Court Opinion

ID: 9639576
Source: CourtListenerOpinion
Date Created: 2023-08-22 16:23:38.955935+00
Date Added: 2024-06-11T17:21:39.057914
License: Public Domain

ALMA L. LÓPEZ, Justice,
dissenting.
Because the contract between Victoria Electric and Urban contains multiple provisions to support Victoria Electric’s retention of the right to control the project, I would hold there was sufficient evidence to support the trial court’s determination that Victoria Electric was vicariously liable for Urban’s negligence. Therefore, I respectfully dissent from the majority’s opinion.
In Newspapers, Inc. v. Love, 380 S.W.2d 582 (Tex.1964), the Texas Supreme Court held that if a right of control over the work has a contractual basis, the fact that no actual control was exercised will not absolve an employer of liability. It is the right of control, not the actual exercise of control, which gives rise to a duty to see that an independent contractor performs work in a safe manner. Id. at 590. Otherwise, contract rights and relationships based thereon would be destroyed. Id. at 592; see also Pollard v. Missouri Pacific R.R. Co., 759 S.W.2d 670, 670 (Tex.1988). In order to be hable for an independent contractor’s acts, a general contractor must have the right to control the means, methods, or details of the independent contractor’s work. See Elliott-Williams Co., Inc. v. Diaz, 9 S.W.3d 801, 804 (Tex.1999). The construction of the contract as to the right of control is a legal question. See id.
Section 414 of the Restatement (Second) of Torts and its comments specifically outline the degree of control necessary to create a duty. As interpreted by the Texas Supreme Court, “this rule[] applies when the employer retains some control over the manner in which the independent contractor’s work is performed, but does not retain the degree of control which would subject him to liability as a master.” See Redinger v. Living, Inc., 689 S.W.2d 415, 418 (Tex.1985) (emphasis added) (citing Restatement (Second) of ToRts § 414 (1977)). Comment c of the rule explains, in part, that “[t]he employer must have retained at least some degree of control over the manner in which the work is done” in order for the rule to apply. Restatement (Second) of ToRts § 414, comment c (1977) (emphasis added). The employer’s role must be more than a general right to order the work to start or stop, to inspect progress, or receive reports. Id. Rather, the rule is applicable where the employer retains:
*333... the power to direct the order in which the work shall be done, or to forbid its being done in a manner likely to be dangerous to himself or others. Such a supervisory control may not subject him to liability under the principles of Agency, but he may be liable under the rule stated in this Section unless he exercises his supervisory control with reasonable care so as to prevent the work which he has ordered to be done from causing injury to others.
Restatement (Second) of ToRts § 414, comment a (1977). Accordingly, an employer’s control over the operative details results in vicarious liability. See Malone v. Ellis Timber, Inc., 990 S.W.2d 933, 935 (Tex.App.-Beaumont 1999, no pet.) (citing Baptist Mem. Hosp. Sys. v. Sampson, 969 S.W.2d 945, 947 (Tex.1998)).
Article II, section 3 of the 1995 Distribution Line Extension Construction Contract regarding the supervision and inspection of construction specifically provides that “the manner of performance of the work ... shall be subject to the inspection, tests, and approval of’ Victoria Electric. Under this article, Victoria Electric requires that Urban employ a superintendent to continuously supervise the work being performed and specifically requires that the “[djirections and instructions given to the superintendent by [Victoria Electric] shall be binding on [Urban].” Victoria Electric has the right to remove any Urban employees from a work site, to increase the number of employees working, and the right to change or increase the amount or kinds of tools and equipment being used. Further, Victoria Electric has the right to inspect Urban’s books, payroll, and personnel records. Finally, article IV of the contract regarding protection of persons and property specifically requires Urban to take all reasonable safety precautions for the safety of employees on the job and of the public and requires it to comply with all applicable federal, state, and municipal safety laws as well as Victoria’s own safety rules.
On rehearing, the majority concedes that under the contract in question, Victoria Electric retains some right of control over Urban’s activities. However, by focusing on only one aspect of the contract (i.e. Urban’s adherence to applicable safety rules and regulations), the majority concludes that the right of control is supervisory in nature. The contract specifically provides that Urban will perform the work in accordance with construction specifications and applicable safety laws. The contract expressly references the safety rules and regulations of Victoria Electric. It is undisputed that the safety rules and regulations of Victoria Electric are contained in a safety handbook. The safety handbook contains several provisions regarding the safe and proper method for transporting poles and other materials by truck. The handbook specifically mandates that poles be loaded parallel with the truck length and that they not extend beyond the normal side of the truck. The handbook also requires that warning devices must be attached when material extends more than four feet beyond the front or back of the truck. Finally, the handbook provides that at night and during periods of poor visibility, “red fights shall be used.” Under the contract, Victoria Electric reserved the right to order corrections if the work was not being done safely by Urban.
Relying upon Hoechst-Celanese Corp. v. Mendez, 967 S.W.2d 354 (Tex.1998), the majority remarkably concludes that Victoria Electric’s control, as defined under the contract, does not cover the operative details of Urban’s work. In Mendez, the Texas Supreme Court held that an employer’s duty of care is a narrow one when it is based solely on a requirement that the *334contractor comply with its safety rules. Mendez, 967 S.W.2d at 357. In Mendez, the contract in question contained a general provision requiring the subcontractor to train its employees in the safety-related rules and regulations of the general contractor, observe federal safety practices and regulations, and take all necessary precautions to keep its work area free from hazards. Contrastingly, in the instant matter, the contract provides more than a general statement that Urban adhere to applicable federal and state safety rules. By referencing Victoria’s own rules and regulations, the contract specifically dictates to Urban the proper procedure for transporting poles and, therefore, constitutes evidence of Victoria Electric’s control over the “operative detail” of Urban’s work.1 See Mendez, 967 S.W.2d at 357.
In addition to controlling Urban’s compliance with applicable safety laws and its own safety rules and regulations, the contract expressly provides that Victoria Electric retained the following rights of control: (1) the requirement that materials for construction be obtained from Victoria Electric’s warehouse; (2) the time allowed for completion of work and the rate at which construction is to proceed; (3) when weather will be deemed a prohibitive factor in completing the work and when extensions of time to complete work will be granted; (4) to make changes in the work to be done; (5) supervision and inspection of the work; (6) to remove any Urban employee from the project and to require Urban to increase the number of employees or change the amount or kind of tools and equipment being used; (7) to inspect, test, and approve the manner of perfor-manee of the work and the equipment used for the work; and (8) to require that Urban obtain certificates of insurance, and comply with all applicable statutes, ordinances, rules, and regulations pertaining to the work. Finally, the board resolution by the board of Victoria Electric approving the contract provided that Urban’s work would be performed “under the direction of Victoria Electric Cooperative.” Accordingly, Victoria Electric’s right of control under the contract goes beyond merely controlling Urban’s adherence to applicable safety regulations. See Lee Lewis Constr., Inc. v. Harrison, 70 S.W.3d 778, 788-89 (Tex.2001) (Hecht, J., concurring) (stating that the retention of control over safety is necessary, but not sufficient to impose liability; rather, more is required).
The right of control can be established one of two ways: by contract or by actual exercise of control. See Lee Lewis Constr. Inc., 70 S.W.3d at 783. After considering the contract as a whole and Victoria Electric’s own safety rules and regulations as referenced by the contract, I would hold there was sufficient evidence to establish Victoria Electric vicariously liable for negligence under section 414 of the Restatement (Second) of Torts and affirm the judgment of the trial court.

. Interestingly, the majority disposes with Victoria Electric’s guidelines on pole transportation by stating the guidelines impose "no additional safety requirements other than those already mandated by state law.” This conclusion improperly extends the applicable case law noted above by requiring that Victoria Electric needed to provide its own rales regarding pole transportation over and above that required by state law in order to be vicariously liable.