Cockburn v. Terra Resources, Inc.

• Court: Wyoming Supreme Court
• Writing for the Court: Before CARDINE; THOMAS
• Citation: Cockburn v. Terra Resources, Inc., 794 P.2d 1334 (Wyo. 1990)
• Decision Date: 29 June 1990
• Docket Number: No. 89-161,89-161
• Parties: Michael Dean COCKBURN and Melinda "Mickie" K. Cockburn, Appellants (Plaintiffs), v. TERRA RESOURCES, INC., a Delaware corporation; and George Ogden, Appellees (Defendants).

Page 1334

794 P.2d 1334

Michael Dean COCKBURN and Melinda "Mickie" K. Cockburn, Appellants (Plaintiffs), v. TERRA RESOURCES, INC., a Delaware corporation; and George Ogden, Appellees (Defendants).

No. 89-161.

Supreme Court of Wyoming.

June 29, 1990.

Daniel M. Hesse, Meyer & Williams, P.C., Jackson, for appellants.

Michael K. Davis, Redle, Yonkee & Toner, Sheridan, for appellee Terra.

Robert D. Olson and James M. Guill, Goppert, Olson & Guill, Cody, for appellee Ogden.

Before CARDINE, C.J., and THOMAS, URBIGKIT, MACY and GOLDEN, JJ.

THOMAS, Justice.

The question common to all the errors asserted in this appeal is whether the record demonstrates genuine issues of material fact that require a jury trial. The claimed issues of material fact relate to the retention of control by an operator of an oil and gas lease over the premises or the details of the work, resulting in its liability to an injured worker employed by the drilling firm, and the culpable negligence of a supervising co-employee of the injured worker. Michael Dean Cockburn and his wife, Melinda "Mickie" K. Cockburn, (Cockburn) contended that there were genuine issues of material fact relating to the retention of control by Terra Resources, Inc. (Terra), the operator of the oil and gas lease, arising out of the provisions of the drilling contract and the actual assumption of the power to direct the details of the work of employees of the driller. Cockburn also asserted that the record demonstrated genuine issues of material fact with respect to the culpable negligence of George Ogden (Ogden), the driller on the rig on which Cockburn was employed. The district court concluded that there were no genuine issues of material fact as to either the retention or exercise of control by Terra or the culpable negligence on the part of Ogden, and it entered a summary judgment in favor of both defendants. Our examination of the record in the light of pertinent authority persuades the court that the district court properly entered the summary judgment in favor of both Terra and Ogden. We affirm the summary judgment.

In the Cockburn brief, the following issues are stated:

"Is it error for the trial court to grant summary judgment to the operator of an oil well where the operator of the well, who has employed an 'independent contractor,' retains control over the details of operations performed on a daywork basis?

"Is summary judgment precluded where the operator of an oil well departs from an independent contractor relationship and assumes the power to direct the details of the work of employees of the independent contractor?

"Where a co-employee charged with supervisory duties has knowledge of a hazardous condition and fails to correct it, does a genuine issue of material fact exist regarding his culpable negligence, and is the granting of summary judgment in his favor proper?"

Terra, as appellee, rephrases those issues that pertain to it in this way:

"Is a well owner or operator such as Terra who contracts with an independent drilling contractor responsible to the drilling contractor's employees for defects in the drilling contractor's equipment causing injury to the employees?"

Ogden restated the issue pertaining to him as follows:

"Did any genuine issue of material fact exist regarding whether or not appellee was culpably negligent which precluded the Court from granting Appellee's Motion for Summary Judgment?"

On April 30, 1986, Cockburn was working for Shelby Drilling, Inc. (Shelby) as a drilling hand on "Shelby Rig 56" in Park County, Wyoming. Cockburn and the other members of the crew on the rig were "tripping out" the drilling pipe in the well. This process involves drawing the drilling pipe from the well hole; unscrewing it into appropriate lengths; and then "stacking" the sections of drill pipe vertically in a rack on the drilling rig with the bottom end placed in a device called an "alligator tail" or "gator back." Each "stand" of pipe is normally between eighty-five to ninety feet in length and weighs approximately a ton. In colder climates such as Wyoming, the pipe is stacked on "alligator tails" so that the bottom end is kept open to permit drainage of water and drilling fluids from the pipe. If this vertical stacking does not occur, ice can form in a stand of pipe, resulting in a dangerous condition when the pipe is later inserted into the well hole and re-pressurized. The procedure of "tripping out" the pipe is a routine operation for experienced oil field workers, and it normally creates very little danger or concern.

"Alligator tails" are most often made from sections of pipe that have been split longitudinally. Metal rods, called "ears" or "tri-pegs," then are welded to the upturned circumference of the pipe. The name is derived from the resemblance of these devices to the bumpy back of an alligator when the racks are laid with the "ears" up. The "alligator tails" on Shelby Rig 56 were of a different design, however. Instead of using pipe that had been split in half, those alligator tails utilized a full pipe. Two pieces of the pipe were welded together, and the metal "ears" were attached on one side of the welded device. This style of "alligator tail" does not have the rough contact points that the split pipe version has and, apparently, is more prone to sliding.

At the time of Cockburn's accident, he was on the floor of the rig approximately sixteen feet above the ground. A section of drill pipe was being "stabbed," that is stacked, onto one of these modified "alligator tails;" the device slipped; and it pinned Cockburn's leg between the "alligator tail" and the pipe. The "alligator tails," which were owned and maintained by Shelby, were not secured to the rig floor in any fashion. Cockburn, the "alligator tail," and the entire "stand" of pipe then slid approximately nineteen feet down the "beaver slide" to the ground. The "beaver slide" is a metal access ramp running from the ground up to the floor of the rig. A set of doors, known as "V-doors," was installed at the top of the beaver slide, but was open at the time of Cockburn's injury. Cockburn suffered injuries to his shoulder and knee in the accident.

On April 30, 1987, Cockburn, with his wife as co-plaintiff, filed his action against Terra and Ogden. The complaint alleged that Terra had retained control over the operation of the drilling rig and over the Shelby employees and that both Terra and Ogden were culpably negligent. On January 9, 1989, Terra filed a motion for summary judgment contending that it owed no duty of care to Cockburn that would justify a finding of liability under the circumstances of the case. Ogden filed a motion for summary judgment as well in which he contended that his conduct did not rise to the level of culpable negligence. The district court, upon reviewing the materials submitted by all parties in support of, and opposition to, the motions for summary judgment, found no genuine issue of material fact and ruled that both Terra and Ogden were entitled to judgment as a matter of law. Cockburn's appeal is from the summary judgment that was entered.

The materials in the record demonstrate that Shelby was hired as an independent contractor by Terra and that Shelby's obligations under the contract included the duty to provide a drilling rig, all related equipment, and the materials and labor necessary to operate the rig. Terra, according to the record, is an investment company engaged in the business of obtaining oil and gas leases, contracting for the completion of drill holes, and producing oil and gas from wells where those minerals are found.

Terra, as Operator, and Shelby, as Contractor, entered into a written drilling contract. It spoke to the relationship between Shelby and Terra in this language:

"14. INDEPENDENT CONTRACTOR RELATIONSHIP:

"14.1 Contractor shall be an independent contractor with respect to all work hereunder and neither contractor nor anyone employed by contractor shall be deemed for any purpose to be the employee, agent, or representative of Operator in the performance of any work or service or any part thereof in any manner dealt with hereunder. Operator shall have no direction or control of Contractor or its employees and agents except in the results to be obtained. The work contemplated herein shall meet the approval of the Operator and be subject to the general right of inspection herein provided for Operator to secure the satisfactory completion thereof.

"14.2 The actual performance and superintendence of all work hereunder shall be by Contractor, but Operator or its representatives shall have unlimited access to the premises to determine whether work is being performed by Contractor in accordance with all of the provisions of this agreement."

The contract also provided that Shelby was required to maintain worker's compensation coverage. Shelby was to be paid for its services under the contract on either a "footage" or a "daywork" basis. With respect to the payment for "footage" or "daywork," a segment of the contract that is pertinent to Cockburn's argument, the contractual language reads:

"3. BASIS OF COMPENSATION:

* * * * * *

"3.2 The term 'daywork' shall be defined as, and apply to, the work performed by Contractor at direction of Operator (* * *) at a stipulated rate per day as distinguished from work for which Contractor is compensated at a stipulated rate per foot of hole drilled. For purposes hereof and subject to Paragraph 14 of the Drilling Contract, the term 'daywork basis' means Contractor shall furnish equipment and labor and perform services as herein provided, for a specified sum per day. When operating on a daywork basis, Contractor shall be fully paid at the applicable rates of payment and assumes only the obligations and liabilities stated herein. Except for liabilities and obligations specifically assumed by Contractor, Operator shall be solely responsible and assumes liability for all...