Lipman Wolfe & Co. v. Teeples & Thatcher, Inc.

522 P.2d 467, 268 Or. 578, 96 A.L.R. 3d 1204, 1974 Ore. LEXIS 488
CourtOregon Supreme Court
DecidedMay 23, 1974
StatusPublished
Cited by19 cases

This text of 522 P.2d 467 (Lipman Wolfe & Co. v. Teeples & Thatcher, Inc.) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lipman Wolfe & Co. v. Teeples & Thatcher, Inc., 522 P.2d 467, 268 Or. 578, 96 A.L.R. 3d 1204, 1974 Ore. LEXIS 488 (Or. 1974).

Opinion

DENECKE, J.

This is an action for indemnity in which the jury found for plaintiff against both defendants. The trial court, notwithstanding the verdict for plaintiff, vacated the judgment against both defendants. Plaintiff appeals.

Plaintiff Lipman’s operates a large retad department store in Portland. Plaintiff contracted with Teeples & Thatcher to perform over a period of several years certain remodeling in the store. As part of the remodeling, Teeples subcontracted with Artcraft Linoleum to lay floor tile in certain areas of the store. On March 13, 1967, Artcraft was laying tile in front of .the elevators on the seventh floor. A customer fell and was injured when she stepped in a slippery substance spread on the floor by Artcraft in preparation *580 for laying tile. The jury could have found Artcraft and .Teeples had failed, to place or maintain any or adequate barriers around the area in -which Artcraft was working. There were no contractual provisions between the parties relating to protecting customers from dangers caused by the remodeling.

The customer sued Lipman’s who tendered the defense of the action to Teeples and Artcraft. The tender was refused and Lipman’s then settled with the customer and brought this action to recover the amount paid in settlement together with its attorney fees and expenses. We reverse and reinstate the judgment in favor of plaintiff.

Fulton Ins. v. White Motor Corp., 261 Or 206, 493 P2d 138 (1972), states the elements that a party must prove to obtain indemnity. They are: (1) that the plaintiff seeking indemnity has discharged a legal obligation owed to a third party; (2) that the defendants against whom indemnity is sought are also liable to such third party; and (3) that as between plaintiff and defendants, the obligation ought to be discharged by the latter.

Defendants concede the first has been proved; that is, Lipman’s liability to its customer. As to the second, — the defendants’ liability to the customer, — for the purposes of the motion for a judgment notwithstanding the verdict, Artcraft concedes its liability. Teeples contends it is not liable; however, we find there is evidence to the contrary. A foreman for Teeples testified that Teeples had assumed the responsibility for erecting barricades to protect the customers from dangers created by the remodeling. Either Teeples would put up barricades or they would have their sub *581 contractor do it. At least as to the erection of barricades, Artcraft was not. an independent contractor in its relation with Teeples, For.this.reason Macomber v. Cox, 249 Or 61, 65, 435 P2d 462 (1968), is not applicable.

• The. key .question is .whether. the - obligation to the injured customer ought to b.e discharged ultimately by the contractors or by .Lipman’s. The answer to this question.niay. depend upon the nature of the liability of Lipman’s .to. its customer. Is Lipman’s. liable to its customer because of .Lipman’s. own negligence or. is Lipman’s liable, vicariously because of the negligence of the independent contractor, Teeples, and its subcontractor? .

. Probably the case was submitted to the jury both on the basis that Lipman’s.was personally negligent for failing to protect its customer,-and on the basis that Lipman’s was liable to its customers because of the negligence of Teeples and Artcraft. Both- defendants in their cross-appeals contend that the trial Court erred in submitting the case on the'basis of Lip-man’s vicarious liability.

The parties have assumed, and we believe correctly, that Teeples was an independent contractor and Lipman’s was its employer. It is not necessary to determine-the overall relationship of Teeples to Art-craft as we have already decided that there was evidence that Teeples had a duty to erect barricades to protect customers from dangers created by the remodeling and it was liable' to the customer either for falling to personally perform that duty or for Art-craft’s failure.

We. have never decided the basis for a storekeeper’s liability or that of any other possessor of land *582 for injuries to a customer caused by a condition negligently created by an independent contractor employed by the storekeeper. In Macomber v. Cox, supra (249 Or at 69), we mentioned the problem but did not attempt to state the extent of a storekeeper’s liability.

Other courts and writers have placed a storekeeper’s liability in these circumstances upon two different bases, — personal liability for failing to supervise the work of the independent contractor and vicarious liability for the negligence of the independent contractor. Some decisions seemingly have relied upon a combination of the two without distinguishing between them.

We are surprised at the confusion existing in this small corner of the law. Harper and James write of the confusion thusly:

“As to invitees, some cases proceed on the reasoning that the land occupier’s duty is nondelegable, so that he will be held vicariously for the contractor’s negligence at least where that results in an unreasonably dangerous condition of the premises. * * *. Other cases rest liability on the occupier’s own duty to supervise, inspect, etc. work done or operations carried out by the independent contractor. * * *. Many opinions draw on both lines of reasoning without apparently realizing the distinctions between them. * * 2 Harper and James, Law of Torts, 1407, n 51, § 26.11 (1956).

Prosser’s position seems ambivalent. In § 61, entitled, INVITEES, he states:

“* * * jt is generally agreed that the obligation as to the condition of the premises is of such importance that it cannot be delegated, and that the occupier will be liable for the negligence of an independent contractor to whom he entrusts maintenance and repair.” Prosser, Law of Torts, 395 (1971).

*583 However, one of the cases he cites to support this statement expressly holds that the storekeeper is liable for its own negligence and the opinion states it does not decide whether the storekeeper should be held liable for the negligence of its independent contractor. Lineaweaver v. Wanamaker Co., 299 Pa 45, 149 A 91 (1930).

Prosser cites the same case in support of the following statement in § 71, INDEPENDENT CONTRACTORS, in a subsection captioned Negligence of the Employer:

“* * * If the work is done on the employer’s own land, he will be required to exercise reasonable care to prevent activities or conditions which are dangerous to those outside of it, or to those who enter it as invitees. In all of these cases, he is liable for his personal negligence, rather than that of the contractor.” Prosser, supra, at 470.

Immediately following the above-quoted statement Prosser writes:

“A different approach, adopted in several of the exceptions to the general rule of nonliability, has been to hold that the employer’s enterprise, and his relation to the plaintiff, are such as to impose upon him a duty which cannot be delegated to the contractor.

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

Related

Matson v. Oregon Arena Corp.
256 P.3d 161 (Court of Appeals of Oregon, 2011)
Price v. Smith's Food & Drug Centers, Inc.
2011 UT App 66 (Court of Appeals of Utah, 2011)
Otero v. Jordan Restaurant Enterprises
922 P.2d 569 (New Mexico Supreme Court, 1996)
Hall v. Dotter
879 P.2d 236 (Court of Appeals of Oregon, 1994)
Broome v. Byrd
822 P.2d 677 (New Mexico Court of Appeals, 1991)
Ft. Lowell-NSS Ltd. Partnership v. Kelly
800 P.2d 962 (Arizona Supreme Court, 1990)
Thomassen v. J & K Diner, Inc.
152 A.D.2d 421 (Appellate Division of the Supreme Court of New York, 1989)
Ft. Lowell-NSS Ltd. Partnership v. Kelly
784 P.2d 699 (Court of Appeals of Arizona, 1989)
Patton v. Spa Lady, Inc.
772 P.2d 1082 (Alaska Supreme Court, 1989)
Koepke v. Carter Hawley Hale Stores, Inc.
682 P.2d 425 (Court of Appeals of Arizona, 1984)
Peeples v. Kawasaki Heavy Industries, Ltd.
603 P.2d 765 (Oregon Supreme Court, 1979)
Kahl v. Texaco, Inc.
574 P.2d 650 (Oregon Supreme Court, 1978)
Fritts v. Safeway Stores, Inc.
408 F. Supp. 828 (D. Oregon, 1976)
Bryant v. Sherm's Thunderbird Market
522 P.2d 1383 (Oregon Supreme Court, 1974)

Cite This Page — Counsel Stack

Bluebook (online)
522 P.2d 467, 268 Or. 578, 96 A.L.R. 3d 1204, 1974 Ore. LEXIS 488, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lipman-wolfe-co-v-teeples-thatcher-inc-or-1974.