Michael Spears v. Exxon Mobil Corporation and Turner Industries Group, L.L.C. ( 2019 )


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  •                                 STATE OF LOUISIANA
    COURT OF APPEAL
    FIRST CIRCUIT
    NO. 2019 CA 0309
    MICHAEL SPEARS
    N                                          VERSUS
    by
    EXXON MOBIL CORPORATION AND
    TURNER INDUSTRIES GROUP, L.L.C.
    Judgment Rendered:         DEC 17 2019
    On Appeal from
    The 19th Judicial District Court,
    Parish of East Baton Rouge, State of Louisiana
    Trial Court No. C658600
    The Honorable R. Michael Caldwell, Judge Presiding
    Eulis Simien Jr.                                Attorneys for Plaintiff/Appellant,
    Matthew Pertuit                                 Michael Spears
    Baton Rouge, Louisiana
    Robert T. Myers                                 Attorney for Defendant/ Appellee,
    Metairie, Louisiana                             ExxonMobil Corporation
    Thomas E. Balhoff                               Attorneys for Defendant/Appellee,
    Judith R. Atkinson                              Turner Industries Group, L.L.C.
    Baton Rouge, Louisiana
    BEFORE: WHIPPLE, C. J., GUIDRY, AND CRAIN, I JJ
    I
    Justice Will Crain is serving as judge ad hoc by special appointment of the Louisiana
    Supreme Court.
    CRAIN, J.
    In this tort suit, Michael Spears appeals a summary judgment dismissing his
    claims with prejudice against ExxonMobil Corporation. We affirm.
    FACTS AND PROCEDURAL HISTORY
    ExxonMobil contracted with Poly -America, L.P. to collect and remove scrap
    polyethylene pellets from ExxonMobil' s plastics plant in Baton Rouge.               The
    parties agreed ExxonMobil would be " the statutory employer of employees of
    Poly -America] and subcontractors while such employees are engaged in [ w]ork"
    under the contract.       Poly -America subcontracted with an affiliated entity, Poly
    Trucking, Inc., to do the work. Poly Trucking employed Spears.
    The work required the use of a vacuum truck to collect the polyethylene
    pellets and a worker who used a water hose, when needed, to direct the pellets into
    the vacuum sump. While engaged in that work, Spears allegedly slipped and fell
    on an algae -covered surface at the worksite.    He filed suit against multiple parties,
    including ExxonMobil, alleging it failed to provide a safe place for persons on the
    premises,   failed to timely remove the algae, and failed to institute and enforce
    policies and procedures to discover hazards on the premises.
    ExxonMobil filed a motion for summary judgment urging it was Spears' s
    statutory employer and thus immune from tort liability under the Workers'
    Compensation Act.         See La. R.S. 23: 1032A( 1)(   a)   and 1061A.   The trial court
    agreed,   granted   the   motion,   and signed a judgment on September 5,          2018,
    dismissing Spears' s claims against ExxonMobil with prejudice. Spears appeals.
    2
    DISCUSSION
    After an opportunity for adequate discovery, a motion for summary
    judgment shall be granted if the motion, memorandum, and supporting documents
    show there is no genuine issue as to material fact and mover is entitled to judgment
    as a matter of law.     La. Code Civ. Pro. art. 966A(3).     The summary judgment
    procedure is favored and shall be construed to secure the just, speedy,               and
    inexpensive determination of every action.      La. Code Civ. Pro. art. 966A( 2).       In
    determining whether summary judgment is appropriate, appellate courts review
    evidence de novo under the same criteria governing the trial court' s determination
    of whether summary judgment is appropriate. In re Succession ofBeard, 13- 
    1717 La. App. 1
     Cir. 6/ 6/ 14), 
    147 So. 3d 753
    , 759- 60.
    If the mover will bear the burden of proof at trial on the issue before the
    court on the motion, the burden of showing there is no genuine issue of material
    fact remains with the mover. See La. Code Civ. Pro.           art.   9661)( 1);   Smith v.
    Moreau, 17- 0003 ( La. App. 1 Cir. 6/ 2/ 17), 
    222 So. 3d 761
    , 765.    When a motion is
    made     and properly   supported, an adverse     party may not rest on the mere
    allegations or denials of his pleading; his response, by affidavits or as otherwise
    provided by law, must set forth specific facts showing there is a genuine issue for
    trial.   If he does not so respond,    summary judgment, if appropriate, shall be
    rendered against him. See La. Code Civ. Pro. art. 967B.
    A fact is material if it potentially insures or precludes recovery, affects a
    litigant' s ultimate success, or determines the outcome of the legal dispute. Hines v.
    Garrett, 04- 0806 ( La. 6/ 25/ 04), 
    876 So. 2d 764
    , 765 ( per curiam); Smith v. Our
    Lady of the Lake Hospital, Inc., 93- 2512 ( La. 7/ 5/ 94), 
    639 So. 2d 730
    , 751.         A
    genuine issue is one as to which reasonable persons could disagree; if reasonable
    persons could reach only one conclusion, there is no need for trial on that issue and
    summary judgment is appropriate. Hines, 876 So. 2d at 765- 66; Smith, 639 So. 2d
    ki
    at 75 1.     Because the applicable substantive law determines materiality, whether a
    particular fact in dispute is material must be viewed in light of the substantive law
    applicable to the case. Bryant v. Premium Food Concepts, Inc., 16- 0770 ( La. App.
    1 Cir. 4/ 26/ 17), 
    220 So. 3d 79
    , 82, writ denied, 17- 0873 ( La. 9/ 29/ 17), 227 So. 3d
    The Louisiana Workers' Compensation Act contains a broad version of the
    statutory employer doctrine, which seeks to prevent employers from circumventing
    their liability for workers' compensation benefits by interjecting intermediary
    entities between themselves and their workers.              See La. R.S. 23: 1061; Allen v.
    State ex rel. Ernest N. Morial-New Orleans Exhibition Hall Authority, 02- 
    1072 La. 4
    / 9/ 03),    
    842 So. 2d 373
    , 377- 78 ( citing Maraist and Galligan, The Employer' s
    Tort Immunity: A Case Study in Post -Modern Immunity, 
    57 La. L. Rev. 467
    , 488
    1997)).      To that end, the Act extends the employer' s compensation obligation and
    corresponding tort immunity to a " principal,"            also referred to as a " statutory
    employer,"       in two instances: ( 1) when a party undertakes to carry out any work
    that is a part of its trade, business, or occupation by means of a contract with
    or ( 2)
    another party;                when a party contracts to perform work and sub -lets any
    portion of the work to another party (" two               contract"   basis).   See La. R. S.
    23 :1032A( 1)-(    2) and 1061 A( 1)-(   2); Allen, 842 So. 2d at 378.
    Under the first basis, which focuses on the principal' s trade, business, or
    occupation, a written contract recognizing the principal as a statutory employer is
    necessary. Louisiana Revised Statute 23: 1061A( 3) provides:
    A]   statutory     employer relationship    shall not exist between the
    principal and the contractor' s employees, whether they are direct
    employees or statutory employees, unless there is a written contract
    between the principal and a contractor which is the employee' s
    immediate employer or his statutory employer, which recognizes the
    principal as a statutory employer.
    0
    If a contract complies with this provision, " there shall be a rebuttable presumption
    of a statutory employer relationship between the principal and the contractor' s
    employees, whether direct or statutory employees."             La. R.S. 23: 1061A( 3).   The
    presumption may be overcome only by showing the work is not an integral part of
    or essential to the ability of the principal to generate its goods, products,             or
    services. Id.
    The two -contract basis is set forth in Subsection 23: 1061A( 2) as follows:
    A statutory employer relationship shall exist whenever the services or
    work provided by the immediate employer is contemplated by or
    included in a contract between the principal and any person or entity
    other than the employee' s immediate employer.
    The party common to both contracts, typically a contractor who entered an
    agreement with an owner and sub -contracted the work to another party, becomes
    the statutory employer of the sub -contractor' s employees. The nature of the work,
    particularly whether it falls within the principal' s trade, business, or occupation, is
    irrelevant to this determination. See Allen, 842 So. 2d at 378- 79.
    An employer seeking to avail itself of tort immunity bears the burden of
    proving its entitlement to immunity. Patterson v. Raceland Equipment Company,
    LLC, 17- 0703 ( La. App.       1 Cir. 4/ 18/ 18),       So. 3d (         2018WL1870156,
    3), writ denied, 18- 1018 ( La. 10/ 8/ 18), 
    253 So. 3d 799
    .       Whether certain work is
    part of a principal' s trade, business, or occupation is based on the facts of each
    case;
    however, the ultimate determination of whether a principal is a statutory
    employer entitled to immunity is a question of law for the court to decide.              See
    Patterson,       So. 3d at (       2018WL1870156 at 3); Smith, 
    222 So. 3d at 768
    .
    ExxonMobil primarily relies on its contract with Poly -America, which
    ExxonMobil
    -     contends complies with the requirements of Subsection 23: 1061A( 3)
    and creates a rebuttable presumption of statutory employment.             To avail itself of
    the statutory presumption, ExxonMobil must prove the existence of a written
    5
    contract containing the necessary declaration of its statutory employment status.
    See La. R.S. 23: 1061A( 3).      ExxonMobil introduced excerpts of two sets of
    documents in one exhibit. One set contains three pages, each dated December 23,
    2015, and captioned " STD. PURCHASE ORDER."                They identify the parties as
    ExxonMobil and Poly -America, and generally describe the work as "[ p] rovide
    pickup/delivery service at BRPP for all containers of Polyethylene Scrap as well as
    Polyethylene Scrap Recovery Vacuum Service" for a quoted amount of "$ 1. 00."
    Poly -America is identified as the " Vendor" and " Supplier." The third page has a
    list of other documents, identified by name and a number, that contain other terms
    and conditions applicable to the transaction.
    The second excerpt is four pages of general terms and conditions,          and
    contains an identification number at the top that corresponds to one of the
    document numbers identified in the first excerpt as applicable to the transaction.
    The pagination at the bottom of each page indicates the complete document has
    seven pages.
    This excerpt contains a section expressly recognizing ExxonMobil
    as the statutory employer of employees of [ Poly -America] and subcontractors
    while such employees are engaged" in the contracted work.
    A signature page is not included with either set of excerpts, but affidavits
    from representatives of ExxonMobil and Poly -America identify the collective
    documents as the contract between the parties.           Spears did not object to the
    excerpts and does not dispute they form a part of a written contract between
    ExxonMobil and Poly -America. Under these circumstances, we find the evidence
    sufficiently establishes a written contract between ExxonMobil and Poly -America,
    which    recognizes   ExxonMobil    as   a   statutory   employer   of Poly -America' s
    employees.     See La. Code Civ. Pro. art. 966D( 2); Jackson v. City of Zachary, 17-
    1583 ( La. App. 1 Cir. 8/ 6/ 18), 
    256 So. 3d 323
    , 328 n.3; compare Rainey v. Entergy
    GulfStates, Inc., 09- 572 ( La. 3/ 16/ 10), 
    35 So. 3d 215
    , 225- 29; Fleming v. JE Merit
    Constructors, Inc., 07- 0926 ( La. App. 1 Cir. 3/ 19/ 08), 
    985 So. 2d 141
    , 147.
    Spears contends a presumption of statutory employment does not arise
    between ExxonMobil and himself, because the contract is between ExxonMobil
    and Poly -America, rather than Spears' s immediate employer, Poly Trucking.              The
    statute mandates the contract must be " between the principal and a contractor
    which is the employee' s immediate employer or his statutory employer."              See La.
    R.S. 23: 1061A( 3) (   emphasis added).    Contrary to Spears' s argument, a contract
    between the principal and the worker' s immediate employer is not necessary if the
    principal contracted with a statutory employer of the worker. 
    Id.
     Consistent with
    that   premise,   the statute further specifies that the rebuttable presumption of
    statutory employment arising out of the agreement extends from the principal to
    the contractor' s employees, whether direct or statutory employees."            See La. R.S.
    23: 1061A( 3).     For the reasons detailed below,         Poly -America is the statutory
    employer of the employees of Poly Trucking.
    Spears    asserts   ExxonMobil    submitted   no    evidence   establishing Poly -
    America was his statutory employer.          We disagree.       The contract with Poly -
    America,    as well as affidavits from representatives of ExxonMobil and Poly -
    America, establish that ExxonMobil entered a contract for the subject work with
    Poly -America, who subcontracted all or part of the work to Poly Trucking.              As a
    result of those two contracts, Poly -America, the party to both contracts, became the
    statutory employer of Poly Trucking' s employees.             See La. R.S. 23: 1061A( 2);
    Allen, 842 So. 2d at 379.      Under the two -contract basis for statutory employment,
    Poly -America was Spears' s statutory employer.        ExxonMobil' s written contract
    with
    Poly -America thus     complies   with   Subsection     23: 1061A( 3).       Spears' s
    argument to the contrary is without merit.
    Spears      next   contends   the     written    agreement,   captioned "   PURCHASE
    ORDER," is a contract of sale that is excluded from Subsection 23: 1061A(3).
    Spears maintains that any services provided were part of an " overall                       sales
    agreement"
    whereby Poly -America acquired the plastic pellets and transported
    them to the company' s facility in Texas.
    While Subsection 23: 1061A(3),            as amended in 1997,      requires   a "   written
    contract"    containing a declaration of the principal' s statutory employer status, the
    statute does not specify a particular type or legal classification of contract. See La.
    Acts 1997, No. 315, § 1.      According to one commentator, the requirements added
    by the 1997 amendments, particularly the necessity of an express declaration of the
    principal' s statutory employer status in a written contract, " appear to have made
    the   intricate    discussions      about     whether      a   principal -contractor -employee
    relationship could exist in a contract of sale largely academic."            See Johnson, 13
    Louisiana Civil Law Treatise, Workers' Compensation Law and Practice §                       123
    5th Ed.).   As explained by Professor Johnson:
    The 1997 amendments to La. [ R.S.]               23: 1061 describe generally the
    types of contractual relationships that could lead to a conclusion that
    there is a statutory employment situation, and they do not limit those
    types of relationships nor do they exclude any particular types of
    contracts, such as sale.       The central question to be asked is whether
    the contract— whatever type of contract it might be—" recognizes" the
    principal as a statutory employer.              This raises the presumption that
    this is the appropriate legal conclusion about the relationship, subject
    to proof that the statutory requirements to support such a relationship
    are not present.  A typical contract of sale is not likely to contain a
    recognition"
    of such a relationship, and that would put an end to the
    matter.
    In the unlikely event a contract of sale recognizes such a relationship, according to
    Professor Johnson, the presumption of statutory employment would still arise but
    could be rebutted by proof that the work in question was not " an integral part of or
    essential to the ability of the principal to generate that individual principal' s goods,
    E
    products or services."       Id.; see also La. R.S. 23: 1061A( 1) and ( 3).             We agree with
    this interpretation of the statute.
    When a law is clear and unambiguous and its application does not lead to
    absurd      consequences,     the    law    shall   be     applied    as   written    and   no   further
    interpretation may be made in search of the intent of the legislature. La. Civ. Code
    art.   9; see also La. R.S.     1: 4; Ashe v. Board of Supervisors of Louisiana State
    University, 15- 1472 ( La. App. 1 Cir. 4/ 15/ 16),              
    193 So. 3d 228
    , 235.        Aside from
    the    form    of   the    agreement,      Subsection       23: 1061A( 3)     contains      no   express
    requirement concerning the nature of the contract wherein the parties recognize the
    principal as a statutory employer.           Spears' s contention the statute is limited to, or
    expressly excludes, certain legal classifications of written contracts is without
    merit.
    We conclude that ExxonMobil' s contract satisfies the requirements of
    Subsection      23: 1061A(3)        and    gives    rise   to    a   rebuttable      presumption    that
    ExxonMobil is Spears' s statutory employer. The burden of proof thus shifted to
    Spears to produce factual support, sufficient to establish a genuine issue of material
    fact, proving his work was not an integral part of or essential to ExxonMobil' s
    ability to generate its goods, products, or services.                 See La. Code Civ. Pro. art.
    966D( 1);     Patterson,        So. 3d , (           2018WL1870156); Mitchell v. Southern
    Scrap Recycling, L.L.C., 11- 2201 ( La. App. 1 Cir. 6/ 8/ 12), 
    93 So. 3d 754
    , 760, writ
    denied, 12- 1502 ( La. 10/ 12/ 12), 
    99 So. 3d 47
    .
    Spears relies on provisions in the contract that purportedly create genuine
    issues of material fact concerning his status, specifically a provision stating that
    Poly -America " is an independent contractor responsible for controlling and
    supervising its personnel and equipment and is not the agent or employee"                             of
    ExxonMobil.         That section further provides that neither Poly -America nor its
    employees "     are entitled to participate in or receive benefits from any employee
    X
    benefit plan sponsored by" ExxonMobil. According to Spears, these provisions are
    directly at odds" with the contractual language recognizing ExxonMobil as a
    statutory employer of the employees of Poly -America and its subcontractors, and
    create a " disputed fact as [ to] what the contract was intended to accomplish."
    Louisiana Revised Statute 23: 1021( 7) excludes an " independent contractor"
    from coverage under the Act, unless a substantial part of his work is manual labor.
    An " independent contractor" is defined as " any person who renders service, other
    than manual labor, for a specified recompense for a specified result either as a unit
    or as a whole, under the control of his principal as to results of his work only, and
    not as to the means by which such result is accomplished." La. R.S. 23: 1021( 7).
    The contractual language cited by Spears describes Poly -America, identified
    in the contract as the " Supplier," as an independent contractor.            Poly -America' s
    legal status as an independent contractor, if accepted as true, does not preclude a
    finding that Spears, an employee of Poly -America' s subcontractor, is a statutory
    employee of ExxonMobil.         See Mitchell, 93 So. 3d at 759; Johnson v. Motiva
    Enterprises LLC, 13- 305 ( La. App. 5          Cir. 10/ 30/ 13),   
    128 So. 3d 483
    , 491,   writ
    denied, 13- 2791 ( La. 2/ 14/ 14), 
    132 So. 3d 966
    .        If the injured worker' s employer,
    whether   immediate     or
    statutory,   is    an   independent     contractor,   nothing   in
    Subsection 23: 1061A prevents the independent contractor from entering a written
    agreement with a principal recognizing the principal as a statutory employer of the
    employees of the contractor and its subcontractors.                 The statute contains no
    language excluding from its scope agreements with independent contractors.
    When,     as here, the necessary written agreement exists, a presumption of
    statutory employment between the principal and the worker arises. See La. R.S.
    23: 1061A( 3).    At that point, a worker seeking to remove himself from the Act' s
    coverage must prove his work was not an integral part of or essential to the ability
    of the principal to generate its goods, products, or services. 
    Id.
     The worker does
    10
    not meet that burden, or create a genuine issue of material fact in that regard, by
    merely pointing out, without more, that his employer is an independent contractor.
    While the same evidence may be relevant to both determinations,                    the
    doctrines of independent contractor and statutory employment are distinct.                  The
    definition of independent contractor generally focuses on the degree of control and
    supervision, or lack thereof, over the worker to determine whether the worker is an
    actual employee or a true independent contractor. See La. R.S. 23: 1021( 7); Smith,
    
    222 So. 3d at 766
    .        That inquiry is not concerned with statutory employment, a
    legal concept whereby an employee of a contractor or sub -contractor is deemed to
    be the " statutory" employee of another party. See La. R.S. 23: 1061.               For present
    purposes,
    the statutory employment determination, and more specifically the
    burden     to    rebut   the    presumption    of     that   employment    under     Subsection
    23: 1061A( 3),     emphasizes the nature of the contracted work and its relationship to
    the principal' s trade, business, or occupation. See La. R.S. 23: 1061.            To rebut that
    presumption, a party must present evidence establishing that the contracted work,
    regardless of who controlled or supervised it, was not an integral part of or
    essential to the principal' s ability to generate its goods, products, or services.         See
    La. R.S. 23: 1061A(3).         Spears presented no such evidence.
    Spears submitted excerpts from his deposition and the depositions of two co -
    employees, Raphael Frill and Randall Samuels Jr.             Frill testified that Poly -America
    or Poly Trucking buys the pellets, and he and a crew of three other Poly Trucking
    employees use vacuum trucks to gather and remove the pellets from Exxon Mobil'
    -      s
    plastics plant.     The crew vacuums the pellets and uses a water hose as needed to
    wash the pellets into a sump. The work is supervised and mostly controlled by
    Frill.   According to Spears, he fell while wrapping up a hose after washing pellets
    into the sump.        Spears' s evidence also includes a letter from Poly -America to
    ExxonMobil confirming a quote for " vacuum services at the ExxonMobil facility
    1. 1
    in Baton Rouge for $ 1 ...       for the year 2016."      The services, per the letter, would
    be provided by Poly Trucking.
    Accepting all of the foregoing information as true, none of the evidence
    rebuts the presumption of statutory employment.                To create a genuine issue of
    material fact,      Spears had to present evidence proving that the work he was
    performing at the time of the accident— the removal of plastic pellets from
    ExxonMobil' s plant— was not an integral part of or essential to ExxonMobil' s
    ability to generate its goods, products, or services.             See La. R.S. 23: 1061A( 3).
    Spears' s evidence does not address that issue.            Instead, it demonstrates that Poly
    Trucking' s personnel supervised and performed the work.                 That evidence, alone,
    does not shed any light on the relationship or significance of the work to
    ExxonMobil' s ability to generate its goods, products, or services.
    Spears also argues the evidence shows the transaction, at least in part,
    involved a sale of the plastic pellets by ExxonMobil to Poly -America. While that
    may be true, the relevant question remains whether the physical collection and
    removal of the pellets from ExxonMobil' s premises, regardless of which party
    received compensation in the transaction,              was necessary for ExxonMobil to
    generate its products.         That question is not answered by evidence that Poly -
    America, recognizing the pellet' s intrinsic market value, purchased the pellets from
    ExxonMobil.          Spears was a laborer injured while performing work.                        His
    employer' s motivation for undertaking the contracted work does not make the
    work any less essential to the principal' s ability to generate its goods, products, or
    services.   The focus of the inquiry is the work itself, not the contractor' s reasons
    for performing the work.I
    1
    Although the presumption of statutory employment is sufficient to shift the burden of
    proof herein   to   Spears,   we note ExxonMobil      introduced an affidavit from one       of its
    superintendents who attested the removal of the plastic pellets is done daily at the plastics plant,
    is an integral part of ExxonMobil' s ability to produce polyethylene, and was done internally by
    ExxonMobil prior to the subject contract.
    12
    Spears   presented   no   evidence   that,   if accepted   as   true,   rebuts   the
    presumption of statutory employment.         The trial court properly granted summary
    judgment dismissing Spears' s claims against ExxonMobil. See Patterson,                  So.
    3d at , (   2018WL1870156 at * 4); Mitchell, 93 So. 3d at 760- 61.
    CONCLUSION
    The September 5,      2018 summary judgment is affirmed.         All costs of this
    appeal are assessed to Michael Spears.
    AFFIRMED.
    13
    

Document Info

Docket Number: 2019CA0309

Filed Date: 12/17/2019

Precedential Status: Precedential

Modified Date: 10/22/2024