Offshore Rental Co. v. Continental Oil Co

Offshore Rental Co. v. Continental Oil Co. (1978) 22 Cal.3d 157 was a negligence action arising from a personal injury suffered by an officer of the plaintiff corporation while on the defendant's premises in Louisiana. The plaintiff sought to recover damages for injuries to its business interests resulting from the loss of the officer's services. (Id. at pp. 160-161.) The choice-of-law issue concerned the existence of tort liability. Offshore Rental assumed that California law (Civ. Code, 49) allowed a cause of action for negligent injury to a business employee, and concluded that Louisiana law did not allow such a cause of action. (Offshore Rental, supra, at pp. 162-163.) Offshore Rental noted that no California court had squarely held that the California statute supported such a cause of action, while a Louisiana appellate court nine years earlier had held that Louisiana law did not allow a cause of action by a corporate plaintiff for the loss of services of its officer. (Id. at pp. 162, 168.) Offshore Rental characterized the California statute as "unusual and outmoded" and concluded that California's interest in establishing liability under the statute was less strong than Louisiana's interest in the application of its " 'prevalent and progressive' " law. (Id. at p. 168.) The court therefore concluded that Louisiana law applied and that the trial court's dismissal of the cause of action was proper. (Id. at pp. 169-170.)