Sullen v. Missouri Pacific Railroad

750 F.2d 428
CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 14, 1985
DocketNo. 83-3372
StatusPublished
Cited by5 cases

This text of 750 F.2d 428 (Sullen v. Missouri Pacific Railroad) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sullen v. Missouri Pacific Railroad, 750 F.2d 428 (5th Cir. 1985).

Opinion

POLITZ, Circuit Judge:

This diversity case occasions an examination and application of the statutory-employer provision of the Louisiana Worker’s Compensation Law, La.R.S. 23:1061, as well as application of the Louisiana law governing indemnity between certain contracting parties. Leroy Sullen appeals the grant of summary judgment dismissing his personal injury claim on a finding that Chevron Chemical Company was his statutory employer at the time of the injury-producing accident.1 Chevron appeals the dis[430]*430missal of its indemnification claim against Broadmoor Corporation, Sullen’s employer. Finding neither error of fact or law in the district court’s opinion, we affirm.

Facts

Sullen was an employee of Broadmoor. Broadmoor contracted with Chevron to provide the laborers to clean tank cars prior to their being loaded with products at Chevron’s Oak Point plant. The tank cars were cleaned daily. The Broadmoor crew was under the supervision and immediate direction of a Broadmoor foreman who had hiring and firing authority. The Broadmoor foreman, in turn, took his orders from a Chevron employee.

During the period of the Broadmoor/Chevron contract, Chevron employees occasionally performed car cleaning tasks when Broadmoor employees were not available, but Broadmoor and Chevron employees did not work together. Before Chevron’s contract with Broadmoor, Chevron employees regularly and routinely cleaned tank cars. By the time this case was being readied for trial, because of an economic downturn Chevron had resumed tank car cleaning with in-house personnel. The contractual arrangement with Broadmoor was discontinued.

Under the contract, Broadmoor agreed to indemnify and hold Chevron harmless from any claim made by any Broadmoor employee. Broadmoor did not specifically agree to indemnify Chevron for claims based on Chevron’s own negligence.

The district court found that the cleaning of tank cars before loading products for shipment was an integral part of Chevron’s trade or business which had been performed customarily by Chevron employees. Accordingly, Sullen was found to be a statutory employee under La.R.S. 23:1061.2 As a result of that designation, under La. R.S. 23:1032,3 Sullen’s exclusive remedy was under the Worker’s Compensation Law and his tort action against Chevron was statutorily barred. As a consequence of the grant of Chevron’s motion for summary judgment dismissing Sullen’s claim, the district court considered moot Broadmoor’s motion for summary judgment seeking dismissal of Chevron’s claim for contractual indemnity. The court noted that if the motion had not been moot, it would have been granted. Chevron maintains that despite the mootness, it is entitled to attorney fees and costs incurred in the successful defense against Sullen’s ex delicto claim because the contract required Broadmoor to defend any suit brought by a Broadmoor employee.

Analysis

A. Statutory Employer

After a period of some difficulty, including “conflicting interpretation,” Penton v. [431]*431Crown Zellerbach Corp., 699 F.2d 737, 740 (5th Cir.1983), beginning with Blanchard v. Engine & Gas Compressors Services, Inc., 613 F.2d 65 (5th Cir.1980), we have sought to minimize conflicts and accord a uniform application to R.S. 23:1061. In Blanchard we observed:

[W]e should first consider whether the particular principal involved in the ease customarily does the type of work performed by the contractor and whether the contractor’s work is an integral part of the work customarily performed by the principal. If either of these situations exist, then there is a statutory employment relationship, and the inquiry ends there. If, however, the principal does not normally engage in this type of activity, or if it is not normally a part of his practices, then it is necessary to determine if others engaged in businesses similar to that of the principal customarily do this type of work or if it is an integral part of their businesses. If either of these inquiries yields an affirmative answer, then the general custom of the trade will control to make the relationship between the principal in question and his contractors’ employees that of statutory employer and employee.

613 F.2d 65, 71 (5th Cir.1982). In a Blanchard progeny, Chavers v. Exxon Corp., 716 F.2d 315, 317 (5th Cir.1983), we quoted from and explained Blanchard’s holding:

By way of further explanation we stated that the court “should first consider whether the particular principal involved in the case customarily does the type of work performed by the contractor.” If that answer is in the affirmative, the principal is a statutory employer with resulting workmen’s compensation obligations and a concomitant liability shield. If the answer is negative, the court must continue the inquiry “to determine if others engaged in businesses similar to that of the principal customarily do this type of work or if it is an integral part of their businesses.” If this query results in an affirmative response the principal is a statutory employer. In sum, the core inquiry is whether the employees of the principal or employees of other employers engaged in similar operations customarily perform the work at issue. In either instance, the principal will be deemed a statutory employer.

The Louisiana Supreme Court addressed the matter recently in Lewis v. Exxon Corp., 441 So.2d 192 (La.1983), phrasing the test as follows:

Two elements of the § 1032 definition must be met in order for a principal to be considered a statutory employer. First, the “work” must be a part of the principal’s “trade, business or occupation.” Second, the principal must have been engaged in that trade, business or occupation at the time of the injury. Absent either of these two conditions, the injury will not come within the scope of the workers’ compensation program.
Courts must look to the facts of each individual case to determine whether a particular activity is within the scope of a principal’s trade, business or occupation. Generally, in order for a work or project to be within a principal’s trade, business or occupation, it must be routine or customary, or some other type of activity which is necessary for the principal’s day-to-day operations. Put another way, the works contemplated by the statute are those activities which are an actual part of the nature and purpose of the principal’s enterprise. Extraordinary or nonrecurring constructions or repairs usually are outside the scope of the trade or business of manufacturing or production concerns____ General maintenance and repair work, which by their nature allow the smooth and continued operations of the principal, are within the scope of the statute____ 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.

441 So.2d 197-98 (citations omitted). After Lewis we again considered the issue in Hodges v. Exxon Corp.,

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750 F.2d 428, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sullen-v-missouri-pacific-railroad-ca5-1985.