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McDaniel v. Troy Design Services Co.3/19/1996
TOCI, Judge
Troy Design Services Company ("Troy Design") appeals from the trial court's entry of summary judgment against it. The trial court concluded that Troy Design's employee, Rhett Schaller, was a "lent employee" under the exclusive control of General Motors Corporation ("GM"). Nevertheless, the trial court ruled that Troy Design was vicariously liable for Schaller's negligence in harming a fellow employee working at GM.
The issue before us is whether a general employer can be held vicariously liable for the negligent actions of a lent employee in the exclusive control of a special employer. We hold that a general employer is vicariously liable for the tortious conduct of a lent employee only if the general employer has control of or the right to control the performance of the lent employee's work. Because the trial court found that the lent employee was under the exclusive control of GM, we reverse and remand for entry of judgment in favor of Troy Design.
I. FACTS AND PROCEDURAL BACKGROUND
In November 1988, Robert McDaniel was riding in a cart driven by Schaller on the GM proving grounds. The cart was involved in an accident with a parked vehicle. As a result of the accident, McDaniel suffered serious injuries that culminated in the amputation of his leg.
When the accident occurred, both men were employed by labor brokers. McDaniel was employed by Kett Engineering and Schaller by Troy Design. The services of both men had been furnished to GM by their respective employers, under contract, and both employees were assigned by their employers to work at the GM proving grounds.
The day of the accident, McDaniel and Schaller were assigned by their supervisor at GM to transport tires and wheel assemblies to the tire shop. After the assignment was completed, Schaller ran into a parked vehicle, causing McDaniel's injuries. McDaniel filed this personal injury action naming Troy Design, GM, and Schaller as defendants. McDaniel sought to hold Troy Design liable for the negligence of its lent employee, Schaller, under the doctrine of respondeat superior.
Defendants filed a joint motion for summary judgment. McDaniel filed a cross-motion for summary judgment on the issue of Troy Design's vicarious liability. The trial court granted summary judgment in favor of GM and Schaller, dismissing them from the lawsuit. It also granted McDaniel's cross-motion, entering summary judgment against Troy Design on the issue of its vicarious liability for any negligence attributable to Schaller. Troy Design moved for a new trial, asking that the court reconsider its ruling. The trial court denied the motion. This appeal followed.
II. DISCUSSION
A. Standard of Review
Summary judgment "should be granted if the facts produced in support of the claim or defense have so little probative value, given the quantum of evidence required, that reasonable people could not agree with the Conclusion advanced by the proponent of the claim or defense." Orme Sch. v. Reeves, 166 Ariz. 301, 309, 802 P.2d 1000, 1008 (1990). Appellate courts review summary judgments on the basis of the record made in the trial court. United Bank of Arizona v. Allyn, 167 Ariz. 191, 195, 805 P.2d 1012, 1016 (App. 1990). The determination of whether summary judgment was proper is essentially de novo. Id.
B. Vicarious Liability for the Acts of Lent Employees
Vicarious liability "rests upon the employment of the servant by the master and the master's right to exercise direction and control over his work in the conduct of his business." Ray v. Tucson Medical Ctr., 72 Ariz. 22, 33, 230 P.2d 220, 227 (1951). "
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