Hutchins v. Hill Petroleum Co.

609 So. 2d 312, 1992 WL 325146
CourtLouisiana Court of Appeal
DecidedNovember 9, 1992
Docket91-365
StatusPublished
Cited by11 cases

This text of 609 So. 2d 312 (Hutchins v. Hill Petroleum Co.) 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
Hutchins v. Hill Petroleum Co., 609 So. 2d 312, 1992 WL 325146 (La. Ct. App. 1992).

Opinion

609 So.2d 312 (1992)

Vernon HUTCHINS, Plaintiff-Appellee,
v.
HILL PETROLEUM COMPANY & Saloman Brothers, Inc., Defendant-Appellant.

No. 91-365.

Court of Appeal of Louisiana, Third Circuit.

November 9, 1992.

*313 Goode, Skinner & Shullaw, Wayne A. Shullaw, for defendant-appellant in No. 91-365.

LaBorde & Neuner, Robert E. Torian, James L. Pate, Lafayette, for defendant-appellant in No. 92-357.

Joseph F. Gaar, Wm. Hawkland, Lafayette, for plaintiff-appellee.

Pucheu & Pucheu, Jacque B. Pucheu, Eunice, for Artigue Const.

Juneau, Judice, Hill & Adley, Kraig T. Strenge, Lafayette, for defendant-appellee Hill Petroleum.

Before DOMENGEAUX, C.J., GUIDRY and YELVERTON, JJ., and COREIL and PATIN, JJ.,[*] Pro Tem.

JOSEPH E. COREIL, Judge, Pro Tem.

This appeal arises from the following set of facts: Vernon Hutchins (Hutchins) worked as a maintenance laborer for Artigue Construction Company (Artigue), which had a contract with Hill Petroleum Company, Inc. (Hill) to maintain Hill's refinery facility at its St. Rose location[1]. Hutchins was injured when loading and unloading oxygen cylinders onto the back of a Ranchero vehicle leased by Hill. Hutchins filed suit against Hill alleging that due to Hill's negligence, the Ranchero's tailgate gave way, causing Hutchins to suffer injuries to his back.

Hill filed a third party demand against Artigue, alleging that Hill was entitled to complete indemnification from Artigue pursuant to the terms of the contractual agreement for plant maintenance between Hill and Artigue. Specifically, Hill alleged that Artigue breached the "hold harmless" provision, which contained an indemnification clause and an "insurance coverage" clause by failing to have Hill named as an additional insured.

*314 Artigue joined its insurer, the Dupre-Carrier-Godchaux Insurance Agency, and agent, Harold Carrier, as third party defendants on the basis that the insurance agency failed to include Hill as an additional insured. In Hutchins' claim against Hill, the issue of causation, liability, and damages was severed from the contractual claims by Hill and against Artigue and was tried by a jury. The contractual claim by Hill against Artigue was tried by the court. The third party demand of Artigue against its insurer and agent was also severed and tried separately. Appeal was taken and consolidated with this appeal. A separate opinion with regard to that appeal is being rendered this date (Hutchins v. Hill, 609 So.2d 306 (La.App. 3 Cir.1992)).

A jury trial on the merits of the main action resulted in a judgment in favor of Hutchins against Hill. The jury found Hutchins was not the statutory employee of Hill and awarded Hutchins damages for Hill's negligence.

The trial of Hill's third party demand against Artigue before the trial judge resulted in a decision that Hill's claims against Artigue were barred by La.R.S. 9:2780, the Louisiana Oilfield Indemnity Act.[2] Therefore, Artigue had no duty to indemnify Hill for damages sustained by Hutchins. The order issued by the trial judge dismissed not only Hill's claim for indemnification, but all incidental claims by Hill.

Hill appeals from the trial judge's decision on the third party demand. Artigue, Harold Carrier, and Dupre-Carrier-Godchaux answered the appeal.

The substantive issues are: (1) whether the jury verdict was manifestly erroneous in its determination that Hutchins was not a statutory employee of Hill and, (2) whether the trial judge erred in applying the Louisiana Oilfield Indemnity Act to the operation of refineries.

In addressing the first issue, the jury specifically answered the following question in the negative: "Was Vernon Hutchins the `statutory employee' of Hill Petroleum Company at the time of the accident on November 4, 1987?"

Artigue, Harold Carrier, and Dupre-Carrier-Godchaux challenged that finding. Mindful of our duty as a reviewing court under Arceneaux v. Domingue, 365 So.2d 1330 (La.1978), we agree with Artigue, Harold Carrier, and Dupre-Carrier-Godchaux. After a thorough review of the factual findings of the jury, we find from the record that there is no reasonable factual basis for the finding that no statutory employer-employee relationship existed between Hutchins and Hill.

The Louisiana Worker's Compensation Act provides the exclusive remedy for employees who sustain injuries arising out of and in the course and scope of their employment. La.R.S. 23:1021, et seq. The statute further extends tort immunity beyond the employee's immediate employer to one who satisfies the statutory employment relationship. La.R.S. 23:1061. Under certain circumstances, employees of contractors are considered to be the employees of the owner or principal.

La.R.S. 23:1061 was amended in 1989.[3] Prior to that amendment, the Supreme *315 Court, in Berry v. Holston Well Service, Inc., 488 So.2d 934 (La.1986), developed a three-step test for determining whether statutory employment existed between an employee of a contractor and the principal:

"(1) Is the contract work specialized? If so then as a matter of law the contract work is not part of the principal's trade, business, or occupation and the principal is not the statutory employer of the contractor's employee.
(2) If the contract work is nonspecialized, compare the contract work to the principal's trade, business, or occupation to determine if the contract work can be considered part of the principal's trade, business, or occupation.
(3) If the contract work is part of the principal's trade, business, or occupation, was the principal engaged in the contract work at the time of the injury."

The amendment legislatively overruled Berry. It broadened the reach of the statutory employment language, creating a more liberal standard of tort immunity.

We must first determine whether the amendment is to be given retroactive effect. In Fountain v. Central Louisiana Elec. Co., 578 So.2d 236 (La.App. 3 Cir. 1991), writ denied, 581 So.2d 707 (La.1991), Chief Judge Domengeaux stated in his concurrence, at page 239:

"...
However, I think it should be mentioned that by Acts 1989, No. 454, effective January 1, 1990, the Legislature amended La.R.S. 23:1061(A), apparently overruling Berry and much of the other jurisprudence defining `trade, business, or occupation.' Considering the sweeping change this amendment makes in our *316 prior law, I think it is clearly substantive and should not be applied retroactively. I am, therefore, writing to expressly disagree with the holding of the Federal Eastern District in Brock v. Chevron Chemical Company, 750 F.Supp. 779 (E.D.La.1990)."

This reasoning was recently adopted when the issue was squarely addressed by the Fourth Circuit in Carter v. Chevron Chemical Co., 593 So.2d 942 (La.App. 4 Cir.1992). Therefore, in line with the above, the 1989 amendment is given prospective application only.

The determination of whether a statutory employer relationship exists between a contractor and employee of a subcontractor is primarily a factual issue that must be decided on a case-by-case basis. Lewis v. Exxon Corp., 441 So.2d 192 (La. 1983). The facts presented in the present case are analyzed in accordance with the intent and purpose of the statutory employer provision as it existed prior to the 1989 amendment.

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609 So. 2d 312, 1992 WL 325146, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hutchins-v-hill-petroleum-co-lactapp-1992.