviewing a 12(b)(6) motion must accept as true the well-pleaded factual allegations contained in the complaint. Atherton v. D.C. Office of Mayor , 567 F.3d 672, 681 (D.C. Cir. 2009). While the plaintiff need not make "detailed factual allegations" to avoid dismissal, he must provide "more than labels and conclusions" or "a formulaic recitation of the elements of a cause of action." Bell Atl. Corp. v. Twombly , 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). Rather, the complaint "must contain sufficient factual matter, accepted as true, to 'state a claim to relief that is plausible on its face.' " Ashcroft v. Iqbal , 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (quoting Twombly , 550 U.S. at 570, 127 S.Ct. 1955 ). To meet this standard, the plaintiff must "plead[ ] factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged." Id.

III. DISCUSSION

The purpose of the WCA is to establish a quick and efficient system by which an employee may recover damages *278from his employer for accidental injuries "arising out of and in the course of employment." D.C. Code § 32-1501(12) ; see also Ferreira v. D.C. Dep't of Emp't Servs. (Workers' Comp.) ,

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316 F. Supp. 3d 274, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holt-v-walsh-grp-cadc-2018.