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RICHARDSON v. PSB ARMOR9/13/1996
The United States District Court for the Middle District of Alabama has certified to this Court several questions relating to the Alabama's Workers' Compensation Act, and, particularly, when it is proper under that Act for an employer's "service company," or a "group thereof," to be deemed to be an "employer."
Underlying the certified questions are the following facts:
In May 1993, James Richardson, an employee of the Farley Nuclear Plant in Dothan, received an on-the-job injury. Workers' compensation benefits were awarded to Richardson from his employer, Southern Nuclear Operating Company ("Southern Nuclear").
Southern Nuclear, Richardson's statutory "employer," operates the Farley Nuclear Plant for the plant's owner, Alabama Power Company ("APCo"). Southern Nuclear handles the plant's day-to-day operations, under a contract between it and APCo. In turn, Southern Nuclear receives support services from Southern Company Services, Inc. ("SCSI"), under a January 1991 contract between it and SCSI. All three companies — APCo, which owns the plant; Southern Nuclear, which manages the plant's day-to-day operations for APCo (and which employs Richardson); and SCSI, which provides support services to Southern Nuclear in the operation of the plant — are wholly owned subsidiaries of The Southern Company.
In January 1994, Richardson sued APCo, SCSI, and other entities in the United States District Court for the Middle District of Alabama. He sought damages from APCo and SCSI for his work-related injuries. APCo and SCSI both denied liability and each has moved for a summary judgment.
It is undisputed that if APCo or SCSI is properly afforded "employer" status under the Alabama Workers' Compensation Act, then it is entitled to immunity from Richardson's claim. In this regard, APCo contends that it is immune because the definition of "employer" under the Alabama Workers' Compensation Act includes the phrase "a group thereof" and it claims to come within that phrase. SCSI argues that it is entitled to the status of an "employer," because, it says, as a "service company" for a self-insured employer, Southern Nuclear, it also falls within the statutory definition of "employer."
Regarding APCo and SCSI's summary judgment motions, the district court has certified the following questions to this Court:
"(a) Whether a service company that does not provide assistance related to workers' compensation benefits qualifies as a 'service
company for a self-insurer' and, thus, is an 'employer' for purposes of the Alabama Workers' Compensation Laws.
"(b) Whether the services provided by [SCSI] to Southern Nuclear Operation Company (as those services are listed in January 15, 1995 agreement) render Southern Company Services, Inc., an 'employer' under § 25-5-1(4) [Ala. Code 1975] [a part] of the Alabama Workers' Compensation Laws.
"(c) Whether a corporation-owner of a plant, which relinquishes operating control to a sister company that is wholly owned by the same parent corporation as the owner, is a 'group' of a plant employee's 'employer' within the meaning of the Alabama Workers' Compensation Laws, where the corporation-owner indirectly pays the employee's wages and workers' compensation benefits.
"(d) Does it alter the opinion of the Court if, in addition to the facts in (c), the corporation-owner has tried to limit its liability to payment of workers' compensation benefits?"
SCSI's Status as a Service Company
The Alabama Workers' Compensation Act provides an exclusive remedy for the employee injured in a workplace accident:
"Except as provided in th
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