Carlson v. Cain

664 P.2d 913, 204 Mont. 311, 1983 Mont. LEXIS 707
CourtMontana Supreme Court
DecidedJune 8, 1983
Docket82-163
StatusPublished
Cited by22 cases

This text of 664 P.2d 913 (Carlson v. Cain) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carlson v. Cain, 664 P.2d 913, 204 Mont. 311, 1983 Mont. LEXIS 707 (Mo. 1983).

Opinion

MR. JUSTICE WEBER

delivered the opinion of the Court.

Employer, Lee Enterprises, d/b/a The Billings Gazette (Gazette) appeals from a decision of the Workers’ Compensation Court finding claimant, Debra Carlson, entitled to receive Workers’ Compensation benefits from the Gazette’s insurer, following her injury in an automobile accident while delivering newspapers for her fiance, Jerry Cain. The court’s decision was based on its conclusions that claimant *313 was an employee of Cain; that Cain was an employee of the Gazette, and that he had failed to provide Workers’ Compensation insurance for claimant, rendering the Gazette liable for claimant’s benefits under Section 39-71-405(2), MCA. Cain cross-appeals. We affirm the Workers’ Compensation Court.

The following issues are presented to this Court for review:

1. Whether Debra Carlson was an employee of Jerry Cain.

2. If Debra Carlson was an employee of Jerry Cain, whether such employment is specifically excluded under the following exceptions contained in Section 39-71-401(2), MCA:

(a) Casual employment;

(b) Employment of members of an employer’s family dwelling in the employer’s household;

(c) Employment of sole proprietors or working members of a partnership;

(d) Any person performing services in return for aid or sustenance only.

3. Whether Jerry Cain and Mike Cain were independent contractors of The Billings Gazette?

In November 1979, claimant met Jerry Cain in Miles City. They became engaged during the Christmas season of 1979 and began living together toward the end of December 1979. Jerry Cain was married to another woman at the time; that marriage was not dissolved until February 22, 1981, because of a prolonged custody dispute. Between January of 1980 and the end of March, 1980, claimant occasionally rode with Cain while he delivered newspapers for Dave Gamble, who had carrier contracts with the Gazette. During this period, Cain, who also worked as a mechanic, made all of the house payments, paid all utilities and provided groceries for claimant and himself. He also provided claimant with the use of an automobile he owned. During this time, claimant sang in a band on weekends, earning approximately $100 per week.

*314 On March 31, 1980, when Dave Gamble’s carrier contract expired, Jerry Cain and his father, Mike Cain, signed one contract with the Gazette to haul newspapers from Billings to Fairview, Montana, and all drop points between, and another similar contract to deliver papers from Miles City to Baker. Mike Cain signed the contract and, several weeks later, after the bank turned down Jerry Cain’s application for a loan, took out a bank loan, which Jerry Cain cosigned. All evidence indicates Mike Cain’s only involvement was to help get his son started as a carrier for the Gazette. Neither the bank nor the Gazette would accept only Jerry Cain’s signature. Gazette checks were made out to both Michael and Jerry Cain to insure payment on the bank loan. Mike Cain himself never profited from the contract, nor did he perform any of the work under the contract.

The contracts included the following provisions:

“SECTION III. RELATIONSHIP OF PARTIES
“The parties intend that an independent contractor-employer relationship will be created by this contract. The company is interested only in the results to be achieved, and the conduct and control of the work will lie solely with the carrier. The carrier is not to be considered an agent or employee of company for any purpose, and the employees of carrier are not entitled to any of the benefits that the company provides for company employees. The company does not control the carrier in any of the details of performance of this agreement nor does it control the routes to be traveled or the hours of employment or the manner in which the duties of the carrier are performed.”
“SECTION IV. LIABILITY
“The work to be performed under this contract will be performed entirely at carrier’s risk, and carrier assumes all responsibility for the condition of his equipment used in the performance of this contract. Carrier will carry, for the *315 duration of this contract, public liability insurance in an amount acceptable to company, and Workmen’s Compensation insurance covering his employees. Contractor agrees to indemnify company for any and all liability, loss or claims arising in any way out of the performance of this agreement.” (Emphasis supplied.)

The two contracts provided for Cain to be paid a total of $6,470 per month. He was paid bi-monthly.

After the Cains were awarded the contract, claimant began delivering papers to Baker for Jerry Cain three or four times a week. Occasionally she would make the run to Fairview instead of Baker. When claimant did not make the run, Cain had to hire someone else, whom he paid $15 for the Baker run and $30 for the Fairview run. Claimant was not paid any money for making the runs, nor did she receive anything more in the way of support than she had received prior to Cain’s receiving the carrier contracts. In May, according to claimant, she discontinued singing in the band “because Cain said we could make more money running the Gazette route than I could in the band.” According to Cain, the other members of the band “said they didn’t need her anymore.”

On June 28, 1980, Carlson suffered severe head injuries in an automobile accident; she was driving a 1979 Mazda furnished by Cain and was returning to Miles City early in the morning, after having delivered a load of newspapers to Baker. As a result of her injuries, claimant, still in her early twenties, has muscular weakness on the left side, some intellectual impairment, and severe headaches. Her throat injuries have affected her ability to sing. She is currently considered unemployable and is attending a vocational training school. She is living with her mother; Cain has married someone else. At the time claimant was injured, Cain was carrying no Workers’ Compensation insurance, although the carrier contract expressly required him to do so.

Claimant filed a claim against Jerry Cain with the Uninsured Employers’ Fund. Following an investigation, her *316 claim was denied under Section 39-71-401(2) (f), MCA, on the grounds that claimant was “performing a service in return for aid or sustenance only,” and was thus exempted from the Workers’ Compensation Act. Claimant subsequently filed two petitions for hearing with the Workers’ Compensation Court, one against Jerry Cain and the Uninsured Employers’ Fund, the second against Lee Enterprises, d/b/a The Billings Gazette and their insurance carrier, Hartford Accident and Indemnity. The two cases were consolidated on July 9, 1981. Trial was held November 20, 1981. Claimant and the Gazette moved the court to dismiss without prejudice as to the Uninsured Employers’ Fund, which was bankrupt; the motion was granted. The court ordered additional depositions, briefs, and proposed findings.

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Bluebook (online)
664 P.2d 913, 204 Mont. 311, 1983 Mont. LEXIS 707, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carlson-v-cain-mont-1983.