Commonwealth Life Insurance Company v. Gay

1961 OK 186, 365 P.2d 149, 1961 Okla. LEXIS 621
CourtSupreme Court of Oklahoma
DecidedJuly 5, 1961
Docket38712
StatusPublished
Cited by20 cases

This text of 1961 OK 186 (Commonwealth Life Insurance Company v. Gay) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commonwealth Life Insurance Company v. Gay, 1961 OK 186, 365 P.2d 149, 1961 Okla. LEXIS 621 (Okla. 1961).

Opinion

JACKSON, Justice.

Parties are referred to as in the trial court. Plaintiff, Gay, sued defendants, Loafman and Commonwealth Life Insurance Company, for damages for injuries received in an automobile accident resulting from the negligence of Loafman as driver of the car which hit Gay, who was a highway department employee at work on the highway near Rush Springs at the time of the accident. Plaintiff alleged, as grounds for recovery against Commonwealth, that defendant Loafman at the time of the accident was the “agent, servant or employee” of Commonwealth, “acting within the scope of his employment”. Commonwealth’s answer alleged, among other things, that Loafman was an independent contractor at the time, was not in its general employment, and was not engaged in any business for the company but was on a personal mission. This action sounds solely in tort, and no contractual or other business relations were involved as between plaintiff Gay and defendant Commonwealth. After a jury trial, judgment was rendered on a verdict for plaintiff and against both defendants. Defendant Loaf-man did not appeal and the judgment has presumably become final as to him. Commonwealth appealed and in its brief argues two propositions.

The first proposition is to the effect that since its liability depended entirely upon the existence of the master-servant relationship, the trial court should have directed a verdict for Commonwealth, because at the time of the accident, Loafman was an insurance saleman, on solely a commission basis, paying his own expenses, working when and where he desired, driving his own automobile on routes of his choosing, and was an independent contractor and not a servant.

Since this contention has the effect of challenging the sufficiency of the evidence, the applicable rule is as follows:

“It is not reversible error to overrule a demurrer to the evidence and a motion for a directed verdict in a law action when there is any competent evidence reasonably tending to support the claim of the plaintiff therein.”' Lone Star Gas Co. v. Burk, 162 Okl. 259, 20 P.2d 170.

We must therefore determine whether there was any competent evidence reasonably tending to support the verdict on this-question.

The evidence shows that until the morning of April 1st (the accident happened that afternoon), Loafman was working for Commonwealth pursuant to a written contract on a salary plus commission basis. The written contract is in evidence, and it provided detailed and specific controls as, to the performance of certain phases of his, duties. There was a memorandum of a: further agreement that Loafman would: be paid an additional $150 per month for-recruiting and training other agents in the-Oklahoma City area, and that he might be-called upon to train other agents in other-parts of the state, and would be paid $25, per day plus expenses for such work.

On the morning of April 1, 1957, Loaf-man returned to his Oklahoma City office-for the purpose of carrying on his contractual duties in Oklahoma City. His, supervisor, Mr. Carter, came to the office- and it was agreed that his employment in the Oklahoma City area would cease and that he would return to Duncan, Oklahoma, as a selling agent in the Duncan and Law-ton area. Loafman’s uncontradicted testimony was that he would have the title of “District Agent” and could employ others to sell under him, and that he would also have the title of “Educational Director”. *151 He was to devote his full time to selling life insurance for the company, except for such times as he might be called out by the company for educational work and the training of new agents. He would be selling insurance on a commission basis; however, he would be advanced $300 per month as advance commission and would receive $25 per day and would get “mileage” when he was sent to work with another agent and when on educational work. Advance commissions of $300 per month would be paid as long as deferred commissions would justify it. Commissions did not justify the advancements during the first two weeks, or the first month, and it appears that he was placed on a straight commission after the first of May, 1957. He explains this by saying that production dropped after his car had been wrecked. He was never required to repay the unearned advancements.

While no specific time was agreed upon for Loafman to go to Duncan to commence working under the new arrangement, Loafman testified that he was sure that Mr. Carter knew that he intended to go that day as he, Loafman, “was supposed to start on the new job”. Loafman had planned to start selling in the Duncan area as soon as he could get located. The advancement for the first two weeks, $150 less social security payment as required by federal law, was paid for that period of time beginning April 1st, and ending April 15, 1957.

Loafman testified that he had no calls for supervising or educational work with other agents after he went to Duncan but testified further that the Company knew that he didn’t have a car after the accident.

The old contracts between Loafman and the Company had all been in writing and these contracts were made subject to “rules and instructions which the Company has established or may establish”. The “rules and instructions” are not in evidence in this case and we will not speculate as to the contents thereof. However, the evidence shows they exist, that they were applicable to the new (oral) contract, and that they could be changed by the Company at any time. This is probative evidence that the Company had the right to exercise some control over Loafman, though we are unable to determine the nature and extent of the actual control exercised or authorized to be exercised.

For use as a guide in determining whether Loafman was a servant or employee, or an independent contractor, the court instructed the jury, without objection, that it might consider the following factors: (1) the degree of control exercised by the employer, or the independence enjoyed by the contractor or agent; (2) whether the party is to be paid by the job or is to receive a certain salary by the day, week or month; (3) whether his employment consists solely in working for his employer; (4) the control that is exercised over him in the method and manner of performing the work; (5) whether the agent uses his own equipment, or whether the equipment, if any, so used, is owned and controlled by the owner; and (6) the nature of the contract, whether written or oral. Atlas Life Insurance Company of Tulsa v. Foraker, 196 Okl. 389, 165 P.2d 323; Ellis & Lewis v. Trimble, 177 Okl. 5, 57 P.2d 244; Getman-MacDonell-Summers Drug Co. v. Acosta, 162 Okl. 77, 19 P.2d 149.

Taking the “factors” in order, we list here as briefly as possible the uncontradicted evidence indicative of the master-servant relationship: Loafman was subject to call at any time for work with other agents or educational work; at the time of the accident he was being paid $300 per month whether he earned it or not (this arrangement ceased on May 1, after his car was destroyed) ; he worked solely for Commonwealth; his work was subject to some degree of control as authorized by the rules and instructions which could be changed by the company at any time; and his contract of employment was at least partly oral.

Thus it is seen that under five of the six factors, there was strong evidence of the *152

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Bluebook (online)
1961 OK 186, 365 P.2d 149, 1961 Okla. LEXIS 621, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commonwealth-life-insurance-company-v-gay-okla-1961.