Premises Liability of Contractors & Subcontractors

37
Premises Liability of Premises Liability of Contractors & Contractors & Subcontractors Subcontractors R. Brent Cooper R. Brent Cooper Diana L. Faust Diana L. Faust Cooper & Scully, P.C. Cooper & Scully, P.C. 900 Jackson Street, Suite 100 900 Jackson Street, Suite 100 Tel: (214) 712 Tel: (214) 712 - - 9500 9500 Fax: (214) 712 Fax: (214) 712 - - 9450 9450 [email protected] [email protected] [email protected] [email protected] © © 2012 This paper and/or presentation provides information on gen 2012 This paper and/or presentation provides information on gen eral legal issues. It is not intended to provide advice on any eral legal issues. It is not intended to provide advice on any specific legal matter or factual situation, and should not be co specific legal matter or factual situation, and should not be co nstrued nstrued as defining Cooper and Scully, P.C.'s position in a particular s as defining Cooper and Scully, P.C.'s position in a particular s ituation. Each case must be evaluated on its own facts. This i ituation. Each case must be evaluated on its own facts. This i nformation is not intended to create, and receipt of it does not nformation is not intended to create, and receipt of it does not constitute, constitute, an attorney an attorney - - client relationship. Readers should not act on this information client relationship. Readers should not act on this information without receiving professional legal counsel. without receiving professional legal counsel.

Transcript of Premises Liability of Contractors & Subcontractors

Page 1: Premises Liability of Contractors & Subcontractors

Premises Liability of Premises Liability of

Contractors & Contractors &

SubcontractorsSubcontractors

R. Brent CooperR. Brent CooperDiana L. FaustDiana L. Faust

Cooper & Scully, P.C.Cooper & Scully, P.C.900 Jackson Street, Suite 100900 Jackson Street, Suite 100

Tel: (214) 712Tel: (214) 712--95009500Fax: (214) 712Fax: (214) 712--94509450

[email protected]@CooperScully.com

[email protected]@CooperScully.com

©© 2012 This paper and/or presentation provides information on gen2012 This paper and/or presentation provides information on general legal issues. It is not intended to provide advice on any eral legal issues. It is not intended to provide advice on any specific legal matter or factual situation, and should not be cospecific legal matter or factual situation, and should not be construed nstrued

as defining Cooper and Scully, P.C.'s position in a particular sas defining Cooper and Scully, P.C.'s position in a particular situation. Each case must be evaluated on its own facts. This iituation. Each case must be evaluated on its own facts. This information is not intended to create, and receipt of it does notnformation is not intended to create, and receipt of it does not constitute, constitute,

an attorneyan attorney--client relationship. Readers should not act on this informationclient relationship. Readers should not act on this information without receiving professional legal counsel.without receiving professional legal counsel.

Page 2: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 22

Historical Development

� Why Premises Treated Differently

Page 3: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 33

Historical Development

� Carlisle v. J. Weingarten, Inc., 152 S.W.2d 1073 (Tex. 1941)

� Premises Owner Owes “Those Who May Enter The Duty To Exercise Ordinary Care To See That The Premises Are In A Reasonably Safe Condition For Their Protection.”

Page 4: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 44

Historical Development

� McKee v. Patterson, 271 S.W.2d 391 (Tex. 1954)

� “A General Contractor In Control Of Premises Owes A Duty To The Employees Of Subcontractors Similar To That Owed By The Owner Or Occupier Of Land To His Invitees.”

Page 5: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 55

Historical Development

� Adam Dante Corp. v. Sharpe, 483 S.W.2d 452 (Tex. 1972)

� “This Court Has Often Measured The Duty Which An Occupier Of Premises Owes To An Invitee…the Duty Is That Which Is Summarized In Restatement (Second) Of Torts Sec. 343:

Page 6: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 66

Historical Development

� A Possessor Of Land Is Subject To Liability For Physical Harm Caused To His Invitees By A Condition On The Land, But Only If, He

� (a) Knows Or By The Exercise Of Reasonable Care, Would Discover The Condition, And Should Realize That It Involves An Unreasonable Risk Of Harm To Such Invitees, And

Page 7: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 77

Historical Development

� (b) Should Expect That They Will Not Discover Or Realized The Danger, Or Will Fail To Protect Themselves Against It, And

� (c) Fails To Exercise Reasonable Care To Protect Them Against The Danger

Page 8: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 88

Historical Development

� The Occupier Is Under The Further Duty To Exercise Reasonable Care In Inspecting The Premises To Discover Any Latent Defects And To Make Safe Any Defects Or To Give An Adequate Warning.

� Comment b

Page 9: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 99

Historical Development

� Ch. 95 Tex. Civ. Prac. & Rem. Code (1995)

Page 10: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 1010

Negligent Activity v. Premises Liability

� Keetch v. Kroger Co., 845 S.W.2d 262, 264 (Tex.1992).

� Generally, To Recover On A Negligent Activity Theory, One Must Have Been Injured By Or As A Contemporaneous Result Of An Activity.

� To Recover On A Premises Liability Theory, One Must Be Injured By A Condition On The Property Created By An Activity.

Page 11: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 1111

Negligent Activity v. Premises Liability

� Independent Theories of Recovery

– Clayton Williams v. Olivo (Tex. 1997)

� Distinctions

– Contemporaneous Activity

– Possession or Control is Necessary for Premises Liability

Page 12: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 1212

Negligent Activity v. Premises Liability

� Possession Or Control

� City of Denton v. Van Page, (Tex.1986).

� Ordinarily, A Person Who Does Not Own Or Possess Property Assumes No Liability For Injury Under A Premises Liability Theory, Unless He Assumes Control Over, And Responsibility For, The Premises.

� Prerequisite to Liability

Page 13: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 1313

Negligent Activity

� “Recovery On A Negligent Activity Theory Requires That The Person Have Been Injured By Or As A Contemporaneous Result Of The Activity Itself Rather Than By A Condition Created By The Activity.”

� Keetch v. Kroger Co.

Page 14: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 1414

Negligent Activity

� “At Some Point, Almost Every Artificial Condition Can Be Said To Have Been Created By An Activity. We Decline To Eliminate All Distinctions Between Conditions And Negligent Activities.”

� Keetch v. Kroger Co.

Page 15: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 1515

Negligent Activity

� “Contemporaneous” is defined as “existing, occurring, or originating during the same time.”

– Webster’s Collegiate Dictionary 283 (9th ed. 1986).

Page 16: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 1616

Negligent Activity

� Contemporaneous

� Examples of What is NOT:

� Corbin v. Safeway Stores, Inc.

– Grape On Floor

� Keetch v. Kroger Co.

– Spray On Floor 30 Minutes

Page 17: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 1717

Negligent Activity

� Clayton W. Williams, Jr. Inc. v. Olivo

– Drill Pipe Protector From Previous Shift

– Premises Liability

� Saeco Electric v. Gonzalez

– Uncompacted Hole For 15 Days

– Premises Liability

Page 18: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 1818

Negligent Activity

� Redinger v. Living, Inc. (Tex. 1985)

– Finger Crushed by Operation of Box Blade

– Contemporaneous Activity

Page 19: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 1919

Negligent Activity Jury Charge

� Did The Negligence, If Any, Of The Persons Named Below Proximately Cause The Occurrence In Question?

� Answer “Yes” Or “No” For Each Of The Following:

� a. Sub Contractor ______

� b. General Contractor ______

Page 20: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 2020Cooper & Scully, P.C.Cooper & Scully, P.C. 2020

Premises LiabilityPremises Liability

�� Corbin v. Safeway Stores, Inc.Corbin v. Safeway Stores, Inc. (Tex. (Tex.

1983)1983)–– Actual Or Constructive Knowledge Of Some Actual Or Constructive Knowledge Of Some

Condition On PremisesCondition On Premises

–– Condition Posed An Unreasonable Risk Of HarmCondition Posed An Unreasonable Risk Of Harm

–– Owner Did Not Exercise Reasonable Care To Owner Did Not Exercise Reasonable Care To

Reduce Or Eliminate The RiskReduce Or Eliminate The Risk

–– Failure To Exercise Reasonable Care Proximately Failure To Exercise Reasonable Care Proximately

Caused InjuryCaused Injury

Page 21: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 2121

Premises Liability

� Owner/Occupier/Possessor– Own, Possess, Control

– Occupier = Control

– Possessor = Occupier

– Possessor = Control

� Duty Does Not Extend Beyond Limits of Control

Page 22: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 2222

Premises Liability

� Control– Power or Authority to Guide or Manage

� Webster’s & Rendleman

– Contractual Right to Control� Question of Law

– Actual Exercise of Control� Question of Fact

Page 23: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 2323

Premises Liability

� Non-owner Who Controls Has Same Duty As Owner

– Wal-Mart Stores, Inc. v. Deggs � General Manager Who Controls Operations Of

Store May Have Duty To Maintain Premises In Condition Not Posing Unreasonable Risk Of Harm To Customers

Page 24: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 2424

Premises Liability

� Owner/Possessor Without Control

– Fifth Club, Inc. v. Ramirez (Tex. 2006)

� O Instruct IC To Eject Patron But Did Not Retain Right To Control Manner, So O Not Liable

Page 25: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 2525

Premises Liability

� Right to Control or Actual Control

– Pollard v. Missouri Pacific (Tex. 1988)

– Contractual Right of Control May Give Rise to Liability in Absence of Actual Control

Page 26: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 2626

Premises Liability

� Right to Control or Actual Control

– Wal-Mart Stores, Inc. v. Alexander (Tex. 1993).

� Actual Control in Absence of Contractual Right of Control May Give Rise to Liability

– Ensearch v. Parker, (Tex. 1990)

� Contract Giving O Right Order Work Changes, Make Adjustments In Contract Price, And Provide Procedure Manuals For Contractor’s Employees

� O’s Reps Frequently Visited Job Site And Supervised Work

Page 27: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 2727

Premises Liability

� No Contractual Right of Control and No Actual Exercise of Control

– Coastal Marine Serv. Of Tex. v. Lawrence (Tex. 1999)

� Mere Possibility Of Control Not Enough To Impose Liability

Page 28: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 2828

Premises Liability

� Exxon Corp. v. Tidwell (Tex. 1993)– Matters of Control Must Relate to

Instrumentality of Premises Causing Injury/Harm

� Elliott Williams Co., Inc. v. Diaz (Tex. 1999)– Control Retained By O Must Pertain To

Details Of Performance Of Work, Rather Than End Result

Page 29: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 2929

Premises Liability

� Dow Chem. Co. v. Bright (Tex. 2002)– Owner/Occupier May Be Liable For

Injuries Resulting From Dangers Arising From Contractor’s Activities On Premises Where O Exercises Control Over Contractor’s Work

– But O Does Not Incur Duty To Ensure IC Performing Work Safely By Having “Safety Employee” On Site

Page 30: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 3030

Premises Liability

� Lee Lewis Constr. Inc. v. Harrison(Tex. 2001)

– GC’s Exercise Of Control Over Fall-Protection System Subjected It To Liability To Employees Of Subcontractor Arising From Failure Of That System

Page 31: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 3131Cooper & Scully, P.C.Cooper & Scully, P.C. 3131

Premises Liability:Premises Liability:

Independent ContractorIndependent Contractor

�� Redinger v. Living, Inc. Redinger v. Living, Inc. (Tex. 1985)(Tex. 1985)–– If In Control Of Premises, Same Duty As If In Control Of Premises, Same Duty As

Owner/OccupierOwner/Occupier

–– Duty Owed Commensurate With ControlDuty Owed Commensurate With Control

–– Owner Or Occupier Entitled To Assume Owner Or Occupier Entitled To Assume Independent Contractor Will Perform Work Independent Contractor Will Perform Work Safely And Take Precautions To Protect Its Safely And Take Precautions To Protect Its EmployeesEmployees

–– Generally, ICGenerally, IC’’s Duty To Protect From Hazards s Duty To Protect From Hazards Arising Out Of Activities Conducted By And Arising Out Of Activities Conducted By And Under Control Of IC Under Control Of IC

Page 32: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 3232

Premises Liability

� Allen Keller Co. v. Foreman (Tex. 2011)

– Compliance With Strict Terms Of Contract May Absolve Contractor Of Liability For Premises Condition Created By Contractor’s Work

Page 33: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 3333

Premises Liability

� Strakos v. Gehring (Tex. 1962)

– Contractor Liable For Defect Created By Contractor’s Work Where Contract Leaves Work To Contractor’s Discretion, Even If Work Completed Or Accepted By Owner

Page 34: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 3434Cooper & Scully, P.C.Cooper & Scully, P.C. 3434

Premises Liability:Premises Liability:

Independent ContractorIndependent Contractor

�� Rendleman v. Clarke, Rendleman v. Clarke, (Tex. App.(Tex. App.——

Houston [14Houston [14thth Dist.] 1995, writ dismDist.] 1995, writ dism’’d)d)

–– Slip & Fall on Wet Fireproofing Slip & Fall on Wet Fireproofing

–– Employee of IC Not Performing Employee of IC Not Performing

Fireproofing Work InjuredFireproofing Work Injured

–– If Control Undisputed, Must Still Obtain If Control Undisputed, Must Still Obtain

Jury Findings Regarding Knowledge of Jury Findings Regarding Knowledge of

DangerDanger

Page 35: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 3535

Premises Liability

� Types of Defects for Which Independent Contractor’s Employee May Seek to Hold General Contractor Liable– Existing Defects or Defects Created

Through Some Means Unrelated to Activity of Injured Employee

– Defects Independent Contractor Created by Work Activity

Page 36: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 3636Cooper & Scully, P.C.Cooper & Scully, P.C. 3636

Premises LiabilityPremises Liability

�� Non Delegable Duties of OwnerNon Delegable Duties of Owner–– Inherently Dangerous ActivityInherently Dangerous Activity

–– Delegating Responsibility To IC Does Not Delegating Responsibility To IC Does Not Relieve O Of Liability For Injury To Third Relieve O Of Liability For Injury To Third Party Caused By Defect (Both May Be Party Caused By Defect (Both May Be Liable)Liable)�� Lee LewisLee Lewis

–– Work is inherently dangerous when involves risk of Work is inherently dangerous when involves risk of danger derived from nature of activity itselfdanger derived from nature of activity itself

�� Excavation WorkExcavation Work

Page 37: Premises Liability of Contractors & Subcontractors

Cooper & Scully, P.C.Cooper & Scully, P.C. 3737Cooper & Scully, P.C.Cooper & Scully, P.C. 3737

Premises LiabilityPremises Liability

�� Jury QuestionsJury Questions–– ControlControl

–– Corbin Corbin ElementsElements

�� Without Jury Finding of Without Jury Finding of Corbin Corbin Elements, No Right of Recovery Under Elements, No Right of Recovery Under Premises Liability TheoryPremises Liability Theory–– Clayton Williams v. Olivo Clayton Williams v. Olivo