Coonrod v. Seay

241 S.W.3d 252, 367 Ark. 437, 2006 Ark. LEXIS 511
CourtSupreme Court of Arkansas
DecidedOctober 12, 2006
Docket06-404
StatusPublished
Cited by14 cases

This text of 241 S.W.3d 252 (Coonrod v. Seay) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Coonrod v. Seay, 241 S.W.3d 252, 367 Ark. 437, 2006 Ark. LEXIS 511 (Ark. 2006).

Opinion

Annabelle Clinton Imber, Justice.

Clifford Coonrod d/b/a Coonrod Construction Co., petitions this court for a writ of prohibition in response to the circuit court’s denial of his summary-judgment motion. 1 Coonrod argues that the circuit court does not have jurisdiction to decide whether the Workers’ Compensation Act, as codified at Ark. Code Ann. §§ 11-9-101 through 11-9-1001 (Repl. 2002 & Supp. 2005), bars Respondent Ronnie Seay from filing suit against him for negligence. In support of his argument, Coonrod asserts that the Workers’ Compensation Commission has exclusive jurisdiction to determine whether an employer-employee relationship existed between Seay and him. We agree and therefore grant, the writ.

In 2003 Coonrod and Johnson Employer Support Services (JESS) entered into a “Subscriber Service Agreement.” Pursuant to the agreement, JESS performed the following services for Coonrod: (1) the hiring of workers for Coonrod’s use; (2) the processing and payment of wages to the workers being used by Coonrod; (3) the collection, reporting and payment of state and federal payroll taxes; (4) the administration and payment of employee benefit plans; and (5) the maintenance of a workers’ compensation insurance policy covering the workers at Coonrod’s constructions sites. In return, Coonrod was obligated to pay JESS a service fee that consisted of (1) gross employee earnings, (2) federal and state mandated employee benefits, (3) administrative fees, and (4) a portion of the premium for workers’ compensation insurance. Coonrod also was responsible for supervising and directing the workers and for maintaining records of the workers’ hours; additionally, Coonrod had the right to terminate or suspend an employee and to increase wages.

Ronnie Seay was one of the workers covered by the service agreement. While working at a Coonrod construction site, on July 26, 2003, Seay was injured as he attempted to load a bulldozer onto a trailer. Seay filed a worker’s compensation claim and received benefits that were paid by JESS. He also filed an action against Coonrod in the Miller County Circuit Court, alleging that Coon-rod was negligent in maintaining the bulldozer and in failing to provide a safe work environment. The damages requested in the circuit court action included medical costs, lost wages, bodily injury, pain and suffering, and mental anguish.

In response to the lawsuit, Coonrod immediately filed a motion for summary judgment, alleging that Seay’s claims were barred by the exclusivity provision of the Workers’ Compensation Act, Ark. Code Ann. § ll-9-105(a) (Repl. 2002); therefore, the circuit court did not have subject-matter jurisdiction over Seay’s claims. Among the exhibits attached to the summary-judgment motion was an affidavit signed by a JESS official stating that Coonrod and JESS were co-employers of Seay and that Coonrod paid part of the premium for workers’ compensation insurance. The circuit court denied the motion.

Coonrod now petitions this court for a writ of prohibition on the grounds that the circuit court was wholly without subject-matter jurisdiction to determine whether an employee-employer relationship existed between Coonrod and Seay. We therefore have jurisdiction over this case pursuant to Ark. Sup. Ct. R. l-2(a) (2006).

A writ of prohibition is extraordinary relief that is appropriate only when the circuit court is wholly without jurisdiction. Cockrum v. Fox, 359 Ark. 508, 199 S.W.3d 69 (2004). The writ is appropriate only when there is no other remedy, such as an appeal, available. Id. Prohibition is a proper remedy when the jurisdiction of the trial court depends upon a legal rather than a factual question. Id. This court confines its review to the pleadings in the case. Id. Moreover, prohibition is never issued to prohibit a trial court from erroneously exercising its jurisdiction. Id.

The first requirement for granting a writ of prohibition is that the circuit court must be wholly lacking in jurisdiction over the case. Pursuant to Ark. Code Ann. § 11 — 9—105(a), once an employee avails himself of the rights and remedies available to him under the Workers’ Compensation Act, those rights and remedies shall be exclusive of all other rights and remedies. Coonrod asserts that he and JESS are co-employers of Seay, and because Seay already received workers’ compensation benefits from JESS, his negligence claims against Coonrod are barred by section 11-9-105(a). Seay, however, disputes Coonrod’s assertion, insisting that JESS is his only employer. Citing VanWagoner v. Beverly Enterprises, 334 Ark. 12, 970 S.W.2d 810 (1998), and its progeny, Coonrod contends that the question of whether an employer-employee relationship existed between him and Seay, and thus whether the Act applies here, is a threshold decision exclusively within the jurisdiction of the Workers’ Compensation Commission.

Originally, our court recognized concurrent jurisdiction between the circuit courts and the Commission to decide whether the Act applied in a given case. However, in VanWagoner v. Beverly, supra., we recognized that our concurrent-jurisdiction approach was resulting in duplicative litigation, and consequently, the approach was counter to the primary purpose behind the workers’ compensation system — “to achieve simplicity and speed in the disposition of cases.” Id. at 15, 970 S.W.2d at 812. We therefore abandoned that approach, holding that

the exclusive remedy of an employee or her representative on account of injury or death arising out of and in the course of her employment is a claim for compensation under § 11-9-105, and that the commission has exclusive, original jurisdiction to determine the facts that establish jurisdiction, unless the facts are so one-sided that the issue is no longer one of fact but one of law, such as an intentional tort.

Id. at 16, 970 S.W.2d 810.

Following VanWagoner, our court decided in the case of Stocks v. Affiliated Foods Southwest, Inc., 363 Ark. 235, 213 S.W.3d 3 (2005), that the factual question of whether an employer-employee relationship exists between the parties 'is a preliminary issue solely within the jurisdiction of the Commission. Id. Most recently in Moses v. Hanna’s Candle Company, 366 Ark. 233, 234 S.W.3d 872 (2006), we held that the question of whether a temporary worker is an employee of the company where he or she is working at the time of an injury, rather than an employee of the temporary agency, is an issue within the Commission’s exclusive jurisdiction to decide. Id.

Here, as in Stocks, the only issue presented by Coon-rod’s summary-judgment motion was whether an employer-employee relationship existed between him and Seay. Also, the situation here is much like that in Moses because Seay argues that JESS was his only employer and he was merely a temporary worker at Coonrod’s construction site.

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Bluebook (online)
241 S.W.3d 252, 367 Ark. 437, 2006 Ark. LEXIS 511, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coonrod-v-seay-ark-2006.