National Oats Co. v. Volkman

330 N.E.2d 514, 29 Ill. App. 3d 298, 1975 Ill. App. LEXIS 2439
CourtAppellate Court of Illinois
DecidedJune 6, 1975
Docket73-348
StatusPublished
Cited by13 cases

This text of 330 N.E.2d 514 (National Oats Co. v. Volkman) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Oats Co. v. Volkman, 330 N.E.2d 514, 29 Ill. App. 3d 298, 1975 Ill. App. LEXIS 2439 (Ill. Ct. App. 1975).

Opinions

Mr. PRESIDING JUSTICE JONES

delivered the opinion of the court:

In a prior action under the Structural Work Act (Ill. Rev. Stat, ch. 48, par. 60 et seq.), the next of kin of Carl Volkman, deceased, recovered a judgment against National Oats Company, the owner of premises on which work was being done, and Ehrsam, Inc., the prime contractor for that work. The subcontractor for the work in question was Volkman Brothers Construction Company, a partnership comprised of Carl Volkman, the deceased, and Adolph Volkman. Joining in a common complaint, National Oats Company and Ehrsam, Inc., instituted a third-party action against Adolph Volkman, the surviving partner of Carl Volkman, individually, although tire complaint made it clear that Adolph was being sued because of the activity of the Volkman Brothers partnership. In the third-party action National Oats Company recovered, but Ehrsam, Inc., was denied recovery. We have before us an appeal from Ehrsam, Inc., asking for entry of judgment here in its favor or in the alternative for a new trial, and an appeal by Adolph Volkman asking for reversal of the judgment against him or in the alternative for a new trial.

In 1964 National Oats Company contracted with Semmelmeyer Rubber & Supply Co. for the installation of a batch plant at the East St. Louis plant of National Oats Company. Ehrsam, Inc., was employed to design, manufacture, and install the equipment. The batch plant was to be ready for operation on December 1, 1964, and if it was not ready by that date Ehrsam was to be penalized $100 per working day.

Volkman Brothers provided all carpenters, millwrights, sheet metal workers and laborers, together with the tools necessary to perform the installation. The project engineer for Ehrsam, Inc., was assigned the duty of overseeing the installation. No other personnel or equipment of Ehrsam, Inc., were utilized on the job.

Adolph Volkman testified that Volkman Brothers, the partnership, subcontracted the National Oats job from Ehrsam, Inc., that they furnished all the men to do the work and all the tools and equipment used on the job. Further, that as subcontractors they hired a carpenter foreman and a millwright foreman and that he and his brother, Carl, worked as millwrights on the National Oats job as employees of their partnership and as such employees took orders from the millwright foreman.

The plant of National Oats Company consisted of nine buildings designated A through I. The new machinery was installed in building C. The accident occurred in building I, adjacent to building C but connected at the third and fourth story levels with bridges. In building I was located the manlift on which Carl Volkman was killed on January 10, 1965. Erected in 1946, it was a permanent installation of a one-man elevator used to get from floor to floor. It is started by a pull on a rope on the right side of the manlift. This activates an electric motor which puts into motion an endless belt to which steps and handles are attached. The manlift is stopped by pulling the rope. The holes in the floor through which the manlift passed were 32% inches in diameter. There was no type of protective device at the bottom of the holes in the floors through which the manlift operated. Carl Volkman was killed on a Sunday. The job had gone beyond the penalty time and work was being done on weekends. At the time Carl Volkman was killed he was working as a caipenter. He was killed under circumstances which indicated that he was using the manlift and was crushed at the underside of the fourth-story floor. He was found on the floor of the third story. A damaged step of the manlift which appeared to be a fresh break was located 4 to 6 feet or more above the level of the third floor.

Near the manlift was a printed sign which stated: “Danger; Keep off manlift; For employees only; Notice: 1. Keep both hands on handle; 2. Face belt at all times; 3. Don’t carry large tools in hands or pockets; 4. Don’t use manlift to move equipment.” Though the plant superintendent for National Oats testified that “employees only” meant National Oats employees and that he would have prohibited use of the lift by anyone else had he been asked, the record shows that the lift was used continuously by Volkman employees. The plant superintendent said that no one in his company told him that the manlift was being used by others but that later he found out that they had been using it continually. Though he testified that if he had been asked he would have prohibited use of the manlift, he had in fact not prohibited its use either by Ehrsam, Inc., or Volkman Brothers. The sole representative of Ehrsam, Inc., on the job, Mr. Hoflomon, testified that he knew of the manlift and was aware of its use by the men in the performance of the contract work. He never made any objections or suggestions to the men with regard to their use of the manlift.

We are confronted with three issues: 1. Whether or not a commpn-law idemnity action lies against Adolph Volkman; 2. Whether National Oats should have recovered in a third-party action under the “active-passive” theory; and, 3. Whether Ehrsam, Inc., should have been denied recovery under the same theory. ,

The first issue, whether or not a common-law indemnity action will lie against a subcontractor when the prime contractor and the owner have been required under the Structural Work Act to pay damages to an employee of the subcontractor is well settled in Illinois. In Rovekamp v. Central Construction Co., 45 Ill.App.2d 441; 448-49, 195 N.E.2d 756, the court, after discussing the holding in Moroni v. Intrusion-Prepakt, Inc., 24 Ill.App.2d 534, 165 N.E.2d 346, said: “We adhere to our holding that the Illinois rule forbidding contribution between tort-feasors does not apply between parties, when one is the active and primary wrongdoer and the other bears a passive or secondary relationship to the cause of the injury.” In Miller v. DeWitt, 37 Ill.2d 273, 226 N.E.2d 630, the Illinois Supreme Court followed the rule established in Moroni, Rovekamp, and earlier Illinois appellate court cases.

Against allowing such a third-party action it was argued in DeWitt that if a subcontractor had to indemnify a prime contractor or an owner, he would in effect be paying double damages, once to his employee under the Workmens Compensation Act and again to the third-party plaintiffs as common-law indemnity. But as the court in DeWitt pointed out, section 5(b) of the Workmens Compensation Act protects the subcontracting employer against this contingency. (Ill. Rev. Stat., ch. 48, par. 138.5(b).) This section provides that when an employee recovers from a third party there shall be paid to the employer from the amount recovered any amount which the employer might have paid the employee. As the court pointed out, since recovery under the Structural Work Act is likely to be greater than that recovered under the Workmen’s Compensation Act, the employer is made whole while the workman gets the larger amount. Therefore, unless a third-party action is allowed against the employing subcontractor, he could escape paying any damages at all though he may have been the real party at fault.

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National Oats Co. v. Volkman
330 N.E.2d 514 (Appellate Court of Illinois, 1975)

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Bluebook (online)
330 N.E.2d 514, 29 Ill. App. 3d 298, 1975 Ill. App. LEXIS 2439, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-oats-co-v-volkman-illappct-1975.