Opinion ID: 441783
Heading Depth: 2
Heading Rank: 2

Heading: The Trial Court Ruling

Text: 13 The district court concluded that the statutory employer-principal decisions relied upon by the plaintiff Dorden were inapposite because the present facts involve the distinguishable issue of whether a subsidiary is so dominated by its parent corporation as to be considered a principal for workmen's compensation exclusive-remedy purposes. In therefore granting summary judgment on this domination theory, the court relied upon Coco v. Winston Industries, Inc., 330 So.2d 649 (La.App. 3d Cir.1975), amended on other grounds, 341 So.2d 332 (La.), and Nichols v. Uniroyal, Inc., 399 So.2d 751 (La.App. 3d Cir.1981), which were felt to be virtually indistinguishable from the case at bar. 14 Nichols, however, involved a wholly-owned subsidiary organized solely to provide management and accounting services for stores owned by the parent corporation--as distinguished from a subsidiary such as Hydro-Tech that may have been engaged in business to service its own customers in the general public, and may not have functioned solely to perform services for the parent corporation that were part of the latter's trade, business, or occupation. Likewise distinguishably, Coco involved a wholly-owned subsidiary that was in existence purely for the benefit of the parent corporation, which subsidiary had no actual existence other than as a alter ego of the latter, and both of which corporations were completely run by one individual. Baker v. T.L. James & Co., Inc., 398 So.2d 1223 (La.App. 4th Cir.1981) (distinguishing Coco and reversing the trial court that in reliance upon Coco had granted summary judgment in favor of the dominant corporation). 15 Baker, supra, held that a related or dominant corporation could not claim tort immunity as a principal under La.R.S. 23:1061, for an injury that had been sustained by the employee of another corporation allegedly performing the principal's work. To avail itself of this tort-immune status, Baker held, the alleged principal must show that the other corporation had undertaken to perform part of the work shown to be part of the principal's trade, business or occupation. Baker, 398 So.2d at 1226. This requirement, we believe, is consistent with the statutory intent and the Louisiana jurisprudence, and it is not here met. And, with regard to the alter ego contention, as Baker indicated, id.: 16 Generally, common ownership, identity of management, and the presence of a common insurer are not enough to create identity between parent and subsidiary for compensation purposes. Probably the most significant factor is actual control, and if the subsidiary is in practice not only completely owned but completely controlled by the parent, identity may well be found and immunity conferred. 17 2A Larson's Workmen's Compensation Law (1983), Sec. 724 at p. 14-191. 18 Under the appropriate Louisiana jurisprudence, therefore, there are disputed issues of material fact governing whether Heist can claim tort-immunity as a principal. Summary judgment was improvidently granted. 19