Intents, Inc. v. Southwestern Electric Power Co.
2011 Ark. 32
| Ark. | 2011Background
- SWEPCO owns energized overhead lines; Intents, Inc. failed to provide required notice under 11-5-307 prior to work near the lines.
- October 14, 2004: Intents employees manning a large tent near SWEPCO lines suffered injuries and some fatalities.
- Lawsuits were filed against SWEPCO; one claim was dismissed, two estates obtained judgments in SWEPCO's favor.
- Intents sought to apply the exclusive-remedy provision of the Arkansas Workers’ Compensation Act to bar indemnity.
- SWEPCO sought indemnity and attorney’s fees under Ark. Code Ann. § 11-5-305; total indemnity claims noted were $78,283.76 plus fees.
- Cross-motions for summary judgment focused on whether § 11-5-305 overrides exclusive-remedy; the circuit court granted indemnity and fees.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 11-5-305 overrides exclusive remedy. | Intents argues exclusivity bars indemnity. | SWEPCO argues special-law indemnity exists by statute. | Yes; indemnity overrides exclusivity. |
| Whether the Work Near High Voltage Lines Act creates a statutory special relationship. | Paragould-based logic applies by operation of law. | No implied indemnity; statute creates a duty only to notify. | Yes; special relationship created by statute supports indemnity. |
| Whether attorney’s fees are recoverable under § 11-5-305 when no property damage or personal injury to SWEPCO occurred. | Fees are recoverable as part of damages under the statute. | Fees require property damage or personal injury to the owner. | Yes; fees recoverable under statute in this context. |
| Whether the fee award was within the circuit court’s discretion. | Awarding fees is proper as the statute contemplates ‘all loss, cost, and damages’. | Fee awards require strict adherence to penal nature; abuse of discretion standard. | No abuse of discretion; award affirmed. |
Key Cases Cited
- Gourley v. Crossett Pub. Schs., 333 Ark. 178 (1998) (exclusivity and immunity principles in workers’ compensation context)
- W.M. Bashlin Co. v. Smith, 643 S.W.2d 526 (Ark. 1982) (exclusivity rule applies to third-party tort claims against employer)
- Mosley Machinery Co., Inc. v. Gray Supply Co., 833 S.W.2d 772 (Ark. 1992) (implied indemnity limits when no contract or implied obligation exists)
- Helms v. Southern Farm Bureau Casualty Insurance Co., 664 S.W.2d 870 (Ark. 1984) (workers’ compensation generally exclusive remedy; public policy considerations)
- Oaklawn Jockey Club, Inc. v. Pickens-Bond Construction Co., 477 S.W.2d 477 (Ark. 1972) (indemnity where contract impliedly provides duty to indemnify)
- Smith v. Paragould Light & Water Comm’n, 793 S.W.2d 341 (Ark. 1990) (implied indemnity under special operation-of-law relationship)
- C & L Rural Electric Cooperative Corp. v. Kincaid, 256 S.W.2d 337 (Ark. 1953) (express indemnity contracts as exception to exclusivity)
- Elk Corp. of Arkansas v. Builders Transport, Inc., 862 F.2d 663 (8th Cir. 1988) (two primary indemnity contexts recognized by operation of law)
- Paragould Light & Water Comm’n v. Smith, 303 Ark. 109 (1990) (special relationship arising by operation of law; tapping of sewers statute)
