Melancon v. Tassin Amphibious Equipment Corp.

427 So. 2d 932
CourtLouisiana Court of Appeal
DecidedFebruary 3, 1983
DocketCA-0251
StatusPublished
Cited by17 cases

This text of 427 So. 2d 932 (Melancon v. Tassin Amphibious Equipment Corp.) 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
Melancon v. Tassin Amphibious Equipment Corp., 427 So. 2d 932 (La. Ct. App. 1983).

Opinion

427 So.2d 932 (1983)

O'Neil MELANCON
v.
TASSIN AMPHIBIOUS EQUIPMENT CORPORATION and Their Insurer, Argonaut Insurance Company; Pipeline, Inc. and Their Insurer, Travelers Insurance Company; and Texaco, Inc.

No. CA-0251.

Court of Appeal of Louisiana, Fourth Circuit.

February 3, 1983.
Rehearing Denied March 24, 1983.

*933 Eugene D. Brierre, Brierre & Malone, New Orleans, for plaintiff-appellant, O'Neil Melancon.

R. Henry Sarpy, Jr., Nat G. Keifer, Jr., Jones, Walker, Waechter, Poitevent, Carrere & Denegre, New Orleans, for defendants-appellees, Texaco, Inc., Pipelines, Inc., and Travelers Ins. Co.

Paul G. Preston, Christovich & Kearney, New Orleans, for defendant-appellee, James Tassin.

Before KLEES, BARRY and CIACCIO, JJ.

KLEES, Judge.

This is an appeal by plaintiff O'Neil Melancon from a judgment dismissing his personal injury suit on summary judgment and dismissing certain executive officers on exceptions of prescription.

FACTS

In 1970, Texaco Oil Company leased and operated an oil field called the "Garden Island Bay Field", located near the mouth of the Mississippi River in Plaquemines Parish. Due to insufficient pressure in the field, some of the oil reserves would not come to the surface. Therefore, Texaco had installed a secondary life system in the field, called a gas life system. Subsequent to the installation of the gas life system, Texaco decided to enlarge the system by installing larger main pipelines.

In order to update and enlarge the system, Texaco contracted with Pipelines, Inc. to install the new pipes. For Pipelines to properly complete the contract, it needed certain equipment which the company did not possess. So, it rented the needed equipment, including a dragline marshbuggy, from Tassin Amphibious Equipment Company. To operate the equipment, two of the personnel from Tassin, the operator and the oiler of the marshbuggy were also used. The plaintiff in this case, O'Neil Melancon, was the operator of the buggy.

On August 4, 1970, the plaintiff was operating the dragline marshbuggy in order to dig a trench and connect a pipeline in the Garden Island Bay Field. Texaco had one inspector at the work site, and Pipelines, Inc. had two of its employees supervising the job. At the direction of one of the employees from Pipelines, the plaintiff proceeded to move the marshbuggy to a nearby location. As the buggy proceeded, it rolled over a gas pipe at the edge of the marsh, and gas immediately started to escape from the pipe.

The oiler of the marshbuggy, Mr. Broussard, attempted to turn the ignition key to cut off the motor. However, he was unable to do so, and to protect himself, Mr. Broussard jumped off the buggy and ran into the marsh.

After his oiler failed to shut off the engine, the plaintiff attempted to pull the choke to stop the engine. But before he was able to do so, an explosion occurred which severely burned the plaintiff.

*934 A procedural history of the case is necessary in order to clarify the issues presented on appeal.

On July 28, 1971, suit was filed by the plaintiff stating a cause of action in tort against Texaco Oil Company, Pipelines, Inc., and its insurer Travelers Insurance Co., and a cause of action in workmen's compensation against Tassin Equipment Company and its insurer.

On April 15, 1980, some nine years later, a motion to set for trial on the merits was filed.

On January 8, 1982, the defendants Texaco and Pipelines filed a Motion for Summary Judgment seeking to dismiss the tort suit on the ground that the plaintiff's exclusive remedy was under Workmen's Compensation Law.

On January 21, 1982, the Motion for Summary Judgment was argued, and the Court took the matter under advisement.

On January 25, 1982, the case went to trial on the merits. The court at this time had not yet ruled on the summary judgment. The case was not completed but was held as an open case.

On February 1, 1982, the plaintiff filed an Executive Officers' suit in Jefferson Parish[1] naming as defendants the executive officers of Texaco and Pipelines, Inc.

On April 13, 1982, the Motion for Summary Judgment was granted to the defendants, dismissing the plaintiff's tort action.

On April 16, 1982, the plaintiff filed a Motion for a New Trial, regarding the dismissal of the tort action. This motion was later denied.

On April 20, 1982, the plaintiff filed a supplemental petition in Plaquemines Parish. This petition named as defendants the executive officers of Texaco and Pipelines, Inc., as well as James Tassin, as executive officer of Tassin Equipment Corp.

Texaco and Pipelines then filed an Exception of Prescription on behalf of its officers. The exception was argued and judgment rendered dismissing the suit against the executive officers of Texaco and Pipelines, Inc. on the basis of prescription.

Finally, on August 11, 1982, the plaintiff filed this appeal alleging two errors by the trial court. First, the plaintiff contends that the trial judge erred in rendering a summary judgment in favor of the defendants. Secondly, the plaintiff argues that the trial judge erred in dismissing the executive officer's suit on an exception of prescription.

SUMMARY JUDGMENT

Louisiana Workmen's Compensation Law provides that the principal for whom a contractor is performing work which is part of the principal's "trade, business or occupation", shall be liable for workmen's compensation benefits to the contractor's employees. La.R.S. 23:1061.

Coincident with this responsibility of the statutory employer, the Louisiana Workmen's Compensation Act limits the recovery of a contractor's employee to compensation benefits. La.R.S. 23:1032. The import of these two statutes is that a statutory employer cannot be sued in tort. However, the exclusive remedy defense will not bar a tort action against the principal if it is not a statutory employer, that is, if the work performed by the contractor was not part of the defendant's "trade, business or occupation".

Therefore, this court must decide whether the work done by Mr. Melancon was part of the "trade, business or occupation" of Texaco, because if Texaco is deemed to be a statutory employer pursuant to La.R.S. 23:1061, then Texaco's exclusive liability is Workmen's Compensation benefits.

The jurisprudence of Louisiana is somewhat inconsistent in articulating a test for determining who is a statutory employer. The first pronunciation of a standard in this area came in the landmark case of Thibodaux v. Sun Oil Company, 218 La. 453, 49 So.2d 852 (1950). In Thibodaux, the Court *935 articulated the so called "essential to business" test. Under this test, the statutory employer-employee relationship exists between a principal and the employee of its subcontractor whenever the work done by the employee is essential to the principal's business.

The Louisiana Supreme Court in Reeves v. Louisiana-Arkansas Railroad, 282 So.2d 503 (La.1973) expressed another test to determine whether the work performed by a contractor's employee is part of the principal's trade, business or occupation. In Reeves, the Court did not explicitly mention the "essential to business" test. Rather, the Court seemed to focus in on whether the work activity was of the type customarily done by the principal.

The Fifth Circuit United States Court of Appeal, recognized the existence of two different standards in Blanchard v. Engine and Gas Compressor Services,

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