Pan American Petroleum Corp. v. Maddux Well Service

586 P.2d 1220, 1978 Wyo. LEXIS 244
CourtWyoming Supreme Court
DecidedNovember 17, 1978
Docket4927
StatusPublished
Cited by41 cases

This text of 586 P.2d 1220 (Pan American Petroleum Corp. v. Maddux Well Service) is published on Counsel Stack Legal Research, covering Wyoming Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pan American Petroleum Corp. v. Maddux Well Service, 586 P.2d 1220, 1978 Wyo. LEXIS 244 (Wyo. 1978).

Opinions

ROSE, Justice.

An employee of Maddux Well Service, Howard Grouns, died in an oil well fire in 1968. Maddux was, at the time of the incident, conducting workover services at a well location owned by Pan American Petroleum Corporation (now AMOCO Production Company). Work was being performed pursuant to a well and lease service contract between Maddux and Pan American. The personal representative of Grouns’ estate filed a wrongful death action against Pan American, alleging negligence on the part of Pan American. Pan American, in turn, filed a third-party complaint against Maddux, alleging negligence on the part of Maddux. Alternatively, Pan American sought reimbursement on the basis of implied and express rights of indemnification and on the basis of contribution. Subsequent to the filing of the third-party complaint, and after demand that Maddux participate in a proposed settlement, Pan American settled the original action. Thereafter, Maddux moved for summary judgment in its favor on the third-party complaint. The trial court granted the motion in favor of Maddux, finding that Wyoming’s Worker’s Compensation provisions barred all third-party actions against a contributing employer. We will reverse the summary judgment in part and remand the case for a trial on the merits.

Pan American alleged in its amended third-party complaint that it had settled with the plaintiff after a determination that it would have been vicariously liable for Maddux’s negligence, but asserted that it was not guilty of negligence proximately causing Grouns’ death. Pan American then alleged that Maddux was answerable for the losses sustained by Pan American under a number of alternative theories, including:

1. Negligence on the part of Maddux, or
2. Maddux’s failure to perform the work in a good and workmanlike manner, as provided in the well service contract, or
8. Maddux’s breach of an expressed warranty to perform the work in a workmanlike manner, or
[1222]*12224. Maddux’s breach of an implied warranty to perform the work in a competent manner, or
5. Maddux’s express agreement to indemnify Pan American against any liability arising out of work performed under the well service contract, or
6. Maddux’s implied agreement to indemnify Pan American against any liability arising out of the work performed by Maddux, or
7. Maddux’s implied agreement to assume all risks of injuries to persons arising out of Maddux’s work, or
8. Maddux’s breach of an express agreement to obtain insurance coverage sufficient to protect Pan American against claims for injuries or death arising out of Maddux’s work, or
9. Maddux’s liability for contribution as a joint-tortfeasor, in the event Pan American was guilty of any negligence proximately causing Grouns’ death.

Briefs in support of Maddux’s motion for summary judgment indicate the following responses:

1. The third-party complaint was barred in all respects by the provisions of worker’s compensation, and
2. Pan American had no claim for indemnity because either Pan American was not liable to the original plaintiff due to Maddux’s independent-contractor status, or
3. Pan American was liable to the plaintiff on account of its own independent negligence.

The trial court exhaustively discussed each of the above contentions, and came to certain pertinent conclusions which can be summarized as follows:

1.Pan American was correct in asserting there was potential liability to the plaintiff such as to justify settlement and then recovery over against Maddux, if there was a right of indemnity.
2. There was no express contract by Maddux to perform the work safely, nor an express warranty against negligent performance, nor an express indemnity agreement.
3. Were it not for the Worker’s Compensation provisions, Maddux would be obligated to indemnify Pan American by virtue of an implied warranty obligation, or an implied agreement to assume all risks arising out of the work.
4. All rights of action, including those of Pan American, against an employer are barred by the Worker’s Compensation provisions.

On appeal, Pan American contends that the Worker’s Compensation provisions do not bar all third-party claims for indemnification and that the trial court erred in precluding a possible recovery on its express-indemnity theory. Maddux contends that, even if Worker’s Compensation is not a complete bar to the third-party action, Pan American failed to show that it had satisfied conditions precedent to an indemnity claim because Pan American was not actually liable to the original plaintiff. We will discuss the following issues:

1. Whether the Worker’s Compensation provisions preclude all third-party actions for indemnification from a contributing employer;
2. Whether Maddux was entitled to a summary judgment on the ground that Pan American was not liable to the original plaintiff; and
. 3. Whether Maddux was entitled to a summary judgment on Pan American’s express contractual indemnity claim.

EXCLUSIVITY OF WORKER’S COMPENSATION1

The effect of the Worker’s Compensation provisions on a third-party complaint for indemnification is a matter of first impression in this court. We have previously considered the propriety of a negligence suit on behalf of a deceased worker against a fel[1223]*1223low employee, Markle v. Williamson, Wyo., 518 P.2d 621 (1974), and we have considered the force and effect of certain indemnification agreements under statutes not here in question, Mountain Fuel Supply Company v. Emerson, Wyo., 578 P.2d 1351 (1978). The question now before us has been extensively discussed by the courts of other jurisdictions and by certain authorities in the field of worker’s compensation. In order to fully answer the contentions of the parties, we find it necessary to discuss the language of the pertinent constitutional and statutory provisions, as well as the public policies which lie at their foundations.

Maddux and the trial court emphasize the constitutional and statutory language which states that the right of an employee to compensation shall be in lieu of “all rights of action against any employer in favor of any person or persons by reason of such injuries or death.” [Emphasis supplied] Both conclude that the words are unambiguous, and by their all-inclusive nature clearly bar all third-party actions against contributing employers. We have reviewed the statutes of other jurisdictions that have been held to bar third-party claims for indemnification, but find that they generally contain broader language than that found in the Wyoming provisions.

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Cite This Page — Counsel Stack

Bluebook (online)
586 P.2d 1220, 1978 Wyo. LEXIS 244, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pan-american-petroleum-corp-v-maddux-well-service-wyo-1978.