Reid v. United States

421 F. Supp. 1244, 41 Cal. Comp. Cases 1065, 1976 U.S. Dist. LEXIS 12861
CourtDistrict Court, E.D. California
DecidedOctober 6, 1976
DocketCiv. S-2412
StatusPublished
Cited by5 cases

This text of 421 F. Supp. 1244 (Reid v. United States) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reid v. United States, 421 F. Supp. 1244, 41 Cal. Comp. Cases 1065, 1976 U.S. Dist. LEXIS 12861 (E.D. Cal. 1976).

Opinion

MEMORANDUM

WILKINS, District Judge.

The United States Forest Service awarded a contract to clear certain lands under its jurisdiction to Troy Luther and Bill Billing-ton. Luther and Billington hired plaintiff’s decedent to do some of the work; while working alone one day at the site, he died in an accident. A worker’s compensation remedy proved futile because Luther and Billington had not obtained insurance to cover the decedent in spite of a contract clause requiring them to do so. Plaintiff then filed an action against Luther and Billing-ton in state court alleging wrongful death. The jury returned a defense verdict which was affirmed on appeal by the Third District Court of Appeal. The Supreme Court denied a hearing. Understandably, plaintiff continued her quest for a solvent (and liable) defendant by instituting this action against the United States under the Tort Claims Act. 28 U.S.C. § 1346(b). The United States filed a third party complaint against Luther and Billington alleging that if it were to be found liable, the third party defendants were liable to it.

*1246 Both the United States and Luther and Billington have filed motions for summary judgment; each asserts a different theory in support of the motion. Before reaching these motions, however, it is necessary to highlight the allegations in plaintiff’s complaint.

Although the complaint is pleaded in one cause of action, plaintiff attempts to assert four theories upon which relief may be granted. Plaintiff first alleges (Complaint, ¶ IX) that her decedent was a third party beneficiary to the insurance clause and that the United States breached an implied obligation in the contract to make sure that the clause requiring insurance was in fact complied with. Thus, plaintiff alleges, “As a result of the United States’ breach of contract, the plaintiffs herein have been damaged to the extent of the [uncollectible worker’s compensation award — $25,000].” Plaintiff’s next allegation seeks to state a theory of recovery for wrongful death (as opposed to worker’s compensation) by alleging that the United States had a duty arising out of the contract to insure that the required insurance was obtained. Plaintiff alleges that the death was the proximate cause of this breach of duty because had the forest service “made plaintiffs’ decedent aware of the fact that there was no compensation coverage, plaintiffs’ decedent would not have worked on the job and would not have met his untimely death.” (Complaint, ¶ 10) In paragraphs XI and XII of the complaint, plaintiff alleges that the United States was negligent in selecting Luther and Billington as contractors for this job because they “were not capable of performing as ordinary and reasonable contractors . . . .” In paragraph XIII of the complaint, plaintiff alleges that the United States had a nondelegable duty to provide plaintiff’s decedent with a safe place to work and failed to properly discharge this duty because (1) neither the United States or Luther and Billington established special precautions notwithstanding the fact that unreasonably dangerous conditions existed on the job site and (2) the United States failed to enforce a contractual provision requiring a supervisor or foreman on the job at all times.

The United States’ Motion for Summary Judgment

As stated earlier, plaintiff’s complaint is only pled in one cause of action even though several theories for relief are alleged. The United States’ motion for summary judgment attacks only one theory upon which plaintiff seeks relief, paragraph IX of the complaint. That paragraph alleges that plaintiff’s decedent was a third party beneficiary to the contract between the United States and Luther and Billington, and that as a result of the United States’ breach, plaintiff has been damaged in the amount of the lost worker’s compensation— $25,000.

The United States is correct in its assertion that we do not have jurisdiction over this cause of action. 28 U.S.C. § 1346(a)(2) provides in part:

(a) The district courts shall have original jurisdiction, concurrent with the Court of Claims, of:
(2) Any other civil action or claim against the United States, not exceeding $10,000 in amount, founded . . . upon any express or implied contract with the United States .

For cases involving contracts in excess of $10,000, plaintiff’s correct forum is the Court of Claims, 28 U.S.C. § 1491. Since plaintiff’s claim is for $25,000, therefore, this theory founded upon contract is not properly before this Court.

Luther and Billington’s Motion for Summary Judgment

In this motion, Luther and Billington seek summary judgment for themselves, but they also act as a stalking horse for the United States. That is, the theories upon which Luther and Billington seek summary judgment would not only exonerate themselves, but would also exonerate the United States. (As mentioned above, the United States’ motion for summary judgment does not attack all of plaintiff’s theories.)

*1247 A. Negligent Hiring of a Contractor by United States

In counts XI and XII of the complaint plaintiff alleges that the United States did not exercise due care when it hired Luther and Billington to perform the services for it. This cause of action is based upon the Restatement of Torts 2d § 411 which provides:

An employer is subject to liability for physical harm to third persons caused by his failure to exercise reasonable care to employ a competent and careful contractor
(a) to do work which will involve a risk of physical harm unless it is skillfully and carefully done, or
(b) to perform any duty which the employer owes to third persons.

In Comment b. to this section it is stated that “In order that the employer may be subject to liability it is, therefore, necessary that harm shall result from some quality in the contractor which made it negligent for the employer to entrust the work to him.” Thus, as a matter of logic, and the consequences of this comment, it would appear that an employer of an independent contractor could not be subject to liability unless the contractor were in some way negligent himself. In the state court action brought by the plaintiff against the contractor, however, there was a defense verdict. In addition, the court submitted a special interrogatory to the jury asking, “Were the defendants negligent?” The jury answered this question in the negative.

The basis of Luther and Billington’s motion relating to this count is collateral estoppel; they argue that plaintiff is precluded by this doctrine from relitigating this issue. In order for the doctrine to apply, three questions must be answered affirmatively:

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Bluebook (online)
421 F. Supp. 1244, 41 Cal. Comp. Cases 1065, 1976 U.S. Dist. LEXIS 12861, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reid-v-united-states-caed-1976.