Opinion ID: 1387290
Heading Depth: 1
Heading Rank: 4

Heading: Relationship Between Profile and Terra-Mulch

Text: The record reveals that Terra-Mulch and Profile are two distinct entities, with different employees, tax identification numbers, assets, liabilities, product lines and businesses. Furthermore, the record contains evidence about Profile's role in managing the safety features of Terra-Mulch's Conover facility, and the deficiencies therein. Stephen Ade, the Chief Financial Officer of Profile, testified that he coordinated safety activities for the plants. He admitted that the emergency stop button on the machine that maimed plaintiff had been disconnected, and though he blamed a third party vendor for the disconnection, he candidly conceded that the button had not been tested prior to the injury. Surely the failure of the safety program to test a critical emergency feature raises at least a triable issue of fact with respect to Profile's negligence in conducting the safety program. Similarly, a February 25, 2002 letter on behalf of St. Paul Underwriting to Jim Cebulski, Vice President and Controller of Profile warns that despite some concern there has [ sic ] been very few or no management systems developed or implemented to control employee or premise safety . . . and that the emphasis remains on improving productivity. The record also contains an e-mail, apparently from the same individual who wrote the above letter, advising his colleagues at the insurance company: Basically, the nine recommendations I submitted with My February Report have not been complied with . . . My viewpoint is that this location of Profile Products continues to be the worst workers comp risk I have seen in a long, long time. We should not insure this one! It is worth noting that all the individuals and activities referenced above relate to Profile, LLC, not Terra-Mulch, the statutory employer. Given the issues raised with respect to Profile's own negligence, and its undisputed status as a separate entity, I cannot agree with the majority's holding granting Profile immunity on the basis of its LLC status.