Joint Employer Liability: Notes from Australia

SAMUEL ESTREICHER, NICHOLAS SAADY

NYU law professor Samuel Estreicher and Nicholas Saady, LLM, conduct a comparative analysis of the doctrine of joint employer liability, looking at the rules adopted by the U.S. Department of Labor and National Labor Relations Board as compared to the approach Australia has taken in an analogous context, “accessorial liability” doctrine.

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Russell Construction of Alabama, Inc. v. Peat

Docket: 1180979

Opinion Date: May 22, 2020

Judge: Greg Shaw

Areas of Law: Arbitration & Mediation, Civil Procedure, Construction Law

Russell Construction of Alabama, Inc. ("Russell"), appealed a circuit court order that vacated an arbitration award in favor of Russell and against Christopher Peat. In 2015, Russell and Peat entered into a contract pursuant to which Russell agreed to construct a residence for Peat on "a cost plus a fee basis." The documents executed in connection with the contract provided, in the event of a controversy or dispute, first for mediation and then for arbitration in accordance with the rules of the American Arbitration Association. Upon completion of the residence, a dispute arose between Russell and Peat regarding Russell's performance and the balance due Russell under the contract. In January 2018, Russell filed a formal demand for arbitration, seeking $295,408 allegedly due from Peat for the construction of the residence. Peat counterclaimed, alleging breach of fiduciary duty and breach of contract and disputing his consent to costs incurred by Russell; Peat sought specific performance and an award of $255,000 on his counterclaims. Thereafter, in May 2018, the parties reached, as a result of mediation, a settlement agreement. In essence, the settlement agreement required Russell to make certain repairs to the residence; required Peat to pay Russell $245,408 on or before June 15, 2018, at which time Russell agreed to release its recorded lien; and required Peat to deposit into escrow an additional $50,000 to ensure completion, by the end of August 2018, of a "punch-list" to the satisfaction of a third-party "Construction Consultant." The Alabama Supreme Court determined the circuit court did not err to the extent that it set aside the judgment entered pursuant to the arbitrator's Final Award. The Court affirmed the trial court's July 25, 2019 order to the extent that it vacated any judgment on the arbitrator's Final Award related to Russell's and Peat's breach of the provisions of the settlement agreement that remained in effect after the Modified Partial Final Award and the distribution of the outstanding $50,000 at issue. The Court reversed that same order to the extent it purported to vacate any judgment on the Modified Partial Final Award of $258,959.89 and remanded this case for further proceedings.

Mohr v. CSX Transportation, Inc.

Docket: 1180338

Opinion Date: May 22, 2020

Judge: Mitchell

Areas of Law: Civil Procedure, Personal Injury, Transportation Law

In April 2017, Jerry Mohr, a Mobile County resident and an employee of CSX Transportation, Inc. ("CSX"), was injured in an on-the-job accident while working on a crew that was repairing a section of CSX railroad track near the Chef Menteur Bridge in Louisiana. Mohr sued CSX in the Mobile Circuit Court, asserting a negligence claim under the Federal Employers' Liability Act ("FELA"). The trial court ultimately entered a summary judgment in favor of CSX. Mohr appealed that judgment, arguing there were genuine issues of material fact that could only be resolved by a jury. Finding no reversible error, the Alabama Supreme Court affirmed.

Edwards v. Pearson

Docket: 1180801

Opinion Date: May 22, 2020

Judge: Stewart

Areas of Law: Civil Procedure, Personal Injury

Rita Edwards, as mother of Raven Edwards, appealed the grant of summary judgment entered in favor of Penny Pearson on the ground of State-agent immunity. In 2014, Raven, an eight-year-old student at Airport Road Elementary School, attempted to cross the Deatsville Highway to board a school bus being driven by Pearson, an employee of the Elmore County Board of Education. As she did so, Raven was struck by an automobile, and she ultimately died as a result of her injuries. Edwards sued for wrongful death, alleging Pearson negligently had instructed and/or invited Raven to cross the highway to board the school bus. Pearson filed an answer denying the allegations in the complaint and asserting various affirmative defenses, including, among others, State-agent immunity. After review, the Alabama Supreme Court determined Pearson demonstrated she was entitled to State-agent immunity, and Edwards failed to demonstrate that an exception to that immunity applied. Accordingly, the trial court properly entered a summary judgment in Pearson's favor.