Facts

Salinas purchased a positive displacement pump from APT to be operated on its oil lease. The pump had vibration problems. Salinas contacted APT to troubleshoot the pump and undertake repairs. APT, in turn, contacted Aces to undertake that work. Aces, in turn, hired Mr. Wilson as an independent contractor and sent him to undertake the task of troubleshooting and repairing the pump. Having difficulties in troubleshooting the problem, Mr. Wilson communicated with Mr. Morris, the principal of Aces, who allegedly gave instructions to close the master valve in order to create some back pressure on the pump. Closing the master valve on the wellhead increased the pressure to the wellhead, causing a ball valve to be blown off the wellhead, striking a steel railing and then hitting Mr. Wilson in the stomach. He sustained injuries, and he and his wife filed an action against Salinas Energy. Salinas cross-complained for indemnification from Pacific Trucking and Construction Inc., Aces Enterprises Inc, and Advanced Thermal Inc.

PLAINTIFFS' CONTENTIONS:
Plaintiffs alleged that defendant negligently violated California industrial safety orders because defendant failed to install a pressure release valve on the pump.

DEFENDANT'S CONTENTIONS:
Salinas contended that Mr. Wilson was an independent contractor and that his injury was the result of his own negligence in closing the master valve. Salinas contended that as an experienced pump service and repair technician, he should have recognized that there was no pressure release valve and that the pressure would build up in the wellhead until a failure would occur.

Settlement Discussions

Plaintiffs' demand was $11 million to Salinas, which was a policy limit demand.

Specials in Evidence

$1,213,569.51 $170,178 $779,514 $5,219,094

Injuries

Plaintiff suffered blood loss, brain damage, cognitive deficit, hand injury, partial removal of his intestine, memory loss, scarring, disfigurement, speech impairment, and a stroke. He required reconstructive surgery and physical therapy. Mr. Wilson is totally disabled and has not returned to work as a result of the injuries he suffered. Mrs. Wilson brought a separate claim for loss of consortium.

Result

The parties settled for $5,715,000. Salinas Energy paid $5.65 million. Pacific Trucking paid $30,000, Aces paid $25,000, and Advanced Thermal paid $10,000.

Other Information

Salinas attempted a motion for summary judgment based upon the Privette series of cases, but it was denied.