Opinion ID: 1137108
Heading Depth: 2
Heading Rank: 3

Heading: Liability for the Workers' Injuries at Common Law

Text: Because we have held that the exclusive liability provision in the Workmen's Compensation Act does not shield Alyeska from common law tort liability, we must reach the issue raised in Everette's appeal in no. 4067: what liability, if any, does Alyeska have to employees of its execution contractors under common law. The general rule is that the employer of an independent contractor does not assume a duty of care to employees of the independent contractor. Morris v. City of Soldotna, 553 P.2d 474, 478 (Alaska 1976); Hobbs v. Mobil Oil Corp., 445 P.2d 933, 934 (Alaska 1968). But we have adopted the exception to that general rule contained in the Restatement (Second) of Torts § 414 (1965): Negligence in Exercising Control Retained by Employer. One who entrusts work to an independent contractor, but who retains the control of any part of the work, is subject to liability for physical harm to others for whose safety the employer owes a duty to exercise reasonable care, which is caused by his failure to exercise his control with reasonable care. [Emphasis added.] Morris v. City of Soldotna, 553 P.2d at 478; Hobbs v. Mobil Oil Corp., 445 P.2d at 934. Furthermore, in Hobbs we held that employees of independent contractors, such as Everette, are others, and as such are owed all the common law duties expressed in Restatement (Second) of Torts § 414 (1965). Under this theory, if the employer has retained control over the work it should be responsible for all harmful consequences of its negligent exercise of that control. Id. [6] If the employer reserves only the right to direct the order of performance, to inspect its progress, or to receive reports, it has probably not retained sufficient control to be subject to liability. See State v. Morris, 555 P.2d 1216, 1218 (Alaska 1976); Restatement (Second) of Torts § 414, Comment c (1965). [7] On the other hand, if the employer retains the right to direct the manner of the independent contractor's performance of its work or to superintend the work in any meaningful way, the employer has retained sufficient control to be held liable. Restatement (Torts) Second § 414, Comments b & c (1965). Whether the employer has retained such control is a question of fact which ordinarily should be left to the jury or, in a bench trial, to the judge. Morris v. City of Soldotna, 553 P.2d at 479; Hobbs v. Mobil Oil Corp., 445 P.2d at 935. [8] In case no. 4067 the superior court disposed of this question by granting summary judgment in favor of Alyeska. In reviewing Everette's appeal from the summary judgment, we must determine whether the material question of Alyeska's control was genuinely in issue so that the case should have gone to trial instead of being disposed of summarily. Hobbs v. Mobil Oil Corp., 445 P.2d at 935. See Rule 56, Alaska R.Civ.P. In making this determination, we are required to view the evidence in the light most favorable to the non-moving party, Everette, drawing all inferences in his favor. See Clabaugh v. Bottcher, 545 P.2d 172, 175 n. 5 (Alaska 1976). Everette relies upon job specifications, contract provisions, and a project safety control manual to show the degree of control retained by Alyeska and Bechtel. Reviewing these documents in the light most favorable to Everette tends to show that Alyeska retained sufficient control over the manner of PPCO's performance of its work to justify liability, but that Bechtel did not. Under the contract with Alyeska, PPCO was obligated to adhere to certain job specifications. These specifications included procedures for handling and stringing the pipe on the pipeline. [9] Everette alleges that Alyeska was aware that prior to his accident other accidents had occurred when pipe had been dislodged from wooden skids after having been strung in accordance with the specifications. No measures were taken to modify the specifications. Everette cites one incident, however, from which it can be inferred that Alyeska did retain responsibility to revise job specifications to ensure worker safety. On one occasion, stacked pipe slipped and killed a worker. The predecessor to Alyeska, Trans-Alaska-Pipeline System, responded to the accident by revising the stacking specifications. The project safety control manual was apparently published jointly by Alyeska and Bechtel. It stated that Alyeska was responsible for the establishment of a safety program for Bechtel and that Bechtel was responsible to coordinate and control the execution contractors on safety matters. Alyeska and Bechtel maintain that neither Alyeska nor Bechtel retained control over that aspect of the pipeline work which resulted in the accident and Everette's injuries. They maintain that the job specifications for stringing the pipe were minimal and not intended to preclude PPCO from taking additional safety precautions. The contract, in addition to obligating PPCO to perform according to the job specifications, provided that Alyeska had no power to supervise the employees of PPCO. Alyeska also claims that by preparing the project safety control manual it did not retain control over safety and relieve PPCO of its duty to provide for the safety of its employees. It merely retained the power to forbid the work from being done in a dangerous manner, which in itself is not a sufficient degree of retained control to result in liability. See State v. Morris, 555 P.2d at 1218, quoting, Orr v. United States, 486 F.2d 270, 275 (5th Cir.1973); Restatement (Second) of Torts § 414, Comment a (1965). The documents and depositions are contradictory and provide ample evidence in support of both Alyeska's and Everette's positions. As such, they raise a genuine issue of fact on the question of control for the jury. Because a genuine issue of material fact exists in this case, we reverse the superior court's grant of summary judgment in favor of Alyeska. We affirm the summary judgment, however, as it pertains to Bechtel. [10] Bechtel had relinquished whatever control it had over safety procedures to Alyeska eleven months before Everette's injury. Everette concedes this fact. Thus at the time of the accident, Bechtel did not retain the power to revise job specifications or to control safety procedures. These facts, even when viewed in the light most favorable to Everette, demonstrate that Bechtel did not retain any control which would justify liability. [11] The summary judgment in case no. 4067 is REVERSED in part and AFFIRMED in part.