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Holland & Knight  Assists Client in Acquisition of MetroSouth Medical Center in Blue Island, Illinois

CHICAGO – A team of Holland & Knight attorneys, led by Chicago Partner Anne Murphy, today completed a transaction in which client MSMC Investors LLC acquired St. Francis Hospital and Health Center from SSM Health Care. The historic 410-bed hospital, founded in 1905, was slated for closure after earlier efforts to find a buyer were unsuccessful. The acquisition was successfully completed on an unusually aggressive timetable. The hospital is the largest employer in Blue Island, and is known for its high quality service and excellence in cardiac care.

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Deborah Haddad Joins Holland & Knight's Chicago Office

CHICAGO – Deborah T. Haddad has joined the firm's Chicago office as a partner in the Real Estate Transactions Group.

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Construction
Newsletter - Second Quarter 2003
 
In this Issue...
Job Site Safety Update: Premises Owner Only Liable for Safety of Contractor If Owner Exercises Actual Control
 
June 2, 2003
 

The Texas Supreme Court also recently followed up on its decision in Lee Lewis Construction, Inc. v. Harrison, discussed in the last quarterly newsletter, available online at /id24660/publicationid1647/returnid31/. In a case filed by carpentry subcontractor, Larry Bright, for injuries he sustained on the job on premises owned by Dow Chemical Company (Dow), the Texas Supreme Court looked at whether Dow, as the premises owner, was liable for the subcontractor’s injuries. Dow Chemical Co. v. Bright, 89 S.W.3d 602 (Tex. 2002). Dow’s contract with general contractor, Gulf States, Inc., Larry Bright’s employer, specifically provided that Gulf States was an independent contractor and retained the right to control its own work, and that Dow retained no contractual control. At the same time, the contract provided that Gulf States was obligated to comply with all safety rules and regulations contained in Dow’s Safety and Loss Prevention Manual.

Here the Court reiterates its position that a premises owner is liable for the safety of the contractor or subcontractor’s employees only if it exercises actual control over the manner in which the contractor performs its work. The fact that Dow required contractors to comply with Dow’s safety standards, and even had a safety representative on site authorized to stop the work, did not constitute actual control over the means and methods of the contractor’s work. Dow was not aware of the dangerous condition that caused Bright’s injury, was not involved in controlling the timing and sequence of Bright’s work, and there was no evidence that imposing an obligation to comply with the safety manual actually led to Bright’s injury. This is in contrast to the Lee Lewis Construction case, in which Lee Lewis Construction was found liable for the injury to a subcontractor after it actually approved the specific fall protections implemented by the subcontractor and was aware that the dangerous activity was taking place. Bright further limits the responsibility of a premises owner for the work of and negligence of its independent contractors and their subcontractors. Bright potentially places a greater burden on the general contractor for the work of its subs.

For more information, contact Alex Huddleston or Stacy Vancil, toll free, at 1888-688-8500.