Childers v. Town & Country Suzuki Sales, Ltd.

624 S.W.2d 863, 1981 Mo. App. LEXIS 3100
CourtMissouri Court of Appeals
DecidedOctober 13, 1981
DocketNo. 42389
StatusPublished
Cited by3 cases

This text of 624 S.W.2d 863 (Childers v. Town & Country Suzuki Sales, Ltd.) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Childers v. Town & Country Suzuki Sales, Ltd., 624 S.W.2d 863, 1981 Mo. App. LEXIS 3100 (Mo. Ct. App. 1981).

Opinion

SIMON, Judge.

This is an appeal by Town and Country Suzuki Sales (Town and Country) and Universal Underwriters Insurance Company (Universal Underwriters) from an affirmance of an award by the Labor and Industrial Relations Commission to respondent Harold Childers for injuries he sustained while servicing a motorcycle in Town and Country’s basement. Acting pursuant to the Workmen’s Compensation Act, the Commission held that Childers was a statutory employee of Town and Country and therefore, entitled to compensation. The circuit court upheld this ruling. On appeal, appellants contend that as a result of a lease between Childers and Town and Country, Childers was not a statutory employee of Town and Country, and that the injuries did not occur on Town and Country’s premises. We affirm.

Childers had been employed by Town and Country since 1971 or 1972. During this entire time Childers worked in Town and Country’s service department as a motorcycle mechanic and later as the service manager. The service department was located in the basement of Town and Country’s building.

Although Town and Country was required by its franchisor, U.S. Suzuki, to maintain a service department, Robert Faerber, part owner and vice-president of Town and Country, decided in 1974 to “get rid” of the service department. Mr. Faer-ber had been reading about motorcycle dealers who had sold their service departments for ten to twenty thousand dollars and had learned of a motorcycle dealer in St. Louis who had leased his service department. He called the dealer and was told that the leasing arrangement was working well, and that the customers were getting better service. Childers had been talking about getting a shop of his own and Faer-ber asked him if he would like to lease the service department from Town and Country. Childers agreed and on July 1, 1974 Childers and Town and Country executed a one year lease calling for Childers to pay Town and Country two hundred dollars a month. The lease further provided for the rental by Town and Country to Childers of the major repair tools needed for servicing Suzuki motorcycles.

Childers called his new business “Harold’s Suzuki Service.” Although the lease described the premises as “9424 Rear (Basement) St. Charles Road, Breckenridge Village, St. Louis County, Missouri,” a quarter of the described basement area was fenced off and contained property belonging to Town and Country. Childers testified that he believed that he could work only during the hours that Town and Country was open. There was a door on the first floor, which was the motorcycle sales and parts area, leading to a stairway to the basement, but this door was never locked. In fact, Child-ers had no means of securing the basement from Town and Country personnel.

Childers employed his own mechanics. He had his own business cards and work orders printed bearing the name, “Harold’s Suzuki Service.” Childers had his own commercial checking account and filed his own business income tax returns. In addition, he obtained a Workmen’s Compensation policy for his employees.

Childers performed the service business of Town and Country, except that Town and Country personnel assembled the new motorcycles. This work was performed in the basement using Childers’ leased tools, but Town and Country did not pay Childers for its use of the basement or the tools. Childers performed the warranty work for Town and Country at no charge to the customer. He was paid the same amount that the manufacturer paid Town and Country. Childers purchased all of his parts from Town and Country at 25 to 35 per cent off the retail rate.

The only physical change in Town and Country’s building after the agreement was [865]*865the addition of a small sign on the basement door which read “Harold’s Suzuki Service.” A larger sign, however, remained in the corner of the parking lot which read “Town and Country Sales and Service.” Harold’s Suzuki Service had neither its own phone number nor its own phone listing. Many of Childers’ customers paid by check. Approximately half of these checks were payable to Town and Country. In these instances, Town and Country would immediately endorse the checks over to Harold’s Suzuki Service. Childers’ customers were allowed to use Town and Country’s Master Charge machine; Town and Country would deduct the percentage it would have to pay Master Charge for its service and would pay Childers the remainder.

On March 11, 1976 Childers was injured while working in the basement on a motorcycle. Childers filed a claim pursuant to the Workmen’s Compensation Law. The claim was denied by the administrative law judge, but the Labor and Industrial Relations Commission reversed, holding that Childers was the statutory employee of Town and Country. The circuit court upheld this ruling.

The first point that must be addressed is the applicable standard of review. We view the record in the light most favorable to the findings of the Commission, considering all inferences favorable to its result. The award will not be set aside unless the Commission’s findings are unsupported by competent and substantial evidence and are contrary to the overwhelming weight of the evidence. Gibson v. Greenfield, 561 S.W.2d 689 (Mo.App.1978). Although the determination of whether an individual is a statutory employee is a question of law, the decision is necessarily dependent upon the factual findings. Williams v. City of St. Louis, 583 S.W.2d 556, 558 (Mo.App.1979).

Appellants initially claim that the circuit court erred in upholding the Commission’s ruling that respondent was the statutory employee of Town and Country, because a lease agreement existed between the two parties for the premises on which Childers was injured. Appellants rely on § 287.040 RSMo. (1969) (§ 287.040 RSMo. (1978))1 which reads in relevant part:

“1. Any person who has work done under contract on or about his premises which is an operation of the usual business which he there carries on shall be deemed an employer and shall be liable under this chapter to such contractor, his subcontractors, and their employees, when injured or killed on or about the premises of the employer while doing work which is in the usual course of his business.
2. The provisions of this section shall apply to the relationship of landlord and tenant, and lessor or lessee, when created for the fraudulent purpose of avoiding liability, but not otherwise. In such cases the landlord or lessor shall be deemed the employer of the employees of the tenant or lessee.”

In the absence of an allegation of fraud, the existence of a landlord-tenant relationship would relieve Town and Country of liability. Therefore, we must determine whether the Commission was correct in finding that a landlord-tenant relationship did not exist.

The fact that the agreement between Childers and Town and Country was labeled by the parties as a “commercial lease” is not determinative of whether the relationship of landlord and tenant existed. Friend v. GEM International, 476 S.W.2d 134, 136 (Mo.App.1971). The essentials of a landlord-tenant relationship are:

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Cite This Page — Counsel Stack

Bluebook (online)
624 S.W.2d 863, 1981 Mo. App. LEXIS 3100, Counsel Stack Legal Research, https://law.counselstack.com/opinion/childers-v-town-country-suzuki-sales-ltd-moctapp-1981.