Tampa Electric Co. v. Donald Gansner
CourtDistrict Court of Appeal of Florida
Date FiledNovember 10, 2021
Docket2D19-3091
StatusPublished
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Full Opinion
DISTRICT COURT OF APPEAL OF FLORIDA
SECOND DISTRICT
TAMPA ELECTRIC COMPANY,
Appellant,
v.
DONALD G. GANSNER and STACY GANSNER,
individually, and as parents and next friends of
BREANNA GANSNER and KARSEN GANSNER, minors;
and JAMES CARTER and CHELSEA CARTER,
Appellees.
No. 2D19-3091
November 10, 2021
BY ORDER OF THE COURT:
Upon consideration of Appellant Tampa Electric Company's
motion for rehearing and alternative motion for certification, filed on
November 2, 2020,
IT IS ORDERED that the motion for rehearing is granted to the
extent that the opinion dated October 16, 2020, is withdrawn and
the attached opinion is substituted therefor. Appellant's alternative
motion for certification is denied as moot. Appellees' response has
been noted.
No further motions for rehearing will be entertained in this
appeal.
I HEREBY CERTIFY THE FOREGOING IS A
TRUE COPY OF THE ORIGINAL COURT ORDER.
MARY ELIZABETH KUENZEL, CLERK
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DISTRICT COURT OF APPEAL OF FLORIDA
SECOND DISTRICT
TAMPA ELECTRIC COMPANY,
Appellant,
v.
DONALD G. GANSNER and STACY GANSNER,
individually, and as parents and next friends of
BREANNA GANSNER and KARSEN GANSNER, minors;
and JAMES CARTER and CHELSEA CARTER,
Appellees.
No. 2D19-3091
November 10, 2021
Appeal pursuant to Fla. R. App. P. 9.130 from the Circuit Court for
Hillsborough County; Ralph C. Stoddard, Judge.
Jason Gonzalez and Amber S. Nunnally of Shutts & Bowen LLP,
Tallahassee; Adam D. Griffin and Timothy C. Conley of Lau, Lane,
Pieper, Conley & McCreadie, P.A., Tampa, for Appellant.
Robert F. Jordan of Jordan Law Firm, PLLC, Lake City; and Richard
Perlini, Jeffrey L. Meldon, and Carey W. Meldon of Meldon Law,
Gainesville, for Appellees.
Tiffany A. Roddenberry of Holland & Knight LLP, Tallahassee; and
William W. Large of Florida Justice Reform Institute, Tallahassee,
for Amicus Curiae Florida Justice Reform Institute.
PER CURIAM.
Tampa Electric Company ("Tampa Electric") appeals the trial
court's order denying its motion for summary judgment and
determining that it is not entitled to workers' compensation
immunity in two lawsuits brought against it. To the extent that the
court concluded that Tampa Electric was not entitled to immunity
as a matter of law, we have jurisdiction, see Fla. R. App. P.
9.130(a)(3)(C)(v), and we reverse. To the extent that Tampa Electric
challenges the court's alternative conclusion that a disputed
question of material fact precludes summary judgment in Tampa
Electric's favor, we lack jurisdiction and dismiss.1 See Fla.
1 In its summary judgment order, the trial court reasoned that
Tampa Electric was not entitled to immunity as a matter of law
because there was no prime contract between Tampa Electric and a
third party that obligated Tampa Electric to maintain the equipment
that it uses to generate electricity, i.e., Tampa Electric did not
qualify as a "contractor" under section 440.10(1)(b), Florida
Statutes (2017). The order, however, also included the sentence,
"There are material issues of fact as to what work related to the
accident in this action was subcontracted to Zachry Industrial."
Tampa Electric moved for clarification, seeking entry of an
amended order that did not include this "errant sentence." In its
order on the motion for clarification, however, the trial court
confirmed:
As an alternative basis of denial, the July 12, 2019,
Order ruled that, even if the defense of workers'
compensation immunity was available to Tampa Electric
in this action, an issue of fact would prevent summary
judgment in favor of Tampa Electric. The issue of fact is
2
Highway Patrol v. Jackson, 238 So. 3d 430, 436 (Fla. 1st DCA 2018)
(noting that "FHP makes a sound argument that the trial court
erred in finding that issues of material fact precluded a ruling that
it was immune from suit" but concluding that "[a]n erroneous
conclusion that issues of fact exist is not a 'matter of law' in this
context"), approved, 288 So. 3d 1179 (Fla. 2020).
Tampa Electric, a public utility, owns Big Bend Power Station,
an electrical generating facility in Hillsborough County. Donald
Gansner and James Carter are actual employees of Zachry
Industrial Inc., an entity with which Tampa Electric had contracted
to provide maintenance work at Big Bend. In October 2017,
Gansner and Carter were about to perform work on an access door
of one of Big Bend's condenser units when the door blew open,
unleashing a massive column of water. These lawsuits arose out of
their resulting injuries.
Tampa Electric raised an affirmative defense of workers'
compensation immunity in both lawsuits, and the suits were
whether at the time of the accident the plaintiffs were
performing work under a contract between Tampa
Electric and Zachry Industrial.
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consolidated for pretrial purposes. Tampa Electric then moved for
summary judgment on the ground that it is the statutory employer
of Gansner and Carter pursuant to section 440.10(1)(b), Florida
Statutes (2017). It further asserted that because it is their
statutory employer, the exclusivity provision of section 440.11
limits Gansner's and Carter's remedies to workers' compensation
benefits, which they had received through Zachry Industrial. As set
forth above, the trial court denied the motion. To the extent that we
have jurisdiction, we review the court's order de novo. See Green v.
APAC–Fla., Inc., 935 So. 2d 1231, 1233 (Fla. 2d DCA 2006).
Pursuant to section 440.10(1)(b):
In case a contractor sublets any part or parts of his or
her contract work to a subcontractor or subcontractors,
all of the employees of such contractor and subcontractor
or subcontractors engaged on such contract work shall
be deemed to be employed in one and the same business
or establishment, and the contractor shall be liable for,
and shall secure, the payment of compensation to all
such employees, except to employees of a subcontractor
who has secured such payment.
Accordingly, Tampa Electric would be entitled to workers'
compensation immunity as Gansner's and Carter's statutory
employer if it is considered a "contractor" that "sublet[ ] any part" of
its "contract work" to Zachry Industrial, the "subcontractor." See
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id. To be considered a contractor under section 440.10, Tampa
Electric's "primary obligation in performing a job or providing a
service must arise out of a contract." Sotomayor v. Huntington
Broward Assocs. L.P., 697 So. 2d 1006, 1007 (Fla. 4th DCA 1997)
(quoting Gator Freightways, Inc. v. Roberts, 550 So. 2d 1117, 1119
(Fla. 1989)). This primary obligation is "an obligation under the
prime contract between the contractor and a third party,"
id. (quoting Miami Herald Publ'g v. Hatch, 617 So. 2d 380, 383 (Fla.
1st DCA 1993)), which is "sublet" when it is "pass[ed] on to
another," Jones v. Fla. Power Corp., 72 So. 2d 285, 289 (Fla. 1954).
In support of its argument that it is a contractor within the
meaning of section 440.10(1)(b), Tampa Electric asserts that it has
a contractual obligation to its customers to supply them with
electricity and that that obligation arises out of its tariff. A tariff is
a document setting forth a public utility's services, the rates for
those services, and the rules and regulations that govern the
utility's relationship with its customers. See Fla. Admin. Code R.
25-6.033(1), (2). A tariff is subject to review and approval by the
Public Service Commission, Fla. Admin. Code R. 25-6.033(3), and if
approved, it is recognized as a contract between the utility and its
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customers with the force and effect of law. See Landrum v. Fla.
Power & Light Co., 505 So. 2d 552, 554 (Fla. 3d DCA 1987); see
also Potts v. Fla. Power & Light Co., 841 So. 2d 671, 672 (Fla. 4th
DCA 2003) (concluding that a customer was bound by Florida
Power & Light's tariff, which included a limitation of liability
clause); cf. Bella Boutique Corp. v. Venezolana Internacional de
Aviacion, S.A. (Viasa Airlines), 459 So. 2d 440, 441 (Fla. 3d DCA
1984) (explaining, in an action for damages brought by a company
against a shipper for lost cargo, that "[a] validly filed tariff
constitutes the contract of carriage between the parties and
conclusively and exclusively governs the rights and liabilities
between the parties" (citing United States v. DeBerry, 487 F.2d 448
(2d Cir. 1973))).
Tampa Electric's tariff, which was filed with and approved by
the Public Service Commission, is therefore considered a contract
between Tampa Electric and its customers. As Tampa Electric
points out, section 2.2.2 of the tariff provides that Tampa Electric
will "use reasonable diligence at all times to provide continuous
service at the agreed nominal voltage."
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Notwithstanding Tampa Electric's contractual obligation to
supply electricity to its customers, however, the trial court
concluded that Tampa Electric does not qualify as a contractor
because it has no contractual obligation, explicit or implied, to
maintain the equipment that it uses to generate that electricity,
either generally or at Big Bend in particular. See generally Mitchell
v. Osceola Cnty. Sch. Bd., 159 So. 3d 334, 336 (Fla. 1st DCA 2015)
("It is well established . . . that to satisfy section 440.10(1)(b), the
contractual obligation may be implied, and does not need to be
pursuant to an express provision in a written contract."). Rather,
the court concluded, Tampa Electric's obligation to maintain its
equipment is solely regulatory. Tampa Electric argues that this was
error because its obligation to maintain the equipment that it uses
to generate electricity is implicit in its explicit obligation to supply
electricity.
We agree with Tampa Electric. To be sure, as the trial court
observed, Tampa Electric does have a regulatory duty to maintain
its generating equipment. See Fla. Admin. Code R. 25-6.037(1)
(requiring electric public utilities to operate their "equipment used
in connection with the production, transmission, distribution,
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regulation, and delivery of electricity to any customer" in a manner
that is "safe, efficient, and proper"); see also § 366.05(1)(a), Fla.
Stat. (2017) (authorizing the Public Service Commission to adopt
"rules and regulations to be observed by each public utility"). But
Tampa Electric's status as a statutory employer would not be
defeated by the existence of a regulatory obligation that overlaps
with a corresponding contractual obligation to maintain the
equipment. See Roberts v. Gator Freightways, Inc., 538 So. 2d 55,
59 (Fla. 1st DCA 1989) (concluding that a party that contracts with
another for a service that is subject to an administrative regulation
would not be precluded from being considered a statutory employer
simply because the service is regulated by the state). And Tampa
Electric has an implicit contractual obligation to maintain its
equipment under its tariff because maintaining its equipment is
essential to its fulfillment of its explicit obligation under the tariff to
supply electricity. Therefore, when Tampa Electric subcontracted
with Zachry Industrial for the purposes of maintaining its
equipment, it sublet to Zachry Industrial its implied obligation to
maintain in working condition the equipment it uses to generate the
electricity it is contractually obligated to supply.
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Our decision in Green, 935 So. 2d at 1233–34, is instructive
on this point. In Green, the Florida Department of Transportation
(FDOT) entered into a contract with APAC-Florida, Inc. (APAC), "to
mill, widen, and resurface a section of a state road." Id. at 1232.
APAC, in turn, contracted with Florida Tank Lines, Inc. (FTL), to
transport liquid asphalt to APAC for further processing into "a final
asphalt product meeting FDOT specifications." Id. Green, a truck
driver for FTL, had delivered a load of liquid asphalt to APAC's
Okeechobee plant and was injured while off-loading it. Id. at 1232–
33. He and his wife then sued APAC. Id. at 1233. The trial court
concluded that APAC was entitled to summary judgment as Green's
statutory employer because "a contractual obligation between APAC
and FDOT" had been "passed on to [FTL]." Id. (alteration in
original).
Although we ultimately reversed the grant of summary
judgment on the ground that disputed questions of material fact
existed, we noted that the prime contract—the contract between
APAC and FDOT—"did not require APAC to manufacture the
specific asphalt used on the road project," but that "[i]mplicit in
[APAC's obligation to resurface the road] was APAC's duty to provide
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the necessary asphalt." Id. We noted further that to provide the
necessary asphalt, APAC "chose to manufacture the product itself."
Id. The "central factual dispute" that precluded summary judgment
pertained to whether "there was a sufficient nexus between FTL's
services for APAC and the FDOT project to support a finding that
APAC was Mr. Green's statutory employer." Id. at 1234.
Just as APAC's contract with FDOT did not require it to
manufacture asphalt, Tampa Electric's tariff does not require it to
generate electricity. But just as APAC was obligated to resurface
the road, Tampa Electric is obligated to supply electricity. And just
as APAC chose to manufacture the asphalt needed to fulfill its
obligation to FDOT to resurface the road, Tampa Electric has
chosen to generate the electricity needed to fulfill its obligation to its
customers to supply them with electricity. To do that, it needs
generating equipment that works.
Accordingly, we reverse the trial court's order denying
summary judgment to the extent that it determined, as a matter of
law, that Tampa Electric is not entitled to workers' compensation
immunity. As to the court's alternative conclusion that disputed
issues of material fact preclude a determination that Tampa Electric
10
is entitled to such immunity, we have no jurisdiction to review that
conclusion at this time. See Jackson, 238 So. 3d at 436. To that
extent, therefore, we dismiss.
Reversed in part; dismissed in part; remanded for further
proceedings.
LaROSE and KHOUZAM, JJ., Concur.
ROTHSTEIN-YOUAKIM, J., Concurs specially.
ROTHSTEIN-YOUAKIM, Judge, Specially concurring.
I join fully in the majority's decision and write separately only
to express a concern triggered by part of Tampa Electric's argument
in its brief. Specifically, Tampa Electric argues that it undertook an
implied contractual obligation to its customers to maintain its
electrical generating equipment at Big Bend because the
maintenance of such equipment "contributes to the performance" of
its express contractual obligation to supply electricity.
Section 440.10(1)(b), however, applies to "contract work," not
"work that contributes to the performance of the contract." Thus,
section 440.10(1)(b) does not create statutory employer status
whenever a party enters into a contract with another that
"contributes to" or "facilitates" its work under a separate contract;
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surely, that could be said of nearly every contract that a business
enters into except those for the most incidental of services. See
Sotomayor, 697 So. 2d at 1008 ("[T]he legislature could have
granted a broader statutory employer immunity by creating
statutory employer status in any circumstance in which a business
engages a subcontractor to perform a part of the business' regular
trade or work." (quoting Rabon v. Inn of Lake City, Inc., 693 So. 2d
1126, 1130 (Fla. 1st DCA 1997))). Although it is well established in
the workers' compensation context that a contractual obligation
may be implied, see Mitchell, 159 So. 3d at 336, we must be careful
not to infer so much that we lose sight of what the statute actually
says.
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