Continental Insurance Company v. Clark

450 S.W.2d 684, 1970 Tex. App. LEXIS 2102
CourtCourt of Appeals of Texas
DecidedFebruary 5, 1970
Docket453
StatusPublished
Cited by4 cases

This text of 450 S.W.2d 684 (Continental Insurance Company v. Clark) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Continental Insurance Company v. Clark, 450 S.W.2d 684, 1970 Tex. App. LEXIS 2102 (Tex. Ct. App. 1970).

Opinion

DUNAGAN, Chief Justice.

This case originated in the 114th District Court of Smith County, Texas, as a compensation case in which C. F. Clark was plaintiff and The Continental Insurance Company was defendant. The appellee (plaintiff below) brought this suit for the recovery of workmen’s compensation benefits for the loss of a finger which he lost while doing carpentry work on the premises of Howe-Baker Engineers, Inc.

Appellant in its answer specially pleaded that C. F. Clark was not an employee but was in the relation of an independent contractor.

Before trial, pertinent matters, such as the nature and extent of injury, the claimant’s wage rate, medical expenses incurred, right to lump-sum recovery were stipulated, leaving as the only issue in the case the question whether, at the time of the injury, plaintiff was an “employee” of Howe-Baker Engineers, Inc., the subscriber, or whether he was working for Howe-Baker Engineers, Inc. as an independent contractor.

Evidence was taken on this issue only and submitted to a jury which returned its verdict finding 1 that, on the day of injury, plaintiff-appellee was an “employee” of Howe-Baker Engineers, Inc. and that he was not working as an independent contractor.

On the basis of these findings, judgment was rendered for appellee (and his attorneys) in the amount of $1,752.75, plus interest, appellant’s motion for instructed verdict and its motion for Judgment Non *686 Obstante Veredicto having been overruled previously. From this judgment appellant has perfected its appeal.

Appellant has filed seven points of error which basically present two questions. (1) The legal and factual sufficiency of the evidence to support the verdict, and (2) Appellant-defendant’s objection and exception to the court’s definition of the term “employee”. These points will be discussed in an order different from that followed by the appellant. The second question will be discussed and disposed of first.

In connection with the submission of Special Issue No. 1, the court gave the following definition of the term “employee” :

“You are instructed that ‘EMPLOYEE’ is a person in the service of another under contract of hire, expressed or implied, oral or written, whereby the master retains or exercises (or has the right to exercise) the right of control in directing, not merely the end sought to be accomplished, but also the means and details of its accomplishment, not merely what shall be done, but how it shall be done.”

Appellant says that under the definition here complained of the jury was permitted to give an affirmative answer to Special Issue No. 1 on an improper standard, (i. e., mere exercise of control rather than the right of control) and, thus, permitted appellee-plaintiff to prevail under a lesser burden of proof than required by law.

The law is well settled in this state that it is the “right of control” which determines a master-servant relationship. Newspapers, Inc. v. Love, 380 S.W.2d 582, (Tex.Sup., 1964); Anchor Casualty Company v. O. E. Hartsfield, 390 S.W.2d 469, 471 (Tex.Sup., 1965); Halliburton v. Texas Indemnity Ins. Co., 147 Tex. 133, 213 S.W.2d 677, 680 (1948); Texas Employers’ Insurance Association v. Brown, 309 S.W.2d 295, 301, (Tex.Civ.App., Waco., 1958, writ ref. n. r. e.); Standard Ins. Co. v. McKee, 146 Tex. 183, 205 S.W.2d 362, (1947); Dempster Mill Mfg. Co. v. Lester, 131 S.W.2d 254, (Tex.Civ.App., Waco, 1939, writ dism., judg. cor.); City of Waco v. Hurst, 131 S.W.2d 745, (Tex.Civ.App., Waco, 1939, writ dism. judg. cor.); Moore v. Lee, 109 Tex. 391, 211 S.W. 214, 4 A.L.R. 185 (1919). In the case of Stimson v. Aetna Insurance Company, 440 S.W.2d 108, 111, (Tex.Civ.App., Dallas, 1969, n. w. h.), which is an oral contract case, the Court stated:

“In determining whether the employer-employee relationship exists the test is the right of control, not the exercise of control by the person alleged to be the employer. However our Supreme Court has held that in cases where there is no express contract, or where the terms of the employment are indefinite, the exercise of control, though evidentiary only and not the ultimate test, may be the best evidence available in determining the right of control. Newspapers, Inc. v. Love, 380 S.W.2d 582, 590 (Tex.Sup.1964); * *

While actual exercise of control may be, and often must be, looked to in order to determine what the contract contemplated, Halliburton v. Texas Indemnity Ins. Co., supra, such acts are not ultimate, but evi-dentiary only. Newspapers, Inc. v. Love, supra; Southern Underwriters v. Samanie, 137 Tex. 531, 155 S.W.2d 359, 362, (1941).

In Larson’s Workmen’s Compensation Law, Vol. 1A, Sec. 44.10 “Right vs. Exercise”, we find this statement:

“ * * * But the test is, and must be, based on the right, not the exercise. * * * there may be exercise of control without the right, but the right is still what counts. For example, you may order a taxi driver to exceed the speed limit while taking you to a train, and he *687 may even comply, but this does not make him your employee. * * * ”

In King v. Galloway, 284 S.W. 942, 944 (Tex.Com. of App., 1926, judg. adopted), we find this statement of the law:

“In the first place, it must be borne in mind that on the question of control, the test is not the exercise thereof, but the right to exercise such control. In this connection, we quote from Labatt, p. 240, 19 A.L.R., as follows:
‘In every case which turns upon the nature of the relationship between the employer and the person employed, the essential question to be determined is not whether the former actually exercised control over the details of the work, but whether he had a right to exercise that control.’ ”

The Supreme Court in Newspapers, Inc. v. Love, supra, 380 S.W.2d at page 585 uses the above quote from the King case with approval.

In Esthay v. Sherman, 135 S.W.2d 174, 176, (Tex.Civ.App., Galveston, 1939 writ dism. judg. cor.), the following definition of the term “employee” was approved:

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