Bonifas-Gorman Lumber Co. v. Unemployment Compensation Commission

21 N.W.2d 163, 313 Mich. 363
CourtMichigan Supreme Court
DecidedJanuary 7, 1946
DocketDocket No. 15, Calendar No. 42,604.
StatusPublished
Cited by22 cases

This text of 21 N.W.2d 163 (Bonifas-Gorman Lumber Co. v. Unemployment Compensation Commission) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bonifas-Gorman Lumber Co. v. Unemployment Compensation Commission, 21 N.W.2d 163, 313 Mich. 363 (Mich. 1946).

Opinion

*366 Caer, J.

During the years 1938 and 1939, plaintiff corporation was engaged in lumbering operations in the counties of Houghton and Keweenaw. In connection with the carrying on of the business plaintiff entered into written contracts with various piece workers, including the individual defendants and appellees in this case. Said contracts were all in substantially the same form, some providing for the cutting of saw logs from standing timber, and others for the cutting, manufacturing and piling of merchantable pulp wood and cedar tie cuts. Exhibit 1, which is typical of the contracts in question, is set forth in the margin. *

These written undertakings were for varying periods of time, ranging from 12 to 60 days. Each described the particular land on which the services *367 contracted for were to be performed. Before starting work on a different parcel the practice was followed of entering into a new contract.

On different dates during the first three months of 1940 said defendants and appellees, hereinafter referred to as claimants, asserting that they were during the period referred to, employees of plaintiff within the meaning of the unemployment compensation act (Act No. 1, Pub. Acts 1936 [Ex. Sess.], as amended by Act No. 347, Pub. Acts 1937, and by *368 Act No. 324, Pub. Acts'1939 [Comp. Laws Supp. 1940, § 8485-41 et seq., Stat. Ann. 1940 Cum. Supp. § 17.501 et seq.]), filed petitions for unemployment compensation in accordance with tbe provisions of said statute. Hearings on the petitions were duly scheduled and held. The referee sustained the contentions of the claimants, holding that the evidence justified the conclusion that the actual relationship between plaintiff and claimants was that of employer and employees. The appeal board affirmed the ruling and the circuit court of Keweenaw county, reviewing the matter on certiorari, did likewise. Prom such determination of the circuit court plaintiff has appealed.

Act No. 324, Pub. Acts 1939, which amended the unemployment compensation act in material respects, became effective on the 22d day of June of that year. Each claimant based his petition for compensation in part on unemployment prior to that date and in part on such unemployment subsequent thereto. Prior to the amendment of 1939, the test to be applied in determining the nature of the relationship between the parties was fixed by section 42, subd. (6) (a) (b) and (c), of the unemployment compensation act. These provisions were construed in Acme Messenger Service Co. v. Unemployment Compensation Commission, 306 Mich. 704, and in O ’Brian v. Unemployment Compensation Commission, 309 Mich. 18. Plaintiff concedes that; under the provisions of the statute referred to, as construed in the decisions cited, the appeal board and the circuit court were correct in holding that claimants were entitled to compensation insofar as their petitions were based on unemployment prior to June 22, 1939. In consequence, further consideration of this part of the case is not necessary.

*369 Act No. 324, Pub. Acts 1939, amended tbe unemployment compensation act in sucb manner as to change tbe test to be applied in determining tbe status of services performed in logging operations. Tbe following provisions were incorporated in section 42, subd. (7), of tbe statute:

“Tbe term ‘employment’ shall not include: * * *

“ (m) Service performed in logging or woods operations, compensated wholly on a piece-work or quantity basis unless sucb services are included as ‘employment’ under title 9 of the social security act;

“ (n) Any service not included as ‘employment’ under title 9 of tbe social security act.”

It is obvious that by tbe enactment of (7) (m), above quoted, tbe legislature made inapplicable to tbe claimants in this case tbe provisions of section 42, subd. (6) (a) (b) and (c). Clearly, it was tbe intention of the legislature to exclude from tbe benefits of tbe statute persons rendering services of tbe character referred to unless sucb persons are entitled to be classed as employees under tbe social security act. It is a general rule of statutory construction that an amendment is to be construed, unless a different intent is manifest, as changing tbe statute amended. Lawrence Baking Co. v. Unemployment Compensation Commission, 308 Mich. 198, 205 (154 A. L. R. 660). As applied to tbe status of tbe claimants in this case tbe amendment withdrew tbe previously controlling test, as laid down in section 42, subd. (6) (a) (b) and (c), and substituted therefor the test suggested by section 42, subd. (7) (m), of tbe Michigan unemployment compensation act.

It is tbe claim of plaintiff here, in substance, that following said amendment claimants must be regarded as independent contractors, that they were not engaged in “employment” as tbe term is used in *370 the social security act and that, in consequence, they are not entitled to unemployment compensation for any period since June 22,1939. On behalf of the appeal board of the unemployment compensation commission it is urged that the social security act should be construed as applicable to and including these claimants and, therefore, that they should be held entitled to compensation under the provisions of the Michigan statute.

This brings us to a consideration of the question as to the proper tests to be applied in construing the term “employment,” as used in the Federal act referred to. Plaintiff insists that resort must necessarily be had to common-law principles, while counsel for appellees claim that an interpretation more inclusive than that of the common law should be accepted. Title 9, § 907 (c), of the social security act (49 Stat. at L. 642), in defining various terms used therein, declares that “The term ‘employment’ means any service, of whatever nature, performed within the United States by an employee for his employer.” Certain exceptions are set forth but none is pertinent to the issue in this case. Counsel for appellant insists that Congress, in using the terms “employee” and “employer,” without specific definition, must be presumed to have had in mind the tests ordinarily applicable under common-law principles. Such construction seems to be favored by Federal courts that have passed on the matter. Thus, in Glenn v. Beard (C. C. A.), 141 Fed. (2d) 376, it was said by Judge McAllister, speaking for the circuit court of appeals:

“According to the pertinent regulations of the commissioner of internal revenue, promulgated under title 9 of the social security act, 26 USCA, Internal Revenue Code, § 1600, et seq, it is provided: ‘In general, if an individual is subject to the con *371 trol or direction of another merely as to the result to be accomplished by the work and not as to the means and method of accomplishing the result, he is an independent contractor, not an employee.’ Treasury Regulation No. 90, art. 205.

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Bluebook (online)
21 N.W.2d 163, 313 Mich. 363, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bonifas-gorman-lumber-co-v-unemployment-compensation-commission-mich-1946.