Nevada Power Co. v. Haggerty

989 P.2d 870, 115 Nev. 353, 1999 Nev. LEXIS 67
CourtNevada Supreme Court
DecidedDecember 13, 1999
Docket31335
StatusPublished
Cited by51 cases

This text of 989 P.2d 870 (Nevada Power Co. v. Haggerty) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nevada Power Co. v. Haggerty, 989 P.2d 870, 115 Nev. 353, 1999 Nev. LEXIS 67 (Neb. 1999).

Opinions

[356]*356OPINION

By the Court,

Becker, J.:

Raymond Haggerty (Haggerty), an employee of the Horseshoe Club Operating Company (Horseshoe), suffered injuries by electrical shock when he came into contact with a power line. The Horseshoe paid full workers’ compensation coverage to Haggerty. Haggerty then filed a negligence lawsuit against Nevada Power Company (Nevada Power). Nevada Power filed a third-party complaint against the Horseshoe, seeking indemnification and contribution.1

The Horseshoe moved to dismiss the third-party complaint on the ground that, once an employer has paid workers’ compensation coverage, the exclusive remedy/immunity provisions of the workers’ compensation scheme protect an employer from further liability. Nevada Power argued that the Horseshoe owed an independent duty to Nevada Power under Nevada’s overhead power line statutes, NRS 455.200-NRS 455.250, and thus was not shielded from liability under workers’ compensation law.

The district court granted the Horseshoe’s motion to dismiss, finding that the power line statutes did not create an exception to employer immunity provided under workers’ compensation laws. The dismissal was certified pursuant to NRCP 54(b).2

Amicus Curiae Nevada Self-Insurers Association (Association) argues that the provisions of the overhead power line statutes do not apply to high voltage transformers located inside a building.

We conclude that the overhead power line statutes do create an independent duty to indemnify in favor of a utility and constitute an exception to the employer immunity provisions of the workers’ compensation laws. However, we also conclude that the electrical equipment which caused Haggerty’s , injuries does not fall within the definition of an overhead power line and affirm the district court’s dismissal of the third-party complaint.

FACTS

Haggerty was employed by respondent Horseshoe as a mainte[357]*357nance engineer. In the course of his employment, Haggerty entered a room located in the basement of the Horseshoe containing electrical equipment. Within the room was a vault,3 normally secured by a padlock, where high voltage transformer equipment owned by appellant Nevada Power was located. The transformers were set on a platform rising from the finished floor of the vault. Haggerty went into the vault, which had been left unlocked, while conducting an inspection.

Once inside the vault, Haggerty noticed a vent that needed cleaning. The vent was located next to an electrical bus bar that ran along the top of some high voltage transformers. When Haggerty climbed a ladder to reách the vent, his shoulder touched wires relating to the bus bar. Haggerty suffered electrical shock and various injuries. Prior to the accident, Nevada Power was not informed by the Horseshoe that Haggerty would be working in close proximity to the high voltage equipment. Nevada Power was aware of the fact that authorized Horseshoe personnel would have access to the electrical room where the vault was located.

Haggerty applied for and received workers’ compensation coverage under the Nevada Industrial Insurance Act (NILA). Pursuant to the NIIA, Haggerty cannot pursue litigation against the Horseshoe.

Haggerty filed suit against Nevada Power on a negligence theory. Nevada Power filed a third-party complaint against the Horseshoe seeking indemnification and/or contribution from the Horseshoe pursuant to NRS 455.200-NRS 455.250. These statutes require a person to notify a public utility company before conducting any work in the vicinity of high voltage overhead power lines. The statutes also provide remedies for the utility company, against any person responsible for complying with the statutes, for injuries to persons or property caused by a failure to abide by the statutes.

The Horseshoe filed a motion pursuant to NRCP 12(b)(5) to dismiss Nevada Power’s third-party complaint. The Horseshoe argued that it was immune from further liability since it had paid full workers’ compensation coverage to Haggerty. The district court agreed and granted the motion to dismiss.

[358]*358 DISCUSSION

I. Standard of Review

In reviewing orders granting motions to dismiss, this court considers whether the challenged pleading sets forth allegations sufficient to establish the elements of a right to relief. Pemberton v. Farmers Ins. Exchange, 109 Nev. 789, 792, 858 P.2d 380, 381 (1993). In making its determination, this court is to accept all factual allegations in the complaint as true. Id. at 792, 858 P.2d at 381 (citing Marcoz v. Summa Corporation, 106 Nev. 737, 739, 801 P.2d 1346, 1347 (1990)).

Given the complaint, the resolution of conflicts between the two statutes is an issue of law which can be resolved through the vehicle of a motion to dismiss.

This case presents two issues of first impression:

1. Do the liability provisions of NRS 455.240 impose an independent duty upon an employer who causes an employee to come into contact with a high voltage line in violation of the statute, thus negating the employer’s immunity from suit under NRS 616B.616(3)?
2. Does the definition of “overhead line” contained in NRS 455.200 encompass electrical equipment located within a building?

II. Independent Duty Doctrine

Many states have enacted high voltage safety acts designed to decrease the number of injuries suffered by people, particularly workers, as a result of accidental contact with high voltage electrical equipment. These statutes require persons to contact the local utility company before working near certain types of high voltage electrical systems. The utility company can then ensure that the work is performed in a safe manner, without damage to persons or property.

To encourage compliance with the statutes, legislatures have included penalty and liability provisions in these acts. Violators are subject to both a civil fine for non-compliance and liability to the utility for damage to the utility’s property or the person or property of third persons damaged by contact with high voltage lines. Nevada’s version of these types of statutes is set forth at NRS 455.200 through NRS 455.250.4

[359]*359Pursuant to NRS 455.220

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Bluebook (online)
989 P.2d 870, 115 Nev. 353, 1999 Nev. LEXIS 67, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nevada-power-co-v-haggerty-nev-1999.