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Johnson v. Motiva Enterprises LLC
128 So. 3d 483
| La. Ct. App. | 2013
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Background

  • Vincent E. Johnson, an environmental cleanup truck driver employed by USIS (successor to AbClean), was exposed to benzene vapors at Motiva’s Norco refinery during tank-cleaning operations and later filed a tort suit against Motiva and two Motiva employees.
  • Johnson received workers’ compensation benefits from his employer and sued Motiva in district court seeking tort damages; Motiva asserted statutory-employer immunity under La. R.S. 23:1061(A)(3) based on a written contract between Shell (Buyer) and AbClean (Vendor) that listed Motiva as a Buyer affiliate and Norco as a participating location.
  • Trial court sustained Motiva’s exceptions of no cause and no right of action, finding Motiva a statutory employer and dismissing the tort suit; the appellate court remanded for a ruling on the statute’s constitutionality.
  • On remand the trial court upheld the 1997 amendment (La. R.S. 23:1061(A)(3)) as constitutional, denied declaratory relief, and again found Motiva immune in tort; this appeal followed.
  • The central legal questions were (1) whether the Shell–AbClean contract conferred presumptive statutory-employer status on Motiva (an affiliate) under § 23:1061(A)(3), (2) whether contract language was ambiguous or invalid under Prejean, (3) whether mental-injury claims fall outside the LWCA so as to preserve a tort remedy, and (4) whether § 23:1061(A)(3) is unconstitutional (equal protection, due process, access to courts).

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Motiva is a statutory employer under La. R.S. 23:1061(A)(3) Contract was only between Shell and AbClean/USIS; no separate contract with Motiva, so Motiva is not a statutory employer Section 32 names Buyer affiliates (including Motiva) and Norco as participating location; contract language creates statutory-employer status for affiliates Motiva is a statutory employer under the contract; presumption applies (affirmed)
Whether the contract is ambiguous (independent-contractor clause) Independent-contractor provision creates ambiguity and should be construed against Motiva Section 32 expressly excepts services in Louisiana and controls; provisions read together are not ambiguous Contract is not ambiguous; Section 32 governs and confers statutory-employer status
Whether Prejean invalidates the contract (unlawful condition re: workers’ comp) Contract improperly shifts obligation so Prejean renders immunity provision unenforceable Contract does not condition statutory employer liability on employer’s insolvency; solidary obligation exists under LWCA Prejean inapplicable; contract doesn’t create unlawful condition; statutory employer liability stands
Whether mental-injury claims remove statutory-employer immunity (i.e., are not covered by LWCA) Johnson’s mental injuries (fear of cancer, depression) may not be compensable under LWCA, so tort remedy should remain Mental injuries are cognizable under LWCA (with higher claimant burden); burden to prove compensability remains on claimant No requirement that defendant prove coverage; claimant bears burden; Motiva need not overcome mental-injury issue to obtain immunity
Whether La. R.S. 23:1061(A)(3) violates equal protection Amendment arbitrarily discriminates among similarly situated injured workers Classification is rationally related to legitimate state interests (spreading industry cost, prompt benefits) Rational-basis test satisfied; no equal-protection violation
Whether La. R.S. 23:1061(A)(3) violates due process or access to courts Statute deprives Johnson of vested property/right to sue and meaningful access to courts LWCA provides a specialized tribunal and expedited remedy; procedural and substantive due process satisfied Statute does not violate procedural or substantive due process; access to courts preserved via LWCA

Key Cases Cited

  • Prejean v. Maintenance Enterprises, Inc., 8 So.3d 766 (La. App. 4th Cir. 2009) (contract conditioning principal’s compensation obligation on contractor insolvency was infirm)
  • St. Angelo v. United Scaffolding, Inc., 40 So.3d 365 (La. App. 4th Cir. 2010) (broad application of who may benefit from statutory-employer provision among corporate affiliates)
  • Fleming v. JE Merit Constructors, Inc., 985 So.2d 141 (La. App. 1st Cir. 2008) (contractual intent can create statutory-employer status)
  • Mitchell v. Southern Scrap Recycling, L.L.C., 93 So.3d 754 (La. App. 1st Cir. 2012) (statutory-employer clause enforced despite independent-contractor language elsewhere in contract)
  • Moore v. RLCC Technologies, Inc., 668 So.2d 1135 (La. 1996) (upholding tort immunity under pre-1997 “integral relationship” test)
  • Bowens v. General Motors Corp., 608 So.2d 999 (La. 1992) (statutory employer and direct employer are solidarily liable under LWCA)
  • O’Regan v. Preferred Enterprises, Inc., 758 So.2d 124 (La. 2000) (discussing limits where workers’ comp remedy is unavailable)
  • Sibley v. Board of Supervisors of Louisiana State University, 477 So.2d 1094 (La. 1985) (equal-protection review framework)

Decree: The appellate court affirmed the trial court in all respects — Motiva is immune in tort as Johnson’s statutory employer and La. R.S. 23:1061(A)(3) is constitutional.

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Case Details

Case Name: Johnson v. Motiva Enterprises LLC
Court Name: Louisiana Court of Appeal
Date Published: Oct 30, 2013
Citation: 128 So. 3d 483
Docket Number: No. 13-CA-305
Court Abbreviation: La. Ct. App.