Howell v. Chase

IN THE COURT OF APPEALS OF TENNESSEE FILED AT KNOXVILLE March 09, 1999 Cecil Crowson, Jr. Appellate C ourt Clerk JOHN D. HOWELL, ) C/A NO. 03A01-9810-CV-00340 ) Plaintiff-A ppellant, ) BRAD LEY C IRCUIT ) v. ) HON. LAWRENCE H. PUCKETT, ) JUDGE DEAN CHASE, d/b/a CHASE ) HEATING AND AIR-CONDITIONING,) AFFIRMED ) AND Defendant-Appellee. ) REMANDED PHILL IP L. DA VIDS ON, N ashville, for P laintiff-Ap pellant. J. CHRISTOPHER C LEM, LUTHE R-ANDERSO N, PLLP, Chattanooga, for Defendant-Appellee. O P I N IO N Franks, J. In this action p laintiff sued defenda nt for tortious injuries alleged ly occurring “at Chase Heating and A ir Conditioning”. Plaintiff had recovered W orker’s Compensation benefits from Steve Mann, d/b/a Mann Mechanical Contracting, who intervened in this action. The T rial Court, responding to a m otion for summa ry judgment, granted defendant summary judgment on the basis that Chase was a statutory e mployer pursua nt to T.C .A. §50 -6-108 and §5 0-6-11 2. This is the issu e to be resolv ed on app eal. Summary judgments are only granted where the movant establishes there are no genuine issues of material fact, and the movant is entitled to a judgment as a ma tter of law . Byrd v. H all, 847 S .W.2d 208 (T enn. 19 93). The material facts are not in dispute. Plaintiff, at the time of his alleged injury, was an employee of Steve Mann, d/b/a Mann Mechanical Contracting. At some time prior to the accident, Mann had been an employee of defendant, but at the time of the a ccident their w orking relatio nship had changed , and the de fendant sa id in his deposition that Mann was a “sub-contractor”. At the time of plaintiff’s alleged accident, Mann was renting trucks, equipment and the sheet metal shop from defen dant. T he truck s and u niform s worn by the w orkers c arried d efend ant’s log o. Defendant’s testimony is not disputed on the business relationship. He testified: Q. Okay. What was the business relationship at the time of the accident in June of 1 994 with M r. Howell betwe en you and Mr. -- A. Mann. Q. -- Mann? A. Well, I was just subcontracting -- I rented all of the trucks and the sheet metal shop to him. And he was -- and paid him -- he subcontracted all my labor and installations. I paid him by the job. Q. Did that business relationship have anything to do with your workers’ comp insurance? A. Well, I didn’t carry it. That was part of the deal, he carried the workman’s comp himself, and the insurance on the men back there. And I carried it on m ine, on the se rvice peop le. And I pa id him so m uch per m an hour, w hich includ ed -- we h ad it figured to where h e could co me out by pa ying his insuran ce, becaus e his insurance was overhead. Q. When you say com e out, to you mean com e out better? A. Yeah, he come out better, himself. Q. Well, and better for you, too? A. Wel l, hop ed it w orke d tha t way. Plaintiff argues that Mann was an independent contractor. As the Supreme Court has noted in Stratton v. United Inter-Mountain Telephone Co., 695 S.W.2d 947 (Tenn. 1985), when the facts are essentially undisputed, the question of 2 whether one is an employee or an indepe ndent contractor for the p urposes of W orker’s Compensation, is one of law for the court. The Stratton Court teac hes that certa in factors are to be considered in determining whether the relationship is one of employer-em ployee or inde pendent c ontractor, an d that no on e factor ne cessarily controls. These are: 1. Right to control the conduct of the work. 2. Right of termination. 3. Metho d of payme nt. 4. Whether alleged employee furnishes his own helpers. 5. Whether alleged employee furnishes his own tools. 6. Whether one is d oing work fo r another. Id. at 950. The Co urt continue s that the right to control the w ork is repea tedly emphasized and observed: “The test is not whether the right to control is exercised, but me rely whe ther the r ight to co ntrol ex isted”, Id. Clearly, the right to control existed in this case. The defendant contracted with third parties for heating and air-conditioning installations, and he then contracted with M ann to do th e installation. M ann used the tools, equ ipment, uniforms and the premises of defendant to carry out the work. The working arrangement between Mann and defendant was essentially an allocation of overhead expenses with paymet to Mann for work performed by Mann and his employees. On this record, Mann only contributed labor to the operation. The courts have noted that the statutory scheme under consideration intended to ensure that all workers are paid benefits when they are injured in the course of their emplo yment. Stratton. The statutory intent was satisfied by the payment of Worker’s Compensation benefits to the plaintiff herein. We hold on the 3 undisputed evidence that defendant was within the statute’s umbrella of protection as an emplo yer and was entitled to judg ment. We affirm the judgment of the Trial Court and remand with the cost of the appeal assessed to plaintiff. __________________________ Herschel P. Franks, J. CONCUR: ___________________________ Don T. McM urray, J. ___________________________ Charles D. Susano, Jr., J. 4