Auger v. ABB Flexible Automation, Inc.

34 F. App'x 160
CourtCourt of Appeals for the Sixth Circuit
DecidedMarch 29, 2002
DocketNo. 00-1585
StatusPublished
Cited by5 cases

This text of 34 F. App'x 160 (Auger v. ABB Flexible Automation, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Auger v. ABB Flexible Automation, Inc., 34 F. App'x 160 (6th Cir. 2002).

Opinions

JONES, Circuit Judge.

Plaintiff Edward J. Auger, III (“Auger”) brought this negligence action against defendant ABB Flexible Automation, Inc. (“ABB”) for damages incurred while Auger was a temporary worker at ABB’s job site. ABB moved for summary judgment based on the argument that it was a “co-employer” of Auger and therefore the exclusive remedy provision of the Michigan Worker’s Disability Compensation Act (“the Act”) barred plaintiffs negligence action. The district court granted summary judgment to the defendant. On appeal, Auger argues that the district court erred because (1) ABB was not his “co-employer” but rather had only “retained control” of his employment and (2) the facts create at least conflicting inferences as to his employment status which should be decided by a trier of fact. For the reasons stated below, we reverse and remand the case for a jury trial.

I. BACKGROUND

In March 1998, Auger, a Michigan resident, began working as a pipe fitter at MTE Controls, LLC (“MTE”). MTE specializes in the installation of pneumatic, hydraulic and electrical control systems. ABB, a New York corporation, designs and manufactures product assembly lines.1 ABB contracted with General Motors Corporation to design and manufacture an engine block line, and, in the spring of 1998, ABB was in the process of assembling the line at its plant in Warren, Michigan.

ABB contracted with various companies for trained workers to assemble the line. ABB contacted MTE to obtain additional manpower to complete the General Motors project. ABB indicated that it needed MTE pipe fitters to complete the conveyor line project. MTE submitted hourly rate quotations for its various categories of pipe fitters. From March 10, 1998 through June 26,1998, MTE workers assisted ABB with the conveyor line project. MTE billed ABB on a weekly basis for the pipe fitters used by ABB. Auger was one of the MTE pipe fitters on the GMC/ABB project.

On May 22, 1998, Auger was tagging pneumatic lines near a conveyor belt. [162]*162While tagging the line, Auger leaned in towards the unguarded conveyor and was pulled into it. The accident mangled his right hand and arm, rendering both useless.

On December 17, 1998, Auger filed suit seeking to recover against ABB for negligence based in part on its “retained control” of the project. At the close of discovery, ABB filed a Motion for Summary Judgment, asserting that it was Auger’s “joint employer” and thus shielded from liability by virtue of the exclusive remedy provision of the Act. In opposition, Auger cited the district court to several record references which he asserted could lead a jury to reasonably conclude that Auger was not an employee of ABB but rather was on the job exclusively as an employee of MTE.

The district court granted ABB’s motion. The court applied the “economic reality test” for determining whether an employer/employee relationship exists and concluded that ABB was Auger’s “joint employer.” Thus, the court determined that the exclusive remedy provision of the Act barred plaintiffs negligence claim. The court also noted that whether MTE was a labor broker was immaterial to its analysis. On appeal, Auger argues that the district court’s grant of summary judgment was erroneous because there are genuine issues of material fact as to whether he was an employee of ABB. Auger timely appealed to this court.

II. DISCUSSION

A. Summary judgment

The sole issue on appeal is whether multiple conflicting inferences regarding Auger’s employment status precludes summary judgment. We review a grant of summary judgment de novo. Terry Barr Sales Agency, Inc. v. All-Lock Co., 96 F.3d 174, 178 (6th Cir.1996). Summary judgment is appropriate “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(c); Terry Barr, 96 F.3d at 178. No genuine issue for trial exists when “the record taken as a whole could not lead a rational trier of fact to find for the non-moving party.” Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). Moreover, this court must review the record, and any inferences derived therefrom, in the light most favorable to the non-moving party. Id. Accordingly, “when the non-moving party presents direct evidence refuting the moving party’s motion for summary judgment, the court must accept the evidence as true.” Adams v. Metiva, 31 F.3d 375; 382 (6th Cir.1994).

Whether a company is a particular worker’s employer under the Act is a question of law for the courts to decide if the evidence “is reasonably susceptible of but a single inference.” Nichol v. Billot, 406 Mich. 284, 279 N.W.2d 761, 767 (Mich. 1979). In a close case, however, where the factual issues cannot be easily resolved, the issue should be submitted to a trier of fact. Clark v. United Tech., 459 Mich. 681, 594 N.W.2d 447, 454 (Mich.1999).

B. Auger’s employment status

The key question in this case is whether Auger was an employee of ABB. ABB argues that because a labor broker/customer relationship existed between itself and MTE, then ABB was a co-employer of Auger. Therefore, as a co-employer, ABB claims that Auger’s recovery is limited by the exclusive remedy provision of the Act, Michigan Compiled Laws (“M.C.L.”) [163]*163§ 418.131, and it is entitled to summary judgment as a matter of law. In opposition, Auger contends that no labor broker/customer relationship existed, rather ABB and MTE were in a general contractor/subcontractor or principal/agent relationship. Moreover, he argues that, under the “economic reality test,” the totality of the facts and circumstances create at least conflicting inferences that he was not an employee of ABB. Therefore, he pleads a negligence liability theory based on the doctrine of retained control and asserts that the remedy issue should be submitted to a jury.

1. The Act

Section 418.131 of the Act provides that “the right to the recovery of benefits as provided in this act shall be the employee’s exclusive remedy against the employer.” The Michigan courts have traditionally applied an “economic reality test” to determine the existence of an employer/employee relationship under the Act. See e.g., Clark, 594 N.W.2d at 451. However, as a condition precedent to applying this test, Michigan law requires a determination of whether a labor broker/customer relationship exists. Kidder v. Miller-Davis, 455 Mich. 25, 564 N.W.2d 872, 879-80 (Mich.1997). The district court did not address whether MTE was a labor broker or whether MTE and ABB were in a labor broker/customer relationship.

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