Subcliff v. Brandt Engineered Products, Ltd.

• Citation: 459 F.Supp.2d 843
• Decision Date: 03 October 2006
• Docket Number: No. 3:05-cv-00001-RAW.,3:05-cv-00001-RAW.
• Parties: Clinton SUBCLIFF, Plaintiff, v. BRANDT ENGINEERED PRODUCTS, LTD. and Walsh Automation, Inc., Defendants. Brandt Engineered Products, Ltd., Third-Party Plaintiff, v. IPSCO Tubulars, Inc., Third-Party Defendant.
• Court: U.S. District Court — Southern District of Iowa

459 F.Supp.2d 843

Clinton SUBCLIFF, Plaintiff, v. BRANDT ENGINEERED PRODUCTS, LTD. and Walsh Automation, Inc., Defendants.

Brandt Engineered Products, Ltd., Third-Party Plaintiff, v. IPSCO Tubulars, Inc., Third-Party Defendant.

No. 3:05-cv-00001-RAW.

United States District Court, S.D. Iowa, Davenport Division.

October 3, 2006.

COPYRIGHT MATERIAL OMITTED

Christopher Lee Bruns, Edward M. Blando, Elderkin & Pirnie PLC, Cedar Rapids, IA, for Plaintiff.

James E. Shipman, Webb L. Wassmer, Simmons Perrine Albright Ellwood, Cedar Rapids, IA, John F. Mullen, Cozen O'Connor, Philadelphia, PA, Michael J. Coyle, Fuerste, Carew, Coyle, Juergens & Sudmeier, PC, Dubuque, IA, for Defendants/Third-Party Plaintiff.

Jeff W. Wright, Rosalynd Jean Koob, Sioux City, IA, for Third-Party Defendant.

RULING ON MOTION FOR SUMMARY JUDGMENT OF THIRD-PARTY DEFENDANT IPSCO TUBULARS INC.

WALTERS, United States Magistrate Judge.

This matter is before the Court following hearing on third-party defendant IPSCO Tubulars Inc.'s (IPSCO) motion for summary judgment [51]. The underlying action was filed by Clinton Subcliff on January 4, 2005. In it he makes product liability claims alleging design defect, manufacturing defect and failure to warn, as well as negligence claims, against Brandt Engineered Products, Ltd. (Brandt) and Walsh Automation, Inc. (Walsh),¹ based on the design and installation of mechanical (Brandt) and electrical (Walsh) equipment on a "finishing line" at IPSCO's plant in Camanche, Clinton County, Iowa. Mr. Subcliff was injured on April 4, 2003 when he was struck in the head by a pipe while working in the area of the finishing line. He sues for damages.

On November 4, 2005 Brandt filed a third-party complaint against IPSCO for contribution and/or common law indemnity. The contribution claim is based on IPSCO's alleged negligence in various particulars. As it has evolved, the indemnity claim is based on two grounds: (1) an alleged independent duty to monitor and notify Brandt of problems with the finishing line; and (2) the restitution principle in Restatement (First) of Restitution § 90 (1937).² IPSCO has denied Brandt's claims and moves for summary judgment on the basis that as Mr. Subcliff's employer, it is immune from liability for contribution by reason of Iowa's workers' compensation laws, the evidence is insufficient to establish it owed an independent duty to Brandt, and section 90 is inapplicable in the circumstances.

The Court has diversity jurisdiction, 28 U.S.C. § 1332(a)(1). It is undisputed Iowa law provides the rule of decision. The matter is before the undersigned pursuant to 28 U.S.C. § 636(c).

I. SUMMARY JUDGMENT

IPSCO Tubulars is entitled to summary judgment if the affidavits, pleadings, and discovery materials show "there is no genuine issue as to any material fact and [it] is entitled to judgment as a matter of law." E.E.O.C. v. Trans States Airlines, Inc., 462 F.3d 987, 991 (8th Cir.2006); Allsup, Inc. v. Advantage 2000 Consultants, Inc., 428 F.3d 1135, 1138 (8th Cir.2005); Erenberg v. Methodist Hospital, 357 F.3d 787, 791 (8th Cir.2004); Fed.R.Civ.P. 56(c); see Baucom v. Holiday Companies, 428 F.3d 764, 766 (8th Cir.2005). The Court must view the facts in the light most favorable to the non-moving party, and give that party the benefit of all reasonable inferences which can be drawn from them, "that is, those inferences which may be drawn without resorting to speculation." Mathes v. Furniture Brands Inn, Inc., 266 F.3d 884, 885-86 (8th Cir.2001)(citing Sprenger v. Federal Home Loan Bank of Des Moines, 253 F.3d 1106, 1110 (8th Cir. 2001)); see Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986); Howard v. Columbia Public Schl. Dist., 363 F.3d 797, 800 (8th Cir.2004)("unreasonable inferences or sheer speculation" not accepted as fact); Erenberg, 357 F.3d at 791. An issue of material fact is genuine if it has a real basis in the record. Hartnagel v. Norman, 953 F.2d 394, 395 (8th Cir.1992) (citing Matsushita, 475 U.S. at 586-87, 106 S.Ct. 1348 (1986)). A genuine issue of fact is material if it "might affect the outcome of the suit under governing law." Hartnagel, 953 F.2d at 395 (quoting Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986)); see Littrell v. City of Kansas City, Mo., 459 F.3d 918, 921 (8th Cir.2006)("A dispute is genuine if the evidence is such that it could cause a reasonable jury to return a verdict for either party."); Baucom, 428 F.3d at 766 ("There is no genuine issue of material fact if the evidence is such that a reasonable jury could not return a verdict for [plaintiff]"); Hitt v. Harsco Corp., 356 F.3d 920, 923 (8th Cir.2004); Rouse v. Benson, 193 F.3d 936, 939 (8th Cir.1999); cf. Johnson v. University of Iowa, St. Bd. of Regents, 431 F.3d 325, 328 (8th Cir.2005) ("Summary judgment is still appropriate ... when the disputed facts will not affect the outcome of the suit").

It is the non-moving party's obligation to "go beyond the pleadings and by affidavits, depositions, answers to interrogatories, and admissions on file, designate specific facts showing that them is a genuine issue of material fact." Rouse, 193 F.3d at 939; see Littrell, 459 F.3d at 921; Grabovac, 426 F.3d at 955 (non-moving party cannot "simply rest upon the pleadings," quoting Jeseritz v. Potter, 282 F.3d 542, 545 (8th Cir.2002)); Baucom, 428 F.3d at 766 (plaintiff may not rely on "mere allegations"); Hitt, 356 F.3d at 923. `e consider only admissible evidence and disregard portions of various affidavits and depositions that were made without personal knowledge, consist of hearsay, or purport to state legal conclusions as fact." Howard, 363 F.3d at 801. In assessing a motion for summary judgment a court must determine whether a fair-minded trier of fact could reasonably find for the non-moving party based on the evidence presented. Anderson, 477 U.S. at 248, 106 S.Ct. 2505; Herring v. Canada Life Assurance Co., 207 F.3d 1026, 1030 (8th Cir. 2000).

II. FACTUAL BACKGROUND

Except in a few particulars the underlying facts are not disputed. What follows is undisputed, or for the purposes of the summary judgment motion may be taken as undisputed.

Though there is not much in the record about it, the Court understands that IPSCO's Camanche, Iowa plant manufactures steel pipe. IPSCO found it convenient to obtain new hires for the plant from local business offering temporary employment services, one of which was Sedona Staffing Services (Sedona).³ Workers obtained from Sedona would work in the plant as temporary employees for a probationary period of typically six months or more and, if they worked out, would be offered direct, permanent employment with IPSCO. (Brandt App. at 7-8; IPSCO App. at 57-58). In fact, in its advertising Sedona promoted this kind of arrangement in its "Temp-to-Hire" and "Smart-Hire" programs. (Brandt App. at 55).

In August 2000 Sedona entered into a Contract Service Agreement with IPSCO to provide workers, variously referred to in the document as "temporary employees" or Sedona "personnel." (IPSCO App. at 65-79). Sedona agreed to provide IPSCO with workers qualified to provide services requested by IPSCO. (Id. at 68, ¶ 1.1). With respect to the supervision of the temporary employees the contract stated:

At all times, Temporary Employees shall be under the control and supervision of IPSCO personnel while performing work for IPSCO. SEDONA STAFFING SERVICES is not obligated to, and in fact is prohibited from, engaging in a supervisory role over Temporary Employees during the period and time where Temporary Employees are providing services for IPSCO. Temporary Employees shall report for work and maintain time records in the same manner as that prescribed for IPSCO employees. IPSCO personnel will direct both the manner in which a Temporary Employee's job is performed as well as the method by which work is performed. IPSCO shall have the sole right to assign the tasks it deems appropriate for Temporary Employees and will set the standard of quality for how those tasks are performed.

(Id. at 70). IPSCO agreed to provide all equipment used by the temporary employees, "site specific" training and safety training. (Id.) Sedona acknowledged that in the event of a work-related injury the worker's sole and exclusive remedy would be through Iowa's workers' compensation laws. (Id.) Sedona agreed to procure and maintain sufficient workers' compensation insurance as required by law as well as other stipulated forms of insurance, and to furnish certificates of insurance naming IPSCO as an additional insured. (Id. at 71-71). Sedona assumed the responsibility for the payment of all federal, state and local taxes or contributions required by federal, state and local law including specifically employment, Social Security, and income tax laws. (Id. at 74).

The Contract Service Agreement also addressed the nature of the employment relationship between IPSCO and the temporary employees:

THE PARTIES AGREE that IPSCO will be a joint employer of any Temporary Employee assigned to IPSCO for purposes of workers' compensation and immunity from civil liability. For all other purposes, including applicable employee benefits laws, SEDONA STAFFING SERVICES shall be an independent contractor and not an agent, joint venturer, partner or representative of IPSCO. Neither SEDONA STAFFING SERVICES nor its personnel shall be entitled to any of the benefits provided by IPSCO to its employees, including, but not limited to, workers compensation insurance, unemployment insurance, and health retirement, and welfare benefits.

(IPSCO App. at 73-74).

IPSCO paid Sedona 138 percent of the hourly wage for each temporary employee. Sedona paid the employee wages due. From the additional 38% Sedona paid payroll taxes, unemployment compensation liability and workers compensation insurance expenses, and other expenses associated...