‘Statutory Employer’ Questions Move Millwright’s Widow’s Claims Forward

Case File

When a worker died on the job, the employer where he was conducting his work at the time claimed that, as his statutory employer, it was immune from a lawsuit thanks to the exclusive remedy rules in Tennessee. However, the court didn't think it was an open and shut case. Simply Research subscribers have access to the full text of the court's decision.

Case

Lowe v. Bridgestone Americas Tire Operations LLC, No. M2023-01774-COA-R3-CV (Tenn. Ct. App. 11/21/24).

What Happened

A millwright for a contractor of a tire manufacturer was killed while working at the manufacturer's facility. A 2,200-pound tire mold, which was suspended in the air by two straps and two bolts, fell on him while he was working to clear rubber clogs in the mold's vent holes.

The millwright's wife brought a negligence action against the manufacturer, which asserted that it was immune from suit based on Tennessee's workers' compensation exclusivity rules.

The trial court ruled denied the manufacturer's motion for summary judgment, prompting the manufacturer to appeal.

Rule of Law

Under Tennessee law, a principal contractor, intermediate contractor or subcontractor is liable for compensation to any employee injured while in the employ of any of the subcontractors of the principal contractor, intermediate contractor, or subcontractor and engaged upon the subject matter of the contract to the same extent as the immediate employer.

The "statutory employer" rule is intended to ensure that all workers will receive compensation when they are injured in the course of their employment and prevents employers from contracting out normal work simply to avoid liability for workers' compensation.

In exchange for the principal contractor's exposure to liability under the Workers' Compensation Law, the principal receives immunity from suit in tort through exclusive remedy provisions.

However, for a company to be considered a principal contractor for purposes of receiving the protects of the statutory employer rule, the company must retain the right of control over the conduct of the work and the subcontractor's employees and the worker being performed by the subcontractor's employees must be part of the regular business of the company or the same type of work usually performed by the company's employees.

What the Court Said

According to the court, there were triable factual disputes regarding whether the manufacturer had the right to control the work conducted by the millwright and whether work done by the contractor was a regular part of the manufacturer's business.

Thus, summary judgment was not appropriate, and the case could head to trial.

Takeaway

For the statutory employer rule to apply in Tennessee so as to extend exclusive remedy protections to a company as a "principal contractor," the company must:

(1) Undertake work for an entity other than itself.

(2) Retain the right of control over the conduct of the work and the subcontractor's employees.

Additionally, the work being performed by a subcontractor's employees must be part of the regular business of the company or be the same type of work usually performed by the company's employees.

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