Compensation law to which turner construction appealed fair

Assignment Help Operation Management
Reference no: EM13968125

The stakes were high for Gene Elliot, whose on-the-job injuries were estimated to be serious enough to merit at least a $2.4 million settlement. But who should pay for his injuries: Turner Construction or B&C Steel? Or should Elliot be forced to pay for at least part of his injuries be-cause of his own carelessness? Gene Elliot worked for Mabey Bridge and Shore, a small business that rented temporary steel pedestrian foot bridges to other companies. The temporary bridges had to be put together by the renter, and Elliot’s job was to go to the site where the steel bridge was going to be installed, show the renter how to bolt the bridge sections together and how to install the bridge over a river or waterway, and inspect the bridge to make sure it was done properly and according to Mabey Bridge’s high standards. Elliot was a devoted hard worker who strove to do everything possible to ensure that a bridge installation was successful and ac-cording to Mabey Bridge’s standards. Turner Construction was a general contractor hired to build Invesco Field at the Mile High Stadium in Denver, Col-orado. Part of the job involved installing a temporary pedes-trian bridge over the Platte River near the stadium. Turner Construction subcontracted (hired) B&C Steel to build and install the bridge, which Turner Construction would pay for. B&C Steel was a small company that specialized in put-ting together and installing steel structures like those Mabey Bridge rented out. B&C Steel would pick up the bridge, put it together, and install it for Turner Construction. Turner Construction rented the long steel bridge from Mabey Bridge. Mabey Bridge agreed that the rental included the services of Gene Elliot, who would be loaned to Turner Construction to instruct and inspect the bridge assembly and installation. B&C Steel’s workers picked up the bridge sections from Mabey Bridge’s warehouse and drove them to the river, but did not unload the bridge sec-tions where they had to be assembled. B&C Steel then had to move the sections to the correct site, but did not plan for the fence, guardrails, and trolley tracks that were in the way and later had to work around these obstructions. B&C Steel began bolting the bridge sections together. When Elliot inspected the job, he found the bridge had been bolted together upside down. Elliot made B&C Steel do the job over, while he climbed up and down and over the bridge, continuously checking and making sure that all the bolts were tight and all the pieces were in the right place so that the installation would be a success. When the bridge was finished, B&C Steel workers used a truck to move the long steel structure to the edge of the river. Unfortunately, B&C Steel had not adequately checked the route and their truck hit a low-hanging power line, which sparked and started a fire. The fire department arrived and put out the fire. Afterwards, the installation job continued.

B&C Steel workers set up a crane on the other side of the river near a retaining wall, and a strong nylon strap was strung from the crane, over the water, and tied to one end of the bridge, which was set on rollers. The B&C Steel crane would lift and pull the bridge over the river to its side, while workers on the other side of the river pushed on their end of the bridge. The work began, and as the pulling crane held the bridge suspended in the air about a quarter of the way over the river, Elliot noticed that the retaining wall which was supporting the crane on the other side of the river was beginning to collapse, causing the crane to begin to tip sideways. The B&C Steel crane operator on the other side began to untie the strap hold-ing the bridge. Concerned that once the strap was cut the bridge would fall into the river and the installation would end in failure, Elliot ran up on the bridge and gave the standard emergency OSHA all-stop signal that all con-struction workers know means not to move anything. But the bridge, still attached to the crane, somehow moved, and Elliot fell, sustaining numerous pelvic injuries and a severed urethra (the tube that carries urine). The cause of the movement was never established. Elliot sued Turner Construction and B&C Steel for negligence resulting in economic losses of $28,000, non-economic injuries of $1,200,000, and permanent impair-ment of $1,200,000. These figures were established by a qualified expert in the field of worker injuries and were not seriously contested. Turner Construction, however, denied its responsi-bility. It claimed that Turner was Elliot’s temporary em-ployer and workers’ compensation law required employers to pay only the economic losses, here only $28,000, suf-fered by their employees. Turner Construction pointed to the law, which stated: “Any company leasing or contract-ing out any part of the work to any lessee or subcontractor, shall be construed to be an employer and shall be liable to pay [only] compensation for injury resulting therefrom to said lessees and subcontractors and their employees.” Turner Construction claimed that Mabey Bridge was a subcontractor to Turner to the extent that it provided the services of Elliot to Turner, so Turner should be con-strued to be Elliot’s temporary employer. Moreover, Col-orado’s workers’ compensation law, which was designed to ensure that employers always paid for worker injuries “grants an injured employee compensation from the em-ployer without regard to negligence and, in return, the responsible employer is granted immunity from common law negligence liability.” B&C Steel claimed that it, too, was not responsible, because according to the law a company is not responsible for negligence when an injury is not “reasonably foresee-able” to the company. B&C Steel contended that a rea-sonable person could not have anticipated that placing the crane near to the retaining wall and subsequently attempt-ing to remove the nylon strap holding up the bridge might end by prompting someone to get on the bridge in an at-tempt to save it from falling into the river. On the other hand, B&C Steel claimed, since “Elliot chose to remove himself from a secure and safe position and placed himself in one that he understood was potentially unsafe,” Elliot was himself responsible for his injuries. Elliot claimed that he was not really Turner Con-struction’s employee, since he was working for Mabey Bridge. He also argued that B&C Steel had shown a pattern of negligence from the time that the bridge was received until the time that it was installed. B&C Steel and its employees, he said, were unprepared for the project and negligently failed to adequately plan for it, as shown by the sequence of events leading up to his injury. B&C Steel, therefore, did not exercise the degree of care that a reasonably careful person should have exercised in similar circumstances and so was liable to him for his injuries. He himself was not responsible, Elliot said, because a good, devoted employee would try his best to ensure that the bridge installation did not end in failure, and he would have been perfectly safe if the standard OSHA all-stop signal had been followed by B&C Steel employees, as he had a right to expect it to be.

In your judgment, and from an ethical point of view, should Turner Construction and/or B&C steel pay for all or part of the $2,428,000 (if part, indicate which part)? Explain your view.

In your judgment, and from an ethical point of view, should Elliot be held wholly or partially responsible for his injuries and left to shoulder all or part of the $2,428,000 cost of his injuries (if part, indicate which part)? Explain.

In your judgment, is the Colorado worker's compensation law to which Turner Construction appealed fair? Explain your view.

Reference no: EM13968125

Questions Cloud

Publishers adapted the gross revenue step deal model : Why have record labels and publishers adapted the “Gross Revenue” Step deal model in place of the traditional Theatrical step (Box Office Bumps) deal that had been standard in music clearance for decades?
Should lennox be liable for the revocation : Carter was a sales representative for Lennox China, Inc. He was given an exclusive territory that included Colorado, New Mexico, Arizona, and Utah. His contract with Lennox was for 2 years. Carter believed that if he had been allowed to finish his co..
What is your ethical obligation : Virtually any TV show, movie, or song can be downloaded for free on the Internet. Most of this material is copyrighted and was very expensive to produce. Most of it is also available for a fee through such legitimate sites as iTunes. What is your eth..
Would there be a difference under common law contracts : On May 1, you contract orally with Johnny, a salesperson with Keyboards Emporium, to buy for $450 an electric organ for your personal enjoyment with delivery to occur on July 1. On May 15, you ask for delivery on June 1 and Johnny agrees. But deliver..
Compensation law to which turner construction appealed fair : The stakes were high for Gene Elliot, whose on-the-job injuries were estimated to be serious enough to merit at least a $2.4 million settlement. But who should pay for his injuries: Turner Construction or B&C Steel? Or should Elliot be forced to pay ..
This phase is for the coding part of the project : This phase is for the coding part of the project and concerns with the implementation of a time-series prediction method that you either take from the literature or you have developed by yourself as the result of your research in the first phase.
Global warming is the increase in the average temperature : Global warming is the increase in the average temperature of Earth's lower atmosphere over the past several years. A primary focal point is determining what is causing the temperature increase.
Consider progress, barriers in relation to sd in a business : "Consider progress and barriers in relation to SD in a business or industry sector that you know well. What have been the catalysts for change and the obstacles to integration of SD in policy and performance?"
Using staff surveys to determine the safety awareness : Staff surveys are used to provide man agent of a snapshot of the safety culture within an airline at the ground level.the staff surveys have been conducted several years apart and are to be compared. In the paper please ,

Reviews

Write a Review

Operation Management Questions & Answers

  A traditional team that produced an effective outcome

Give real life examples, summaries, who was involved, and why they succeded or failed of the following:

  Examples for each trap based decision

Give a minimum of three examples for each trap based decision. Status-quo trap based decision- Sunk-cost trap based decision- Confirming-evidence trap based decision-

  Alcoa core values in practice discussion case

Read the Alcoa's Core Values in Practice Discussion Case. In one to two double-spaced pages, supported by evidence from your text and from other research, answer the following questions:

  Ensure reliability in the products or services

Identify two companies in unrelated industries that use TPM approaches to ensure reliability in the products or services that they sell, and in a 4- to 6-page Microsoft Word document, create a report responding to the following questions:

  Advantages and disadvantages of international alliances

Why would a company want to join a global strategic alliance rather than function as an individual entity in international operations? What do you see as the potential advantages and disadvantages of international alliances?

  Are long-term objectives helping the enterprise make

Are long-term objectives helping the enterprise make appropriate strategic choice decisions? How do distinctions between value disciplines

  Explain how could goldratts theory of constraints be

how could goldratts theory of constraints be used to improve a process in your own organization? how could you utilize

  What is the percentage of idle time

Balance the assembly line using the information below, and the most following task rule. The desired output is 360 units per day. Available production time per day is 8 hours. What is the percentage of idle time? Assign task to each work station. Wha..

  Who may lack contractual capacity to enter into contacts

When Lisa was 16 years old, she bought a pedigree dog on credit for $1,200. While Lisa was a minor she made numerous payments on the contract price for the dog. Can Lisa avoid the contract and why? If so, what must Lisa return, and what is she entitl..

  What is the essence of the global challenge facing

What is the essence of the global challenge facing American firms? Describe how the challenge is different for companies headquartered

  Find three examples of firms that pioneered new product

Find three examples of firms that pioneered a new product in a new market and were able to achieve long-run success based on that entry. Find three examples of firms that were not the pioneers but entered later to eventually overtake the pioneer as m..

  Consider continuous review inventory system

Consider a continuous review inventory system. Demand is normally distributed with an average of 13,600 per month and a monthly standard deviation of 225 units. Lead time is one week (assume 4 weeks per month). If the firm desires a 97% CSL, how many..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd