McCall v. Bowater, Inc.

717 F. Supp. 1153, 1989 U.S. Dist. LEXIS 10114, 1989 WL 98660
CourtDistrict Court, W.D. Virginia
DecidedAugust 1, 1989
DocketCiv. A. No. 86-0188-A
StatusPublished
Cited by3 cases

This text of 717 F. Supp. 1153 (McCall v. Bowater, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCall v. Bowater, Inc., 717 F. Supp. 1153, 1989 U.S. Dist. LEXIS 10114, 1989 WL 98660 (W.D. Va. 1989).

Opinion

MEMORANDUM OPINION

GLEN M. WILLIAMS, Senior District Judge.

The plaintiff is the administrator of the estate of Mickey Dale Woods, a truck driver who was killed in a motor accident on August 6, 1984. The sole issue in this wrongful death action is whether Bowater was a statutory employer of Woods, and thus immune from suit under the Virginia Workers’ Compensation Act, Va.Code 65.-1-1 et seq. (1987), or whether Bowater is an “other party” under § 65.1-41 (1987), and therefore subject to suit. The Workers’ Compensation Act “denies an injured employee the right to recover damages ‘against any other party’ unless the latter is one not ‘employed in the work’ in which the employer of the injured employer is engaged.” Bristow v. Safway Steel Products, 327 F.2d 608, 609 (4th Cir.1964), quoted in Lane v. Kingsport Armature & Electric Co., 676 F.Supp. 108, 109 (W.D.Va.1988). Bowater asserts it was Woods’ statutory employer and has moved for summary judgment.

I.

The material facts are not in dispute. Woods, the plaintiff’s decedent, was a resident of West Virginia, and was employed by a North Carolina trucking company known as Distribution Systems Services (or Distribution Service Systems — the parties disagree). DSS was under contract to defendant Bowater, Inc., a large paper producer, to haul paper to Bowater customers. At the time of his death, Woods was en route from a Bowater mill in Catawba, South Carolina, to Richlands, Virginia, with [1154]*1154a cargo of newsprint. The fatal accident occurred about six miles north of Abing-don, Virginia on U.S. Highway 19. The plaintiff alleges that Bowater had improperly loaded the newsprint, causing the load to shift as Woods rounded a sharp curve, resulting in the wreck. Woods’ parents and minor daughter were awarded $56,075 in worker’s compensation benefits by the North Carolina Industrial Commission. This action followed.

II.

The parties agree that, in determining plaintiff’s right to bring this suit, the law of Virginia applies. See McMillan v. McMillan, 219 Va. 1127, 253 S.E.2d 662 (1979).

In general, Va.Code Ann. § 65.1-40 provides that when an employee and his employer accept the provisions of the Workers’ Compensation Act “to pay and accept compensation on account of personal injury or death by accident” the employee and his personal representative, next of kin, et cet-era, give up all other rights and remedies “at common law or otherwise” on account of the injury or death. However, § 65.1-41, providing for subrogation of the employer to the employee’s rights against third parties (“any other party”) has long been interpreted to mean that the employee still possesses a right of action against third parties who are “stranger[s] to the business.” Rea v. Ford, 198 Va. 712, 96 S.E.2d 92, 95 (1957). The question presented in this case, then, is whether DSS was engaging in the “trade, business, or occupation” of Bowater by shipping the newsprint. See Buffalo Shook Co. v. Barksdale, 206 Va. 45, 141 S.E.2d 738 (1965). The Virginia Supreme Court, despairing of ever reaching a totally objective standard for determining the answer to this question, has said that it can only be resolved by examining the facts and circumstances of each individual case. Bassett Furniture Industries v. McReynolds, 216 Va. 897, 224 S.E.2d 323, 326 (1976).

Bowater’s position is that it is engaged not only in the manufacture but the delivery of paper and paper products to its customers throughout North America. It is undisputed that it is industry practice for paper manufacturers to be responsible for the delivery of their products to their customers. Although Bowater actually subcontracts all of its deliveries to outside companies, with their own equipment and employees, Bowater includes the price of delivery in its list prices, and evidently charges a flat rate regardless of the distance from mill to customer. Delivery, Bo-water maintains, is an integral part of its business, and therefore DSS cannot be a “stranger” to Bowater’s “trade, business, or occupation.”

For support, Bowater cites Floyd v. Mitchell, 203 Va. 269, 123 S.E.2d 369 (1962), and Conlin v. Turner’s Express, 229 Va. 557, 331 S.E.2d 453 (1985). In Floyd, the defendant, Mitchell, was an employee of a trucking company under contract to the decedent Floyd’s employer, Gla-morgan Pipe and Foundry Co. Mitchell, who had accidentally run over the decedent, operated a tractor belonging to the trucking company. His tractor would be attached to trailers belonging to Glamor-gan, and the trailers would then be loaded by Glamorgan employees, using Glamor-gan equipment, with cast iron pipe. Mitchell gave directions to insure that the load was properly distributed. He would then drive the trailer over to a parking place, still on Glamorgan property, where it would be picked up by other truckers working for Mitchell’s employer for delivery. Mitchell never left Glamorgan’s premises. He testified that “It was just a situation where I worked with the foundry.... I was loading [trailers] and dispatching them. That was my job.” 123 S.E.2d at 370.

Based on these facts, the court held that the work being done by Mitchell was a part of Glamorgan’s trade, business, or occupation. 123 S.E.2d at 372. The court found that Glamorgan was in the business of manufacturing pipe “and selling and shipping it to its customers. Transporting the pipe ... was a necessary element of this business. The loading of the pipe ... was an essential element [of transporting [1155]*1155it].... Glamorgan contracted with [the trucking company] to transport the pipe to Glamorgan’s customers, a part of Glamor-gan’s business which Glamorgan could have done with its own employees and its own equipment had it determined that to be a better way.” Id. Therefore, the wrongful death action against Mitchell and his employer was dismissed.

In Conlin v. Turner’s Express, the plaintiff, an employee of Ford Motor Company, was injured when she drove a forklift into a trailer owned by Turner’s. Turner’s was under contract to Ford to deliver machinery and parts between various Ford plants. 331 S.E.2d at 454-5. The Virginia Supreme Court, citing Floyd v. Mitchell, held that the transfer of these items was an essential element of Ford’s business, and Turner’s was therefore not an “other party” liable in a tort action. Id. 331 S.E.2d at 455.

The plaintiff, in contrast, relies upon a line of cases beginning with Shell Oil Co. v. Leftwich, 212 Va. 715, 187 S.E.2d 162 (1972). Here, Leftwich was employed by the lessee of a Shell service station. While making a service call in the lessee’s wrecker, he was struck and seriously injured by a C & 0 freight train. In concluding that the accident “did not arise out of and in the course of ... performing Shell’s work,” 187 S.E.2d at 168, the court relied, inter alia,

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717 F. Supp. 1153, 1989 U.S. Dist. LEXIS 10114, 1989 WL 98660, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccall-v-bowater-inc-vawd-1989.