Teague v. Sawyer Drilling Co.

499 So. 2d 127
Louisiana Court of Appeal·Decided October 29, 1986·No. 17617-CA·Published·Cited by 4 cases

Opinion

499 So.2d 127 (1986)

Charles TEAGUE, Plaintiff-Appellant,
Halliburton Services, Plaintiff-Appellant in Intervention,
v.
SAWYER DRILLING COMPANY, et al., Defendant-Appellee.

No. 17617-CA.

Court of Appeal of Louisiana, Second Circuit.

October 29, 1986.

*128 Goff & Goff by A. Kennon Goff, III, Ruston, Joseph P. Macaluso, Jr., New Orleans, for plaintiff-appellant.

Lunn, Irion, Switzer, Johnson & Salley by Charles W. Salley, Cook, Yancey, King & Galloway by Herschel E. Richard, Jr., Shreveport, for defendant-appellee.

Before MARVIN, FRED W. JONES, Jr., and LINDSAY, JJ.

LINDSAY, Judge.

This case was originally before this court to review the granting by the trial court of a motion for summary judgment filed by the defendant, TXO Production Corporation, on grounds that the defendant was the statutory employer of the injured plaintiff, Charles Teague, and therefore immune from tort liability. In our original opinion, we sustained the trial court ruling. Teague v. Sawyer Drilling Company, 485 So.2d 204 (La.App.2d Cir.1986). The Louisiana Supreme Court, 491 So.2d 14 (La. 1986), granted writs and remanded the case to us for reconsideration in light of its recent opinion in Berry v. Holston Well Service, 488 So.2d 934 (La.1986). For the following reasons, we reverse the trial court judgment sustaining defendant's motion for summary judgment and remand the case to the trial court for further proceedings.

TXO, an oil and gas production and exploration company, entered into a "turnkey" contract with Sawyer Drilling & Service, Inc. to drill an oil well. Sawyer contracted with Halliburton, an independent oil field servicing entity, for the cementing of surface casing on the well. Plaintiff worked for Halliburton and was injured on January 16, 1984 while performing cementing work on the well. A wooden scaffolding device on which the plaintiff was standing broke, causing the plaintiff to fall to the rig floor. Plaintiff alleged that he sustained serious injuries to his right ankle, left knee and pelvis.

Plaintiff filed suit on January 28, 1984 to recover damages from TXO and Sawyer, alleging they were liable in tort because they supplied him with a defective scaffolding device and for failing to adequately maintain a safe work place. Halliburton, plaintiff's employer, intervened in this suit to assert its subrogation rights under the Louisiana Workers Compensation laws, claiming it was entitled to recover the medical and worker's compensation benefits that it had paid to plaintiff from any award that plaintiff might receive in his tort action.

TXO filed a motion for summary judgment alleging that the cementing job performed by the plaintiff was a necessary, essential, and integral part of drilling the well which comprised a part of TXO's trade, business or occupation. Therefore, TXO asserts that at the time of the accident, it was a statutory employer of the plaintiff and immune from liability in a tort suit.

The motion for summary judgment was argued and submitted to the trial court. On May 16, 1985 the trial court rendered a written opinion granting TXO's motion for summary judgment finding that the work being performed by the plaintiff at the time of his injuries was a part of TXO's trade, business or occupation. Thus, TXO was a statutory employer of the plaintiff at the time of the accident and was shielded from tort liability by the operation of LSA-R.S. 23:1032.[1]

*129 Both the plaintiff, Teague, and the plaintiff in intervention, Halliburton, filed a motion for rehearing from the final judgment signed on June 4, 1985, dismissing their claims against TXO. This motion was denied on June 10, 1985. Both Teague and Halliburton were granted devolutive appeals from the final judgment.[2]

In our opinion of February 26, 1986, we affirmed the trial court judgment granting TXO's motion for summary judgment based on a finding that TXO was the statutory employer of the plaintiff and immune from tort liability under LSA-R.S. 23:1032 and 23:1061.[3] We examined prior jurisprudence, including Lewis v. Exxon Corporation, 441 So.2d 192 (La.1983) and Rowe v. Northwestern National Insurance Company, 471 So.2d 226 (La.1985), setting forth the guidelines to be followed in determining if a statutory employment relationship existed. We distinguished Lewis and Rowe as cases involving new construction or routine maintenance. Those cases did not deal with the unique nature of the oil and gas production industry. We relied in part on cases which had indicated that work performed by an independent contractor for an oil and gas production company would create a statutory employment relationship between the production company and the injured employee of the independent contractor. Butler v. Home Insurance Company, 448 So.2d 801 (La.App.2d Cir. 1984), writ denied, 450 So.2d 954 (La. 1984); Melancon v. Tassin Amphibious Equipment Corp., 427 So.2d 932 (La.App. 4th Cir.1983), writs denied, 433 So.2d 166 (La.1983); Jurls v. Lama Drilling Co., Inc., 457 So.2d 135 (La.App. 2d Cir. 1984) writs denied, 460 So.2d 1045 (La.1984); Barnes v. Sun Oil Co., 362 So.2d 761 (La. 1978).

We also relied in part on the case of Berry v. Holston Well Service, Inc., 467 So.2d 90 (La.App. 3rd Cir. 1985) and the Third Circuit's subsequent consideration in Berry v. Holston Well Service, Inc., 479 So.2d 944 (La.App. 3rd Cir.1985). In those cases, the Third Circuit Court of Appeal dealt with the issue of statutory employment *130 in the oil and gas industry. In Berry, the plaintiff was employed by a wireline service which was performing work-over operations on a well and lease owned by a production company. The defendants were the production company and the drilling contractor on the oil and gas well drilling project. The defendant, drilling contractor, hired the wireline service for which plaintiff worked to do perforation work on the well. During the course of this work, the plaintiff was injured. Plaintiff sued the defendants in tort and the defendants moved for and were granted summary judgments, claiming statutory employer status. Plaintiff appealed this ruling and the Third Circuit Court of Appeal was called upon to decide whether wireline operations during the workover of an oil and gas well should be considered part of the regular trade, business or occupation of the oil company whose lease was being drilled. In its first opinion in Berry, the Third Circuit held that the defendants were the statutory employers of the plaintiff. The court reasoned that Lewis v. Exxon, supra and its predecessor, Benson v. Seagraves, 436 So.2d 525 (La.1983) were not applicable because those cases dealt with new construction whereas Berry concerned oil and gas production. The Third Circuit reasoned that the oil and gas exploration and production industry has historically and customarily operated in a unique manner. The court found that because the industry is so reliant on highly technical procedures throughout the drilling process, it would be impossible for an oil company to maintain the personnel and equipment necessary to drill, complete or rework a well. Therefore, because each process in drilling and reworking a well is interrelated and necessary to the successful business of oil production, those specialized functions performed by independent contractors create statutory employment relationships between the principal and the injured employee of the specialized independent contra

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