Opinion ID: 1998556
Heading Depth: 2
Heading Rank: 1

Heading: Liability as an Operator

Text: The legal standard for operator is set forth in Meyer. Briefly, the determination of who has responsibility for the daily operation and therefore is an operator of the tanks turns on (1) what constituted the daily operation of the tanks, (2) who did these things, (3) in what capacity that person was acting and (4) who is responsible for that person's actions in that capacity. Shell Oil Co. v. Meyer, 705 N.E.2d 962 (Ind.1998). The daily operation is to be judged by the standard of the time period in question. The issue of who is responsible for the individual's actions is governed by conventional principles of law. Shell designated the following evidence in support of its motion for summary judgment, all of which is not controverted. Shell never owned the Brownsburg station. Almond Oil (Almond) was a jobber or independent distributor for Shell from the mid 1960s to the late 1970s. Almond's arrangement with Shell included purchasing products at wholesale and the right to the use of Shell's trademark. Almond leased the Brownsburg station from Galyan's from 1970 to August 1980. Almond sub-leased the Brownsburg station to others who purchased Shell products from Almond. Almond and the sublessee entered a supply contract for the Shell products and the use of Shell's trademark. Shell retained no right to direct Almond's operations regarding the tanks at the stations Almond supplied and had no agreement with the sublessees at the Brownsburg station. Although these facts demonstrate that Shell did not retain the contractual right to operate the station's tanks, they do not negate the possibility that Shell is liable for the actions of those who did perform the daily operation of the tank. Shell did not designate evidence permitting us to determine what activities were associated with the daily operation of the tank for the time period it was operated as a Shell station. Nor did Shell designate evidence as to who performed (or did not perform) these activities and in what capacity. Further, Lovold contends that Almond distributed Shell gasoline to the station for only part of the period it was a Shell brand station. Neither party designates evidence establishing the dates that Almond acted as jobber compared to the time the station was a Shell retailer. To prevail on summary judgment Shell must produce evidence that, if true, negates each element of the standard for operator. On this record we find nothing that negates the possibility of a commissioned driver for Shell similar to Fred Smith in Meyer or some other individual acting on Shell's behalf. At trial, Lovold will carry the burden of proof as to Shell's status as an operator. If Almond functioned as Murphy Enterprises in Meyer, and was in the distribution chain at all times, Lovold may well fail. Indeed, a renewed motion by Shell for summary judgment in light of Meyer may succeed. However, on the facts designated in this record, Shell has not carried its burden of demonstrating the absence of a genuine issue of material fact and is accordingly not entitled to summary judgment under Mullin v. Municipal City of South Bend, 639 N.E.2d 278, 281 (Ind.1994).