The Virginia Supreme Court recently ruled on a significant case involving indemnification under the Overhead High Voltage Line Safety Act (OHVLSA). The case, A&N Electric Cooperative v. Dietzel Enterprises, Inc., was certified by the U.S. Court of Appeals for the Fourth Circuit. This ruling clarifies the application of the OHVLSA and its exemption provisions, which could have far-reaching implications for construction safety regulations in Virginia.

The court's decision, issued on October 29, 2026, affects A&N Electric Cooperative, a utility company, and Dietzel Enterprises, a subcontractor involved in a tragic accident that resulted in the death of an employee. The ruling matters because it establishes how indemnification claims are handled under Virginia law, particularly in cases involving construction work near high voltage power lines.

Background

A&N Electric Cooperative filed a complaint against Dietzel Enterprises and Allstate Towers, Inc. after an employee of Dietzel, Kelvin Finck, was electrocuted while drilling foundations for guy wires attached to a communications tower in Accomack County, Virginia. The incident occurred in 2019 when Finck walked into an overhead high voltage power line owned by A&N. Following the accident, Finck's estate sued A&N, Dietzel, and Allstate for negligence, alleging they failed to implement adequate safety measures.

The case progressed through the Virginia Circuit Court, where the court dismissed Dietzel from the suit, citing the exclusivity provision of the Virginia Worker’s Compensation Act. Allstate settled with Finck’s estate before trial, while A&N settled for $800,000 on behalf of its insurer, Federated Rural Electric Management Corp.

In November 2023, Federated, as A&N's subrogee, sought indemnification from Allstate and Dietzel in federal court, arguing that their failure to follow safety requirements under the OHVLSA led to the accident. Allstate and Dietzel moved to dismiss the complaint, claiming that their work was exempt from the OHVLSA's requirements under Virginia Code § 59.1-413.

The Ruling

The Virginia Supreme Court ruled in favor of A&N Electric Cooperative, answering the first certified question affirmatively. The court concluded that the exemption provision of the OHVLSA applies to the conduct alleged in the complaint. The court stated, "The plain language of the OHVLSA’s exemption provision captures Allstate and Dietzel’s work on the communications tower." This means that the work conducted by Allstate and Dietzel was exempt from the safety requirements of the OHVLSA.

The court found that the communications tower and its supporting structures fell within the definition of “overhead electrical or communication circuits or conductors” as outlined in the OHVLSA. The ruling clarified that the exemption applies to work on various structures, including communications towers, as long as they are part of the enumerated systems in the statute.

Regarding the second question, which asked whether the indemnification provision of the OHVLSA requires a finding of liability against the indemnitee, the court deemed this question moot. Since the first question was answered affirmatively, the court did not need to address the second question.

Impact

This ruling has significant implications for construction safety regulations in Virginia. It clarifies that contractors working on communications towers and similar structures may not be subject to the OHVLSA’s safety requirements if their work is deemed exempt under the statute. This could potentially lead to fewer safety obligations for contractors working near high voltage lines, raising concerns about worker safety in such environments.

The decision also sets a precedent for future cases involving indemnification claims under the OHVLSA. It establishes a clear interpretation of the exemption provisions, which may influence how similar cases are handled in Virginia and potentially in other states with similar laws.

What's Next

The ruling can be appealed to the U.S. Supreme Court, but it remains unclear if the parties will pursue that route. There are currently no related cases pending that would directly affect this ruling. The implications of this decision will likely be closely monitored by both the construction industry and legal experts in Virginia.