Carleton v. Foundry & Machine Products Co.

165 N.W. 816, 199 Mich. 148, 19 A.L.R. 1141, 1917 Mich. LEXIS 956
CourtMichigan Supreme Court
DecidedDecember 27, 1917
DocketDocket No. 18
StatusPublished
Cited by39 cases

This text of 165 N.W. 816 (Carleton v. Foundry & Machine Products Co.) 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
Carleton v. Foundry & Machine Products Co., 165 N.W. 816, 199 Mich. 148, 19 A.L.R. 1141, 1917 Mich. LEXIS 956 (Mich. 1917).

Opinion

Fellows, J.

Counsel for plaintiff so clearly stated the issue in this case to the arbitrators that we quote it:

“The chief testimony as I understand it is as to whether Mr. Carleton was an employee or an independent contractor. He was doing this work on a time and percentage basis; that is, he hired the men. The usual procedure of doing the work was, when the Foundry & Machine Products Company wanted any work of this particular kind done, such as moving machinery or anything along that particular line, they would call Mr. Carleton up, and he would go over and they would go over the work to be done together, and map out some plan of doing it, and then after this was done Mr. Carleton brought men and put them to work, and they would do the work. When the work was all done he was paid on the basis of the amounts he had paid out to his helpers, plus 10 per cent. When he worked himself, as he did at times, his own time was put in at 50 to 55 cents an hour. This raises the question, of course, as to whether he was an independent contractor or an employee.”

The work in hand consisted in lowering some heavy machinery from the third to the first floor of defendant’s plant. Defendant’s plant was not provided with [150]*150the necessary appliances to do such work, and whenever it had such work to do it let the job to decedent who was in that business. The method adopted was that if defendant had a job of this character to be done its plant manager would communicate with decedent who would come over to the plant and they would discuss the matter together, the manager informing decedent what the company wanted done, they going over the job under consideration; there were no plans or specifications prepared. The contract was not reduced to writing, but rested in parol; by its terms decedent was to furnish all tools and appliances, some of which he owned, and some of which he borrowed; he was to furnish all material, was to furnish all labor, either men in his regular employ, and at times he had as high as 20, or those employed by him for the special job. Carleton’s men did not punch the time clock of defendant, and their hours differed from those of defendant’s employees. They were paid by Carleton. Upon completion, or during its performance, if extended, he rendered a bill which included the cost of all material and labor, plus 10 per cent. There was no stated periods for rendering these bills during the progress of the work. They were rendered on regular statement forms, the heading of which was, “F. E. Carleton Construction Company, Teaming and Carpenters, 623 Fourth avenue, Telephone, Grand 2715.” If he performed any labor himself, his time was charged in the account at regular wage per hour. He was not required, however, by the terms of his contract to personally do any work, and frequently had several of the jobs running at the same time for different companies. The company had the right to change the plans; this is said to be of mutual benefit, permitting the work to be done as the company desired it, and decedent getting the percentage for the additional work the change entailed. The decedént received his fatal injury on Decoration [151]*151Day at defendant’s plant. On this day none of defendant’s employees were at work, and decedent had informed defendant’s manager that he could get his whole gang together on that day and could also borrow tackle from the Russell Wheel & Foundry Company. There was testimony that defendant’s manager made suggestions with reference to the work, but there is no testimony that he did this as matter of right, or other than he would have done had the compensation for doing the job been fixed at a lump sum. The board evidently thought that defendant had the right to hire and discharge the employees selected by Carleton, as it states that at least on one occasion one of Carleton’s employees was discharged or sent away. There is an absence of evidence to support such conclusion. On one occasion one of Carleton’s men appeared at defendant’s plant looking, as the manager expresses it, “all in.” He inquired of the workman what the trouble was and was told that he had “been working all night over to the Detroit Foundry.” Under these circumstances he was not required to work that day. This act of humanity is not evidence of the right to hire and discharge, and we emphasize the word “right” because, as we shall presently see, it is not what control was exercised, but what right of control existed. . <

Three recent cases decided by this court under this act (Act No. 10, Extra Session 1912, 2 Comp. Laws 1915, § 5428 et seq.), are relied upon by the parties as being decisive of this case. The appellant relies upon the case of Perham v. Roofing Co., 193 Mich. 221 (159 N. W. 140), while appellee insists that the cases of Tuttle v. Lumber Co., 192 Mich. 385 (158 N. W. 875), and Opitz v. Hoertz, 194 Mich. 626 (161 N. W. 866), are more directly in point.

In Perham v. Roofing Co., supra, Perham agreed with defendant to lay the roof on the Webber residence, at $1.75 per square. He arranged with another [152]*152workman to work on the job with him, and they hired a helper. In the execution of the work he was injured. Mr. Justice Ostrander, speaking for the court, said:

“The facts import, not a contract to lay slate at a price per square, instead of by the day, but a contract to do a job of slate laying. * * * Perham was in the exercise of an independent and distinct employment, not under the immediate control, direction, or supervision of the American Roofing Company.”

And it was held that he was not entitled to compensation.

In the case of Tuttle v. Lumber Co., supra, Tuttle hauled logs for the defendant at $2 per thousand, and was injured while in that work. Mr. Justice Stone, who wrote the opinion in that case, very clearly laid down the rule as to the right to control to which we have adverted, and pointed out that where the question of control was involved it was a question of right, not a question of actual interference. He said:

“We are of the opinion that the test of the relationship is the right to control. It is not the fact of actual interference with the control, but the right to interfere, that makes the difference between an independent contractor and a servant or agent.”

So it is not a question of interference, or noninterference, not a question of whether there has been suggestions or even orders, as to the conduct of the work; but a question of the right to act, as distinguished from the act itself or the failure to act. There was evidence in that case showing such right to control. Tuttle could only perform his labor under the control of the company. It, through its other employees, loaded his sleigh with logs; this could only be done at a skid-way where a jammer was set by the company. He was equally controlled in the unloading, and in that case a very pertinent fact in determining this question existed — he had not the right of substitution. The con[153]*153tract was for his personal services; and herein lies one of the distinguishing features in the instant case. Here the contract did not require the personal services of Carleton. He might work or not as he saw fit. The defendant had no say on that subject, no right of control over him or his time, or his movements. He could go or come as he saw fit.

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Bluebook (online)
165 N.W. 816, 199 Mich. 148, 19 A.L.R. 1141, 1917 Mich. LEXIS 956, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carleton-v-foundry-machine-products-co-mich-1917.