Facts
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Antonio Cortez worked at a lumber mill operated by Sun Studs, LLC.
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Cortez was struck by a forklift while walking between mill areas and suffered severe injuries.
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Cortez received workers’ compensation benefits through Sun Studs.
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Cortez sued multiple defendants, including Swanson Group, Inc., Sun Studs’ corporate parent and sole member/manager, alleging:
- common-law negligence for failing to provide (or require Sun Studs to provide) a safe workplace and competent safety personnel; and
- a claim under Oregon’s Employers’ Liability Law (ELL) based on failure to take required safety measures.
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Swanson provided Sun Studs with a safety manual and exercised general oversight, but delegated day-to-day safety implementation to Sun Studs personnel.
Issues
- Whether Oregon workers’ compensation exclusivity (ORS 656.018 (2011)) or LLC member/manager immunity (ORS 63.165(1)) barred Cortez’s negligence and ELL claims against Swanson.
- Whether Swanson owed and breached a common-law duty of care to Cortez based on Swanson’s role in safety oversight and mill operations.
- Whether Swanson could be liable under the ELL as an entity “having charge of” work or retaining sufficient control over safety.
Decision
- The Oregon Supreme Court held that neither ORS 656.018 (2011) nor ORS 63.165(1) categorically barred claims against Swanson.
- The court reinstated summary judgment for Swanson on the common-law negligence claim, concluding Swanson lacked sufficient operational control or direct involvement to create an independent duty to Cortez regarding the forklift hazard.
- The court held Cortez adequately stated an ELL claim against Swanson and remanded that claim for further proceedings.
- The court concluded that, for injuries predating June 24, 2013, ORS 656.018 (2011) did not extend workers’ compensation immunity to LLC members/managers for ELL liability.
Legal Principles
- ORS 63.165(1) protects LLC members/managers from status-based, vicarious liability for LLC obligations; it does not bar liability for the member/manager’s own negligent conduct.
- Under ORS 656.018 (2011), workers’ compensation exclusivity generally applies to the direct “subject employer” and, as then written, did not automatically immunize a parent entity or LLC manager for a worker’s claims.
- Common-law negligence liability for a non-employer parent/manager requires more than general oversight; absent evidence of actual control over the specific unsafe activity or condition, no independent duty is established.
- ELL liability may reach beyond common-law negligence where the defendant retains a right to control, or is “in charge of,” work involving risk or danger; retained authority over safety may create triable ELL exposure even if negligence fails.
- Statutory expansions of immunity effective June 24, 2013 did not apply to earlier injuries.
Conclusion
The court rejected statutory immunity defenses as categorical bars, but held Swanson’s policy-level safety oversight did not create a common-law negligence duty tied to the forklift accident; nonetheless, Swanson’s retained authority over workplace safety could support ELL liability, so the ELL claim was remanded for further proceedings.