La. Sup. Ct. Exonerates Parent Corp. in Assumed-Duty Case

Today the Louisiana Supreme Court reversed a jury verdict and a 1st Circuit decision against a parent corporation in a personal-injury suit by employees of a subsidiary, who sued the parent under the "assumed duty" doctrine defined by Restatement (2d) Torts § 324A. While the Court did not explicitly adopt § 324A, it described that Restatement provision as "not ... contrary to Louisiana law," and thus analyzed the case under § 324A terms. The Court explained that "[b]ecause of well-established legal rules" governing employers and corporations, "we will not 'lightly assume' that a parent corporation has agreed to accept the subdiary-employer's duty to provide a safe workplace absent proof of an affirmative undertaking of that duty by the parent corporation.... [N]either a parent's concern with safety conditions and its general communications with the subsidary regarding safety matters, nor its superior knowledge and expertise regarding safety issues, will create in the parent corporation a duty to guarantee a safe working environment for its subsidiary's employees under § 324A." Bujol v. Entergy Services, Inc., 03-C-0492 c/w 03-C-0502, slip op. (La. May 25, 2004).

Posted by RPW at May 25, 2004 04:42 PM