Rainey v. Entergy Gulf States, Inc.

35 So. 3d 215, 2010 La. LEXIS 568, 2010 WL 1177432
CourtSupreme Court of Louisiana
DecidedMarch 16, 2010
Docket2009-C-572
StatusPublished
Cited by12 cases

This text of 35 So. 3d 215 (Rainey v. Entergy Gulf States, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rainey v. Entergy Gulf States, Inc., 35 So. 3d 215, 2010 La. LEXIS 568, 2010 WL 1177432 (La. 2010).

Opinion

KNOLL, Justice. *

| jThis writ concerns whether the affirmative defense of statutory employer tort immunity can be urged when the written contract providing for this relationship was not hand-signed by the principal, but was hand-signed only by the contractor.

Plaintiff, Vera Rainey, an employee of the contractor, ABB C-E Services, Inc. (ABB) was injured in the course of her employment at the business of the principal, Entergy Gulf States, Inc. (Entergy) at its Willow Glen power plant. She filed a tort suit against Entergy, which was eventually met with the affirmative defense of statutory employer tort immunity. After a complex and tortuous procedural history, a bench trial was held wherein the trial court denied Entergy’s affirmative defense. The Court of Appeal sitting en banc with one judge recused, reversed the trial court in a 6-5 decision. We granted plaintiffs 1 writ primarily to address the *218 contract issue. 2 The plaintiff also urges the composition of the en banc court was constitutionally flawed, which we will address preliminarily to the contract issue. For reasons set forth below, we find the en banc court majority was constitutionally composed, and finding no error in the Court of Appeal’s determination that a lawful and enforceable contract existed between Entergy and ABB, we affirm.

FACTS AND PROCEDURAL HISTORY

In January 1999, ABB began a construction project for Entergy at Entergy’s Willow Glen power plant in St. Gabriel, Louisiana. This work was performed pursuant to a General Operations Agreement for Contracted Services (Agreement) that was executed between these two entities in 1992. On February 15, 1999, Vera Rainey, a journeyman boilermaker working for ABB at Willow Glen, fell down a stairway on the jobsite and was injured. Rainey filed a tort suit for damages against Entergy, alleging Entergy was at fault for, inter alia, using a substandard staircase and failing to provide adequate lighting in the work area.

This complex and lengthy procedural battle commenced when Entergy did not assert the statutory employer defense in its answer to Rainey’s petition for damages. Approximately ten and a half months later, two days prior to the scheduled trial date of August 31, 2000, Entergy filed a motion for leave of court to file a supplemental and amending answer to allege the statutory employer defense. The basis for Entergy’s assertion of the statutory employer defense was an addendum to the Agreement, which stated, in pertinent part, “[t]he parties mutually agree that it is their intention to recognize En-tergy Corporation ... as the statutory employers [sic] of the Contractor’s [ABB] employees ... in accordance with Louisiana Revised Statute | <¡23:1061 while Contractor’s employees are providing work hereunder.” The trial court denied the motion.

Due to plaintiffs illness, the trial date was continued until December 6, 2000. After a bench-trial, the trial court awarded damages to Rainey. On appeal, finding the trial court abused its discretion by denying Entergy’s motion to amend to assert the statutory employer defense, the judgment was reversed and the case remanded to the trial court for a trial on the merits of the statutory employer issue only. Rainey v. Entergy Gulf States, Inc., 01-2414 (La. Ct.App. 1 Cir. 11/8/02), 840 So.2d 586.

The trial of the statutory employer defense was held on August 1, 2005. At issue was whether an addendum to the Agreement validly provided in writing a statutory employer relationship between Entergy and ABB. This initial Agreement was executed in 1992. In 1997, the Louisiana Legislature amended La. Rev.Stat. 23:1061 to require a written contract between the principal and the contractor recognizing the principal as a statutory employer in order for a statutory employer relationship to exist between the principal and the contractor’s employees. The statute provided, in relevant part:

Except in those instances covered by Paragraph (2) of this Subsection, a statutory employer relationship shall not ex *219 ist between the principal and the contractor’s employees, whether they are direct employees or statutory employees, unless there is a written contract between the principal and a contractor which is the employee’s immediate employer or his statutory employer, which recognizes the principal as a statutory employer....

La. Rev.Stat. 23:1061 A(3).

Entergy sent a letter to ABB dated February 27, 1998, specifically referencing the Agreement and proposing an amendment to the Agreement to comply with the then recently amended La. Rev.Stat. 23:1061 requiring a written contract to recognize the principal as the statutory employer of the contractor’s employees. This letter stated, in pertinent part:

|/The following proposed amendment to the above-referenced agreement includes our intention to continue the statutory employment relationship in accordance with the new law. We believe that the following amendment is for the mutual benefit of both Entergy and ABB [Contractor’s name], [sic] Thus, we are requesting that you execute this letter in order to amend Agreement Number FHA00166, dated 08-Dec-92 to include the following language:
The parties mutually agree that it is their intention to recognize Entergy Corporation and any of its affiliated and associated companies that are parties to the above-referenced agreement as the statutory employers of the Contractor’s employees, whether direct employees or statutory employees of the Contractor, in accordance with Louisiana Revised Statute 23:1061 while Contractor’s employees are providing Work hereunder.
The parties recognize that this amendment is not intended to change the relationship between the parties and that it has always been the intent of the parties that Entergy Corporation and any of its affiliated associated companies that are parties to the above-referenced agreement would be entitled to raise the “statutory employer” defense, where applicable, to personal injury suits by an employee of the Contractor for injuries suffered while performing work under the above-referenced Agreement.

The letter concludes by requesting a fully executed copy be returned to Entergy no later than March 20, 1998. After the complimentary close of “very truly yours” appears the typewritten name of Bobbie S. Babin. Underneath that along the left margin appears “Agreed Upon by Contractor” with the signature of R.I. Beckman whose title is V.P. [of] Construction and the date of March 10,1998.

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Cite This Page — Counsel Stack

Bluebook (online)
35 So. 3d 215, 2010 La. LEXIS 568, 2010 WL 1177432, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rainey-v-entergy-gulf-states-inc-la-2010.