Recatto v. Bayou Steel Corp.

508 So. 2d 877, 1987 La. App. LEXIS 9632
CourtLouisiana Court of Appeal
DecidedJune 1, 1987
DocketNo. 87-CA-82
StatusPublished
Cited by3 cases

This text of 508 So. 2d 877 (Recatto v. Bayou Steel 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
Recatto v. Bayou Steel Corp., 508 So. 2d 877, 1987 La. App. LEXIS 9632 (La. Ct. App. 1987).

Opinion

KLIEBERT, Judge.

Sam T. Recatto, an employee of Bayou Maintenance, Inc., brought this tort action against Bayou Steel Corporation and its insurer, Home Indemnity Company, for personal injuries sustained while performing electrical work at Bayou Steel Corporation’s LaPlace facility pursuant to a contract between Bayou Maintenance and Bayou Steel. Defendants pled the affirmative defenses of victim fault, contributory negligence, and “statutory employer” and thereafter filed a motion for summary judgment alleging that Bayou Steel was the statutory employer of Recatto and accordingly Recat-to’s exclusive remedy against it was for compensation benefits. The trial court entered summary judgment in favor of the defendants, whereupon plaintiff perfected this devolutive appeal.1 He asks this court to consider whether under the facts hereafter set forth summary judgment was proper. We affirm the judgment of the trial court.

FACTS

In support of their motion for summary judgment defendants referred the court to the pleadings, depositions and admissions on file, as well as affidavits attached to the motion. These exhibits reveal that Bayou Steel Corporation is engaged in the manufacture of structural steel products at its LaPlace facility. Scrap metal is melted in electric arc furnaces in the meltshop department and transported to the casting department, where it is cast in continuous strands which are cut into “billets” of varying lengths. Some of the billets are sold to other steel fabricators. Other billets are processed in the rolling mill and cut into structural shapes such as I-Beams. As with any large corporation, the organizational structure of Bayou Steel includes a Purchasing Manager, a Director of Human Resources, Sales and Finance Managers, and a General Manager of Operations. The maintenance department, which is under the supervision of the General Manager of Operations, is headed by a superintendent and includes a general foreman, line supervisors, and hourly employees. Among the hourly employees are approximately fifteen electricians, seven to nine of whom are assigned to the rolling mill. Their duties throughout the year are to maintain and repair the electrical equipment which is utilized in rolling and cutting billets. In July of each year general plant operations are suspended for approximately two weeks, during which time machinery and equipment may be inspected and necessary repairs and preventive maintenance effected. The purpose of the shutdown is to prevent downtime during the production year by insuring that the machinery is in prime operational condition. Because of the scope of the project all maintenance personnel, including electricians, participate. Nevertheless, on occasion Bayou Steel faces a manpower shortage during the shutdown and accordingly contracts with Bayou Maintenance Inc. for electricians. The manpower shortage may be due to the absence of employees, the volume of work to be done, or a combination of both. Contract electricians are infrequently utilized during normal plant operations. The contract electricians are assigned tasks by Bayou Steel supervisors and work side-by-side with Bayou Steel electricians. They are paid by Bayou Maintenance and possess no specialized trade skills beyond those possessed by Bayou Steel electricians.

During the summer of 1984 Bayou Steel contracted with Bayou Maintenance for two temporary electricians to assist during the annual shutdown. The electricians, Sam Recatto and Bob Thompson, assisted Bayou Steel electricians in repairing or replacing damaged cable trays, replacing electrical panels, and cleaning and inspecting equipment. Approximately three weeks after reporting to the Bayou Steel facility Recatto was injured while inspect[879]*879ing a resistor bank. His injuries were sustained when he tripped over a piece of angle iron and fell against air conditioning ductwork.

STATUTORY EMPLOYMENT DOCTRINE

The threshold issue on this appeal is whether Bayou Steel was the statutory employer of Recatto, as contemplated by LSA-R.S. 23:1061,2 resulting in tort immunity for Bayou Steel under LSA-R.S. 23:1032. In memorandum submitted to the trial court and in briefs filed in this court the parties agree that the controlling law is as stated in Berry v. Holston Well Service, Inc., 488 So.2d 934 (La.1986); Rowe v. Northwestern National Ins. Co., 471 So.2d 226 (La.1985); and Lewis v. Exxon Corp., 441 So.2d 192 (La.1983). Not surprisingly, the parties reach opposite conclusions in applying the facts of the present case to the law set forth in the cited cases.

In Berry, supra, the court identified a developing shift in its interpretive analysis regarding the statutory employer defense from one which favored a liberal application of the doctrine to one which is more restrictive, and acknowledged that it had failed to succinctly set forth the method of analysis presently used by the court in resolving the question of statutory employment. The court thereafter enumerated the following guidelines at 488 So.2d 937-938:

“... Basically, a determination of whether a statutory employment relationship exists involves a three level analysis. In the first level, the primary focus is on the scope of the contract work. ‘The specific task to which an individual employee is put should not be determinative of his coverage under the Act. Instead, the entire scope of the work contract must be considered.’ Lewis, supra, citing Malone, Principal’s Liability for Workmen’s Compensation to Employees of Contractors, 10 La.L.Rev. 25 (1949). The central question to be answered is whether the contract work is specialized or non-specialized. This of course is a question of fact, and courts should consider whether the contract work requires a degree of skill, training, experience, education and/or equipment not normally possessed by those outside the contract field. If it is determined that the contract work is specialized per se, as a matter of law the work is not a part of the principal’s trade, business or occupation, and the principal is not the statutory employer of the specialized contractor’s employees. In this situation, ‘the purpose behind the rule is not violated and the reason for holding the principal directly liable in compensation exclusively does not come into play’ because the contractor is an independent business enterprise, rather than a mere intermediary interposed to avoid compensation responsibility. Williams v. Shell Oil Co., 677 F.2d 506 (5th Cir.1982) (Tate, J. writing for the panel), citing 13 W. Malone & H. Johnson, La. Civil Law Treatise—Worker’s Compensation, §§ 78, 126 (1980).
If it is determined that the contract work is non-specialty then the inquiry shifts to a comparison of the principal’s trade, business or occupation and the contract work to see if the latter can be considered a part of the principal’s trade, business or occupation. The jurisprudence has forged several guidelines, in [880]*880no way exhaustive, which can aid a court in resolving this factual issue:
(1) Is the contract work routine and customary? That is, is it regular and predictable? Nonrecurring or extraordinary constructions and repairs usually are outside the scope of the statute.

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508 So. 2d 877, 1987 La. App. LEXIS 9632, Counsel Stack Legal Research, https://law.counselstack.com/opinion/recatto-v-bayou-steel-corp-lactapp-1987.