Burton v. Diamond Sand & Stone Co., 74--1091

Decision Date20 February 1976
Docket NumberNo. 74--1091,74--1091
PartiesRobert BURTON et al., Appellants, v. DIAMOND SAND AND STONE COMPANY and Continental Insurance Company, Appellees.
CourtFlorida District Court of Appeals

Patrick E. Geraghty, of Henderson, Franklin, Starnes & Holt, Fort Myers, for appellants.

G. Hunter Gibbons, of Dart, Dickinson, O'Riorden, Gibbons & Quale, Sarasota, for appellees.

HOBSON, Judge.

The final judgment appealed was rendered after trial on the merits of the crossclaims of appellants and appellees against each other on the question of coverage under their respective insurance policies. The plaintiff's suit for damages was a wrongful death action against the parties to this appeal. The crossclaims were severed from the wrongful death claim for a separate trial.

The final judgment found that Canal Insurance Company was estopped to deny coverage under its policy issued to Pete Miller and that the Canal policy provides primary coverage with regard to the accident which is the subject matter of the plaintiff's complaint. The final judgment further found that Continental Insurance Company's policy No. L4283964 provides secondary coverage; that Continental's policy No. L4283964 provides coverage equal to the maximum amount set forth in said policy; and that no coverage was provided for this accident by a second Continental policy, No. L4293071.

We affirm the final judgment in all respects with the exception of the premature finding that the Canal policy provides primary coverage and Continental's policy No. L4283964 provides secondary coverage.

Appellant takes the position that the trial court committed error in failing to determine whether or not Robert Burton, the driver of the truck on the date of the accident, was an employee, statutory employee or borrowed servant of Diamond Sand and Stone Company. Robert Burton was hired and paid by Pete Miller and the truck involved in the accident was owned by Pete Miller. If Robert Burton was in fact a borrowed servant, employee, or statutory employee of Diamond Sand, Diamond Sand's policy with Continental would provide primary coverage based on the doctrine of Respondeat superior, while the policy of Pete Miller with Canal would provide secondary coverage based on the vicarious liability as owner of the truck. See Hutchins v. Campbell, Inc., Fla.App.2d 1960, 123 So.2d 273, and Hertz Corporation v. Ralph M. Parsons Company, 5th Cir., 419 F.2d 783 (1969).

Although Pete Miller hired Robert Burton and was paying his salary, the appellants contend that Robert Burton can still be a borrowed servant of Diamond Sand. The general rule is set out in 21 Fla.Jur., Master and Servant, § 69, as follows:

'It is competent for an employer to loan out one of his servants to a third party. If that third party has complete control over the servant and directs his conduct at all times, he will be held responsible for the servant's derelictions even though the original employer is still paying his salary.'

It is appellants' position that under the facts of this case Diamond Sand had complete control over the conduct of Robert Burton in regard to the operation of the truck. This, they say, can be established by the facts that on the date of the accident the truck was under lease to Diamond Sand, was being operated in the furtherance of Diamond Sand's business, was operated pursuant to Diamond Sand's Public Service Certificate, and Robert Burton was carrying out the instructions of the dispatcher for Diamond Sand who had told him where to deliver the load.

On the other side of the coin, the lease agreement between Pete Miller and Diamond Sand places all of the obligations and liabilities on Pete Miller. Appellants, however, argue that the lease is in contravention of the rules and regulations of the ...

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7 cases
  • Scott & Jobalia Const. Co., Inc. v. Halifax Paving, Inc. for Use and Benefit of U.S. Fidelity and Guar. Co.
    • United States
    • Florida District Court of Appeals
    • February 2, 1989
    ...necessary in an indemnity suit). See Mortgage Corp. of America v. Vorndran, 334 So.2d 88 (Fla. 3d DCA 1976); Burton v. Diamond Sand & Stone Co., 327 So.2d 95 (Fla. 2d DCA 1976); Atlantic Coast; Serrano; Wetherington, Tort Indemnity in Florida, 8 F.S.U. 383, 397, 410 Secondly, we think Halif......
  • Wyckoff Trucking, Inc. v. Marsh Bros. Trucking Service, Inc.
    • United States
    • Ohio Supreme Court
    • April 10, 1991
    ...(Fla.App.1985), 462 So.2d 76, 80 (parties other than statutory employer are secondarily liable under state law); Burton v. Diamond Sand & Stone Co. (Fla.App.1976), 327 So.2d 95 (same). HOLMES, Justice, dissenting. I respectfully dissent from the ill-conceived judgment reached by the majorit......
  • Airmanship, Inc. v. U.S. Aviation Underwriters, Inc.
    • United States
    • Florida District Court of Appeals
    • February 13, 1990
    ...Jefferson Smurfit Corp. v. JBS, Inc., 546 So.2d 30 (Fla. 1st DCA), review denied, 554 S.2d 1168 (Fla.1989); Burton v. Diamond Sand & Stone Co., 327 So.2d 95 (Fla. 2d DCA 1976); Crawford v. Florida Steel Corp., 478 So.2d 855 (Fla. 1st DCA 1985); Famous Players Lasky Corp. v. Industrial Accid......
  • Mainella v. Staff Builders Indus. Services, Inc.
    • United States
    • Rhode Island Supreme Court
    • May 15, 1992
    ...liability for the employee's conduct, even though the original lending employer pays the employee's salary. Burton v. Diamond Sand and Stone Co., 327 So.2d 95 (Fla.App.1976). In contrast, when an employer is negligent in hiring or retaining an employee who is incompetent or unfit, such negl......
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