Sanders v. Vigor Fab, LLC

480 P.3d 999, 308 Or. App. 282
CourtCourt of Appeals of Oregon
DecidedDecember 30, 2020
DocketA168740
StatusPublished
Cited by2 cases

This text of 480 P.3d 999 (Sanders v. Vigor Fab, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sanders v. Vigor Fab, LLC, 480 P.3d 999, 308 Or. App. 282 (Or. Ct. App. 2020).

Opinion

Argued and submitted August 7, affirmed December 30, 2020

Ronald A. SANDERS, Plaintiff-Appellant, v. VIGOR FAB, LLC, an Oregon limited liability company, Defendant-Respondent. Multnomah County Circuit Court 17CV37480; A168740 480 P3d 999

After a workplace injury, plaintiff brought a negligence claim against Vigor Fab, LLC, under the Oregon Employer Liability Act (ELA), ORS 654.305 to 654.336. At the time of his injury, he was formally employed by a different com- pany, Vigor Marine, LLC. Both Vigor Fab and Vigor Marine are wholly owned subsidiaries of Vigor Industrial, LLC. Before bringing his ELA claim, plain- tiff received workers’ compensation for his injury from Vigor Marine under the federal Longshore and Harbor Workers’ Compensation Act (LHWCA), 33 USC §§ 901 to 950. The trial court granted Vigor Fab’s motion for summary judg- ment on his ELA claim, concluding that, under federal labor law, Vigor Fab and Vigor Marine operated as a “single entity,” and that their status as a single entity barred plaintiff’s state law claim under the LHWCA’s exclusive remedy provision. Plaintiff appeals, assigning error to that ruling, and arguing that Vigor Fab and Vigor Marine do not meet the criteria of a “single entity” for LHWCA purposes. Held: The trial court did not err. Based on the factors articulated in Claudio v. United States, 907 F Supp 581 (EDNY 1995), Vigor Fab and Vigor Marine are a single entity for LHWCA purposes. The LHWCA therefore bars plaintiff’s ELA claim. Affirmed.

Karin Johana Immergut, Judge. Charles Robinowitz argued the cause and filed the briefs for appellant. Alice Newlin argued the cause for respondent. Also on the brief were James P. McCurdy and Lindsay Hart, LLP. Before DeVore, Presiding Judge, and DeHoog, Judge, and Mooney, Judge. MOONEY, J. Affirmed. Cite as 308 Or App 282 (2020) 283

MOONEY, J. Plaintiff brought this negligence action against Vigor Fab, LLC (Vigor Fab) under Oregon’s Employer Liability Act (ELA), ORS 654.305 to 654.336, seeking to recover damages for injuries he sustained while trimming a steel deckplate for a barge being built by Vigor Fab. He had already filed a workers’ compensation claim against his employer, Vigor Marine, LLC (Vigor Marine), under the Longshore and Harbor Workers’ Compensation Act (LHWCA), 33 USC §§ 901 - 950. The trial court ruled on summary judgment that Vigor Fab and plaintiff’s employer, Vigor Marine, were functionally integrated and, therefore, a “single entity” for purposes of the LHWCA. Consequently, Vigor Fab was, like Vigor Marine, immune from tort liabil- ity and plaintiff’s case was dismissed as barred by section 905 of the LHWCA. Plaintiff assigns error to the court’s granting of Vigor Fab’s summary judgment motion, arguing that he was employed by Vigor Marine, not by Vigor Fab. He argues further that there remains a genuine issue of mate- rial fact concerning whether Vigor Fab and Vigor Marine are separate entities or a single entity for purposes of the LHWCA. We conclude that the trial court did not err in granting Vigor Fab’s motion for summary judgment and we, therefore, affirm. The question is whether, on the record presented, there exists a genuine issue as to whether Vigor Fab and Vigor Marine are a single entity entitling Vigor Fab to invoke the exclusive remedy provision of the LHWCA as a bar to plaintiff’s ELA claim. On review of a grant of summary judgment, we view the facts and all reasonable inferences that may be drawn from them in favor of the nonmoving party—in this case, plaintiff. Jones v. General Motors Corp., 325 Or 404, 408, 939 P2d 608 (1997). Summary judgment is appropriate when there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. ORCP 47 C. That standard is met when “ ‘no objectively reasonable juror could return a verdict for the adverse party on the matter that is the subject of the motion for summary judgment.’ ” Robinson v. Lamb’s Wilsonville Thriftway, 332 Or 453, 455, 31 P3d 421 (2001) (quoting Jones, 325 Or at 408). We state the facts consistently with that standard. 284 Sanders v. Vigor Fab, LLC

Vigor Industrial, LLC (Vigor Industrial) owns sev- eral companies, including the two wholly owned subsidiaries involved here—Vigor Fab and Vigor Marine. Vigor Industrial is in the business of shipbuilding, ship repair, and complex industrial fabrication. The companies that comprise Vigor Industrial operate under common ownership, management, and control, and they share common executive leadership, senior management, and officers. As the parent entity, Vigor Industrial provides common core services and departments to all subsidiaries, including finance, payroll, information technology, human resources, procurement, risk manage- ment, environmental, and legal. Vigor Industrial’s human resources department manages personnel matters for Vigor Fab and Vigor Marine, including overseeing employee bene- fits, hiring, termination, disciplinary issues, medical leave, and work-related injuries. Vigor Industrial calculates prof- its and losses on a consolidated basis rather than separately for each wholly owned entity. Vigor Industrial also provides procurement services and credit for both Vigor Fab and Vigor Marine, and it covers Vigor Fab and Vigor Marine employees for workplace injuries through the same certifi- cate of insurance. Vigor Fab builds ships and Vigor Marine repairs and maintains ships. They operate out of the same location, albeit from opposite ends of Vigor Industrial’s Swan Island Shipyard facility on the Willamette River in Portland. And while Vigor Fab and Vigor Marine maintain their own tools and equipment, and conduct their own day-to-day opera- tions, they share those premises, tools, and equipment, and they occasionally share personnel. Each entity hires and manages its own employees, but with the assistance of Vigor Industrial’s human resources and central staffing depart- ments. There are some notable differences between employ- ees of Vigor Fab and those of Vigor Marine, including differ- ent job titles, different benefits, and different wage scales. Employees, customers, and outside regulators also generally regard Vigor Fab and Vigor Marine as separate entities. Vigor Industrial processed plaintiff’s job applica- tion, and it administered and processed his new hire paper- work, drug testing, medical testing, and orientation and training documentation. At the time of his injury, plaintiff Cite as 308 Or App 282 (2020) 285

was employed by Vigor Marine as a boilermaker and welder. According to plaintiff, Vigor Marine would assign him to complete limited jobs for Vigor Fab “about once a year.” And, according to Vigor Industrial’s Secretary and General Counsel, Ballou, such assignments were made pursuant to “an unwritten but understood ‘service sharing agreement’ between” Vigor Industrial’s subsidiaries. Plaintiff was on temporary assignment with Vigor Fab when he was injured. Plaintiff filed an LHWCA claim for workers’ com- pensation benefits shortly after the incident, naming Vigor Marine as his employer. Vigor Industrial’s human resources and legal departments handled that claim, assisting Vigor Marine in its defense of that claim, and coordinating with Vigor Industrial’s insurance carrier regarding plaintiff’s benefits and coverage. Plaintiff filed this negligence case against Vigor Fab, alleging that his employer, Vigor Marine, was a “separate company from” Vigor Fab. He also alleged that the work he was performing for Vigor Fab was inher- ently dangerous, bringing it under Oregon’s ELA. ORS 654.305.

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Bluebook (online)
480 P.3d 999, 308 Or. App. 282, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sanders-v-vigor-fab-llc-orctapp-2020.