Eisner v. Berman

50 Pa. D. & C.2d 339, 1970 Pa. Dist. & Cnty. Dec. LEXIS 139
CourtPennsylvania Court of Common Pleas, Philadelphia County
DecidedJuly 28, 1970
Docketno. 4290
StatusPublished

This text of 50 Pa. D. & C.2d 339 (Eisner v. Berman) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Philadelphia County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eisner v. Berman, 50 Pa. D. & C.2d 339, 1970 Pa. Dist. & Cnty. Dec. LEXIS 139 (Pa. Super. Ct. 1970).

Opinion

ALEXANDER, J.,

This is an action in trespass wherein plaintiff claims damages as a result of injuries sustained in an automobile accident which occurred on November 25, 1964. The case was tried on the liability issue alone before the court, sitting without a jury, on an agreed statement of facts. The sole question to be decided is a legal one, i.e., whether plaintiffs exclusive remedy is under the provisions of the Pennsylvania Workmen s Compensation Act. The facts of this case present an issue which does not appear to have been expressly decided in any previously reported decisions in this Commonwealth. For purposes of this decision, the following are agreed to be the facts:

On November 25, 1964, defendant was operating an automobile in a southerly direction on the West River Drive when, at a point under what is known as the “Twin Bridges,” the automobile was caused to move [340]*340into the northbound lane of the West River Drive, due to defendant’s negligence, causing a head-on collision with a northbound vehicle, resulting in injuries to plaintiff.

At the time of the accident, plaintiff was an employe of Arthur A. Kober Company, Inc., (hereafter called “company”). Plaintiff concedes that his only remedy against the company is under the provisions of the Workmen’s Compensation Act. Plaintiff also concedes that if it is found that defendant, at the time of the accident, was an employe of the company, he cannot maintain this action.

Counsel for the respective parties read into evidence during the course of the trial a number of paragraphs from various pleadings filed in the case, all of which related to the relationship of plaintiff and defendant to the company. However, all of these averments were conclusions of law and will not be relied upon in reaching a decision. Only that portion of the testimony constituting facts will be relied upon. Those facts are as follows:

The sole stockholders of the company are defendant and Cecelia Berman, defendant’s wife, both of whom owned all of the company’s stock. Defendant had no employment contract with the company. His title with the company was that of “President.” His duties being to “create profit for the corporation.” Defendant did not have to consult with anyone when making decisions, signing contracts or engaging in similar activity. Defendant took vacations during the course of the year without consulting anyone else and the length of those vacations were determined by himself. Defendant had complete control over his duties “for the corporation,” complete control over what his activities would be and complete control over what decisions were made, insofar as those activities were consistent [341]*341with keeping the business going and generating a profit “for the business.”

Defendant is an engineer and testified that “I work for Arthur A. Kober Company” which is a corporation. Defendant owns 45 percent of the company’s stock and is the president of the company. Another 45 percent is owned by defendant’s wife. The remaining 10 percent of the stock was owned by another corporation, Development Company, controlled by defendant and his wife. The only other officer of the company is one Charles Roller who is vice president. Defendant testified that he was “associated with the corporation for fifteen years and was ‘employed as President’ at the time of the accident.”

At the time of the accident, plaintiff was with defendant on his way “downtown.” He worked for the company directly under Roller, who was the chief estimator. Prior to entering the automobile on the day of the accident, plaintiff had been engaged in “routine office duties.” The trip during which the accident occurred was taken at the “request” of defendant. Defendant told plaintiff that they were going “in answer to a bid we had submitted on a job that I [plaintiff] had estimated on.” Plaintiff knew that his destination was to be an architect’s office to keep a specific appointment. On the way to the architect’s office, defendant discussed the estimate with plaintiff. Apparently, plaintiff received all he was entitled to receive from the company under the provisions of the Workmen’s Compensation Act.

The relevant sections of the Workmen’s Compensation Act are as follows:

77 PS §72 — “Liability of fellow employee

“If disability or death is compensable under this act, a person shall not be hable to anyone at common law or otherwise on account of such disability or death [342]*342for any act or omission occurring while such person was in the same employ as the person disabled or killed, except for intentional wrong. 1915, June 2, P. L. 736, Art. II, 205, added 1963, Aug. 24, P. L. 1175, No. 496, §1.”

77 PS §21 — “ ‘Employer’ defined

“The term ‘employer,’ as used in this act, is declared to be synonymous with master, and to include natural persons, partnerships, joint-stock companies, corporations for profit, corporations not for profit, municipal corporations, the Commonwealth, and all governmental agencies created by it. 1915, June 2, P. L. 736, art. §1, 103; 1937, June 4, P. L. 1552, §1; 1939, June 21, P. L. 520, §1.”

77 PS §22 — “ ‘Employee’ defined

“The term ‘employee,’ as used in this act is declared to be synonymous with servant, and includes — All natural persons, who perform services for another for a valuable consideration, exclusive of persons whose employment is casual in character and not in the regular course of business of the employer, and exclusive of persons to whom articles or materials are given out to be made up, cleaned, washed, altered, ornamented, finished or repaired, or adapted for sale in the worker’s own home, or on other premises, not under the control or management of the employer. Every executive officer of a corporation elected or appointed in accordance with the charter and by-laws of the corporation, except elected officers of the Commonwealth or any of its political subdivisions, shall be an employee of the corporation. As amended 1956, Feb. 28, P. L. (1955) 1120, §1.” (Italics supplied.)

Plaintiff’s contention is that defendant is not a fellow employe of defendant and thus plaintiff is not barred from claiming damages against him, since defendant was a principal stockholder of plaintiff’s corporate employer and subject to the control of no one. [343]*343Plaintiff, in support of his position, relies on cases which hold that one who is a substantial stockholder of a corporation and not subject to anyone’s control is not an employe of the corporation for purposes of claiming benefits under the Workmen’s Compensation Act.

Defendant, on the other hand, contends that at the time of the accident, defendant and plaintiff were either fellow employes under 77 PS §72 or that defendant, being the principal stockholder of the corporation and at the time of the accident in the business of the corporation, was, in effect, plaintiff’s employer. Defendant relies principally upon the statutes cited above.

The picture which emerges from the facts offered into evidence by counsel is a simple one, not uncommon in the modern world of the small entrepreneur. Plaintiff, an employe of a small family corporation, created and principally owned and controlled by defendant and his wife, was injured while on the corporation’s business as the result of the negligence of defendant who, at the time was on the same business of the corporation as that in which plaintiff was engaged.

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Cite This Page — Counsel Stack

Bluebook (online)
50 Pa. D. & C.2d 339, 1970 Pa. Dist. & Cnty. Dec. LEXIS 139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eisner-v-berman-pactcomplphilad-1970.