SENATE BILL REPORT

SB 6041

BYSenators Talmadge and Newhouse

Limiting third-party workers' compensation actions against contractors.

Senate Committee on Judiciary

Senate Hearing Date(s):March 4, 1987; March 5, 1987; March 6, 1987

Majority Report:  That Substitute Senate Bill No. 6041 be substituted therefor, and the substitute bill do pass.

      Signed by Senators Talmadge, Chairman; McCaslin, Moore, Nelson, Newhouse.

Minority Report:  Do not pass.

      Signed by Senators Halsan, Vice Chairman; Bottiger.

Senate Staff:Dick Armstrong (786-7460)

                  March 9, 1987

AS REPORTED BY COMMITTEE ON JUDICIARY, MARCH 6, 1987

BACKGROUND:

Civil actions are often filed against a general contractor by an injured employee of a subcontractor alleging negligence on the part of the general contractor.

Over the years the courts have developed several theories of liability when a general contractor is responsible for the injuries to an employee of a subcontractor.

A statute on the liability of a general contractor for work place injuries to third-party workers would clarify the law.

SUMMARY:

The liability of a general contractor for injuries to the employees of subcontractors is expressly limited by statute.  Liability exists if the general contractor exercised control over the work area, if the general contractor breached specific contractual provisions in a mutually negotiated contract, or if the nature of the work was inherently dangerous and the contractor knew, or had reason to know, of the danger.

EFFECT OF PROPOSED SUBSTITUTE:

The substitute includes a clarifying amendment relating to the definition of contractor.

The substitute also contains two substantive changes:  (1) a general contractor is liable for damages if he or she has the right to exercise control over a work area, and (2) a general contractor cannot contract away liability for injuries occurring in a common work area.

Fiscal Note:      none requested

Senate Committee - Testified: John McKay, Associated General Contractors; Ted Preg, Associated General Contractors; Bob Thunder, Coroon and Black; Joe Pees, contractor