Scott v. Key Energy Services, Inc., No. 19-3196 (8th Cir. 2021)Annotate this Case
After plaintiff sustained injuries in an on-the-job accident, he filed suit against his former employer, Key Energy, and the company that manufactured the equipment that caused his injuries, Hydra-Walk, alleging products liability and negligence claims. Plaintiff suffered injuries when the Hydra-Walk system he was operating became unstable and overturned, crushing him.
The Eighth Circuit affirmed the district court's grant of summary judgment for defendants, concluding that Hydra-Walk is not a third-party tortfeasor for purposes of determining whether plaintiff may pursue a remedy. The court explained that plaintiff's arguments to the contrary ignored that a merger occurred between Key Energy and Hydra-Walk, with Key Energy emerging as the only surviving entity and Hydra-Walk, ceasing to exist. Furthermore, the North Dakota Supreme Court has never allowed an employee to successfully recover against an employer where the employee was injured by equipment manufactured by another company prior to the company's merger with the employer and the injury occurred post-merger. Without further indication that the North Dakota Supreme Court would be receptive to the application of the exception, the court was unwilling to apply it, for the first time, to plaintiff's claims. Finally, the court concluded that the North Dakota Supreme Court would not apply the dual capacity doctrine to the exclusive remedy rule to plaintiff's claims.