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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Baker v. Saint-Gobain Performance Plastics Corp.

Court: US Court of Appeals for the Second Circuit

Docket: 17-3942

Opinion Date: May 18, 2020

Judge: Per Curiam

Areas of Law: Personal Injury, Real Estate & Property Law

This case arose from defendants' ownership in a manufacturing facility that used and disposed perfluorooctanoic acid (PFOA) which contaminated the water supply in the Village of Hoosick Falls, New York. On appeal, defendants challenged the district court's denial of their motion to dismiss under Federal Rule of Civil Procedure 12(b)(6). For the reasons discussed in the Second Circuit's opinion issued on the same day in Benoit v. Saint-Gobain Performance Plastics Corp., Nos. 17-3941, etc., which was argued in tandem with the present appeal and involved the same issues, the court rejected defendants' contentions that the district court erred in denying their motion to dismiss plaintiffs' claims of personal injury and requests for medical monitoring as relief for such injuries, and in denying their motion to dismiss plaintiffs' claims of property damage. The court held that the district court's ruling that medical monitoring is available relief for claims solely of property damage is not an order that meets the criteria for immediate review under 28 U.S.C. § 1292(b). Therefore, the court dismissed, as improvidently allowed, so much of the appeal as seeks reversal of that part of the district court's order.

Benoit v. Saint-Gobain Performance Plastics Corp.

Court: US Court of Appeals for the Second Circuit

Docket: 17-3941

Opinion Date: May 18, 2020

Judge: Amalya Lyle Kearse

Areas of Law: Personal Injury, Real Estate & Property Law

This case arose from defendants' ownership in a manufacturing facility that used and disposed perfluorooctanoic acid (PFOA) which contaminated the water supply in the Village of Hoosick Falls, New York. On appeal, defendants challenged the district court's order denying their Federal Rule of Civil Procedure 12(b)(6) motion, in 16 temporarily consolidated actions, to dismiss plaintiffs' claims. The Second Circuit held that the district court properly denied defendants' motion to dismiss the claims of injury to persons or property, and for medical monitoring with respect to personal injury. In regard to the district court's ruling that costs of medical monitoring can be awarded on the basis solely of injury to property, the court held that because plaintiffs request various types of relief in addition to medical monitoring, the ruling that medical monitoring is available relief for property damage is not one that meets the criteria for immediate review under 28 U.S.C. 1292(b). Therefore, the court dismissed, as improvidently allowed, so much of the appeal as seeks review of that part of the district court's order.

R.M. Bacon, LLC v. Saint-Gobain Performance Plastics Corp.

Court: US Court of Appeals for the Second Circuit

Docket: 18-2018

Opinion Date: May 18, 2020

Judge: Amalya Lyle Kearse

Areas of Law: Business Law, Personal Injury, Real Estate & Property Law

This case arose from defendants' ownership in a manufacturing facility that used and disposed perfluorooctanoic acid (PFOA) which contaminated the water supply in the Village of Hoosick Falls, New York. Plaintiff, a construction company operating in the Village and the property owner, filed suit alleging property damage resulting from defendants' negligence in using and disposing of PFOA. On appeal, defendant challenged the district court's denial of defendants' motion under Federal Rule of Civil Procedure 12(b)(6) to dismiss the claims that defendants' negligence caused the corporate plaintiff to lose revenues and caused the individual plaintiff to suffer devaluation of his land. The Second Circuit held that the district court properly denied the motion to dismiss the claim of the property owner but erred in denying the motion to dismiss the claim of the company. The court saw no error in the district court's conclusion that the principle of 532 Madison Ave. Gourmet Foods, Inc. v. Finlandia Center, Inc., 96 N.Y.2d 8 280, 727 N.Y.S.2d 49 (2001), is inapposite to the claim of the owner, because he alleged physical contamination of his property, and thus is entitled to seek damages not only for that intrusion but also for the diminution in value of the property. Therefore, the motion to dismiss the owner's negligence claim was properly denied. However, the company's negligence claim to recover its purely economic damages should have been dismissed. The court affirmed in part and reversed in part, holding that the remaining claims lacked merit.

Taylor v. United States

Court: US Court of Appeals for the Federal Circuit

Docket: 19-1901

Opinion Date: May 15, 2020

Judge: Richard Gary Taranto

Areas of Law: Aviation, Constitutional Law, Government & Administrative Law, Real Estate & Property Law, Zoning, Planning & Land Use

In 1999, the Taylors purchased land near a New Mexico Air Force base to raise calves. The Air Force began flying training missions over the land, sometimes “no more than 20 feet . . . off the deck.” In 2008, the Taylors granted Wind Energy an exclusive five-year option for an easement on the Taylors’ property, for “wind resource evaluation, wind energy development, energy transmission and related wind energy development uses.” In 2012, Air Force employees suggested to Wind Energy that the FAA would not issue a “No Hazard” designation for the air space above the Taylors’ land, which would be “fatal to the construction of planned wind turbines.” Wind Energy exercised its contractual right to terminate the agreement. The Taylors sued, claiming that the Air Force’s informal advice to Wind Energy caused a regulatory taking of their property interest in their contract and that the flyovers effected a physical taking. The Federal Circuit affirmed the dismissal of the complaint. Wind Energy’s termination was not a breach of the agreement so the Taylors had no property right in the continuation of that agreement nor did they have any investment-backed expectations. Any advice given by Air Force employees did not amount to an FAA denial. The Taylors did not provide factual allegations of how the flights “directly, immediately, and substantially interfere” with their quiet enjoyment and use of the land

Lana'ians for Sensible Growth v. Land Use Commission

Court: Supreme Court of Hawaii

Docket: SCOT-17-0000526

Opinion Date: May 15, 2020

Judge: Richard W. Pollack

Areas of Law: Environmental Law, Government & Administrative Law, Real Estate & Property Law

The Supreme Court held that the Land Use Commission of the State of Hawai'i erred in a 2017 by interpreting a condition of an administrative order issued almost thirty years earlier prohibiting a resort (Resort) from irrigating its golf course with "potable" water to mean that brackish water is per se "non-potable" but that the Commission did not err in determining that the Resort did not violate the condition under its plain meaning. In 1991, the Commission issued an order approving the Resort's petition seeking to effect district reclassification of a large tract of rural and agricultural land sort that the Resort could build an eighteen-hole golf course. The Commission approved the Resort's petition subject to the condition stating that the Resort was not allowed to use potable water to irrigate the golf course. In 2017, the Commission determined that the Resort's use of brackish water from two wells for golf course irrigation was allowable under the condition. The Supreme Court affirmed, holding (1) the Commission erred in interpreting the condition to mean that brackish water is per se non-potable; but (2) the Commission did not clearly err in concluding that the water from the two wells was non-potable under county water quality standards.

Harder v. Estate of Foster

Court: Kansas Supreme Court

Docket: 118845

Opinion Date: May 15, 2020

Judge: Bruns

Areas of Law: Civil Rights, Constitutional Law, Real Estate & Property Law

The Supreme Court affirmed the decision of the district court determining that Appellant's claim for attorney fees and expenses should be decided by the court and not a jury, holding that Section 5 of the Kansas Constitution Bill of Rights does not guarantee the right to a jury trial to determine an award of attorney fees and expenses. The two cases leading to the attorney fee dispute arose of the sale of real property to Appellant. The first lawsuit was filed in 2013, and the second lawsuit was filed in 2015. After the case was decided, the district court denied Appellant's request for a jury trial on the issue of attorney fees and expenses, determining that the issue would be heard by the court and not by a jury. The Supreme Court affirmed, holding (1) the Kansas Constitution does not guarantee the right to a jury trial to determine whether attorney fees and expenses should be award; (2) Appellant waived her request for a jury trial to determine attorney fees in the 2013 case; and (3) Appellant's claim for attorney fees under the third-party litigation exception to the American rule is an equitable claim that should be decided by the court rather than a jury.

Crooks v. Louisiana Dept. of Nat. Resources

Court: Louisiana Supreme Court

Docket: 2019-C-00160

Opinion Date: January 29, 2020

Judge: Kirby

Areas of Law: Civil Procedure, Real Estate & Property Law, Zoning, Planning & Land Use

The issue presented for the Louisiana Supreme Court's review stemmed from a class action suit relating to plaintiffs' inverse condemnation claims against the State, and whether those claims were prescribed under La. R.S. 13:5111 and/or 28 U.S.C. 2501. In 2006, plaintiffs Steve Crooks and Era Lea Crooks filed a “Class Action Petition to Fix Boundary, For Damages and For Declaration [sic] Judgment.” The Crookses alleged that they represented a class of landowners in the Catahoula Basin whose property is affected by the increased water levels from a congressionally-approved navigation project authorized under the River and Harbor Act of 1960 to promote navigation on the Ouachita and Black Rivers. In conjunction with that project, the State of Louisiana signed an “Act of Assurances,” which obligated the State to provide the federal government with all lands and property interests necessary to the project free of charge, and to indemnify the federal government from any damages resulting from the project. Ultimately, the trial court certified the plaintiffs as one class, but subdivided that class into two groups – the “Lake Plaintiffs” and the “Swamp Plaintiffs” – depending on the location of the properties affected. The lower courts relied on the decision in Cooper v. Louisiana Department of Public Works, 870 So. 2d 315 (2004) to conclude the one-year prescriptive period for damage to immovable property found in La. C.C. art. 3493 governed and the continuing tort doctrine applied to prevent the running of prescription on the plaintiffs’ claims. The Supreme Court determined the lower courts erred in relying on Cooper and held that the three-year prescriptive period for actions for compensation for property taken by the state set forth in La. R. S. 13:5111 governed, and plaintiffs’ inverse condemnation claims were prescribed.

Friends of Lamoine v. Town of Lamoine

Court: Maine Supreme Judicial Court

Citation: 2020 ME 70

Opinion Date: May 19, 2020

Judge: Andrew M. Mead

Areas of Law: Government & Administrative Law, Real Estate & Property Law, Zoning, Planning & Land Use

The Supreme Judicial Court affirmed the judgment of the business and consumer docket vacating a decision by the Town of Lamoine Board of Appeals that reversed the Town Planning Board's denial of Hard MacQuinn, Inc.'s application for a permit under the Town's site plan review ordinance and affirming and reinstating the Planning Board's decision, holding that the lower court did not err. Specifically, the Supreme Judicial Court held (1) the Me. R. Civ. P. 80B complaint filed by Friends of Lamoine and Jeffrey Dow as Trustee for the Tweedie Trust was timely; (2) the Board of Appeals properly conducted appellate review of the site plan permit decision rather than de novo review; (3) the Planning Board’s findings in denying the permit were supported by substantial evidence; and (4) MacQuinn's argument that the Planning Board should have waived a criterion of the ordinance as duplicative or inapplicable did not require discussion.

Raposa v. Town of York

Court: Maine Supreme Judicial Court

Citation: 2020 ME 72

Opinion Date: May 19, 2020

Judge: Horton

Areas of Law: Government & Administrative Law, Real Estate & Property Law, Zoning, Planning & Land Use

The Supreme Judicial Court vacated the judgment of the superior court affirming a decision of the Town of York Board of Appeals purporting to grant Daniel and Susan Raposa's appeal from a decision of the Town's Code Enforcement Officer (CEO), holding that because the Board's written findings of fact directly nullified its decision to grant the appeal, the matter must be remanded for further proceedings. The Raposas contacted the Town's CEO to express their concern that Joshua Gammon's use of his property was not consistent with his predecessor's lawful nonconforming use. The CEO determined that Gammon's operation of his business on his property was not a change in use from his predecessor's use of the property. On appeal, the Board granted the Raposas' appeal as to the change-of-use issue. In the Board's written decision, however, the Board stated, "The use of the lot by Mr. Gammon's landscaping business does not constitute a change of use but is an intensification of the same use." The superior court affirmed, concluding that the Board's written decision was the operative decision for judicial review. The Supreme Judicial Court held that because the Board's written decision contained factual findings directly contradicting its initial decision, the matter must be remanded for further proceedings.

Murray v. BEJ Minerals, LLC

Court: Montana Supreme Court

Citation: 2020 MT 131

Opinion Date: May 20, 2020

Judge: Laurie McKinnon

Areas of Law: Energy, Oil & Gas Law, Real Estate & Property Law

The Supreme Court accepted a question certified to it by the United States Court of Appeals for the Ninth Circuit and answered that, under Montana law, dinosaur fossils do not constitute "minerals" for the purpose of a mineral reservation. Mary Ann and Lige Murray owned the surface estate of sizable property in Garfield County. The mineral estate was held by BEJ Minerals, LLC and RTWF LLC (collectively, BEJ). The Murrays found and excavated several valuable dinosaur fossils on their property. When BEJ claimed an ownership interest in the fossils the Murrays sought a declaratory judgment affirming that the fossils were owned solely by the Murrays. BEJ filed a counterclaim requesting a declaratory judgment that, under Montana law, the fossils were "minerals" and thus part of the mineral estate. The federal district court granted summary judgment to the Murrays. On appeal, a Ninth Circuit panel reversed. The Murrays then filed a petition for rehearing and rehearing en banc. The Ninth Circuit certified the question to the Supreme Court for resolution under Montana law. The Supreme Court "decline[d] to stretch the term 'mineral' so far outside its ordinary meaning as to include dinosaur fossils," concluding that, under Montana law, dinosaur fossils do not constitute "minerals" for the purpose of a mineral reservation.

State ex rel. Armatas v. Plain Township Board of Zoning Appeals

Court: Supreme Court of Ohio

Citation: 2020-Ohio-2973

Opinion Date: May 19, 2020

Judge: Per Curiam

Areas of Law: Civil Procedure, Government & Administrative Law, Real Estate & Property Law, Zoning, Planning & Land Use

The Supreme Court affirmed the judgment of the court of appeals ruling that Appellant's complaint for a writ of mandamus is barred by the doctrine of res judicata, holding that the court of appeals correctly applied res judicata to Appellant's claim. Appellant went into the office of the Plain Township zoning inspector to complain about a neighbor's trees, and the inspector told Appellant that the trees did not violate the zoning code. Appellant later filed a mandamus action seeking to compel the inspector and the Plain Township Board of Trustees to enforce the zoning provision against his neighbor. The court of appeals dismissed the complaint. Two years later, Appellant attempted to appeal the inspector's initial decision, but the board of zoning appeals dismissed the appeal as untimely. Appellant then filed a second mandamus action in the court of appeals seeking to compel the inspector to issue his initial decision in writing. The court of appeals held that res judicata barred the claim because Appellant could have asserted that claim in his first mandamus action. The Supreme Court affirmed, holding that the court of appeals correctly applied res judicata to Appellant's claim against the inspector in this case.

Ladd et al v. Real Estate Commission, et al.

Court: Supreme Court of Pennsylvania

Docket: 33 MAP 2018

Opinion Date: May 19, 2020

Judge: Dougherty

Areas of Law: Civil Procedure, Government & Administrative Law, Professional Malpractice & Ethics, Real Estate & Property Law

Appellant Sara Ladd, a New Jersey resident, owned two vacation properties on Arrowhead Lake in the Pocono Mountains. Ladd started renting one of these properties in 2009 and the other in 2013 to supplement her income after being laid off from her job as a digital marketer. Eventually, some of her Arrowhead Lake neighbors learned of her success and asked her to manage rental of their own properties. Ladd considered “short-term” vacation rentals to be rentals for fewer than thirty days, and limited her services to such transactions only. Ladd acted as an “independent contractor” for her “clients” and entered into written agreements with them related to her services. In January 2017, the Commonwealth’s Bureau of Occupational and Professional Affairs (the Bureau), charged with overseeing the Commission’s enforcement of Real Estate Licensing and Registration Act (RELRA), called Ladd to inform her she had been reported for the “unlicensed practice of real estate.” Ladd reviewed RELRA and concluded her short-term vacation property management services were covered by the statute, and she would have to obtain a real estate broker license to continue operating her business. As Ladd was sixty-one years old and unwilling to meet RELRA’s licensing requirements, she shuttered PMVP to avoid the civil and criminal sanctions described in the statute. The Pennsylvania Supreme Court considered the Commonwealth Court's holding that the RELA's broker licensing requirements satisfied the heightened rational basis test articulated in Gambone v. Commonwealth, 101 A.2d 634 (Pa. 1954), and thus do not violate Article I, Section 1 of the Pennsylvania Constitution when applied to a self-described “short-term vacation property manager.” The Supreme Court concluded the Commonwealth Court erred in so holding, and therefore reversed and remanded for further proceedings.

Salt Lake City Corp. v. Haik

Court: Utah Supreme Court

Citation: 2020 UT 29

Opinion Date: May 18, 2020

Judge: Matthew B. Durrant

Areas of Law: Constitutional Law, Environmental Law, Real Estate & Property Law

The Supreme Court affirmed the decision of the court of appeals affirming the district court's dismissal of the Pearl Raty Trust's claim that it is an inhabitant of Salt Lake City and thereby entitled to the City's water under Utah Const. art. XI, 6, holding that the Trust failed to persuade the Court that the Utah voters who ratified the Constitution would have considered it an inhabitant of the City. The Trust sought water for an undeveloped lot it owned in Little Cottonwood Canyon. Although the lot sat in unincorporated Salt Lake County, the lot fell within Salt Lake City's water service area. The court of appeals ruled that the Trust was not an inhabitant of the City because it "merely holds undeveloped property within territory over which the City asserts water rights and extra-territorial jurisdiction." The Supreme Court affirmed, holding that the Trust failed to persuade that the people who ratified the Utah Constitution understood the word "inhabitants" to encompass any person who owned property in a city's approved water service area.

Emer's Camper Corral, LLC v. Western Heritage Insurance Co.

Court: Wisconsin Supreme Court

Docket: 2018AP000458

Opinion Date: May 21, 2020

Judge: Kelly

Areas of Law: Insurance Law, Professional Malpractice & Ethics, Real Estate & Property Law

The Supreme Court affirmed the decision of the court of appeals affirming the judgment of the circuit court directing a verdict in favor of Defendant, an insurance agent, on Plaintiff's claim that Defendant was negligent because he procured an insurance policy that did not conform to Plaintiff's requirements, holding that Plaintiff must prove that it would have qualified for an insurance policy with better terms than the policy it actually obtained. Plaintiff sold new and used camper trailers. Plaintiff asked Defendant, an insurance agent, to acquire a policy to cover its camper inventory. Plaintiff thought Defendant had acquired a policy with a deductible for $1,000 per camper in the event of hail damage with a $5,000 aggregate deductible limit, but the policy actually required a $5,000 deductible per camper, with no aggregate limit. After a hailstorm damaged many of the campers on its lot, Plaintiff sued Defendant. The circuit court directed a verdict due to Plaintiff's failure to introduce evidence that an insurer would have insured Plaintiff with the deductible limits it thought it had. The Supreme Court affirmed, holding that Plaintiff must not only prove that an insurance policy with the requested deductibles was commercially available but that Plaintiff would actually have qualified for that policy.