Dairy Farmers of America, Inc. v. Coker

255 S.W.3d 905, 98 Ark. App. 400, 2007 Ark. App. LEXIS 275
CourtCourt of Appeals of Arkansas
DecidedApril 25, 2007
DocketCA 06-769
StatusPublished
Cited by11 cases

This text of 255 S.W.3d 905 (Dairy Farmers of America, Inc. v. Coker) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dairy Farmers of America, Inc. v. Coker, 255 S.W.3d 905, 98 Ark. App. 400, 2007 Ark. App. LEXIS 275 (Ark. Ct. App. 2007).

Opinion

Larry D. Vaught, Judge.

The Arkansas Workers’ Compensation Commission found that appellee Lonnie Coker sustained a compensable injury while in the course and scope of his employment as a milk hauler for Bud Duncan Trucking and that Duncan Trucking was a subcontractor of appellant Dairy Farmers of America (DFA). After determining that Duncan Trucking was an uninsured employer, the Commission held that DFA was Hable for Coker’s benefits pursuant to Ark. Code Ann. § ll-9-402(a) (Repl. 2002). We affirm.

At the hearing, Coker testified that on September 17, 2003, before he left his home, he was injured while working on a truck owned by his employer Duncan Trucking. He testified that he had parked his truck at his home the evening before his accident. The next morning, he began his work day by filling out some paperwork, replacing a headlight on the truck, and conducting a pre-trip inspection; he stated that his truck was already loaded with milk for delivery. Coker explained that each morning — prior to beginning his route —■ he engaged in a routine of knocking loose a “sticky” brake rod so that the truck could be “roll started.” Coker stated that he “was underneath the truck, and the brake system failed” and ran over him “with both sets ■— both duals on the rear of the truck.” After being run over by the truck, according to testimony, Coker was dragged a short distance. The medical records indicate that he sustained various injuries — including a collapsed lung and bladder, a spleen rupture, a crushed pelvis and tail bone, and several cracked ribs. The parties do not dispute the legitimacy of his injuries or treatment.

Bob Duncan, the owner of Duncan Trucking, confirmed that Coker was working on a truck owned by the company when he was injured and acknowledged that checking the truck before he departed “would be a part of his job.” Duncan also corroborated Coker’s claim that there was milk on the truck at the time of his injury and that he took the truck home at night because Duncan Trucking did not provide a convenient place to park the truck. Duncan also admitted that Duncan Trucking paid Coker’s salary, withheld taxes from his paycheck, and supplied him a W-2 form at year’s end.

The Commission found that Duncan Trucking was “clearly in the hauling business” and that Coker’s “work as a truck driver was an integral part of that business.” Based on the evidence, the Commission determined that Coker’s injury arose out of and in the course of his employment with Duncan Trucking. The Commission also found that the uncontroverted evidence showed that Duncan Trucking failed to secure workers’ compensation insurance as required by law. As such, the Commission turned its attention to the relationship between Duncan Trucking and DFA.

The Commission determined that DFA had contracted with its members to market the members’ milk product. In support ofits conclusion, the Commission relied on language from two sample contracts, which were introduced at the hearing. Both contracts contained provisions obligating DFA “to perform all services in connection with the hauling, handling and all other aspects of marketing Member’s milk” and giving DFA “full power and authority ... to collect and allocate funds in connection with the sale of its members’ milk.” The DFA’s field representative, Elbert Qualls, offered testimony that corroborated the contractual duty that DFA owed its members.

As a point of interest, the contracts also contained language that DFA was authorized to “transport Member’s milk or have Member’s milk transported by a carrier [hauler] approved by DFA to the destinations directed by DFA.” DFA argued that this provision established that the haulers were independent contractors and not subcontractors, thus DFA had no liability under Ark. Code Ann. § 11-9-402. On this point, Bud Duncan testified that he understood himself to be an independent contractor, with the freedom to contract with whomever he wanted. He acknowledged that he had been hired by DFA to haul milk for its members. However, Duncan noted that he hired and fired his own drivers, and if DFA had a problem with one of his drivers it discussed that problem with Duncan, not the driver. Duncan testified that he, not DFA, controlled Coker’s daily activities and that Coker was not working for anyone else at the time of the accident.

As a final line of defense, DFA argued that it could not be considered a general contractor because it had no obligation to a third party. DFA claimed that it was a cooperative association that was indistinguishable from its membership. The Commission rejected this argument and found that DFA was an “entity distinct from its membership, with full power to contract with those members.”

After resolving these intermediary questions, the Commission ultimately concluded that DFA was a general contractor because it had a contractual obligation to haul milk for its members and that Duncan Trucking was a subcontractor because DFA “farmed out” its milk-hauling duty to Duncan Trucking. Based on these findings, the Commission applied the statutory mandate that when “a subcontractor fails to secure compensation required by this chapter, the prime contractor shall be liable for compensation to the employees of the subcontractor” and required DFA to pay Coker’s benefits. See Ark. Code Ann. § 1 l-9-402(a). It is from this decision that DFA appeals.

In appeals involving claims for workers’ compensation, we review the evidence in a light most favorable to the Commission’s decision and affirm the decision if it is supported by substantial evidence. Searcy Indus. Laundry, Inc. v. Ferren, 82 Ark. App. 69, 110 S.W.3d 306 (2003). Substantial evidence is evidence that a reasonable mind might accept as adequate to support a conclusion. Id. The court will not reverse the Commission’s decision unless it is convinced that fair-minded persons with the same facts before them could not have reached the conclusions arrived at by the Commission. Id.

On appeal, DFA first contends that at the time of his injury Coker was not acting within the course and scope of his employment. Its argument is twofold. First, DFA claims that classifying Coker’s activities as falling within the “course and scope of his employment” would “open the door to countless creative types of claims and lead to obscure results.” Second, DFA alleges that the “going and coming rule” precludes recovery for Coker’s injuries because 1) a witness speculated that Coker might be going to the bank on the day of the accident, and 2) the record was unclear, as to whether Coker was actually going to operate the truck to haul the milk or if he was going to “subcontract” the load to another person.

Certainly, in order for an accidental injury to be compensable, it must arise “out of and in the course of employment.” Ark. Code Ann. § ll-9-102(4)(A)(i) (Repl. 2002). A compensable injury does not include injuries “inflicted upon the employee at a time when employment services were not being performed.” Ark. Code Ann. § ll-9-102(4)(B)(iii). And an employee is performing “employment services” when he or she is “doing something that is generally required by his or her employer.” Pifer v. Single Source Trans., 347 Ark. 851, 69 S.W.3d 1 (2002).

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Bluebook (online)
255 S.W.3d 905, 98 Ark. App. 400, 2007 Ark. App. LEXIS 275, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dairy-farmers-of-america-inc-v-coker-arkctapp-2007.