Third-Party Claims: When Someone Other Than Your Employer May Be Responsible
For many oilfield workers, the company that signs the paycheck is not the company that ran the rig, owned the site or built the equipment that failed. That is why a claim against another company can matter so much. Such a claim is usually a negligence claim. Negligence asks four things: whether the company owed the injured person a duty of care, whether it breached that duty, whether the breach caused the injury, and what harm resulted. Each is a question the facts decide.
Two kinds of third-party claims come up often on oilfield locations. Premises liability is the duty a property owner or operator owes to people who are lawfully on its site, such as a duty concerning hazards on the location it controls. Product liability is the legal theory that a manufacturer or seller of defective equipment may be responsible for injuries the defect causes. Texas's proportionate responsibility chapter, for example, counts harm caused "by negligent act or omission, by any defective or unreasonably dangerous product, by other conduct or activity that violates an applicable legal standard, or by any combination of these," as section 33.003 of the Texas Civil Practice and Remedies Code puts it.
The categories of companies that may be involved on an onshore location include well operators, drilling contractors, equipment manufacturers, chemical suppliers, and other subcontractors and service companies. Naming a category is not a finding against anyone. An accident, even a serious one, does not by itself show that any company was at fault or that any piece of equipment was defective.
Damages in a third-party claim are the losses the applicable state's law recognizes. Washington's statute, for instance, speaks of "compensatory damages for an injury," and which losses count, and how they are measured, is set by each state's law.
What this means in practice: the same accident may support both a workers' compensation claim and a separate claim against another company, depending on who was involved and what each controlled. Many families find it useful to gather what they already know about the companies present: names on hard hats, trucks and paperwork, and who directed the work that day. The broader oilfield and energy legal services overview describes these site relationships further.