Smith v. Zellerbach

486 So. 2d 798
CourtLouisiana Court of Appeal
DecidedMarch 25, 1986
Docket84-CA-1045
StatusPublished
Cited by35 cases

This text of 486 So. 2d 798 (Smith v. Zellerbach) 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
Smith v. Zellerbach, 486 So. 2d 798 (La. Ct. App. 1986).

Opinion

486 So.2d 798 (1986)

Betty Thornton SMITH, et al.
v.
Crown ZELLERBACH, et al.

No. 84-CA-1045.

Court of Appeal of Louisiana, First Circuit.

March 25, 1986.
Writ Denied June 6, 1986.

*800 Glenn P. Marcel, Baton Rouge, for plaintiffs-appellees Betty Thornton Smith, et al.

William A. Norfolk, Baton Rouge, for defendants-appellants Crown Zellerbach Corp. and Nat. Union Fire Ins. Co. of Pittsburgh.

Richard G. Creed, Jr., Baton Rouge, for intervenor-appellee Chicago Bridge and Iron Co.

Boris F. Navratil, Baton Rouge, for defendants-appellants Kamyr Installations, Inc. and Fireman's Ins. Co. of Newark, N.J.

Before EDWARDS, LANIER and J.S. COVINGTON, JJ.

EDWARDS, Judge.

This is a wrongful death case brought by the surviving spouse and two sons of Ernest Smith. The deceased was employed by Chicago Bridge & Iron Co. (Chicago, CBI) on June 4, 1979, when a twenty-foot piece of angle iron fell and struck him in the head. Smith was working as a painter at the Crown Zellerbach (CZ or Crown) paper mill in Bogalusa, Louisiana, on part of Crown's mill modernization.

CZ had contracted with Kamyr, Inc. for the design, fabrication, and painting of two high density tanks and a diffusion washer which were part of a new brown stock washing system. Kamyr, Inc. then subcontracted the fabrication and painting of the tanks and washer to Chicago Bridge & Iron Company. Crown contracted with Kamyr Installations, Inc. (referred to herein as Installations) a wholly-owned subsidiary of Kamyr, Inc., to install the new equipment in the Bogalusa mill. That contract called for Installations to provide all of the labor and supervision necessary to do the work. Installations in turn subcontracted part of the erection and painting to Chicago. Ernest Smith was killed while he was working in the erection phase of the construction. Plaintiffs sued Crown, Installations, and their respective insurers. Crown filed a third party action against Installations and Kamyr, Inc. for contractual indemnity. Then Chicago intervened, seeking reimbursement for workmen's compensation benefits paid to Smith's widow.

The parties agreed that the indemnity claim of CZ against Installations would be tried by the court alone, after the jury trial, and that the workmen's compensation intervention would likewise be tried by the court.

This case was heard in late February and early March of 1984. The jury answered approximately 36 special interrogatories and held CZ and Installations liable. The court found for Chicago on its intervention. Crown voluntarily dismissed its indemnity claim against Installations and Kamyr, Inc.

The jury awarded Mrs. Smith a total of $599,000.00 and each of the two surviving sons $50,000.00. Both Crown and Installations filed motions for judgment notwithstanding the verdict and for new trial, all of which were denied. Crown and Installations now bring this suspensive appeal.

CHICAGO BRIDGE & IRON COMPANY

At the time of his death, Ernest Smith was an employee of CBI, working as foreman of a painting crew. He had approximately twenty years' experience in the construction business. Testimony at trial clearly established certain facts: (1) a piece of structural steel was being lifted over the heads of the workers below, without any warning having been given; (2) the piece of metal, or angle iron, was not properly secured *801 for lifting; (3) as a result, the angle iron slipped loose and fell, striking Ernest Smith in the head and killing him; (4) all of this was due to negligence on the part of Chicago Bridge & Iron Company.

The jury properly found Chicago's employees guilty of that fault which was the proximate cause of the accident. They made this finding, even though Chicago was not sued by plaintiffs and was only in the case as an intervenor. We affirm this part of the verdict because it is fully supported by the evidence.

CROWN ZELLERBACH

The law is well established in Louisiana that a principal is not liable for the torts of an independent contractor and that the only legal basis for imposing vicarious liability in the workplace is that which is established by Article 2320 of the Louisiana Civil Code. This article makes employers answerable for the damage occasioned by their "servants and overseers, in the exercise of the functions in which they are employed." Thus the independent contractor would be responsible for damages done by its own employees.

Crown took the position that it had hired an independent contractor who in turn subcontracted the erection work. The jury found this to be true, but then found also that Crown had reserved the right to supervise the work and that it actually had assumed control. The question before this court, therefore, is whether or not CZ actually reserved the right of supervision.

It is now accepted law that the relationship of principal and independent contractor exists when the following conditions are met:

1. There is a valid contract between the parties;
2. The work being done is of an independent nature such that the contractor may employ non-exclusive means in accomplishing it;
3. The contract calls for specific piecework as a unit to be done according to the independent contractor's own methods without being subject to the control and direction of the principal, except as to the result of the services to be rendered;
4. There is a specific price for the overall undertaking; and
5. Specific time or duration is agreed upon and not subject to termination at the will of either side without liability for breach.

Hickman v. Southern Pacific Transport Company, 262 La.102, 262 So.2d 385 (1972); Amyx v. Henry & Hall, 227 La.364, 79 So.2d 483 (1955). See also Poynor v. Cure, 443 So.2d 1151 (La.App. 5th Cir.1983), writ denied, 446 So.2d 1225 (La.1984).

The most important inquiry to be made therefore, is whether the right to control the work is reserved by the principal. In applying this test it is not the supervision and control which is actually exercised that is significant; rather, it is the right to exercise it which is of primary concern. Hickman v. Southern Pacific Transport Company, supra.

The contract between Crown Zellerbach and Kamyr Installations, Inc. required Installations to supply all labor, supervision, tools, equipment and expendables to perform all of the work on installing the brown stock washing system. Further, it expressly provided that Installations was to be an independent contractor and not an agent or employee of Crown. Nowhere in the contract was there a reservation of control over the means used to complete the job. In fact, the contract specifically called for Installations to supervise the work. Finally, the contract provided a specific price for the overall undertaking and said that termination by either party would subject that party to liability for breach. It is plain, therefore, that all the elements of the Hickman test are present in this case.

The record verifies this by showing that Chicago Bridge and Iron Company actually operated as an independent contractor. *802 The CBI foremen got their work instructions from their employer's Houston office, not from Crown. Chicago instructed its own employees on safety and the procedure for securing loads being lifted: they decided how the load was to be rigged, how the crane would be operated, and how signals would be given to workmen on the ground.

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Bluebook (online)
486 So. 2d 798, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-zellerbach-lactapp-1986.