DCBS v. Clements

246 P.3d 62, 240 Or. App. 226
CourtCourt of Appeals of Oregon
DecidedDecember 29, 2010
Docket0500006SD A141287
StatusPublished
Cited by5 cases

This text of 246 P.3d 62 (DCBS v. Clements) is published on Counsel Stack Legal Research, covering Court of Appeals of Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DCBS v. Clements, 246 P.3d 62, 240 Or. App. 226 (Or. Ct. App. 2010).

Opinion

246 P.3d 62 (2010)
240 Or. App. 226

DEPARTMENT OF CONSUMER AND BUSINESS SERVICES, Petitioner,
v.
Michael J. CLEMENTS, Respondent.

0500006SD; A141287.

Court of Appeals of Oregon.

Argued and Submitted May 20, 2010.
Decided December 29, 2010.

*63 Karla H. Ferrall argued the cause for petitioner. With her on the brief were John R. *64 Kroger, Attorney General, and Jerome Lidz, Solicitor General.

Rube G. Junes and Clark and Feeney filed the brief for respondent.

Before SCHUMAN, Presiding Judge, and WOLLHEIM, Judge, and ROSENBLUM, Judge.

ROSENBLUM, J.

Claimant filed a workers' compensation claim after sustaining injuries while on a long-haul truck-driving trip with Marshall "Scott" Burch, a partner in Lorelei Transportation. The Workers' Compensation Division (WCD) denied the claim after concluding that claimant was not a subject worker and that Lorelei Transportation was thus not subject to the Workers' Compensation Law. Claimant requested a hearing. An administrative law judge (ALJ) concluded that claimant was a subject worker and entered a final order setting aside the WCD's nonsubjectivity determination. The Department of Consumer and Business Services (DCBS) seeks judicial review of the ALJ's final order.[1] We review the ALJ's findings of fact for substantial evidence and its legal conclusions to determine if they are correct as a matter of law. Oregon Drywall Systems v. Natl. Council on Comp. Ins., 153 Or.App. 662, 666, 958 P.2d 195 (1998). We do not disturb the ALJ's conclusion that claimant was a "worker" for purposes of the Workers' Compensation Law. However, we conclude that the ALJ erred in the analysis of whether claimant was a "subject worker," and we therefore reverse and remand for reconsideration.

The basic facts are uncontested. In 1992, Scott and Lorelei Burch formed a commercial trucking business, Lorelei Transportation, which they ran as partners. The couple owned a tractor-trailer that they used to haul freight. Scott primarily drove the tractor-trailer, although Lorelei would also sometimes drive in "tandem" with him.

Claimant was a family friend of the Burches who had grown up with their son and had done some unpaid work at the Burches' ranch over the years. During the first week of January 2005, when claimant was 20 years old, he went to stay with the Burches because of some conflicts in his own family. A few days after arriving, claimant expressed his interest in a career in trucking to Scott and asked if he could accompany him on an interstate trucking job to Washington, then to the southeastern United States and back to the Pacific Northwest. Scott agreed that he could come along on the trip. There was no understanding between Scott and claimant of how long, in terms of time or distance, the trip would be.

Scott considered the trip to be a trial period to see if he and claimant "could get along and run team." Although claimant did not discuss specific compensation with Scott before or during the trip and did not consider himself an "employee" of Lorelei Trucking when he and Scott left, claimant did not consider the trip a "charity ride" and did expect that Scott would cover his expenses and would pay him something when the trip was over. Scott, too, anticipated that he would cover claimant's expenses. Before the trip began, Scott paid $56 so that claimant could reinstate his regular driver's license.

The two men left Oregon together on January 5, 2005. During the trip, claimant often asked Scott if he could drive, and Scott allowed him to do so, as much as 20 to 25 percent of the time. Claimant did not yet have his commercial driver's license; therefore, Scott told claimant that, if they were pulled over while claimant was driving, claimant *65 would have to pay any fines associated with driving without a proper license. Before each time that claimant began driving, Scott would direct claimant to do a walk around the tractor and trailer to look for leaks underneath the tractor and to make sure that the straps on the trailer were tight. Claimant also helped with inspecting and "tightening" loads at Scott's direction. Scott showed claimant how to fill out "log books," although claimant never filled out any on his own.

Claimant was not "paid" anything in terms of wages or a share of the profits during or after the trip, but Scott did pay, usually in cash, for all claimant's meals, cigarettes, and, when necessary, lodging. On nights when Scott did not pay for a motel, Scott and claimant slept either in the sleeping berth of Scott's tractor or in the homes of Scott's relatives. Scott would sometimes give claimant small amounts of cash to buy cigarettes and other small items for both of them. Once, outside of Seattle, Scott gave claimant $100 cash, which claimant assumed was "for driving." When claimant asked what the money was for, Scott did not respond.

After the trip, Scott did not recall how much cash he had had with him or how much he spent while on the trip. Scott did not remember "expensing" the costs he paid for claimant in his business records, nor did he generally keep receipts for the food that he provided claimant. Scott did not have any receipts from nights that he and claimant stayed in a motel room.

On January 22, 2005, on their way back from the Southeast, claimant was driving the tractor-trailer in Idaho when it was involved in an accident with another tractor-trailer. Both Scott and claimant sustained severe injuries. Claimant filed a workers' compensation claim for his injuries, but the WCD concluded that claimant was not a "subject worker" for purposes of the Workers' Compensation Law. When claimant challenged that determination, the ALJ set it aside. The ALJ first considered whether claimant was a "worker" within the meaning of the Workers' Compensation Law, describing the inquiry in this way:

"Pursuant to ORS 656.005(30), a `worker' is a person who engages to furnish services for remuneration subject to the direction and control of an employer. Determining whether an individual is a `worker,' depends on whether the employer had a right to control the individual under the judicially created `right to control' test. S-W Floor Cover Shop v. Nat'l Council on Comp. Ins., 318 Or. 614, 630-631 [872 P.2d 1] (1994)."

The ALJ then discussed evidence in the record regarding the "right to control" and determined that the evidence indeed established that the Burches had a right to control claimant, and that claimant was a "worker" for purposes of ORS 656.005(30).

The ALJ then considered the effect of ORS 656.027, which governs whether a "worker" is a "subject worker" for purposes of the Workers' Compensation Law.

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Cite This Page — Counsel Stack

Bluebook (online)
246 P.3d 62, 240 Or. App. 226, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dcbs-v-clements-orctapp-2010.