American Stevedores Co v. Industrial Commission

97 N.E.2d 325, 408 Ill. 449, 1951 Ill. LEXIS 295
CourtIllinois Supreme Court
DecidedJanuary 18, 1951
Docket31693
StatusPublished
Cited by23 cases

This text of 97 N.E.2d 325 (American Stevedores Co v. Industrial Commission) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Stevedores Co v. Industrial Commission, 97 N.E.2d 325, 408 Ill. 449, 1951 Ill. LEXIS 295 (Ill. 1951).

Opinion

Mr. Justice Gunn

delivered the opinion of the court:

This case arises upon an application for adjustment of -a claim with the Industrial Commission filed March 24, 1948, by Stella Bagdonas, widow of Frank Bagdonas, making claim for compensation against American Stevedores Company, Inc., hereinafter referred to as Stevedores, and Frigidaire Sales Corporation, hereinafter referred to as Frigidaire, on account of the death of Frank Bagdonas on May 3, 1947, resulting from injuries sustained on the preceding day upon the premises of Frigidaire. The arbitrator awarded compensation as against Stevedores, but dismissed Frigidaire, finding that the relationship of employee and employer did not exist between respondent’s husband and Frigidaire, the petitioner herein. The decision of the arbitrator was affirmed by the Industrial Commission, but the superior court of Cook County, upon certiorari proceedings, affirmed the finding that the relation of employer and employee existed between Frank Bagdonas and Stevedores, but set aside the decision of the Industrial Commission that there was no employment relationship between Frank Bag-donas and Frigidaire, and thereupon made a finding of joint employment, and ordered Stevedores and Frigidaire to each pay respondent one half of the amount of compensation fixed by law. Frigidaire in the present case was allowed to prosecute a writ of error, but its petition for error urges only the question whether the superior court of Cook County erred in substituting its judgment for that of the Industrial Commission with respect to the employment relationship, and in a separate brief takes the additional position that there never was any claim of compensation made within six months of the date of the injury and death of Frank Bagdonas. If the position of Frigidaire is upheld upon the first contention it will be unnecessary to discuss the second.

The essential facts in the case are as follows: Frigidaire had offices on LaSalle Street in Chicago, and also owned a large warehouse in Argo, some ten miles west of the city. This warehouse was used for the storage of manufactured products of Frigidaire, such as refrigerators, stoves, ice-cream cabinets, etc., such products being manufactured other places and shipped to the warehouse for storage until reshipped to other points. Frigidaire had a few regular employees upon its payroll at this warehouse, including a timekeeper, checker, foreman, and operator of a mobile hoist. When extra help was needed by petitioner for unloading freight cars or storage of merchandise it procured the same from Stevedores under an arrangement existing between them.

Stevedores, with offices in Chicago, was engaged in the business of furnishing stevedore labor for the loading and unloading of freight and trucks, and other merchandise in and out of warehouses. Stevedores selected all of the men and decided whether they were qualified to do the type of work contracted for, took their names, addresses, social security numbers, and information for withholding tax. After the arrangement between Stevedores and Frigidaire was made, the former would be called from time to time to furnish men who might work one day or several days, in moving heavy merchandise from and into the warehouse at Argo. When such men were used Frigidaire would keep their time, and at the close of each day’s work copies of the time slips, showing the hours of work, were given to the straw boss of Stevedores to take to their office to enable them to pay the men. The men were paid by Stevedores at the rate of 95 cents per hour, but Frigidaire paid Stevedores $1.28 per hour for the same number of hours. The men were taken out to the jobs by a straw boss, and were placed at work under his directions. The superintendent of Frigidaire, under their arrangement, had no power to discharge the men individually, but if he was dissatisfied with any man he would indicate this to the straw boss, who would immediately telephone Stevedores and have another man sent to the job. Frank Bagdonas was hired by Stevedores on April 18, 1947, and paid 95 cents per hour. He worked until May 2, 1947, in petitioner’s warehouse. On that day Frigidaire’s operator of the mobile hoist requested Frank to assist in moving an ice-cream cabinet, and while so doing he was so injured that he died the following day.

It is agreed the demand for compensation was made of Stevedores, but it is not agreed it was made of Frigidaire. However, the widow of Bagdonas testified that she asked the superintendent of Frigidaire at the coroner’s inquest what they were going to do about it, and he replied, “Well, you are going to get $4800; the company is going to take care of you. You don’t have to worry.” The superintendent does not deny that this conversation took place, but says he does not recall it.

The first question for decision is whether Bagdonas. was an employee of Frigidaire at the time of his injury, within the contemplation of the Workmen’s Compensation Act. Petitioner claims that the finding of the arbitrator and of the commission that he was not an employee is a finding of fact, which is conclusive upon the reviewing court, unless against the manifest weight of the evidence. As a general rule this is true, but where the facts are not in dispute we have held that their effect may become a matter of law. (Marsh v. Industrial Com. 386 Ill. 11.) The facts are not in dispute in the present case, and therefore, the matter was open for the reviewing court to determine whether or not, as a matter of law, the admitted facts disclosed a relationship of employer and employee between Frigidaire and Bagdonas, and in its order the superior court recited that the decision of the Industrial Commission that the relationship of employer and employee did not exist between the decedent and Frigidaire was erroneous, contrary to the weight of the evidence, and contrary to law.

Situations similar to those in the instant case have occurred from time to time under the several Workmen’s Compensation Acts, and have resulted in what is commonly, and perhaps erroneously, termed “The Loaned Servant or Employee Doctrine.” At common law an employee in the general employment of one person may, with his consent, be loaned to another for the performance of special work and become the employee of the person to whom he is loaned while performing such special service, and this principle of law has been applied to workmen’s compensation cases. (Allen-Garcia Co. v. Industrial Com. 334 Ill. 390; Scribner’s case, 231 Mass. 132, 120 N.E. 350; Cayll v. Industrial Com. 172 Wis. 554, 179 N.W. 771.) It is said that the test to determine whether the injured person is the employee of the general employer, or of the special employer, is whether the master has resigned control of the servant for the time being, in a work in which the servant was engaged at the time. In Gaston v. Sharpe, 179 Tenn. 609, 168 S.W. 2d 784, a city, on a WPA project, rented a dragline machine and an operator to run the same from the defendant, and the operator was to use the machine as directed by a project foreman, and upon the foreman’s orders to let slack out in a rope of the machine the operator was injured. Under such facts the city became liable under the loaned servant doctrine.

The leading case in this State is that of Allen-Garcia Co. v. Industrial Com. 334 Ill. 390.

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Bluebook (online)
97 N.E.2d 325, 408 Ill. 449, 1951 Ill. LEXIS 295, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-stevedores-co-v-industrial-commission-ill-1951.