Short v. Mobil Oil Corp.

544 So. 2d 572, 1989 WL 51289
CourtLouisiana Court of Appeal
DecidedMay 16, 1989
DocketCA 88 0701, CA 88 0611
StatusPublished
Cited by7 cases

This text of 544 So. 2d 572 (Short v. Mobil Oil 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
Short v. Mobil Oil Corp., 544 So. 2d 572, 1989 WL 51289 (La. Ct. App. 1989).

Opinion

544 So.2d 572 (1989)

Bernis Wayne SHORT and Jacquelyn Short
v.
MOBIL OIL CORPORATION and Bott Equipment Company, Inc..
Bernis Wayne SHORT and Jacquelyn Short
v.
MOBIL OIL CORPORATION and Bott Equipment Company, Inc.

Nos. CA 88 0701, CA 88 0611.

Court of Appeal of Louisiana, First Circuit.

May 16, 1989.

*573 Edward F. Stauss, III, Baton Rouge, for plaintiff-appellant Bernis Wayne Short, et ux.

John S. White, Jr., Baton Rouge, for defendant-appellee Mobil Oil Corp.

Frank M. Coates, Jr., Baton Rouge, for defendant-appellee Bott Equipment Company, Inc.

Before CARTER, LANIER and LeBLANC, JJ.

LeBLANC, Judge.

Plaintiffs-appellants, Bernis and Jacquelyn Short, brought this suit for damages arising from personal injuries allegedly sustained by Mr. Short while disassembling a bulk storage facility loading rack located on the premises of Mobil Oil Corporation (Mobil) in Baton Rouge, Louisiana.[1] While Mr. Short was helping some other workers with the disassembly project, a pipe (loading arm) from the loading rack fell and hit Mr. Short's head.

At the time of this accident, Mr. Short was employed by Jetco Meter Service (Jetco). Jetco had contracted with Bott Equipment Company, Inc. (Bott) to provide the labor needed to perform the job of disassembling the rack and transporting parts of the rack to another city. Bott was the general contractor hired by Mobil to perform this work.

Plaintiffs filed this tort suit against Bott and Mobil. Plaintiffs alleged that the accident involving the loading rack was caused by a defect in the rack, Mobil's negligence and/or fault in failing to properly maintain the loading rack and the negligence and/or fault of Bott and Mobil in failing to properly instruct and/or supervise the work performed by Mr. Short.

Subsequently, both Bott and Mobil filed motions for summary judgment which were granted by the trial court. The trial court found that Bott established the necessary facts to prevail as Mr. Short's "statutory employer" under the two-contract theory. Therefore, the court found Mr. Short's exclusive remedy against Bott for his injuries is under the worker's compensation statute. See, La.R.S. 23:1032 and 1061. The trial court's summary judgment in favor of Mobil was based on its findings that 1) *574 Mobil established the accident was not caused by a defect but rather by the manner in which the rack was disassembled and 2) Mobil was not involved in supervision of the disassembly job and had no duty to supervise the job.

Plaintiffs appealed both of the trial court's summary judgments in favor of the defendants. These appeals have been consolidated by this court.

In this procedural context, defendants have the burden to show that no genuine issue of material fact exists and that they are entitled to judgment as a matter of law. La.Code Civ.P. art. 966.

In respect to plaintiffs' claim against Bott, plaintiffs argue that the trial court erred in finding Bott to be Mr. Short's statutory employer. They contend that the trial court erred in applying the "two-contract" statutory employer theory to the facts of this case. We find merit in plaintiffs' argument.

In order for Bott to prevail on summary judgment, it must be undisputed that Bott was Mr. Short's principal or statutory employer. Generally, the courts must follow the analysis set forth in Berry v. Holston Well Service, Inc., 488 So.2d 934 (La. 1986) to determine whether a statutory employment relationship exists. However, the employee's work has been held to be automatically within the trade, business or occupation of the principal where there is a particular two-contract relationship between the parties.

The "two-contract" statutory employer defense was briefly addressed in Berry, supra, at 936 n. 3:

[A]n owner contracts with a general contractor to do a job. The general contractor in turn contracts with a subcontractor for the "sub" to do the whole or a part of the total job contracted by the "general." Under this contractual relationship, the contract work of the "sub" has been held in decisions of the intermediate courts to be automatically within the trade, business or occupation of the "general."

This court also addressed the two-contract statutory employer defense in Davis v. Material Delivery Service, Inc., 506 So. 2d 1243 (La.App. 1st Cir.1987). In Davis, an owner of lime tank trucks executed a written contract with a transportation service, whereby the transportation service agreed to provide experienced drivers to operate the trucks on an "as needed" basis. Subsequently, the owner of the trucks orally contracted with a lime hydrate manufacturer to transport lime each time the need arose. One of the transportation service's drivers sustained personal injuries due to lime exposure. The driver sued the truck owner claiming the truck owner was liable in tort for his injuries. This court concluded that the two-contract statutory defense did not apply to the facts of the Davis case. This court found that the temporal requirements of the two-contract theory were not met since there was no particular general contract to perform specific work between the truck owner and the lime manufacturer at the time that the truck owner "subcontracted" with the transportation service. Thus, the two-contract defense did not shield the truck owner from tort liability.

In the present case, the affidavit of Mark Trumble, the owner of Bott, establishes that Bott and Jetco orally contracted for Jetco to perform the Mobil disassembly job prior to the time that Bott contracted with Mobil. Trumble's deposition testimony establishes that a Mobil representative called him and requested a "budgeted figure" for the disassembly job. Afterwards, he called Ronald Gilbert, owner of Jetco, to determine the price for which Jetco would perform the disassembly job. Trumble explained that he and Gilbert could not estimate Jetco's expenses for the job because they did not know the condition of the loading rack. Therefore, they determined a price that would be fair for the total Mobil job. Then, they agreed that if Bott was successful in obtaining the Mobil job, Jetco would provide the personnel needed for the Mobil job, Bott would pay for the cost of the equipment, hotel accommodations, meals and any other expenses and the profits of the Mobil job would be split equally between Bott and Jetco. Subsequently, *575 when Trumble contacted the Mobil representative and presented Bott's bid for the disassembly project, Bott and Mobil orally contracted for Bott to perform the job.

The facts of this case are similar to the facts of Davis. Although the contract between Bott and Jetco was conditioned upon Bott obtaining the Mobil job, there was no general contract to perform specific work between Mobil and Bott prior to the time that Bott contracted with Jetco. Therefore, we find that the temporal requirements of the two-contract theory are not met by the facts of this case.

Since the two-contract defense does not protect Bott from tort liability, the facts of the present case must be further analyzed according to the Berry three-tiered analysis. The Berry analysis requires an initial determination of whether the contract work is specialized or non-specialized. In order to make this determination, Berry

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