Roy Peone and Janet Peone v. Regulus Stud Mills, Inc., an Idaho Corporation

In this case, we are asked to determine whether, under Idaho law, an employer of an independent contractor may be held liable for injuries incurred by an employee of the independent contractor as a result of the latter’s failure to abide by safety regulations.

Roy and Janet Peone appeal from the district court’s award of summary judgment in favor of defendant Regulus Stud Mills, Inc. (“Regulus”). Roy Peone’s claim is for his injuries and resultant damages. Janet Peone’s claim is for loss of consortium and her related damages resulting from her husband’s injuries. For ease of reference, we shall refer to the appellants as “Peone.”

Regulus operated a sawmill and purchased timber rights on a third party’s land. It hired Haynes Logging Company (“Haynes”), an independent contractor, to remove the timber from the land. Roy Peone was an employee of Haynes. On May 25, 1979, Roy Peone was removing timber in an area with standing dead trees, known as snags. While he was working, a snag fell on him, leaving him paralyzed for life.

Peone brought suit against Regulus in federal district court, invoking diversity jurisdiction. Three bases of tort liability were alleged. First, Peone argued…