Ismil v. LH Sowles Company

203 N.W.2d 354, 295 Minn. 120, 1972 Minn. LEXIS 1123
CourtSupreme Court of Minnesota
DecidedDecember 22, 1972
Docket43302
StatusPublished
Cited by10 cases

This text of 203 N.W.2d 354 (Ismil v. LH Sowles Company) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ismil v. LH Sowles Company, 203 N.W.2d 354, 295 Minn. 120, 1972 Minn. LEXIS 1123 (Mich. 1972).

Opinion

MacLaughlin, Justice.

This is an action to recover damages sustained by plaintiffs 1 as a result of an industrial accident on February 25, 1970, in the construction of a Control Data Corporation building in Bloomington, Minnesota. Pursuant to the jury’s special verdict, judgment was entered for plaintiffs against defendants L. H. Sowles Company and William Grove. Defendant Sowles Company appeals from an order denying its motion for a new trial and from the judgment. We affirm.

The accident occurred while concrete was being poured for the fourth-floor walls of a concrete wind tower. Kraus-Anderson Company, the general contractor, was responsible for the erection of the towers. Plaintiff Raymond Ismil was employed by Kraus-Anderson and was foreman of the crew of concrete work *122 ers building the towers. Defendant Sowles Company was a subcontractor which, among other things, was to supply and erect the steel reinforcing rods around which the concrete was poured. In order to raise the steel into place, Sowles had a large truck crane on the premises. Although its subcontract did not pertain to the pouring of concrete for the tower, Sowles agreed orally to lease its crane, together with an operator and an oiler, to Kraus-Anderson on an hourly rental basis for the purpose of lifting buckets of concrete to the upper-floor levels of the tower. One Larry Schoening was the very experienced operator and defendant William Grove was the oiler, both when the crane was used for Sowles’ purposes and when used for Kraus-Anderson’s purposes under the oral agreement. Both men were employees of Sowles. The oiler’s job was to service and maintain the crane. He had only minimal experience lifting steel with the crane and, prior to the day of the accident, only 10 minutes’ experience lifting buckets of concrete with the crane. There is considerable evidence of his ineptitude in operating the crane. Despite this, he had been authorized to operate the crane by his employer, Sowles.

On the day of the accident, Kraus-Anderson desired to add another story to the wind tower. Sowles was informed of the need for the crane to lift buckets of concrete to the top of the tower, and the crane was positioned by the tower. Raising the bucket to an area generally above the tower was relatively simple, but positioning and lowering the bucket to the precise pouring point required a signalman to direct the operator. The operator of the crane could see the bucket while it was being raised, but when the bucket was over the tower, the tower completely obstructed his vision. He was dependent upon the signalman to indicate where the bucket should be positioned above the tower and when, and how far, the boom and bucket should be lowered down among the workmen on the top of the tower to the pouring point. Plaintiff, as foreman of the concrete crew on top of the tower, ordered defendant Kenneth Hauschild, also a Kraus-Anderson employee, *123 to act as the signalman. Operated by Schoening, the crane smoothly lifted buckets of concrete to the top of the tower, where Kraus-Anderson employees emptied the bucket into forms which defined the rising walls of the tower. Then Schoening left the crane for his coffee break and instructed the oiler, defendant Grove, to operate the crane. Grove lifted a bucket of concrete over the top of the tower. There is some dispute about the signals given to the oiler by Hauschild, but the jury found the signalman to be free of negligence. The bucket began to drop slowly and then dropped abruptly on plaintiff. Plaintiff was permanently and seriously injured.

Plaintiffs brought this action against Sowles Company, the signalman, Hauschild, and the oiler, Grove. In the special verdict, the jury found Sowles Company negligent in furnishing Grove as operator of the crane and that such negligence was a direct cause of the injuries; they found Grove and Sowles Company were negligent in the operation of the crane and that such negligence was a direct cause of the accident; and they found Hauschild was not negligent. Only defendant Sowles has appealed.

Sowles contends that Grove, the oiler, was a loaned servant of Kraus-Anderson as a matter of law under the facts of this case or, at the very least, that the question should have been submitted to the jury. The trial court ruled as a matter of law that the loaned-servant doctrine was inapplicable and instructed the jury accordingly.

Once it is determined that a workman is a servant (employee), it is well established that the master (employer) is subject to vicarious liability for the tortious conduct of the servant which is within the course and scope of his employment. However, if the employee is a loaned servant, the liability for his negligent acts shifts from the general employer to the borrowing employer.

Nepstad v. Lambert, 235 Minn. 1, 50 N. W. 2d 614 (1951), is the leading Minnesota case on the loaned-servant doctrine. In that case two standards are established in determining when a workman has become a loaned servant. The first is the “whose *124 business” test, in which it is asked: “At the time of the negligent act, which employer’s business was being done or furthered?” 235 Minn. 11, 50 N. W. 2d 620. The second is the “right of control or direction” test in which it is asked: “[W]hich employer had the right to control the particular act giving rise to the injury?” 235 Minn. 14, 50 N. W. 2d 621. The question is not whether the worker remains the employee of the general employer as to general matters, but whether, as to the act in question, he is acting in the business of and under the direction of the borrowing employer. Nepstad also held that the directions of the borrowing employer must be commands and not requests if the employee is to be converted into a loaned servant, and that the borrowing employer must have authority to exercise detailed authoritative control over the manner in which the employee is performing the work.

The trial court, in rejecting the loaned-servant doctrine, placed considerable reliance on the fact that Grove, in operating the crane, was under the absolute direction of Kraus-Anderson’s signalman only during the final stages of the movement of the crane. The trial court understood Nepstad to require that every movement of the crane from the time it left the ground must be directed by the borrowing employer (Kraus-Anderson). We do not interpret Nepstad so narrowly. The tests of the Nepstad case were sufficiently satisfied by the evidence to compel a jury determination of whether Grove was a loaned servant. The accident occurred in the course of pouring concrete, and that function was clearly the responsibility of Kraus-Anderson. The jury could reasonably have found that the business of Kraus-Anderson and not Sowles was being furthered at the time of the negligent crane operation. Similarly, the jury could find that the acts which led to the injuries were directed and controlled by the signalman, an employee of the borrowing employer. We hold that the trial court erred in determining, as a matter of law, that the loaned-servant doctrine was inapplicable.

However, the error of the trial court became unprejudicial and *125 harmless when the jury found “defendant L. H.

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Bluebook (online)
203 N.W.2d 354, 295 Minn. 120, 1972 Minn. LEXIS 1123, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ismil-v-lh-sowles-company-minn-1972.