Stocker v. SHELL OIL COMPANY

The issue in this case is whether the borrowed servant status of a negligent worker, assigned pursuant to a contract between a labor supplier and a labor user, may defeat an express indemnity agreement between the contracting parties. We hold that borrowed servant status may not defeat a valid contractual indemnification agreement, and in so holding we reverse the judgment and remand.

The two parties to this appeal are Shell Oil Co. (Shell) and P. M. Northwest, Inc. (P.M.). P.M., a Washington corporation, is a labor contractor providing workers to the various oil refineries and chemical plants…