Traylor v. Shell Oil Co.

400 So. 2d 342, 1981 La. App. LEXIS 4084
CourtLouisiana Court of Appeal
DecidedJune 3, 1981
Docket11813
StatusPublished
Cited by9 cases

This text of 400 So. 2d 342 (Traylor v. Shell Oil Co.) 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
Traylor v. Shell Oil Co., 400 So. 2d 342, 1981 La. App. LEXIS 4084 (La. Ct. App. 1981).

Opinion

400 So.2d 342 (1981)

Navarre Scott TRAYLOR, Sr.
v.
SHELL OIL COMPANY, et al.

No. 11813.

Court of Appeal of Louisiana, Fourth Circuit.

June 3, 1981.

*343 George & George, Vincent J. DeSalvo, Baton Rouge, for plaintiff-appellant.

Jones, Walker, Waechter, Poitevent, Carrere & Denegre, James L. Selman, II, New Orleans, for defendants-appellees.

Porteous, Toledano, Hainkel & Johnson, John J. Hainkel, Jr., New Orleans, for Delta Field Erection, Inc.

Stanley E. Loeb, New Orleans, for Henry Miller.

Before SAMUEL, GARRISON and BAILES, JJ.

SAMUEL, Judge.

Plaintiff, Navarre Scott Traylor, Sr., filed suit against Shell Oil Company, Delta Field Erection, Inc., Travelers Insurance Company (Shell's liability insurer), Jim Ramsey, Timmy Frilow, Norman James Hymel, and Hubert Miller, seeking damages for bodily injuries sustained as a result of an accident in which he was involved while working in the course and scope of his employment *344 with Payne & Keller, Inc. on the premises of the Shell Oil Company refinery in Norco, Louisiana. The individual defendants are alleged to be executive employees of Shell Oil, and plaintiff asserts they were guilty of various acts of negligence which caused or contributed to his accident.

Thereafter, a motion for summary judgment was filed on behalf of Shell Oil and Travelers in which they maintained that at the time of plaintiff's accident, Payne & Keller, Inc., plaintiff's employer, was performing certain maintenance and repair work at the Norco refinery, which work was a part of the trade, business and occupation of Shell Oil so that plaintiff's exclusive remedy against Shell Oil and Travelers was under the Louisiana Workmen's Compensation Act, and particularly the "statutory employer" provisions of R.S. 23:1061. At the same time exceptions of prescription of one year were filed on behalf of the individual defendants, Ramsey, Frilow, Hymel, and Miller, on the ground that none of them had been sued in any capacity in any proceeding in any court of competent jurisdiction within a year of plaintiff's accident on August 14, 1973.

The trial court rendered judgment maintaining the motion for summary judgment by Shell Oil as well as the exception of prescription by the individual defendants. Apparently through inadvertence, Travelers was not included in the summary judgment even though it was a mover along with its insured, Shell Oil.[1] Plaintiff has appealed.

In this suit plaintiff's argument regarding the summary judgment is based on three grounds. First, he contends Shell Oil by contract required his employer, Payne & Keller, Inc., to obtain workmen's compensation insurance, the effect of which was to relieve Shell Oil of any responsibility imposed under the Louisiana Workmen's Compensation Act as a "principal" in respect to any injury suffered by an employee of Payne & Keller, Inc. while working on the job covered by the contract.[2] Plaintiff argues that because Shell Oil no longer has any compensation exposure it should not be allowed to escape potential tort liability as a statutory employer of the employees of its contractor, Payne & Keller, Inc. Next, plaintiff argues he was an employee of Payne & Keller, Inc., an independent contractor which had supervision and control over him on the job in question, and he was not a "borrowed servant" of Shell Oil. Third, he argues that, pursuant to the contract between his employer and Shell Oil, the work he was performing was not part of the trade, business, or occupation of Shell Oil because (a) Shell Oil did not have sufficient employees of its own to perform the work being undertaken and (b) the work plaintiff was performing was incidental to Shell Oil's goal of making larger profits and not an integral part of its trade, business, or occupation. We reject (b) as being completely without merit. Obviously Shell Oil, like other similar corporations, was in the business of making as large a profit as it legitimately could.

*345 In support of plaintiff's first argument, he cites as authority two concurring opinions, one in Broussard v. Heebe's Bakery, Inc.[3] emanating from this court, and another in Broussard v. Heebe's Bakery, Inc.,[4] the same case as decided by the Supreme Court of Louisiana.

Plaintiff's contention that Shell Oil improperly insulated itself from tort liability by requiring plaintiff's employer to furnish workmen's compensation insurance has been rejected by prior Louisiana jurisprudence. It should be noted the purpose of imposing compensation liability upon a principal to the employees of his independent contractor is to prevent principals from allowing improperly capitalized subcontractors to perform their essential activities in order to exculpate themselves from compensation liability.[5] The compensation statute specifically prohibits a contract or other device which operates to relieve in whole or in part any employer, whether regular or statutory, from liability under the act.[6]

In this regard Shell Oil points out that plaintiff had the option to reject the benefits of the compensation act, and thus provide himself with the right to bring a tort action for any damages suffered in the course of his employment against his regular or statutory employer.[7] The record shows no such election.

In Brown v. Kaiser Aluminum and Chemical Corp.,[8] the court disposed of plaintiff's first argument as follows:

"We likewise find no merit to plaintiff's alternative contention that Kaiser should be deprived of its immunity from tort liability by virtue of its established status as a statutory employer because of its having required its independent contractor to pay for workmen's compensation insurance. Kaiser would be entitled to indemnity from its independent contractor for any compensation which it might be required to pay as statutory employer under LSA-R.S. 23:1061, and the fact that it required its independent contractor to insure such indemnification in no way supports a judicial deprivation of its immunity from tort liability as a statutory employer."[9]

In this connection, plaintiff's reliance on the Broussard cases is misplaced. This court did not clearly consider the issue now raised. However, the majority of the Supreme Court did so as follows:

"In this Court plaintiff contends, as he did below, that the appellate court erred (1) in finding the relationship between Heebe and Wolf was that of principal-contractor, instead of vendor-vendee, and that (2) in any case, it makes no difference whether a principal-contractor relationship actually existed as it was not the intent of the legislature in adopting R.S. 23:1061 `to prevent injured employees of a contractor from recovering in tort against a negligent principal.'
We consider these assignments of error in reverse order because, if the postulation of plaintiff, joined by amicus curiae,2 that the injured employee of the contractor has two causes of action against the principal (one for compensation and the other for tort) is sound, then the much debated question as to legal relationship (principal-contractor or vendor-vendee) is immaterial and moot. However, we reject this argument, for this Court has decided on more than one occasion that the remedy afforded by R.S. 23:1061 to the employee of the sub-contractor against the principal is exclusive and has the effect of conferring tort immunity on the principal. See, Thibodaux v. Sun Oil Co., 218 La.

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Bluebook (online)
400 So. 2d 342, 1981 La. App. LEXIS 4084, Counsel Stack Legal Research, https://law.counselstack.com/opinion/traylor-v-shell-oil-co-lactapp-1981.