IN THE SUPREME COURT

STATE OF NORTH DAKOTA

2024 ND 72

William Schmidt, Plaintiff and Appellant

v.

Hess Corporation and 

Basin Safety Consulting Corporation, Defendants and Appellees

No. 20230272

Appeal from the District Court of McKenzie County, Northwest Judicial 

District, the Honorable Robin A. Schmidt, Judge.

AFFIRMED IN PART, REVERSED IN PART, AND REMANDED.

Opinion of the Court by Crothers, Justice.

Jeffrey S. Weikum (argued), Bismarck, ND, and Justin L. Williams (on brief), 

Corpus Christi, TX, for plaintiff and appellant.

Amy M. Oster, Bismarck, ND, for defendant and appellee Hess Corporation.

Courtney A. Presthus, Dickinson, ND, for defendant and appellee Basin Safety 

Consulting Corporation.
1

Schmidt v. Hess Corp., et al.

No. 20230272

Crothers, Justice.

[¶1] William Schmidt appeals from judgments entered in favor of Hess 

Corporation and Basin Safety Consulting Corporation. The district court 

dismissed Schmidt’s negligence and premises liability claims against Hess and 

Basin Safety on summary judgment ruling neither owed him a duty of care. 

We reverse the judgment in favor of Hess concluding genuine issues of material 

fact exist on the question of whether Hess owed Schmidt a duty of care. We 

affirm the judgment in favor of Basin Safety. 

I

[¶2] Hess hired Tesoro Logistics to provide crude oil hauling services. Their 

“Trucking Service Agreement” states none of Tesoro’s personnel “shall be 

deemed to be, in fact or in law, a servant, agent or employee of Hess.” Schmidt 

was employed by Tesoro. He sued Hess and Basin Safety alleging he was 

injured while working for Tesoro at a worksite owned and operated by Hess. 

He claimed Hess required him to be connected to breathing air equipment 

while performing his work. He alleged Basin Safety installed the equipment at 

the worksite. He claimed the equipment caused him to trip and fall injuring 

his arm and shoulder. He brought claims for negligence and premises liability 

against both Hess and Basin Safety. The claims against each were identical. 

Schmidt’s general negligence claim alleged the defendants failed to:

“(1) provide Schmidt with a safe environment in which to work, 

equipped with safe respirator equipment;

(2) ensure that all safety equipment was in proper working 

condition and ensuring that all safety measures and 

monitoring were understood, available and utilized by all 

personnel employed by the defendants;

(3) ensure the proper maintenance and training in the use of 

personal protective equipment as well as workers 

demonstrating proficiency in using PPE and in making sure 

on-site monitoring and detection systems were in use;
2

(4) ensure that the Breathing Air system was designed, installed 

and procedures were in place that allowed workers to safely 

travel up and down the stairs;

(5) ensure all tanks, lines, equipment, devices and objects were 

clear of hazardous materials; and

(6) ensure all tanks, ladders, lines, equipment, devices and objects 

are up to industry standards and code.”

Schmidt’s premises liability claim alleged the defendants “had a duty to 

provide and/or maintain” the premises “in a reasonable safe condition” 

including “the tank and ladder,” and “respirator system and/or ladder system” 

and their failure to do so caused his injuries. 

[¶3] Basin Safety and Hess filed motions for summary judgment. Hess 

argued it did not owe a duty of care to Schmidt because he was an independent 

contractor. Basin Safety argued it did not owe a duty of care to Schmidt 

because it had no contractual relationship with Schmidt and it did not exercise 

any control over him or the worksite. Schmidt argued Hess controlled the 

manner in which he performed his work by requiring him to use the air 

equipment and thus his status as the employee of an independent contractor 

was not dispositive. Schmidt also argued Basin Safety owed him a duty of care, 

regardless of contractual privity or a lack of control at the worksite, because 

Basin Safety designed and installed the air equipment. Schmidt asserted 

genuine issues of material fact precluded summary judgment for each party.

[¶4] The district court first granted Hess summary judgment and later 

granted Basin Safety summary judgment. The court determined it was 

undisputed that “Schmidt was required by Hess to wear an air hose, but Hess 

did not require the method of using the air hose.” The court ruled Hess did not 

owe Schmidt a duty of care because providing the air hose without “specifying 

the procedures” for its use or “mandating specific use” was not sufficient to 

establish Hess retained control over Schmidt. The court also determined Basin 

Safety did not owe a duty of care to Schmidt because Basin Safety did not 

provide training regarding the air hose or have any control over the worksite. 

The court noted Schmidt admitted his premises liability claim against Basin 
3

Safety “is not appropriate.” The court entered judgment in favor of each 

defendant. Schmidt appeals. 

II

[¶5] We apply the following standard when reviewing appeals from summary 

judgment decisions:

“Summary judgment under N.D.R.Civ.P. 56 is a procedural device 

for the prompt resolution of a controversy on the merits if there 

are no genuine issues of material fact or inferences that can 

reasonably be drawn from undisputed facts, or if the only issues to 

be resolved are questions of law. Summary judgment is 

appropriate if the issues in the case are such that the resolution of 

any factual disputes will not alter the result. Whether the district 

court properly granted summary judgment is a question of law 

that we review de novo on the entire record. On appeal, this Court 

decides whether the information available to the district court 

precluded the existence of a genuine issue of material fact and 

entitled the moving party to judgment as a matter of law.”

Powell v. Statoil Oil & Gas LP, 2023 ND 235, ¶ 7, 999 N.W.2d. 203 (quoting 

Vic Christensen Min. Tr. v. Enerplus Res. (USA) Corp., 2022 ND 8, ¶ 8, 969 

N.W.2d 175). “In determining whether summary judgment was appropriately

granted, we must view the evidence in the light most favorable to the party 

opposing the motion, and that party will be given the benefit of all favorable 

inferences which can reasonably be drawn from the record.” Bjerk v. Anderson, 

2018 ND 124, ¶ 9, 911 N.W.2d 343 (quoting APM, LLLP v. TCI Ins. Agency, 

Inc., 2016 ND 66, ¶ 7, 877 N.W.2d 34). 

[¶6] Summary judgment “rarely should be granted in negligence cases.” Doan

ex rel. Doan v. City of Bismarck, 2001 ND 152, ¶ 9, 632 N.W.2d 815. To prove 

negligence, a plaintiff must establish the existence of a duty, breach of that 

duty, and an injury proximately caused by the breach of duty. Bjerk, 2018 ND 

124, ¶ 10. The duty element of a negligence claim is a question of whether the 

relationship between the parties gave rise to a legal obligation on the part of 

the defendant for the benefit of the plaintiff. Devore v. Am. Eagle Energy Corp., 

2020 ND 23, ¶ 18, 937 N.W.2d 503. A defendant cannot be held liable for 
4

negligence if he or she did not have a duty to protect the plaintiff from injury. 

Id. Whether a duty exists is a question of law for the court to decide and, if the 

existence of a duty depends on factual determinations, that becomes a question 

for the trier of fact. Doan, at ¶ 12. If the duty issue depends on factual 

determinations, the appropriate procedure is to instruct the jury as to the 

presence or absence of a duty if certain facts are found. Groleau v. Bjornson Oil 

Co., Inc., 2004 ND 55, ¶ 6, 676 N.W.2d 763.

III

[¶7] Schmidt argues the district court erred when it ruled Hess did not owe 

him a duty of care. He advances a theory of liability based on control Hess

purportedly exercised over his work. He asserts Hess had a duty to exercise 

this control with reasonable care. He claims he met his burden of 

demonstrating a genuine issue of material fact on this question. 

[¶8] An employer generally is not liable for injuries caused by an independent 

contractor’s negligence. Pechtl v. Conoco, Inc., 1997 ND 161, ¶ 9, 567 N.W.2d 

813. “An employer who does not retain or actually exercise any control or 

supervision over a project or the employees of an independent contractor, but, 

instead, is concerned primarily only with the finished product should not be 

held liable for the negligence of the independent contractor or its employees.” 

Schlenk v. Northwestern Bell Telephone Co., Inc., 329 N.W.2d 605, 612 (N.D. 

1983); see also Restatement (Second) of Torts § 409 (1965). An exception to the

general rule exists when an employer retains control over the manner in which 

the independent contractor performs the work. Devore, 2020 ND 23, ¶ 13; see 

also Restatement (Second) of Torts § 414 (1965). Under this exception, the 

employer is not vicariously liable for the independent contractor’s acts or 

omissions. Pechtl, at ¶ 11. The employer is liable for breaching his or her own 

duty. Id. The employer’s duty in this context is to exercise its control with 

reasonable care. Devore, at ¶ 13; see also Madler v. McKenzie Cnty., 467 N.W.2d 

709, 711 (N.D. 1991). This duty extends to an independent contractor’s 

employees. Madler, at 711 (“[A]n employer of an independent contractor who 

retains control of part of the work owes a duty of care to the independent 

contractor’s employees to exercise the retained control with reasonable care.”).
5

“[T]he employer of the independent contractor owes a duty to the independent 

contractor’s employees to exercise retained control with reasonable care.” 

Kristianson v. Flying J Oil & Gas, Inc., 553 N.W.2d 186, 189 (N.D. 1996). 

[¶9] For a duty to arise under a theory of retained control there must be “at 

least some degree of control over the manner in which the work is done.” 

Devore, 2020 ND 23, ¶ 14 (quoting Fleck v. ANG Coal Gasification Co., 522 

N.W.2d 445, 448 (N.D. 1994)). An employer’s act of inspecting the work or 

making “suggestions which need not be followed” will not create a duty. Fleck, 

at 448. The employer must have retained control over the “method, manner, 

and operative detail of the work” making the contractor “not entirely free to do 

the work in his own way.” Id. Control may be demonstrated by contractual 

provisions or through the employer’s actual control of the contractor’s work at 

the jobsite. Rogstad v. Dakota Gasification Co., 2001 ND 54, ¶ 16, 623 N.W.2d 

382.

[¶10] Merely providing equipment does not constitute control. In Fleck v. ANG 

Coal Gasification Co., 522 N.W.2d at 448, we held an employer’s conduct in 

furnishing safety gear to an independent contractor did not constitute control

giving rise to a duty of care when there was no evidence the employer 

“required” the items be worn. The employer’s provision of the equipment and 

its “suggestion” or “recommendation” that the equipment be used did not 

constitute control. Id. at 448-49. Similarly, in Kristianson v. Flying J Oil & 

Gas, 553 N.W.2d at 187, an employee of an independent contractor was injured 

when he fell from a tank at a wellsite. He argued the employer retained control 

over his work when it selected the tank that stored the fluid he was testing. Id.

at 190. We held the evidence did not show the employer exercised control 

sufficient to give rise to a duty of care. Id. We noted there was no evidence the 

employer supervised the independent contractor’s use of the tank or required 

it be used. Id. We explained “a duty arises only if the employer, in addition to 

providing the equipment, also directly supervises or controls its use, or 

instructs the independent contractor’s employee on use of the equipment.” Id. 

[¶11] Schmidt asserts Hess retained control over his work by requiring him to 

use air equipment installed at the worksite. He relies on Hess’s contractor 
6

handbook, deposition testimony provided by Hess’s former safety coordinator, 

and correspondence between Hess and Tesoro. The handbook requires 

contractors to use respiratory equipment when atmospheric conditions 

necessitate it “or when otherwise required by Hess.” The safety coordinator, 

Sid Lauver, testified Hess’s procedure did not allow Schmidt to access part of 

the worksite without using the air hose. Lauver was shown a picture and 

asked:

“Q. . . . What is the little chain and the sign for? What’s the purpose 

of that?

A. Okay. This here signifies that Hess’s procedures are you’re not 

allowed to go past that without being—having air. So my 

statement earlier about them being able to go up without wearing 

an air mask and stuff, that would not be correct. That would be 

against Hess procedure.

Q. Okay. Okay. And I understand that you qualified that 

statement before, so I’m not holding you to it. So now 

understanding that, that wouldn’t have been a workable option to 

go up there without the air hose?

A. No.”

Schmidt also relies on emails between a Hess representative and a Tesoro 

supervisor that were sent roughly a month before the accident. The emails

indicate the Tesoro supervisor reported concerns about the safety of a “supplied 

air hose reel” noting “[d]rivers feel the current set up is creating a trip hazard 

and are wondering if they can go back to tying the hose off.” The Hess 

representative responded: “we’ve come to the consensus that Hess has provided 

the breathing air system for Tesoro and the equipment must be used as 

designed and installed by Basin Safety.” Hess instructed Tesoro: “If the hose 

is snagging and pulling drivers backwards they may consider pulling out 

excess hose prior to going up the stairs, and if the drivers hang the hose over 

the stairs when coming down it will not be in front of them to create a tripping 

hazard.” 
7

[¶12] The district court, in its statement of undisputed facts, noted “Schmidt 

was required by Hess to wear an air hose, but Hess did not require the method 

of using the air hose.” The court held providing the air hose but not specifying 

procedures for its use was insufficient to establish control. We conclude the

court erred on this point. Schmidt has marshalled evidence, when viewed in a 

light most favorable to him, creating a fact issue concerning whether Hess 

retained control over the method, manner, and operative detail of the work. 

There is evidence indicating Hess required the Tesoro drivers to use the air 

hose when accessing part of the worksite, prohibited them from using the hose 

in a manner they preferred (“tying the hose off”), and required it be used “as 

designed and installed by Basin Safety.” Whether Hess exercised control over 

Schmidt’s work “is a factual question about which reasonable persons could 

differ, and, therefore, it should be submitted to the jury.” Madler, 467 N.W.2d 

at 714. If Hess exercised control, it had a duty to do so with reasonable care. 

[¶13] Having determined a fact issue exists precluding summary judgment on 

the question of retained control, we turn to Hess’s arguments specifically 

addressing Schmidt’s premises liability claim. Hess asserts a premises liability 

claim by an independent contractor against an employer is “not viable under 

North Dakota law” because an employer does not owe a duty to independent 

contractors to maintain a safe worksite. Hess cites various cases where this 

Court has held no duty of care is owed by an employer to protect an 

independent contractor from worksite hazards. However, we reached these 

holdings after first determining the employer did not exercise control over the 

independent contractor’s work. See Rogstad, 2001 ND 54, ¶ 36; Pechtl, 1997 

ND 161, ¶ 26; Kristianson, 553 N.W.2d at 191; Fleck, 522 N.W.2d at 449.

[¶14] We have not expressly decided whether an employer of an independent 

contractor may be liable for injuries sustained by the contractor or its 

employees under a premises liability theory. At least two federal courts have 

anticipated how we would decide the issue. See Armes v. Petro-Hunt, LLC, No. 

4:10-cv-078, 2012 WL 1493740 (D.N.D. Apr. 27, 2012) (“Based on Pechtl, the 

Court finds that the Armes’ claim for premises liability against Petro-Hunt is 

not a viable claim in North Dakota.”); see also Mathes v. Patterson-UTI Drilling 

Co. L.L.C., 44 F. Supp. 3d 691, 700 (S.D. Tex. 2014) (analyzing premises 
8

liability in this context and concluding “the only way Denbury would have a 

duty to Mathes is if it controlled the means, manner, or operative detail of the 

work performed”). 

[¶15] Under premises liability law, landowners have a general duty to 

maintain their premises in a reasonably safe condition for lawful entrants. 

Woody v. Pembina Cnty. Annual Fair and Exhibition Ass’n, 2016 ND 56, ¶ 4, 

877 N.W.2d 70. Premises liability is a theory of negligence. See Double Quick, 

Inc. v. Moore, 73 So.3d 1162, 1165 (Miss. 2011). A premises liability claim is 

different than a claim for injuries based on negligent activity. Hutson v. Pate, 

216 N.E.3d 1085, 1093 (Ill. App. Ct. 2022).

“Negligence in the context of a negligent activity claim means 

simply doing or failing to do what a person of ordinary prudence in 

the same or similar circumstances would have done or not done. 

Negligence in the premises liability context generally means 

failure to use ordinary care to reduce or eliminate an unreasonable 

risk of harm created by a premises condition which the owner or 

occupier of land knows about or in the exercise of ordinary care 

should know about.”

City of El Paso v. Collins, 440 S.W.3d 879, 887 (Tx. Ct. App. 2013) (internal 

citation omitted).

[¶16] The closest we have come to addressing the viability of a premises 

liability claim in the context of a lawsuit by an independent contractor against 

an employer is Pechtl v. Conoco, 1997 ND 161. The owner of a wellsite hired 

an independent contractor. Id. at ¶ 3. The independent contractor’s employee 

was injured at the wellsite. Id. He sued the property owner alleging it had a 

duty to provide him with a safe workplace. Id. at ¶ 4. The trial court granted 

summary judgment ruling the property owner did not owe a duty of care 

because it did not control the independent contractor’s work. Id. at ¶ 5. We 

agreed noting the contractor “failed to identify any specific evidence” the 

property owner exercised control over the work at the wellsite. Id. at ¶ 15. We 

then addressed the contractor’s claim that the property owner “had a nondelegable duty regarding conditions at the worksite.” Id. at ¶ 20. We rejected 

this argument reasoning it was “governed by our resolution of the issue of 
9

retained control.” Id. at ¶ 21. Contrary to Hess’s assertion, we have not 

declared a property owner may never owe a duty to an independent contractor 

to maintain a safe worksite. 

[¶17] Other courts have analyzed the issue and concluded such a duty may 

exist under certain circumstances. A leading case in Minnesota explained an 

employer’s “personal negligence, in an appropriate case, may consist of breach 

of a duty to exercise reasonably careful supervision of a jobsite where 

employees of the independent contractor are working when the employer 

retains control or some measure of control over the project.” Conover v. N.

States Power Co., 313 N.W.2d 397, 401 (Minn. 1981). The Supreme Court of 

California has explained: “unless a landowner retains control over any part of 

the contractor’s work and negligently exercises that retained control in a 

manner that affirmatively contributes to the injury, it will not be liable to an 

independent contractor or its workers for an injury resulting from a known 

hazard on the premises.” Gonzales v. Mathis, 493 P.3d 212, 216 (Cal. 2021) 

(internal citation omitted). Texas appears to have codified a version of this 

principle. See Rosa v. Mestena Operating, LLC, 461 S.W.3d 181, 184 (Tex. App. 

2014) (noting under Texas law a property owner is not liable to contractors for 

injuries unless he exercised control over the work and had actual knowledge of 

the danger resulting in the injury). 

[¶18] We decline Hess’s invitation to adopt a broad rule relieving property 

owners of liability to independent contractors for dangerous worksite 

conditions under all circumstances. Our general retained-control rule applies 

in this context. A property owner may be held liable to an independent 

contractor and its employees for injuries resulting from hazards at a workplace 

when the property owner retains control over the work. This holding does not 

displace our general premises liability jurisprudence, including rules 

concerning control of the premises, open and obvious dangers, and the like. 

Here, after determining Hess did not exercise control of Schmidt’s work, the 

district court held “North Dakota law does not allow employees of independent 

contractors to sue for premises liability in situations like this case.” As we have 

explained, Schmidt has presented evidence creating a genuine issue of 
10

material fact on the question of retained control. For this reason, we reverse 

the court’s judgment dismissing Schmidt’s claims against Hess. 

IV

[¶19] Schmidt argues the district court erred when it granted summary 

judgment holding Basin Safety did not owe him a duty of care. Schmidt claims 

the “direct actions of Basin Safety in negligently designing, installing, and 

maintaining the air system are the basis of the claims asserted by Schmidt.”

Basin Safety interprets Schmidt’s claim as a product liability action, and Basin 

Safety raises various issues and defenses as to why it cannot be liable for 

injuries resulting from use of the equipment. Schmidt does not respond to those 

defenses or address those issues. Schmidt instead argues his “claims are not 

based on products liability, but negligence.” 

[¶20] Our product liability laws, N.D.C.C. ch. 28-01.3, apply to “any action 

brought against a manufacturer or seller of a product” regardless of the 

“substantive legal theory or theories” on which the action is brought. N.D.C.C. 

§ 28-01.3-01(2). A “manufacturer” is a person or entity who “designs, 

assembles, fabricates, produces, constructs, or otherwise prepares a product or 

a component part of a product” prior to its sale. N.D.C.C. § 28-01.3-01(1). 

Negligence, in the context of products liability, “focuses on whether or not the 

conduct of the manufacturer or seller falls below the standard of reasonable 

care.” Messer v. B & B Hot Oil Serv., 2015 ND 202, ¶ 10, 868 N.W.2d 373

(quoting Oanes v. Westgo, Inc., 476 N.W.2d 248, 253 (N.D. 1991)). A 

manufacturer owes a duty of care to ensure its product is “reasonably safe for 

the use for which it was intended.” Johnson v. Am. Motors Corp., 225 N.W.2d 

57, 62 (N.D. 1974) (quoting Lindenberg v. Folson, 138 N.W.2d 573, 575 (N.D. 

1973)). Liability may arise for personal injury caused by, among other acts, a 

manufacturer’s “construction,” “design,” “installation,” “preparation,” or 

“assembly,” of a product or “failure to provide proper instructions for the use of 

any product.” N.D.C.C. § 28-01.3-01(2).

[¶21] Schmidt has expressly and repeatedly disavowed any claim against 

Basin Safety under a products liability theory. Absent a duty as a 

manufacturer of the equipment at issue, which Basin Safety argues is 
11

nonexistent for reasons uncontested by Schmidt, we are not persuaded Basin 

Safety owed Schmidt a duty of care. Schmidt claims Basin Safety “was aware 

of the tripping hazard that the air hose presented and chose to do nothing 

about it” and Basin Safety “failed to provide policies and procedures on the 

safest way to use the air hose breathing system.” However, we agree with the 

district court’s determination that “there is insufficient evidence to establish

that Basin Safety had any control over the job site.” We conclude, as a matter 

of law, Schmidt failed to establish Basin Safety owed him a duty of care. 

V

[¶22] The judgment in favor of Basin Safety is affirmed. The judgment in favor 

of Hess is reversed. The case is remanded for further proceedings.

[¶23] Jon J. Jensen, C.J.

Daniel J. Crothers

Lisa Fair McEvers

Jerod E. Tufte

Douglas A. Bahr