Courchene v. Delaney Distributors, Inc.

421 N.W.2d 811, 1988 N.D. LEXIS 80, 1988 WL 26681
North Dakota Supreme Court·Decided March 29, 1988·No. Civ. 870232·Published·Cited by 8 cases

Opinions

ERICKSTAD, Chief Justice.

We remanded this case, 418 N.W.2d 781 (N.D.1988), to the district court for a certification, pursuant to Rule 54(b), N.D.R. Civ.P., that no just reason existed for delaying entry of judgment against Doris and Kim Courchene on their complaint against defendants Delaney Distributors, Inc. (Delaney) and Mitchel Larson, doing business as Larson Welding. As the district court has now executed such an order, we now consider the merits of the Courchenes’ appeal without regard to Larson’s cross-claim against Delaney. The district court had previously dismissed the Courchenes’ complaint, which sought damages for the death of VaUean Courchene and the injuries to Kim Courchene.1 The district court con-[812]*812eluded the Courchenes should “look solely to the North Dakota Workmen’s Compensation Act.” We affirm the judgment.

On April 18, 1985, a fire erupted in a warehouse building owned by Delaney at a time when a room in the basement of the warehouse was being remodeled. Delaney, a wholesale beer distributor, hired Mitchel Larson to cut several fuel tanks into scrap metal as part of the remodeling project.

Dirk Haugen was employed by Delaney to maintain the warehouse which included loading and unloading trucks and keeping the warehouse clean. Although Haugen allegedly had no authority to hire employees on behalf of Delaney, the district court found Haugen did in fact hire ValJean and Kim Courchene, on behalf of Delaney, to help Larson remove debris and scrap metal from the warehouse. For several days before the fire, Larson cut the fuel tanks into scrap metal and the Courchene brothers hauled the scrap metal away. Larson and the Courchene brothers were working in the basement of the warehouse when the fire broke out upstairs. Dirk Haugen and ValJean Courchene died as a result of the fire; Kim Courchene was hospitalized after the fire and released from the hospital the next day.

Kim Courchene and his mother, Doris Courchene, acting as a party and the personal representative of the estate of ValJe-an, brought suit against Delaney and Larson. The complaint alleged that the defendants failed to comply with Chapters 65-01 and 65-04, N.D.C.C., relating to workers compensation law and that their failure to comply rendered them liable for the damages sustained by plaintiffs pursuant to section 65-09-01, N.D.C.C.

The district court dismissed the Cour-chenes’ complaint, ruling that ValJean and Kim were employees of Delaney for purposes of workers compensation and that Delaney complied with the relevant provisions of Title 65, N.D.C.C. The trial court further concluded that “[defendants Delaney and Larson are the prevailing parties and, as such, are entitled to statutory costs.”

We believe three issues are dispositive of this appeal:

I. Were Kim and ValJean Courchene “employees” as the term is defined in section 65-01-02(9), N.D.C.C., for purposes of compensation for work-related injuries?

II. Was Delaney in compliance with the relevant sections of Title 65, N.D.C.C., and therefore relieved of civil liability for the injuries and death in this case?

III. Did the district court improperly award costs and disbursements to Delaney?

I.

The Courchenes contend they are entitled to maintain a civil suit for damages against Delaney because ValJean and Kim were not “employees” within the meaning of section 65-01-02(9)(b), N.D.C.C. Subsection (9)(a) describes what the term “employee” includes and subsection (9)(b) describes what it does not include. Subsection (9)(b) reads:

“b. Such term does not include:
(1) Any person whose employment is both casual and not in the course of the trade, business, profession, or occupation of his employer.
(2) Any person who is engaged in an illegal enterprise or occupation.
(3) The spouse or child of the employer dwelling in the household of the employer.”2 [Emphasis added.]

The conjunctive wording of subsection 9(b)(1) requires both elements to be met before a person may be excluded from the term “employee.” The trial court found that Kim and ValJean Courchene were casual employees but that the work they performed was in the course of Delaney’s business. Thus, the court concluded the Courchene brothers were employees of Delaney. We affirm the trial court’s eonclu[813]*813sion that Kim and ValJean Courchene were “employees” for purposes of workers compensation.

During the fire, the Courchene brothers were remodeling and doing general maintenance work on Delaney’s warehouse. While remodeling and maintenance are not central to Delaney’s enterprise as a beer distributor, we believe the trial court was correct in concluding the Courchene brothers’ labor was within the “course of the trade” of Delaney’s business. § 65-01-02(9)(b)(l), N.D.C.C.

This conclusion is supported by North Dakota case law and the majority rule relating to the question of whether or not building maintenance and remodeling work are within the “course of the trade, business, profession, or occupation” of the business which occupies the building.

Larson’s treatise on workmen’s compensation law summarizes cases dealing with this issue as follows:

“Behind all these decisions lies one simple thought: maintenance, repair, painting, cleaning, and the like are ‘in the course’ of business because the business could not be carried on without them, and because they are an expectable, routine, and inherent part of carrying on any enterprise. One cannot carry on a store business with the roof leaking and spoiling the goods on the counter.... On this general reasoning, then, the great majority of decisions have denied exemption under either type of statute for painting, window washing, repair work, maintenance, remodeling, incidental construction, clearing of land, and even moving a plant.” [Footnotes omitted.] 1C A. Larson, The Law of Workmen’s Compensation § 51.23. (1986).

In Gotchy v. North Dakota Workmen’s Compensation Bureau, 49 N.D. 915, 194 N.W. 663 (1923), we ruled that a carpenter who “intermittent[ly]” performed repair work at a grain elevator was an employee of the elevator for purposes of workers compensation. The carpenter was employed by the elevator to construct an additional leg for handling grain. Gotchy 194 N.W. at 664. We found that the carpenter was “performing work necessary in the conduct of the business of the [elevator].” Gotchy 194 N.W. at 668. Other jurisdictions have ruled that remodeling jobs and incidental construction are within the usual course of business. See Flamingo Motor Inn v. Industrial Commission of Arizona, 133 Ariz. 200, 650 P.2d 502 (App.1982) (temporary worker who injured back while moving a heavy Chinese wok stove in conjunction with a remodeling project was “employee” engaged in “usual course of trade, business or occupation of the employer”). See also, J.P.O. Sandwich Shop, Inc. v. Papadopoulos, 105 Ind.App. 165, 13 N.E.2d 869 (1938) (construction of additional booths in a restaurant); Colosimo v. Giacomo,

Free access — add to your briefcase to read the full text and ask questions with AI

Courchene v. Delaney Distributors, Inc., 421 N.W.2d 811, 1988 N.D. LEXIS 80, 1988 WL 26681 (N.D. 1988).

421 N.W.2d 811 (Courchene v. Delaney Distributors, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

LAWC Holdings v. Vincent Watford
2024 ND 16 (North Dakota Supreme Court, 2024)
Heng v. Rotech Medical Corp.
2006 ND 176 (North Dakota Supreme Court, 2006)
Matter of Estate of Stensland
1998 ND 37 (North Dakota Supreme Court, 1998)
Walls v. North Mississippi Med. Center
568 So. 2d 712 (Mississippi Supreme Court, 1990)
Matter of Estate of Stuckle
427 N.W.2d 96 (North Dakota Supreme Court, 1988)
Courchene v. Delaney Distributors, Inc.
421 N.W.2d 811 (North Dakota Supreme Court, 1988)