Opinion ID: 1159973
Heading Depth: 1
Heading Rank: 4

Heading: vicarious liability of an owner

Text: Although we have concluded that Chevron's direct duty to appellant precluded summary judgment, we must still discuss Chevron's potential vicarious liability because it could have a very real effect on Chevron's liability after remand. See Conover v. Northern States Power Company, supra, 313 N.W.2d at 403. For example, if the jury concludes that 35 percent of the fault is chargeable to Chevron, 25 percent to Automation, and 40 percent to appellant, then appellant can recover from Chevron under comparative negligence only if Automation's fault is imputed to Chevron. Chevron would then be 60 percent at fault compared to appellant's 40 percent. See § 1-1-109, W.S. 1977; Board of County Commissioners of County of Campbell v. Ridenour, Wyo., 623 P.2d 1174 (1981). Although appellant claims that Chevron retained some control over the electrical lines, he concedes that Automation was an independent contractor rather than a Chevron employee. Generally, the employer of an independent contractor is not responsible for the contractor's inadequate acts unless the employer did not use due care in selecting the contractor. Cline v. Sawyer, Wyo., 618 P.2d 144, 148 (1980). See also Restatement, Second, Torts § 409. But many exceptions to this rule have been recognized which prevent an owner from delegating his duty of care to an independent contractor. Both appellant and the Wyoming Trial Lawyers Association, who submitted an amicus brief, argue that Chevron should be vicariously liable to appellant for Automation's negligence because the electrical work contracted to Automation was inherently dangerous. They urge us to adopt §§ 416 and 427 of the Restatement, Second, Torts which simply restate the time-honored rule that an owner cannot delegate to an independent contractor the duty to protect others from inherently dangerous activities conducted on the owner's land. See W. Keeton, Prosser and Keeton on Torts § 71 at 512 (1984). Section 416 states:  Work Dangerous in Absence of Special Precautions. One who employs an independent contractor to do work which the employer should recognize as likely to create during its progress a peculiar risk of physical harm to others unless special precautions are taken, is subject to liability for physical harm caused to them by the failure of the contractor to exercise reasonable care to take such precautions, even though the employer has provided for such precautions in the contract or otherwise. Similarly, § 427 states:  Negligence as to Danger Inherent in the Work. One who employs an independent contractor to do work involving a special danger to others which the employer knows or has reason to know to be inherent in or normal to the work, or which he contemplates or has reason to contemplate when making the contract, is subject to liability for physical harm caused to such others by the contractor's failure to take reasonable precautions against such danger. Many courts have applied the inherently dangerous exception, as synthesized in §§ 416 and 427, when bystanders unconnected with the work are the others who are injured. But most jurisdictions that have decided the issue have refused to apply the exception when an employee of the contractor is the injured party. Tauscher v. Puget Sound Power & Light Company, supra, 635 P.2d 426, 429 and n. 2. There are several good reasons for this view. First, if a bystander is injured by the negligence of a financially irresponsible contractor, the owner may be the bystander's only source of recompense. The bystander is a totally innocent third party having no involvement in the work; and, if it is inherently dangerous and likely to cause harm, the owner undertaking the work should be responsible for the harm. The employee, on the other hand, is covered by worker's compensation even if the contractor is insolvent. The owner should not have to pay for injuries caused by the contractor when the worker's compensation system already covers those injuries. Sloan v. Atlantic Richfield Company, Alaska, 552 P.2d 157, 160-161 (1976). The owner has in a sense already assumed financial responsibility for the injuries because the independent contractor passes along his worker's compensation costs to the owner. Tauscher v. Puget Sound Power & Light Company, supra, at 430; Eutsler v. United States, 376 F.2d 634, 636 (10th Cir.1967). Second, under worker's compensation, an employer is released from tort liability for his employee's job-related injuries. If we held an owner vicariously liable for injuries to the contractor's employees, then the owner would be subject to greater liability than if he employed his own workers to do the job. Owners might be encouraged to use their own inexperienced employees instead of experienced independent contractors who specialize in hazardous work. Tauscher v. Puget Sound Power & Light Company, supra, at 430-431. Finally, if the owner maintains control over the work and exercises that control negligently, he can be directly liable to the employee for his own negligence. Rather than imposing vicarious liability in these cases, it is better to hold the contractor and the owner directly responsible for their own fault. The contractor will pay via worker's compensation and the owner through the tort system. Conover v. Northern States Power Company, supra, 313 N.W.2d at 405. We agree with the district court that §§ 416 and 427 of the Restatement, Second, Torts do not apply when an employee of a contractor is the plaintiff. The court properly granted summary judgment against appellant on his claim that Chevron was vicariously liable for the negligent acts of Automation.