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E. T. Chapin Co. v. Scott

Supreme Court of Idaho
Jul 27, 1927
44 Idaho 566 (Idaho 1927)

Summary

In E.T. Chapin Co. v. Scott, 44 Idaho 566, 260 P. 172 (1927), in holding that Scott was an independent contractor, this Court noted that his contract called for the loading of "a definite and terminable amount" of logs and therefore the company had no right, at its will and pleasure, to discharge Scott.

Summary of this case from Ledesma v. Bergeson

Opinion

No. 4828.

July 27, 1927.

APPEAL from the District Court of the Second Judicial District, for Clearwater County. Hon. Edgar C. Steele, Judge.

Action for compensation. Judgment for respondent. Reversed.

H.M. Morey, A.M. Waters, Graves, Kizer Graves and Tannahill Leeper, for Appellants.

The district court was without authority or jurisdiction to make any findings of fact whatever. (C. S., sec. 6270; Ybaibarriaga v. Farmer, 39 Idaho 361, 228 P. 227; Johnston v. A. C. White Lumber Co., 37 Idaho 617, 217 P. 979.)

The jurisdiction of the district court in appeals of this character is limited solely to consideration of questions of law according to the facts as found by the Industrial Accident Board. (C. S., sec. 6270; Ybaibarriaga v. Farmer, supra; Johnston v. A. C. White Lumber Co., supra.)

The burden is and always has been upon John W. Scott to prove that he was an employee of the Chapin Company and he has not sustained that burden. ( Western Indemnity Co. v. Pillsbury, 172 Cal. 807, 159 P. 721.)

The court cannot take into consideration the question of whether Scott was an employee of Robert Lamont; the only question in issue is whether Scott was an employee of the Chapin Company. (C. S., sec. 6287a.) Scott was a partner with Lamont in so far as the performance of the work in question was concerned. (30 Cyc. 349; C. S., sec. 5818; State v. Cosgrove, 36 Idaho 278, 210 P. 393.)

Scott and Lamont were independent contractors in so far as the performance of the work in question was concerned. ( Daly v. Blount Lumber Co., 213 App. Div. 486, 210 N. Y. Supp. 814; Beach v. Velzey, 238 N.Y. 100, 143 N.E. 805; Southern Const. Co. v. State Industrial Commission, 112 Okl. 248, 240 Pac. 613; Diamond Block Co. v. Sparks, 209 Ky. 73, 272 S.W. 31; Dean v. Johnson, 214 N.Y. Supp. 448; Wagoner v. Davis Const. Co., 112 Okl. 231, 240 P. 618; Producers Lumber Co. v. Butler, 87 Okl. 172, 209 P. 738.)

Smith Smith and A.H. Oversmith, for Respondent.

Findings of fact are not necessary where the facts have been agreed upon or admitted by the pleadings, but the making of such findings of fact by the Industrial Accident Board or by the district court does not constitute reversible error. ( Edmundson v. Taylor, 17 Idaho 618, 106 P. 991; Fouch v. Bates, 18 Idaho 374, 110 P. 265; Basinger v. Taylor, 36 Idaho 591, 211 P. 1085.)

Where the facts are admitted or are not in dispute, only a legal question arises as to how these facts should be applied. ( Ybaibarriaga v. Farmer, 39 Idaho 361, 228 P. 227; Kaylor v. Callahan Zinc Lead Co., 43 Idaho 477, 253 P. 333; Johnston v. White Lumber Co., 37 Idaho 617, 217 P. 979; Walker v. Hyde, 43 Idaho 625, 253 P. 1104.)

The general purpose of the Idaho Workmen's Compensation Act is to withdraw all phases of disputes between the employer and the employee from private controversy, and to insure speedy and certain relief to injured workmen, and the law should be liberally interpreted and construed so as to affect its general purpose. (C. S., secs. 6214, 6334; McNeil v. Panhandle Lumber Co., 34 Idaho 773, 203 P. 1068; Fidelity Casualty Co. v. Industrial Accident Commission, 177 Cal. 614, 171 P. 429, L.R.A. 1918F, 856.)

The doctrine of an independent contractor has no application under the Idaho Compensation Act. ( Fisk v. Bonner Tie Co., 40 Idaho 304, 232 P. 569; McDowell v. Duer, 78 Ind. App. 440, 133 N.E. 839; Kirkpatrick v. Industrial Accident Com., 31 Cal.App. 668, 161 P. 274.)

The words "employer," "workman" and "employee" are defined by statute. Under the Idaho statute and similar statutes courts have held that workmen are entitled to compensation under facts similar to the case at bar. (C. S., sees. 6320, 6321; Fisk v. Bonner Tie Co., supra; O'Boyle v. Parker-Young Co., 95 Vt. 58, 112 Atl. 385; McDowell v. Duer, supra.)

Whenever an employer possesses the right of terminating the contract of employment or discharging an employee, there is a strong presumption that the person employed is not an independent contractor. ( Standard Oil Co. v. Parkinson, 152 Fed. 681, 82 C.C.A. 29; Arizona Hercules Cop. per Co. v. Crenshaw, 21 Ariz. 15, 184 P. 996; Good v. Johnson, 38 Colo. 440, 88 P. 439, 8 L.R.A., N.S., 896; Knicely v. West Virginia Midland Ry. Co., 64 W. Va. 278, 61 S.E. 811, 17 L.R.A., N.S., 370; Singer Mfg. Co. v. Rahn, 132 U.S. 518, 10 Sup. Ct. 175, 33 L. ed. 440.)


Respondent, claiming to have been an employee of appellant E. T. Chapin Company, seeks compensation for injuries; appellants resist on the ground that respondent was an independent contractor.

The application of the law to undisputed facts raises .a question of law not of fact. ( Ybaibarriaga v, Farmer, 39 Idaho 361, 228 P. 227.) In this case the facts were stipulated and there was no dispute though possibly different inferences could be drawn. If these inferences were correct findings of fact supported by sufficient evidence the commission's action thereon would be final, if legal conclusions, questions of law are presented for this court. The commission found in favor of appellants; the district court, on appeal, found in favor of respondent.

The material facts as stipulated were as follows: E. T. Chapin Company, a corporation, one of appellants, the other being such company's surety under the Employers' Liability Act, purchased certain poles from the White Pine Lumber Company, a corporation, at Orofino, Idaho, to be delivered to Chapin Company at Orofino and by it loaded on cars, for which purpose Bob Lamont was engaged by Chapin Company at so much per running foot graduated according to different length poles. Claimant Scott became Lamont's partner in such loading operation, performing an equal share of the labor, paying half of the expenses and receiving an equal division of the profits. (C. S., sec. 5819; 30 Cyc. 349.) While loading poles his leg was severely injured. Under the agreement between Chapin Company and Lamont, Lamont was to furnish his own equipment, though in fact he used the company's but without the company's knowledge. Chapin Company sent the orders as to the particular size of poles to be loaded at any one time, bills of lading, etc., to the White Pine Lumber Company, which in turn ordered the necessary cars and notified Lamont when the cars were received and what kind of poles were to be loaded. Lamont was to be responsible for demurrage. Lamont hired the Orofino Transfer Company to assist and paid it, Chapin Company being in no way responsible therefor. All checks were made to Lamont and Scott's name did not appear in the files of Chapin Company. It was further stipulated that Chapin Company handled so-called "gypo" contracts in other places as follows: The men were placed on its own payrolls and were paid direct, and insurance was carried on them; such employees were also under the company's supervision and directed in their work by the company's foreman and the company reserved the right to discharge such workmen, and the work was done in accordance with the ideas and directions of such foreman the same as in this case except that here there was no supervision and no foreman. It was further stipulated that $135 compensation was paid under a misapprehension of claimant's status. With reference to the comparison between the so-called "gypo" contracts and the present contract the stipulation further provided that the company herein "exerted no supervision whatever over the manner in which they were loaded and were interested only in getting the cars loaded as requested, except the supervision given by the White Pine Lumber Company through its manager, Mr. Kinnie, as hereinbefore set forth."

The only supervision on the part of the White Pine Lumber Company was as stated above that when so notified by Chapin Company they instructed Lamont what poles to load, gave him the bills of lading, ordered the cars and advised him of their arrival.

Respondent urges that the doctrine of an independent contractor has no application under the Workmen's Compensation Act, relying on In re Fisk, 40 Idaho 304, 232 P. 569. That case, however, recognizes that there may be independent contractors merely holding in line with C. S., sec. 6320, that the proprietor of a business is liable for an injury to an employee of an independent contractor who is engaged in work connected with the business of the proprietor, and that under C. S., sec. 6287a, both the proprietor and the independent contractor may be liable. That case does not hold that the independent contractor himself has the status of an employee of the proprietor so that he may recover compensation from his proprietor. In other words: The Fisk case deals with the rights of an employee of an independent contractor to recover from the proprietor. Herein we are discussing the rights of an independent contractor, if such the claimant be, to recover from the proprietor. The most recent expression by this court with respect to the tests for determining the difference between an employee and an independent contractor appears in Taylor v. Blackwell Lumber Co., 37 Idaho 707, 218 P. 356, and may be classified as follows: Right of control, as to the mode of doing the work contracted for; power to discharge; and method of payment. Applying these tests to the stipulation, it is apparent there was no right of control or supervision retained or exercised as to the particular means or method employed. The contract was for the loading of the poles of the Chapin Company and from. the context of the contract it seems conclusive that this meant the poles then belonging to the Chapin Company and purchased from the White Pine Lumber Company, and being at Orofino. This was a definite and determinable amount ( Turner Trust Co. v. Gillett, 36 Idaho 344, 210 P. 1001), and constituted a binding contract on both parties, and the Chapin Company had no right to discharge at its will and pleasure either Lamont or Scott. ( Houser v. Hobart, 22 Idaho 735, 127 P. 997, 43 L.R.A., N.S., 410.) The method of payment, while not controlling, was on a contract basis and though determined on a piece basis was for a completed job not by the day or any certain quantity. While, as stated in Taylor v. Blackwell Lumber Company, supra, no one of the tests is decisive, when taken together the conclusion is inevitable that Lamont and Scott were independent contractors and not employees. The accident board was therefore correct in its conclusion and the district court was not.

The judgment is reversed and the cause remanded, with instructions to enter judgment for the appellants. Costs awarded to appellants.

Budge, Taylor and T. Bailey Lee, JJ., concur.

Wm. E. Lee, C.J., dissents.

Petition for rehearing denied.


Summaries of

E. T. Chapin Co. v. Scott

Supreme Court of Idaho
Jul 27, 1927
44 Idaho 566 (Idaho 1927)

In E.T. Chapin Co. v. Scott, 44 Idaho 566, 260 P. 172 (1927), in holding that Scott was an independent contractor, this Court noted that his contract called for the loading of "a definite and terminable amount" of logs and therefore the company had no right, at its will and pleasure, to discharge Scott.

Summary of this case from Ledesma v. Bergeson

In Scott the Supreme Court of California overruled existing case law in the intermediate California appellate courts which had decided cases under the former rule and instead adopted the latter — that the decision of the tribunal in which a matter is first filed shall prevail.

Summary of this case from Anderson v. Gailey

In E.T. Chapin Co. v. Scott, 44 Idaho 566, 260 P. 172, this Court, in upholding a determination that Scott was an independent contractor, pointed to the contract which required the loading of "a definite and determinable amount" of logs and that the Company had no right, at its will and pleasure, to discharge Scott.

Summary of this case from Beutler v. MacGregor Triangle Company

In E.T. Chapin Co. v. Scott, 44 Idaho 566, at page 571, 260 P. 172, 173, the court listed the most important tests as follows: "Right of control as to the mode of doing the work contracted for; power to discharge; and method of payment."

Summary of this case from Ohm v. J. R. Simplot Co.

In Chapin v. Scott, 44 Idaho 566, 260 P. 172, the sole question was whether under the stipulated facts, the injured party was a subcontractor.

Summary of this case from Hansen v. Rainbow Min. Milling Co.
Case details for

E. T. Chapin Co. v. Scott

Case Details

Full title:E. T. CHAPIN COMPANY, Employer, and AETNA CASUALTY SURETY COMPANY, Surety…

Court:Supreme Court of Idaho

Date published: Jul 27, 1927

Citations

44 Idaho 566 (Idaho 1927)
260 P. 172

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