Associated Indemnity Corp. v. Industrial Accident Commission & Smith

56 Cal. App. 2d 804
CourtCalifornia Court of Appeal
DecidedJanuary 26, 1943
DocketCiv. No. 12258
StatusPublished
Cited by13 cases

This text of 56 Cal. App. 2d 804 (Associated Indemnity Corp. v. Industrial Accident Commission & Smith) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Associated Indemnity Corp. v. Industrial Accident Commission & Smith, 56 Cal. App. 2d 804 (Cal. Ct. App. 1943).

Opinion

NOURSE, P. J.

Petitioner seeks to annul an award of the respondent commission in favor of respondent Smith upon the ground that the evidence is insufficient to support the finding that Smith was an employee.

There is no substantial conflict in the evidence. The sole question presented is whether it can be said as a matter of law that an attorney who is employed under a general retainer is not an employee despite the fact that certain of the services he renders are of a general business nature rather than strictly legal.

The respondent DeLancey C. Smith is a duly admitted attorney at law. He maintained a private office in San Fran[806]*806cisco where he employed assistants whose compensation was paid by him as were other office expenses. He engaged in a general practice. For a number of years he had been employed or retained by the Pacific Intermountain Express Co. as an “attorney and consultant.” He rendered various services, some of a strictly legal nature, such as drawing legal documents and defending suits. Other services were consultations on matters of business policy such as selection of terminal locations and facilities, personnel and general operational problems. For certain additional work he was paid additional compensation. The amount of this extra compensation was not determined in advance. At the conclusion of the particular work a bill was sent to the company for an amount fixed by Mr. Smith. Most of this additional work was outside of San Francisco. In those cases he generally received $100 a day and all travelling expenses. At times Mr. Smith paid all his expenses and was later reimbursed at other times a sum was advanced by the company, and on still other occasions certain items, particularly those for transportation, were charged directly to the company. There is no evidence of any agreement that services for the company should be performed by Smith personally, and it is not disputed that certain of the work was done by his office assistants, though the nature of the work they did is not disclosed. It appeared that about one-third of the applicant’s time was spent on the Express Company business, though there was no agreement to devote any fixed amount of time to the work. There is no evidence that Mr. Smith was carried on the payroll as an employee or that reports were made or taxes paid under the Social Security Act.

The award was made for medical expenses incurred because the applicant had contracted pneumonia while travel-ling on work of the Express Company. It appeared that the primary work was to appear before the Interstate Commerce Commission at Pocatello, Idaho, on an application for a certificate of convenience and necessity in connection with a sale of certain of the Express Company’s properties. Mr. Smith went first to Salt Lake City where he conferred with employees of the company in the preparation of data to be presented to the commission. He then went to Pocatello where he appeared for the Express Company. Respondents assert that his function was principally to supply information to the commission because the matter involved a sale wherein [807]*807the Express Company was the seller and that the burden of proof was on the buyers who were separately represented. At this hearing Mr. Smith testified. This testimony was to have been given by a Mr. Savage, not an attorney but the president of the Express Company, who was to have accompanied Mr. Smith on the trip but who at the last moment was unable to go. On other occasions the company had been represented by a regular full time employee who was not an attorney, but generally after consultation with Mr. Smith. At the conclusion of the hearing Mr. Smith returned to Salt Lake City, where he conferred for one day with employees of the company on general business affairs. Transportation on the trip was by plane, automobile, and train. Plane accommodations were procured on the company’s vouchers, use of which was restricted to “Officer, Director, and Employees, Etc.” By use of the voucher a discount is obtained. On the voucher Mr. Smith was described as “attorney for Pacific Intermountain Express. ’ ’ The automobile used belonged to the company. After his return to San Francisco, Mr. Smith was confined to his bed with pneumonia until January 14, 1942, a period of over three months. During this time he was paid the regular sum of $250 per month though the work that was done was performed by his assistants.

No question is raised as to the sufficiency of the evidence to support the finding that the sickness arose out of and in the course of the employment, if there was employment.

Both petitioner and respondents in their points and authorities have proceeded upon the assumption that if certain of the services performed by Mr. Smith were not done in his capacity as attorney at law, or, as respondents contend, were not purely incidental thereto, that they were necessarily performed as an employee. This assumption is a violent one. Generally, any specialized or professional services rendered other than by one engaged for fixed hours at a fixed recompense are not within the compensation act. (1 Schneider, Workmen’s Compensation Law, 2d ed., 198.) In distinguishing between a contract of employment and one creating the relation of independent contractor a number of factors are to be considered. In 39 C.J. 1315,1316, the rule is stated as follows: “Generally the circumstances which go to show one to be an independent contractor, while separately they may not be conclusive, are the independent nature of his business, the existence of a contract for the performance of a specified piece [808]*808of work, the agreement to pay a fixed price for the work, the employment of assistants by the employee who are under his control, the furnishing by him of the necessary materials, and his right to control the work while it is in progress except as to results. All these matters are to be taken into consideration in determining whether or not a party is an independent contractor. ’ This statement of the rule is approved in Casselman v. Hartford A. & I. Co., 36 Cal.App.2d 700 [98 P.2d 539], upon which respondents rely, In the instant case each of these factors was present. Mr. Smith was engaged to do specified pieces of work rather than to devote any fixed time to such work as his alleged employer might specify. He was engaged in an independent calling. It is true that respondents insist that such is not entirely true because he was consulted on business problems but it appears that on such occasions he was merely called on to render an "opinion because of his particular abilities. At most it might be said that Mr. Smith was a specialist in two fields and was retained for his abilities in both. Admittedly Mr. Smith employed assistants who were under his exclusive control, and he furnished his own materials. These assistants were either trained lawyers or aides of Mr. Smith in his legal practice. Prom the very nature of the services rendered he had the “right to control the work while it is (was) in progress.” The last mentioned factor has received the greatest emphasis in the authorities in this jurisdiction. (13 Cal.Jur. 1019.) The respondent Smith was an independent contractor and not an employee. It follows, of course, that he was not within the terms of the Workmen’s Compensation Act.

There is another ground upon which the award must be annulled. If the services rendered were those of an attorney at law as such the respondent Smith certainly was not an employee. In Coleng v.

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Bluebook (online)
56 Cal. App. 2d 804, Counsel Stack Legal Research, https://law.counselstack.com/opinion/associated-indemnity-corp-v-industrial-accident-commission-smith-calctapp-1943.