Piontkowski v. Veolia ES Industrial Services, Inc. CA2/3 ( 2021 )


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  • Filed 3/2/21 Piontkowski v. Veolia ES Industrial Services, Inc. CA2/3
    NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS
    California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions
    not certified for publication or ordered published, except as specified by rule 8.1115(a). This opinion has
    not been certified for publication or ordered published for purposes of rule 8.1115(a).
    IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
    SECOND APPELLATE DISTRICT
    DIVISION THREE
    ROBERT PIONTKOWSKI,                                             B301845
    Plaintiff and Appellant,                                  Los Angeles County
    Super. Ct. No. BC636816
    v.
    VEOLIA ES INDUSTRIAL
    SERVICES, INC. et al.,
    Defendants and Respondents.
    APPEAL from a judgment of the Superior Court of Los
    Angeles County, Deirdre Hill, Judge. Affirmed.
    Arnold & Itkin, Noah M. Wexler, John Benjamin Bireley;
    Keisel Law, Paul R. Keisel and Melanie M. Palmer for Plaintiff
    and Appellant.
    Weinberg Wheeler Hudgins Gunn & Dial, Marjan
    Hajimirzaee, Kristian T. Kaskla and D. Lee Roberts, Jr. for
    Defendants and Respondents.
    _______________________________________
    INTRODUCTION
    Plaintiff and appellant Robert Piontkowski (plaintiff), an
    employee of Chevron, was seriously injured on the job at the
    company’s El Segundo refinery when he was splashed with super-
    heated materials. Plaintiff claims he was injured because a pipe
    that would normally have drained those materials in a different
    manner was plugged. Chevron had a services agreement with
    Veolia Environmental Services, Inc. to hydroblast such pipes at
    Chevron’s direction. Plaintiff filed this negligence action against
    defendants and respondents Veolia ES Industrial Services, Inc.,
    Veolia North America, LLC, and Veolia Water Technologies, Inc.
    (collectively, Veolia) alleging Veolia owed him a duty, as a third-
    party beneficiary of the services agreement, to timely respond to
    a request from Chevron to clean the drainpipe at issue and,
    further, that Veolia’s failure to clean the pipe caused the
    condition that led to his injury.
    The trial court granted Veolia ES Industrial Services, Inc.’s
    motion for summary judgment and plaintiff appeals from the
    subsequently entered judgment.1 He asserts the trial court erred
    in finding that Veolia did not owe him a legal duty of care
    because he was not an intended third-party beneficiary of the
    services agreement between Veolia and Chevron. Finding no
    error, we affirm the judgment.
    1This appeal only involves the judgment entered in favor of one of the
    Veolia entities, Veolia ES Industrial Services, Inc.
    2
    FACTS AND PROCEDURAL BACKGROUND2
    1.    The Complaint
    Plaintiff, a Chevron employee, was seriously injured at the
    company’s oil refinery in El Segundo on June 1, 2016. Plaintiff
    subsequently received workers’ compensation benefits for the
    injuries he sustained. Those benefits notwithstanding, plaintiff
    filed the current action against several defendants, including
    Veolia, on October 11, 2016. In the operative first amended
    complaint, plaintiff asserted causes of action for negligence and
    gross negligence against Veolia.3 Chevron retained Veolia to
    provide, among other things, on-demand hydroblasting services
    at the El Segundo facility.
    According to the operative complaint, plaintiff was
    performing his assigned job task and was required to drain a line
    on a coker unit4 at the worksite. The line was plugged, however,
    and would not properly drain. In the process of performing his
    2Most of the documents critical to our analysis were filed under seal in
    the trial court and in this court. In the interest of avoiding disclosure of
    any confidential information, our discussion of the facts in this case is
    somewhat more general than usual.
    3Plaintiff did not oppose Veolia’s motion for summary judgment and/or
    adjudication with respect to the gross negligence claim and does not
    address that claim in this appeal.
    4 Coking is a refinery process that takes place at above atmospheric
    pressure and at approximately 900 degrees Fahrenheit. Coke, a coal-
    like substance, builds up in a large drum and water is used to
    hydraulically cut the coke, enabling its removal from the drum. (Today
    in Energy - U.S. Energy Information Administration (EIA): Coking is a
    refinery process that produces 19% of finished petroleum product
    exports  [as of
    Feb. 26, 2021], archived at .)
    3
    assigned task, plaintiff “ ‘sustained serious burns and other
    injuries’ ” after “ ‘scalding coke and other materials were violently
    released from the plugged line.’ ”
    Plaintiff also alleged that a few days prior to the accident,
    Chevron requested that Veolia unplug the drain line. At the time
    of the accident, Veolia had not yet reported to unplug the line. In
    response to a special interrogatory request, plaintiff contended
    “that [Veolia] owed a general duty of care to identify and remedy
    dangerous conditions—such as plugged lines or conditions which
    may have caused lines to easily plug—with respect to the lines
    and other equipment [Veolia was] responsible for cleaning,
    draining, and maintaining.” He further stated, with respect to
    the alleged breach of duty, that “[o]n the day of the explosion,
    Plaintiff had to drain water from the lines in the coke drum to
    conduct his work. However, the line was plugged and would not
    drain. On information and belief, [Veolia is] responsible for
    maintaining, draining and cleaning lines, such as the one at issue
    in this litigation. Plaintiff contends that the plugged line on the
    day of the injury was caused by Veolia’s negligent draining,
    cleaning, and/or maintenance of the line.”
    Veolia answered the complaint and denied the allegations.
    2.    Summary Judgment Proceedings
    Veolia ES Industrial Services, Inc. filed a motion for
    summary judgment and/or adjudication. With respect to the
    negligence claim, Veolia noted the distinction between
    nonfeasance, i.e., the failure to act, and misfeasance, i.e., the
    failure to use ordinary care in performing an act. As to
    nonfeasance, Veolia observed that the failure to act to prevent
    harm is normally actionable only where a special relationship
    exists between the plaintiff and the defendant. Here, Veolia
    4
    argued, no special relationship existed between plaintiff and
    Veolia as a matter of law because Veolia had been hired to
    perform its duties by Chevron, for Chevron’s benefit. With respect
    to misfeasance, Veolia argued that none of the relevant factors
    weighed in favor of imposing liability on it—particularly
    foreseeability—because the company fulfilled a small role,
    directed by Chevron, at the worksite. The overall processes were
    managed, controlled, and monitored by Chevron, not Veolia.
    Plaintiff, by contrast, argued that Veolia was negligent
    under both a nonfeasance and a misfeasance theory. As to
    nonfeasance, plaintiff argued that Veolia’s contract with Chevron
    obligated Veolia to perform certain services, including clearing
    the plugged drain line, and that Veolia’s failure to timely perform
    caused plaintiff’s injuries. Plaintiff also contended a special
    relationship existed between himself and Veolia because, as a
    Chevron employee, he was an intended third-party beneficiary of
    the contract between Veolia and Chevron. With respect to
    misfeasance, plaintiff asserted that Veolia breached its ordinary
    duty of care to perform services for Chevron in a timely manner
    and that it was foreseeable that a Chevron employee, such as
    plaintiff, could be seriously injured as a result.
    3.    The Court’s Ruling and the Appeal
    The court granted Veolia’s motion for summary judgment.
    As pertinent here, the court found as a matter of law that
    plaintiff could not establish that Veolia owed him a legal duty of
    care. The court noted that plaintiff’s primary allegations against
    Veolia rested on the company’s failure to act, i.e., its failure to
    clear the drain line prior to the accident. And as to alleged
    nonfeasance, liability is typically limited to situations in which
    there is a special relationship between the parties that creates a
    5
    duty to act. Plaintiff alleged that the services agreement between
    Veolia and Chevron created such a duty, citing legal authority
    holding that a special relationship might exist where, for
    example, a contractor has an ongoing duty to maintain a property
    in safe condition. But after reviewing the services agreement, the
    court determined that Veolia was obligated to unclog the drain
    line at issue once monthly or upon Chevron’s request—and was
    not tasked with maintaining the drain line in a clear state on an
    ongoing basis. The court concluded, therefore, that as a matter of
    law no special relationship existed by virtue of the services
    agreement which obligated Veolia to act affirmatively to prevent
    harm to plaintiff.5
    The court signed the judgment in favor of Veolia on
    August 12, 2019. Plaintiff timely appeals.
    DISCUSSION
    Although plaintiff asserted multiple theories of negligence
    in opposition to Veolia’s motion for summary judgment, he now
    contends only that Veolia owed him a duty of care arising out of
    the company’s services agreement with Chevron. Plaintiff argues
    that the services agreement created a special relationship
    between Veolia and himself and that, as a result, Veolia was
    required to clear plugged drain lines at the worksite in a timely
    fashion, for his protection. As we explain, plaintiff’s theory of
    liability turns on whether plaintiff is an intended third-party
    beneficiary of the services agreement. We conclude, as the trial
    court did, that he is not.
    5The court also addressed plaintiff’s misfeasance theory of negligence.
    Plaintiff does not challenge that portion of the court’s ruling, however.
    6
    1.    Scope and Standard of Review
    The applicable standard of review of a ruling on a motion
    for summary judgment is well established. “The purpose of the
    law of summary judgment is to provide courts with a mechanism
    to cut through the parties’ pleadings in order to determine
    whether, despite their allegations, trial is in fact necessary to
    resolve their dispute.” (Aguilar v. Atlantic Richfield Co. (2001) 
    25 Cal.4th 826
    , 843 (Aguilar).)
    The moving party “bears the burden of persuasion that
    there is no triable issue of material fact and that he is entitled to
    judgment as a matter of law.” (Aguilar, 
    supra,
     25 Cal.4th at
    p. 850; Code Civ. Proc., § 437c, subd. (c).) A defendant moving for
    summary judgment must “ ‘show[ ] that one or more elements of
    the cause of action ... cannot be established’ by the plaintiff.
    [Citation.]” (Aguilar, at p. 853.) A defendant meets its burden by
    presenting affirmative evidence that negates an essential
    element of a plaintiff’s claim. (Guz v. Bechtel National, Inc. (2000)
    
    24 Cal.4th 317
    , 334 (Guz).) Alternatively, a defendant meets its
    burden by submitting evidence “that the plaintiff does not
    possess, and cannot reasonably obtain, needed evidence”
    supporting an essential element of its claim. (Aguilar, at p. 855.)
    On appeal from a summary judgment, we review the record
    de novo and independently determine whether triable issues of
    material fact exist. (Saelzler v. Advanced Group 400 (2001) 
    25 Cal.4th 763
    , 767; Guz, 
    supra,
     24 Cal.4th at p. 334.) We resolve
    any evidentiary doubts or ambiguities in favor of the party
    opposing summary judgment. (Saelzler, at p. 768.)
    In performing an independent review of the granting of
    summary judgment, we conduct the same procedure employed by
    the trial court. We examine (1) the pleadings to determine the
    7
    elements of the claim, (2) the motion to determine if it establishes
    facts justifying judgment in the moving party’s favor, and (3) the
    opposition—assuming movant has met its initial burden—to
    decide whether the opposing party has demonstrated the
    existence of a triable, material fact issue. (Oakland Raiders v.
    National Football League (2005) 
    131 Cal.App.4th 621
    , 629–630.)
    We need not defer to the trial court and are not bound by the
    reasons in its summary judgment ruling; we review the ruling of
    the trial court, not its rationale. (Id. at p. 630.)
    Finally, although we review the court’s summary judgment
    ruling independently we are, as always, guided by the principle
    that “ ‘[a] judgment or order of the lower court is presumed
    correct. All intendments and presumptions are indulged to
    support it on matters as to which the record is silent, and error
    must be affirmatively shown. This is not only a general principle
    of appellate practice but an ingredient of the constitutional
    doctrine of reversible error.’ [Citations.]” (Denham v. Superior
    Court (1970) 
    2 Cal.3d 557
    , 564.)
    2.    The court properly granted Veolia’s motion for
    summary judgment.
    2.1.   Negligence Generally
    To support a negligence cause of action, a plaintiff must
    plead and prove: (1) the defendant owed the plaintiff a legal duty,
    (2) the defendant breached the duty, and (3) the breach was a
    proximate or legal cause of the plaintiff’s injuries. (Merrill v.
    Navegar, Inc. (2001) 
    26 Cal.4th 465
    , 477.) “ ‘[T]he threshold
    element of a cause of action for negligence is the existence of a
    duty to use due care toward an interest of another that enjoys
    legal protection against unintentional invasion.’ ”
    8
    (Goonewardene v. ADP, LLC (2019) 
    6 Cal.5th 817
    , 837
    (Goonewardene).) “ ‘Duty, being a question of law, is particularly
    amenable to resolution by summary judgment.’ ” (Regents of
    University of California v. Superior Court (2018) 
    4 Cal.5th 607
    ,
    618.)
    Veolia’s motion for summary judgment asserted that Veolia
    did not owe plaintiff a legal duty of care. “In considering whether
    a party has a legal duty in a particular factual situation, a
    distinction is drawn between claims of liability based upon
    misfeasance and those based upon nonfeasance. ‘ “ ‘Misfeasance
    exists when the defendant is responsible for making the
    plaintiff’s position worse, i.e., defendant has created a risk.
    Conversely, nonfeasance is found when the defendant has failed
    to aid plaintiff through beneficial intervention. ...’ [Citations.]” ’
    [Citation.] Liability for misfeasance is based on the general duty
    of ordinary care to prevent others from being injured by one’s
    conduct. [Citations.] Liability for nonfeasance is limited to
    situations in which there is a special relationship that creates a
    duty to act. [Citations.] ‘The basic idea is often referred to as the
    “no duty to aid rule,” which remains a fundamental and long-
    standing rule of tort law. ... “As a rule, one has no duty to come to
    the aid of another. A person who has not created a peril is not
    liable in tort merely for failure to take affirmative action to assist
    or protect another unless there is some relationship between
    them which gives rise to a duty to act.” ’ [Citation.]” (Seo v. All-
    Makes Overhead Doors (2002) 
    97 Cal.App.4th 1193
    , 1202–1203
    (Seo).)
    Plaintiff’s negligence claim is predicated on Veolia’s failure
    to act, i.e., its failure to clear the plugged drainpipe that he
    alleges caused his injury. Accordingly, to establish that Veolia
    9
    owed him a legal duty, plaintiff must demonstrate the existence
    of a special relationship between them. As plaintiff suggests, “ ‘[a]
    duty [of care] may arise through statute, contract, or the
    relationship of the parties.’ ” (Lichtman v. Siemens Industry, Inc.
    (2017) 
    16 Cal.App.5th 914
    , 920, fn. omitted.) And a duty running
    from a defendant to a plaintiff may arise from a contract even
    though, as here, the parties are not in privity. (Biakanja v. Irving
    (1958) 
    49 Cal.2d 647
    , 650 (Biakanja); see Goonewardene, 
    supra,
     6
    Cal.5th at p. 838.) “Under these circumstances, the existence of a
    duty is not the general rule, but may be found based on public
    policy considerations.” (Lichtman, at p. 921.)
    2.2.   Duty of Care Based on Contractual Obligation
    Plaintiff claims, essentially, that the services agreement
    evidences a special relationship because it shows that the parties
    intended to protect him from workplace injury. As the existence
    and language of the contract are undisputed and neither party
    has proffered disputed extrinsic evidence relating to its meaning,
    the proper interpretation of the contract is a question of law.
    (Suarez v. Pacific Northstar Mechanical, Inc. (2009) 
    180 Cal.App.4th 430
    , 439.)
    Veolia acknowledges that a special relationship may, in
    some cases, arise out of a contract in which a company
    undertakes repairs. That is not the precise situation here, but it
    is similar in several respects. Seo, supra, relied on by plaintiff
    below, provides relevant guidance. There, the plaintiff was
    injured after his arm was caught in a garage gate as it closed.
    The plaintiff contended the gate was defectively designed and, in
    addition to suing the property owner, he sued the garage gate
    repairer for negligence because the repairer failed to advise the
    property owner of the defect. (Seo, supra, 97 Cal.App.4th at
    10
    pp. 1198–1199.) The repairer moved for summary judgment,
    arguing it had no duty to the plaintiff to advise the property
    owner about the defect. (Id. at p. 1200.) The court of appeal
    agreed.
    Importantly for our purposes, the court distinguished
    between an ongoing, affirmative obligation to maintain property
    in a safe and working condition and an obligation to provide
    repair services as needed and requested. Specifically, the court
    noted that “[a] special relationship may arise out of a contract in
    which a repair company agrees for a fee to keep a piece of
    equipment in repair, perform all work necessary for the safety
    and maintenance of the equipment, and make periodic
    inspections of the equipment.” (Seo, supra, 97 Cal.App.4th at
    p. 1204.) But where a contractor provides repair services on
    demand, no such relationship with third parties is created. (Ibid.)
    In the case at hand, it was evident that “the owner of the
    property called defendant gate repair company on those occasions
    the gate or some other similar equipment needed specific
    repairs.” (Ibid.) Accordingly, the court concluded, the repair
    company had no legal duty to plaintiff to advise the property
    owner of the gate’s defect.
    The distinction drawn in Seo is applicable here. Stated
    simply,6 Chevron hired Veolia to clean equipment at several of its
    work sites. The services agreement states that Veolia is an
    independent contractor and that its services, including the
    hydroblasting services plaintiff contends should have been
    6As noted, many of the materials relevant to our analysis, including
    the services contract, were filed under seal. We have reviewed the
    agreement in detail but provide only a general summary in this
    opinion.
    11
    performed prior to the accident, are to be provided on demand,
    and as requested in writing by Chevron. Further, the location
    and extent of all services provided by Veolia are to be identified
    by Chevron. Veolia’s compensation is based on the labor,
    material, equipment, and other costs directly associated with
    each of Chevron’s assignments. The agreement also notes that
    Chevron would closely monitor Veolia’s work and provide
    sufficient notice to Veolia of upcoming projects and services
    required. In sum, Chevron would instruct Veolia what
    hydroblasting services it needed and would also direct Veolia
    when, where, and how to provide those services. Chevron plainly
    did not task Veolia with an ongoing duty to ensure the safety of
    its workers, as plaintiff suggests.
    The specific contractual provisions identified by plaintiff do
    not change our analysis. As plaintiff notes, the services
    agreement contains several provisions relating to workplace
    safety, including requirements that Veolia’s employees be
    subjected to drug, alcohol and search policies before entering a
    Chevron worksite, that Veolia employees are responsible for or
    are required to participate in certain aspects of job site safety,
    and that Veolia was required to provide a safety orientation to its
    employees at its own expense. Also, plaintiff observes, Veolia
    warrantied its services “in a manner reasonably believed to be in
    the best interest of Chevron and with such care as a reasonably
    prudent provider of similar services would use under similar
    circumstances.” These provisions, plaintiff claims, constitute
    “substantial evidence that Chevron employed Veolia to protect its
    employees from the dangers of a coke fallout, which are increased
    when draining the drums through the Delta Valve … .”
    12
    Having reviewed the entire contract, as well as the handful
    of safety-related provisions highlighted by plaintiff, we conclude
    that the services agreement was not intended to benefit
    Chevron’s employees nor was it focused on providing a safe work
    environment for them. Rather, it is plain from the agreement
    that Veolia’s services were intended to benefit Chevron by
    keeping its refineries and equipment operating smoothly. The
    fact that Veolia was required to undertake some safety tasks due
    to the requirements of the worksite does not convert the services
    agreement into an employee-safety-focused contract. And as we
    now explain, relevant policy considerations support our
    conclusion.
    2.3.   Policy considerations regarding the imposition of
    tort liability
    In Biakanja, our Supreme Court identified multiple factors
    that may support a court’s conclusion that a duty of care to a
    noncontracting party may arise from a contract:
    “The determination whether in a specific case the
    defendant will be held liable to a third person not in privity is a
    matter of policy and involves the balancing of various factors,
    among which are the extent to which the transaction was
    intended to affect the plaintiff, the foreseeability of harm to him,
    the degree of certainty that the plaintiff suffered injury, the
    closeness of the connection between the defendant’s conduct and
    the injury suffered, the moral blame attached to the defendant’s
    conduct, and the policy of preventing future harm.” (Biakanja,
    supra, 49 Cal.2d at p. 650.)
    Our Supreme Court applied these and other policy-related
    factors recently, in Goonewardene, 
    supra.
     There, an employer
    contracted with a company to provide payroll services. A former
    13
    employee sued her employer under a variety of theories relating
    to the employer’s failure to pay wages due. (Goonewardene,
    
    supra,
     6 Cal.5th at p. 822.) The Court considered, as pertinent
    here, whether the employee could also sue the payroll company
    for lost wages. The plaintiff asserted the payroll company
    breached the oral payroll services contract with her employer and
    she was entitled to enforce the contract as a third-party
    beneficiary. She also claimed the payroll company negligently
    performed its contract with the employer and, as a third-party
    beneficiary of the contract, she was entitled to recover from the
    company in tort as well. (Id. at p. 825.)
    The Court rejected both arguments. First, the Court
    addressed plaintiff’s contention that she could assert a breach of
    contract action against the payroll company. (Goonewardene,
    
    supra,
     6 Cal.5th at pp. 826–837.) Summarizing its prior cases
    relating to contract enforcement by third-party beneficiaries, the
    Court explained that in addition to examining the plain language
    of the contract, courts must consider three additional factors:
    “(1) whether the third party would in fact benefit from the
    contract, but also (2) whether a motivating purpose of the
    contracting parties was to provide a benefit to the third party,
    and (3) whether permitting a third party to bring its own breach
    of contract action against a contracting party is consistent with
    the objectives of the contract and the reasonable expectations of
    the contracting parties. All three elements must be satisfied to
    permit the third party action to go forward.” (Id. at p. 830.) With
    respect to the second element, the Court clarified that “the
    contracting parties must have a motivating purpose to benefit the
    third party, and not simply knowledge that a benefit to the third
    party may follow from the contract.” (Ibid.) And as to the third
    14
    element, the Court explained that it “calls for a judgment
    regarding the potential effect that permitting third party
    enforcement would have on the parties’ contracting goals, rather
    than a determination whether the parties actually anticipated
    third party enforcement at the time the contract was entered
    into.” (Id. at p. 831.)
    The Court concluded the plaintiff was not a third-party
    beneficiary of the contract between her employer and the payroll
    company. Because no written contract existed, the Court turned
    directly to an examination of the three factors just described.
    Assuming without deciding that the plaintiff would have
    benefited from her employer’s use of a payroll company, the
    Court noted that an incidental benefit to an employee was
    insufficient to establish that the employee was a third-party
    beneficiary of a contract. Instead, the court stated, “a motivating
    purpose of the contracting parties must be to provide such a
    benefit to employees.” (Goonewardene, 
    supra,
     6 Cal.5th at p. 835.)
    With respect to an employer’s use of a payroll company, the Court
    concluded that “the relevant motivating purpose is to provide a
    benefit to the employer, with regard to the cost and efficiency of
    the tasks performed and the avoidance of potential [statutory]
    penalties.” (Ibid.) Moreover, even if it could be said that a
    motivating purpose of the contract was to provide the employees
    a benefit, “it still may be inconsistent with the objectives of the
    contract and the reasonable expectations of the contracting
    parties to permit the employees to sue the payroll company for an
    alleged breach of the contract.” (Id. at p. 836.) The court
    examined several factors, including the employer’s availability to
    enforce the contract and the substantial additional costs that
    would result from payroll company liability to employees for
    15
    wages, and concluded that permitting employees to sue a payroll
    company for wage and hour violations would generally not be
    consistent with the reasonable expectations of an employer and a
    payroll company. (Ibid.)
    Moving to the employee’s negligence claim against the
    payroll company, the court examined the Biakanja factors to
    determine whether the employee could sue the payroll company
    for damages arising from its negligent contract performance. In
    concluding the payroll company did not owe the plaintiff a legal
    duty of care arising from the contract, the Court considered a
    variety of policy considerations. First, even if an employee
    sustained a loss of wages due to the payroll company’s
    negligence, California’s wage and hour laws already provide the
    employee with “a full and complete remedy” against the
    employer. Accordingly, the Court saw the imposition of a
    separate tort duty of care as “generally unnecessary to
    adequately protect the employee’s interest.” (Goonewardene,
    supra, 6 Cal.5th at p. 839.) Second, deterrence was not a
    significant factor because the payroll company was already
    obligated to the employer to perform its services with due care.
    (Ibid.) Third, and as the Court explained in its breach of contract
    analysis, the payroll company had no special relationship with
    the plaintiff that would warrant the recognition of a
    contractually-based duty of care. And “[g]iven this conclusion, it
    would clearly be anomalous to impose tort liability, with its
    increased potential damages, upon the payroll company based
    upon its alleged failure to perform its obligations under its
    contract with [the] plaintiff’s employer.” (Id. at p. 840.) Fourth,
    the Court noted that the imposition of a duty of care to employees
    could improperly distort a payroll company’s performance of its
    16
    contract with an employer—essentially, the Court concluded the
    payroll company could not, in some circumstances, serve both
    masters. (Ibid.) Finally, the court indicated that “imposition of a
    tort duty of care on a payroll company is likely to add an
    unnecessary and potentially burdensome complication to
    California’s increasing volume of wage and hour litigation.” (Id.
    at p. 841.) Because employees are already fully protected under
    existing law, the Court concluded, the possible benefit of
    expanded liability would be substantially outweighed by the
    significant burden on the judicial system resulting from increased
    and complicated litigation. (Ibid.)
    Although plaintiff cites Biakanja, he does not discuss the
    factors identified in that opinion. Nor does he conduct the sort of
    analysis undertaken by the Court in Goonewardene. We discuss
    the pertinent factors briefly, following the rubric used by the
    Court in Goonewardene.
    First, to the extent an employee is injured in the workplace,
    California’s workers’ compensation laws provide the employee
    with “a full and complete remedy” against the employer.
    Accordingly, and as in Goonewardene, the imposition of a
    separate tort duty of care here is unnecessary to adequately
    protect the employee’s interest. Second, deterrence is not a
    significant factor in the present case because Veolia is already
    obligated to Chevron to perform its services with due care. Third,
    and as explained ante, Veolia had no special relationship with
    plaintiff that would warrant the recognition of a contractually-
    based duty of care. And therefore, like Goonewardene, “it would
    clearly be anomalous to impose tort liability, with its increased
    potential damages [citation], … based upon [Veolia’s] alleged
    failure to perform its obligations under its contract with”
    17
    Chevron. (Goonewardene, 
    supra,
     6 Cal.5th at p. 840.) Finally, and
    again similar to Goonewardene, the imposition of a tort duty of
    care in this circumstance is likely to foster litigation by plaintiffs
    seeking to avoid the workers’ compensation bargain. As the Court
    has said, because employees are already fully protected under
    existing law, the possible benefit of expanded liability would be
    substantially outweighed by the significant burden on the judicial
    system resulting from increased and complicated litigation.
    In sum, we conclude that plaintiff cannot maintain a
    negligence action against Veolia because he is not an intended
    beneficiary of the services agreement. As a matter of law,
    therefore, no special relationship existed which imposed upon
    Veolia an affirmative duty to act to protect plaintiff in the
    circumstances presented.
    18
    DISPOSITION
    The judgment is affirmed. Veolia ES Industrial Services,
    Inc. shall recover its costs on appeal.
    NOT TO BE PUBLISHED IN THE OFFICIAL REPORTS
    LAVIN, J.
    WE CONCUR:
    EDMON, P. J.
    EGERTON, J.
    19
    

Document Info

Docket Number: B301845

Filed Date: 3/2/2021

Precedential Status: Non-Precedential

Modified Date: 3/2/2021