Blacknall v. Westwood Corporation

764 P.2d 544, 307 Or. 113, 1988 Ore. LEXIS 573
CourtOregon Supreme Court
DecidedNovember 16, 1988
DocketTC A8607-03986; CA A43239; SC S34871
StatusPublished
Cited by10 cases

This text of 764 P.2d 544 (Blacknall v. Westwood Corporation) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blacknall v. Westwood Corporation, 764 P.2d 544, 307 Or. 113, 1988 Ore. LEXIS 573 (Or. 1988).

Opinion

*115 PETERSON, C. J.

This is a tort action brought by a worker against an employer for damages for personal injuries. The plaintiff was employed by Adia Services, Inc. (Adia), a corporation that provided temporary workers to its clients. He was injured while working at defendant Westwood Corporation’s construction site and brought this negligence action against the defendant.

ORS 656.020 states that damage actions may be brought “by an injured worker * * * against any employer who has failed to comply with ORS 656.017 * * ORS 656.017(1) requires subject employers to “maintain assurance * * * that subject workers of the employer * * * will receive compensation for compensable injuries” by either buying workers’ compensation insurance coverage or by qualifying as a “self-insured employer.” With exceptions not relevant here, the statute immunizes employers maintaining such assurance from tort claims arising from injury to their subject workers. ORS 656.018. The question in this case is whether the defendant, who had coverage for its “regular” hourly and salaried workers, has complied with ORS 656.017. If it did, it is immune from tort liability to the plaintiff. If it did not, it is not immune. The trial court and Court of Appeals ruled in favor of the defendant. We affirm.

THE FACTS

This case was decided on the defendant’s motion for summary judgment. The material facts set forth below are not in dispute.

Adia engages in the business of providing temporary workers — clerical, accounting, banking, word processing, secretarial, light industrial, factory and warehouse employees — to its customers. The defendant sent a work order to Adia requesting that Adia “[fjurnish labor as requested for clean up work, complete with employee insurance and workmen’s [sic] compensation as quoted in your hourly rate per man hour.” Adia sent the plaintiff. Adia’s hourly rate for the plaintiffs services, paid by the defendant, included workers’ compensation insurance premiums which Adia paid on behalf of the plaintiff. The defendant directed the plaintiff when to come to and leave work, where to work, what work to do, and it could *116 terminate the plaintiffs services at any time. The agreement between Adia and the defendant provided that “the supervision of the assigned Adia Personnel Services employee for the agreed upon duties is [the defendant’s] responsibility.”

The agreement between Adia and the defendant also required that Adia provide workers’ compensation coverage in favor of persons such as the plaintiff. As stated above, the fee that Adia charged to the defendant included an amount for workers’ compensation premiums.

The defendant had procured workers’ compensation coverage from SAIF for its employees. Adia procured workers’ compensation coverage from CNA which extended to the plaintiff. After the plaintiff was injured, CNA provided workers’ compensation benefits to the plaintiff.

The plaintiff makes two assertions of error:

“1. Did the trial court err in holding that as a matter of law plaintiff was an employee of defendant?
“2. Did the trial court err in ruling that defendant was a complying employer for the purposes of ORS 656.018 and that defendant is immune from tort liability?”

The answers to these questions largely are determined by Oregon’s Workers’ Compensation Law, and we therefore turn to it.

THE WORKERS’ COMPENSATION STATUTES

ORS 656.005(27) defines a “worker” as

“* * * any person * * * who engages to furnish services for a remuneration, subject to the direction and control of an employer * *

There is no doubt that the plaintiff was a “worker.”

A “subject worker” is defined in ORS 656.005(25) as “a worker who is subject to this chapter * * *.” There is no question but that the plaintiff was a “subject worker.”

An “employer” is defined in former ORS 656.005(14) (now ORS 656.005(13)) as

“* * * any person * * * who contracts to pay a remuneration for and secures the right to direct and control the services of any person.”

*117 The defendant was an “employer.”

A “subject employer” is defined in ORS 656.023 as follows:

“Every employer employing one or more subject workers in the state is subject to ORS 656.001 to 656.794.”

The defendant was a “subject employer.”

To this point there is little dispute. The plaintiff was a “worker” and a “subject worker.” The defendant was an “employer” and a “subject employer.”

The duties of a subject employer are set forth in ORS 656.017. It provides:

“(1) Every employer subject to this chapter shall maintain assurance with the director that subject workers of the employer and their beneficiaries will receive compensation for compensable injuries as provided by this chapter and that the employer will perform all duties and pay other obligations required under this chapter, by qualifying:
“(a) As a carrier-insured employer; or
“(b) As a self-insured employer as provided by ORS 656.407.” (Emphasis added.)

ORS 656.018(1) (a) grants a quid pro quo to complying employers:

“The liability of every employer who satisfies the duty required by ORS 656.017

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Cite This Page — Counsel Stack

Bluebook (online)
764 P.2d 544, 307 Or. 113, 1988 Ore. LEXIS 573, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blacknall-v-westwood-corporation-or-1988.