Fifth Circuit Rejects Vicarious Liability Claim From Personnel Basket Injury

The U.S. Fifth Circuit Court of Appeals issued an opinion today addressing the vicarious liability of a principal contractor for its independent contractors.  The Plaintiff was employed as a crane mechanic by Gulf Crane Services and was working on an offshore platform owned and operated by Dynamic Offshore Resources, LLC.  He was injured in a personnel basket transfer from a boat to the platform.  He sued Dynamic, alleging it was vicariously liable for the negligence of its subcontractors, including the crane operator.  No Dynamic personnel were present on the platform.

 

The District Court dismissed the case on summary judgment and the Plaintiff appealed to the Fifth Circuit.  The Court noted that under Louisiana law, a principal is not liable for the activities of
an independent contractor committed in the course of performing its duties under the contract, with two exceptions: 1) the principal is liable for ultrahazardous activities contracted out to an independent contractor, and 2) the principal is liable if it has operational control over the acts of the independent contractor or authorizes unsafe practices.

 

The Court determined that a personnel basket transfer is not an ultrahazardous activity, regardless of the high wind that allegedly caused the basket to suddenly fall eight feet.  The law does not consider the specific conditions of an activity to determine whether it qualifies as ultrahazardous.  Furthermore, the Court found the Plaintiff could point to no evidence that Dynamic authorized an unsafe practice.  Instead, Plaintiff testified that he specifically requested the personnel basket transfer in high winds despite his “stop work authority”.  Dynamic in no way authorized an unsafe working condition.  Therefore the Plaintiff was unable to establish that his injury fell into either exception to the vicarious liability rule and Dynamic could not be held liable for the activities of its independent contractors.  The Fifth Circuit affirmed summary judgment in Dynamic’s favor.

 

Davis v. Dynamic Offshore Resources, LLC

Rig Operator Not Liable for Employee’s Shooting

Vicarious liability is a rule of law which provides that one person can be held responsible for the negligent acts of another.  A superior-subordinate relationship, such as between an employer and employee or a parent and child, is necessary for vicarious liability to apply.  The extent of an employer’s vicarious liability for the negligent acts of its employee was recently tested in the maritime case of Beech v. Hercules Drilling.

In that case, Hercules Drilling’s employee inadvertently brought a gun with him aboard the drilling rig.  This was in violation of an express company rule prohibiting the possession of firearms on the job.  While on duty, the employee was showing off the gun when it accidentally discharged, killing the co-worker. 

The decedent’s widow brought a wrongful death suit against Hercules Drilling, claiming that Hercules was vicariously liable for the negligent act of the employee.  The District Court sided with the widow and determined that Hercules Drilling could be responsible for the accident because its employee was within the course and scope of his employment at the time of the incident.  That ruling was appealed and reversed by the U. S. Fifth Circuit Court.

In addressing inconsistent standards regarding the limits of an employer’s vicarious liability, the Fifth Circuit held that the test for whether a maritime employee is acting within the course and scope of his employment is whether his actions at the time of the wrongful conduct were in furtherance of his employer’s business interests.  Under the facts of this case, the Fifth Circuit observed that employee’s negligent possession and firing of a gun were actions beyond the scope of his employment and did not further any interests of the employer.  Accordingly, Hercules Drilling could not be held liable for the incident.

Maritime employers’ potential liability for the negligent acts of their employees under vicarious liability principles is broad.  However, the Hercules Drilling case is significant in that it recognizes limits on the extent of such liability.  This case makes clear that vicarious liability will not attach where an employee’s conduct is not sufficiently related to some objective of employer’s operations.

Note: This article is also available in the December 2012 issue of WorkBoat magazine and on WorkBoat’s website.