Cave v. Emerson Freight Systems, Inc.

CourtNorth Carolina Industrial Commission
DecidedDecember 22, 2009
DocketI.C. NOS. 795911 PH-2042.
StatusPublished

This text of Cave v. Emerson Freight Systems, Inc. (Cave v. Emerson Freight Systems, Inc.) is published on Counsel Stack Legal Research, covering North Carolina Industrial Commission primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cave v. Emerson Freight Systems, Inc., (N.C. Super. Ct. 2009).

Opinion

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The Full Commission has reviewed the prior Opinion and Award based upon the record of the proceedings before Deputy Commissioner Phillips and the briefs and oral arguments before the Full Commission. The appealing parties have not shown good ground to reconsider the evidence, receive further evidence, rehear the parties or their representatives, or amend the Opinion and Award. The Full Commission AFFIRMS with some modifications the Opinion and Award of Deputy Commissioner Phillips.

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The Full Commission finds as fact and concludes as matters of law the following, which were entered into by the parties at the hearing before the Deputy Commissioner as:

STIPULATIONS
1. Plaintiff alleges that defendant CMH Homes, Inc., (hereafter "CMH") is his statutory employer under the provisions of N.C. Gen. Stat. § 97-19.

2. Defendant CMH's workers' compensation carrier on the risk in June 2007 was XL Insurance Company.

3. The following exhibits were received into evidence:

a. Stip. Ex. #1: Medical Records

b. Stip. Ex. #2: IC Forms

c. Stip. Ex. #3: Corporate Exhibits

d. Plaintiff's Ex. #1: Affidavit of Ben Harris

e. Plaintiff's Ex. #2: Discovery Responses

*Page 3

f. Plaintiff's Ex. #3: Discovery Responses

g. Plaintiff's Ex. #4: Discovery Responses

h. Plaintiff's Ex. #5: Contractor's License

i. Plaintiff's Ex. #6: Plaintiff's Work History

j. Plaintiff's Ex. #7: Corporate Vehicles

k. Plaintiff's Ex. #8-#18: Photos

l. Plaintiff's Ex. #19: Corporate Tools

m. Plaintiff's Ex. #20: Corporate Letter

n. Plaintiff's Ex. #21: Transportation Certification Dated May 4, 2007

o. Plaintiff's Ex. #22: Discovery Responses

q. Plaintiff's Ex. #24: Discovery Responses

r. Depositions: Dr. Gary Poehling, Dr. Jason Stopyra, Plaintiff, Dante Martinez, Misty Sapp, Roger Spencer, Ashley Heath, Aureo Nava, Joel Martinez and Lisa Toney

4. The issues to be determined by the Commission are as follows:

a. On June 27, 2007, was plaintiff an employee of defendant Emerson Freight Systems, Inc., (hereafter "Emerson Freight") or Phillip Emerson?

b. On June 27, 2007, did either of the defendants have any employees and, if so, how many?

c. On June 27, 2007, did either of the defendants have in force a workers' compensation insurance policy or qualify as self-insured, as required by N.C. Gen. Stat. § 97-93?

*Page 4

d. On June 27, 2007, did plaintiff sustain a compensable injury by accident arising out of and in the course of his employment, and, if so, to what benefits is he entitled?

e. On June 27, 2007, under N.C. Gen. Stat. § 97-19, was defendant CMH a principal contractor that sublet the moving and installation of a new modular home to Phillip Emerson or Emerson Freight without requiring from either proof of a valid workers' compensation insurance policy covering its employees or qualification as a self-insured?

f. What is plaintiff's average weekly wage and resulting compensation rate?

g. Is plaintiff entitled to a 10% increase in disability compensation under N.C. Gen. Stat. § 97-12(3) for defendant Emerson Freight's willful failure to comply with 29 CFR 1926501(b)(13) and 29 CFR 1926.503(b)(1) and 29 CFR 1926.51(a)(1)?

h. Has defendant CMH defended plaintiff's claim without reasonable ground in violation of the provisions of N.C. Gen. Stat. § 97-88.1?

i. Has defendant Emerson Freight and/or defendant Phillip Emerson, defended plaintiff's claim without reasonable ground in violation of the provisions of N.C. Gen. Stat. § 97-88.1?

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Based upon the foregoing findings of fact and conclusions of law, the Full Commission makes the following: *Page 5

FINDINGS OF FACT
1. At the time of the hearing before the Deputy Commissioner, plaintiff was 31 years old. Plaintiff completed the tenth grade of high school and later obtained his GED in 1998. Plaintiff's previous work history includes employment as a farm laborer, a heavy laborer, and a long distance tractor/trailer operator.

2. Defendant CMH is a manufacturer of mobile or modular homes for sale to the public. CMH maintains a principal place of business at 1044 North Andy Griffith Parkway in Mount Airy, North Carolina. CMH also maintains retail places of business in other North Carolina cities and in Virginia. Defendant CMH had three or more employees at all relevant times and had workers' compensation coverage with defendant-carrier XL Insurance Company on June 27, 2007. 3. Defendant Phillip M. Emerson is in the business of moving and/or setting up and/or partial construction of manufactured/modular homes. Mr. Emerson does business as Emerson Freight or Emerson Mobile Home Movers. These businesses are actually operated by Mr. Emerson in his personal capacity.

4. Mr. Emerson's principal place of business was located at 869 Prison Camp Road, Dobson, North Carolina. This business was an enclosed building, housing supplies, tools and vehicles needed in Mr. Emerson's business.

5. Plaintiff had known Mr. Emerson for 25 years and plaintiff's father had worked for Mr. Emerson from 1991 to 1994. In mid-November 2006, Mr. Emerson employed plaintiff as a heavy laborer. Plaintiff's duties included frequent climbing, lifting of objects weighing up to 150 pounds, and operating different vehicles owned by Mr. Emerson. Plaintiff testified that from November 2006 through June 26, 2007, Mr. Emerson operated a crew of four men and *Page 6 another crew of two men as needed. In June 2007 and on June 27, 2007, Mr. Emerson employed plaintiff, Dante Martinez, Joel Martinez, Aureo Nava, Misty Sapp, and Roger Spencer. Mr. Emerson paid all his employees in cash each week, usually on Friday, and did not withhold state or federal taxes from any of his employees' wages.

6. Mr. Emerson paid plaintiff $700.00 per week in cash from November 2006 through January 2007. In February 2007, Mr. Emerson increased plaintiff's weekly wages to $1,400.00 per week, when he promoted plaintiff to a working foreman over Mr. Emerson's other employees. Plaintiff continued to perform hard physical labor duties for Mr. Emerson. Plaintiff worked for Mr. Emerson eight to ten hours per day, seven days a week.

7. Mr. Emerson's employees used his Honda generator, impact gun, hammer drill, hammers, roof jacks, anchor machines, large steel cables, nail guns, wrenches, handsaw, electric saw, air compressor and bottle jacks.

8. Mr. Emerson furnished his employees his 1990 Volvo road tractor, International tandem axle road tractor, 20-ton tagalong trailer, 2005 Ford 350 truck, John Deere Tractor, 1500 Chevrolet pickup truck and Chevrolet Impala automobile.

9. Mr. Emerson exercised supervision and control over his employees. Mr.

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Cave v. Emerson Freight Systems, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/cave-v-emerson-freight-systems-inc-ncworkcompcom-2009.