343 P.3d 783
Wyo.2015Background
- PRM Partners owned an oil well (Fuller Federal No. 5-18); PRM (its managing partner) was designated operator and contracted Hot Oil Services (Hot Oil) as an independent contractor to manage field-level well operations.
- Hot Oil frequently engaged third-party contractors (including Basic Energy) to perform services; Basic Energy brought a workover rig to No. 5-18 and was injured when oil erupted and a fire damaged its equipment.
- Basic Energy submitted and was paid a Daily Work Ticket invoice to PRM for labor; it later sued PRM Partners, PRM, and Hot Oil for damage to its equipment. Hot Oil was later dismissed by stipulation.
- The Daily Work Ticket contained terms: PRM must provide or reimburse safety/health equipment beyond Basic Energy’s routine practices; Basic Energy must bill PRM for repair/replacement cost of damaged equipment.
- The district court granted summary judgment for PRM and PRM Partners, finding Hot Oil an independent contractor and that PRM did not breach the contract; Basic Energy appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| 1. Did the Daily Work Ticket create enforceable obligations and did PRM breach (safety equipment BOP)? | PRM breached by not providing required safety equipment (BOP) when it was needed. | PRM argued no breach; district court concluded no breach. | Reversed in part: genuine issue exists whether a BOP was required; PRM failed to meet its summary judgment burden on this point. |
| 2. Did PRM breach the provision requiring Basic Energy to bill PRM for equipment damage? | Basic Energy argued PRM liable under Daily Work Ticket if billed. | PRM said no bill was presented, so no obligation to pay. | Affirmed: no genuine issue — Basic Energy never billed PRM as contract required; summary judgment for PRM proper on this provision. |
| 3. Is PRM liable for negligent hiring of Hot Oil (independent contractor)? | Basic Energy alleged negligent hiring caused the harm; PRM negligently selected/retained Hot Oil. | PRM contended independent-contractor rule negates liability and that issue was not properly presented. | Reversed and remanded: PRM failed to carry summary judgment burden; negligent-hiring claim (under Restatement §411) may proceed. |
| 4. Was apparent agency preserved/raised below so PRM can be vicariously liable? | Basic Energy now argues Hot Oil was apparent agent of PRM. | PRM says issue not raised below. | Not considered: appellate court refuses to address apparent agency first raised on appeal (not pleaded or litigated below). |
Key Cases Cited
- Hatton v. Energy Elec. Co., 148 P.3d 8 (Wyo. 2006) (standard and burden allocation for summary judgment review)
- Cranston v. Weston County Weed & Pest Bd., 826 P.2d 251 (Wyo. 1992) (recognition of negligent hiring theory and Restatement §213 discussion)
- Franks v. Indep. Prod. Co., Inc., 96 P.3d 484 (Wyo. 2004) (independent-contractor general rule limiting respondeat superior liability)
- Singer v. New Tech Eng’g L.P., 227 P.3d 305 (Wyo. 2010) (reiteration that employers generally not liable for independent contractor’s negligence)
- Union Pac. R.R. Co. v. Caballo Coal Co., 246 P.3d 867 (Wyo. 2011) (district court may not grant summary judgment sua sponte without proper notice and adversarial presentation)
