Opinion ID: 4511044
Heading Depth: 2
Heading Rank: 2

Heading: The Resulting Personal-Injury Lawsuit

Text: In November 2014, Garza sued in New Mexico state court the well-site operator (Devon Energy Production Company, L.P.), Metz, RW Trucking, and KT Investments, Inc., alleging premises liability and negligence. The complaint’s factual section states in full: 9. Devon is and was at all relevant times the operator of a well known as Cotton Draw Unit, Well No. 214H, located in Eddy County, New Mexico (the “well site”). 10. As the operator, Devon was responsible for the design, construction, maintenance, repair, inspection, structure assembly, installation, upkeep, and safety of the well site and the well site equipment. 11. On March 23, 2014, there was an explosion at the well site in which Plaintiff was injured. The explosion happened after Defendant Metz lit a cigarette and because Defendant Devon failed to properly inspect, maintain, and operate the well site. 12. Plaintiff suffered serious burns and other injuries. Id. at 329. Garza alleged that Metz owed him a duty to exercise ordinary care, which Metz breached, and that RW Trucking had negligently hired, trained, supervised, and retained its agents and had not trained, controlled, directed, or supervised its employees as a reasonable employer would have done. Garza filed an amended complaint nearly two years later. There, he re-alleges the same claims as in the original complaint—but added vicarious liability as an additional theory supporting his claim against RW Trucking—with a few additional factual allegations. The factual section now states in full: 4 9. Devon is and was at all relevant times the operator of a well known as Cotton Draw Unit, Well No. 214H, located in Eddy County, New Mexico (the “well site”). 10. As the operator, Devon was responsible for the design, construction, maintenance, repair, inspection, structure assembly, installation, upkeep, and safety of the well site and the well site equipment. 11. At all times relevant to this lawsuit, Defendant R W Trucking’s business was to haul water at the Cotton Draw Unit under a contract with Devon. R W Trucking entered into contracts with other entities, including KT Investments, Inc., to carry out R W Trucking’s work under the Devon contract. In order to carry out its duties under the contract with R W Trucking, it was necessary for KT Investments to associate drivers. 12. Truck drivers were essential to R W Trucking’s business. R W Trucking hired, trained, supervised, and retained Jason Metz as a driver. It was within Metz’[s] job duties to drive to particular well sites, talk to personnel at the well sites, and take direction from other personnel as to where to go and what fluids to haul. 13. R W Trucking retained contractual control over the details of Jason Metz’[s] work, and exercised actual control over the details of Jason Metz’[s] work. R W Trucking performed a road test of Jason Metz and had ultimate authority to accept or reject Jason Metz as a driver. R W Trucking dispatched Jason Metz, thus telling him where to go and when to be there. R W Trucking provided Jason Metz with all necessary equipment to perform the job, including the tractor and trailer that Jason Metz drove. R W Trucking had control over whether to terminate Jason Metz’[s] employment as a driver, and had control over whether to discipline Jason Metz for violations of R W Trucking’s policies and procedures. 14. In addition, KT Investments, Inc. and R W Trucking, LLC were engaged in a joint venture and/or partnership. They shared in profits and losses from work performed at the Cotton Draw Unit. When Jason Metz worked at the Cotton Draw as a driver for R W Trucking, he was instructed to identify himself only as an agent of R W Trucking. The truck Jason Metz drove bore the emblem of R W Trucking. 15. On March 23, 2014, there was an explosion at the well site in which Plaintiff was injured. The explosion happened after Defendant Metz lit a cigarette and because Defendant Devon failed to properly inspect, maintain, and operate the well site. 5 16. Plaintiff suffered serious burns and other injuries. Id. at 588–89. Garza also alleges that Devon breached its duty to him by its “failure to store oil in a way that would stop or limit the release of explosive gas into the atmosphere.” Id. at 590. But the amended complaint provides no additional factual allegations regarding Metz and RW Trucking. In 2015, Burlington defended RW Trucking against Garza’s claims, and in 2016 defended Metz too. Both defendants had tendered their defense 3 to Burlington, which defended under a reservation of rights. In October 2016, RW Trucking’s counsel sent Carolina a letter asking whether Carolina intended to indemnify it for any damages awarded to Garza. In November 2016, Burlington tendered RW Trucking’s defense to Carolina. A few days later, Carolina’s coverage counsel acknowledged having received RW Trucking counsel’s letter and advised that it would need about a week to respond. In January 2017, Metz’s counsel tendered his defense to Carolina. On January 23, 2017, Carolina responded to Metz’s counsel, stating that it was “reviewing all coverage issues involved in this matter and reserv[ing] all rights under the Motor Carrier policy referenced above.” Id. at 811. Carolina further advised that it planned to attend a mediation scheduled for January 31, 2017. That same day, Carolina responded identically to RW Trucking counsel’s letter. At the mediation conference, Garza settled his claims for $850,000— 3 A tender of defense notifies the insurer of all claims against its insured. See, e.g., 14 Steven Plitt et al., Couch on Insurance § 200.32 (3d ed., Dec. 2019 update). 6 Burlington paid $415,000 on behalf of RW Trucking and Metz; Carolina, $375,000 on behalf of RW Trucking; and Devon, $60,000 on its own behalf. In the settlement agreement, Carolina and Burlington reserved “all rights between themselves to seek reimbursement/contribution/subrogation/indemnity, etc. from the other for the contributions made to the settlement amounts set forth herein.” Id. at 1023. In a release signed after settlement, they also reserved the “right to bring any claims that they have or may have against one another arising from their coverage and/or defense of the claims asserted in the Lawsuit.” Id. at 1028.