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411 P.3d 369
Okla.
2018
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Background

  • Decedent David Chambers, an RDT Trucking employee, died from severe burns while working at a well site operated by Stephens Production Company (SPC).
  • Plaintiff Glory Strickland (Special Administrator) sued SPC for wrongful death alleging negligence in operation, maintenance, inspection, and warning of dangerous conditions.
  • SPC moved to dismiss under 85A O.S. Supp. 2013 § 5(A) (OAWCA), which makes owners/operators of oil and gas wells "deemed to be an intermediate or principal employer" for immunity from civil tort suits.
  • The district court denied dismissal, holding the last sentence of § 5(A) an unconstitutional special law; certified the interlocutory order for review.
  • The Oklahoma Supreme Court granted certiorari to decide whether the statute's automatic deeming of oil/gas owners/operators as principal employers violates Art. 5, § 59 of the Oklahoma Constitution.
  • The Court severed the last sentence of § 5(A) (invalidating the industry-specific deeming provision) but left the remainder of § 5(A) intact; SPC may still attempt to prove principal/employer status under traditional tests on remand.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the last sentence of 85A § 5(A) (automatically deeming oil/gas owners/operators principal/intermediate employers) is a prohibited special law under Okla. Const. Art. 5, § 59 Strickland: The provision singles out oil/gas industry without a distinctive characteristic or reasonable basis and thus is an unconstitutional special law SPC: Oil/gas industry is unique (complex processes, multiple subcontractors) and needs certainty of immunity; statute reasonably related to legislative objective The last sentence is an impermissible special law (violates Art. 5, § 59) and is unconstitutional; struck and severed
Whether the unconstitutional clause is severable from § 5(A) Strickland: The core exclusive-remedy language is independent and would survive SPC: (implicitly) the provision is integral to the statute's operation Court: Clause is severable; remaining exclusive-remedy language remains effective; parties may still litigate principal-employer status under existing common-law/statutory tests

Key Cases Cited

  • Grant v. Goodyear Tire & Rubber Co., 5 P.3d 594 (Okla. 2000) (invalidating legislative singling out of one industry under workers' compensation as unconstitutional special law)
  • Smalygo v. Green, 184 P.3d 554 (Okla. 2008) (describing reach of vertical/secondary employer liability in workers' compensation context)
  • Bradley v. Clark, 804 P.2d 425 (Okla. 1990) (applying necessary-and-integral test to reject principal-employer status for hirer)
  • TXO Production Corp. v. Oklahoma Corporation Commission, 829 P.2d 964 (Okla. 1992) (statutory construction principle: when legislature reenacts similar language, court applies prior judicial constructions)
  • Lee v. Bueno, 381 P.3d 736 (Okla. 2016) (standard: statutory constitutional challenges reviewed de novo)
  • Naifeh v. Oklahoma Tax Comm'n, 400 P.3d 759 (Okla. 2017) (severability analysis framework)
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Case Details

Case Name: STRICKLAND v. STEPHENS PRODUCTION COMPANY
Court Name: Supreme Court of Oklahoma
Date Published: Jan 23, 2018
Citations: 411 P.3d 369; 2018 OK 6
Court Abbreviation: Okla.
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    STRICKLAND v. STEPHENS PRODUCTION COMPANY, 411 P.3d 369