Ely v. Rice Bros.

167 S.W.2d 355, 26 Tenn. App. 19, 1942 Tenn. App. LEXIS 35
CourtCourt of Appeals of Tennessee
DecidedMay 5, 1942
Docket6
StatusPublished
Cited by14 cases

This text of 167 S.W.2d 355 (Ely v. Rice Bros.) is published on Counsel Stack Legal Research, covering Court of Appeals of Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ely v. Rice Bros., 167 S.W.2d 355, 26 Tenn. App. 19, 1942 Tenn. App. LEXIS 35 (Tenn. Ct. App. 1942).

Opinion

McAMIS, J.

These two suits involve the liability of Bice Brothers Auto Company for injuries sustained by plaintiffs Thomas S. Ely and wife Lucy Ely when struck by an automobile owned by Bice Brothers Auto Company and driven by William B. Faircloth. At the conclusion of plaintiffs’ proof in chief the trial judge directed a verdict in favor of defendant Bice Brothers Auto Company and the case is here for a review of this action.

Bice Brothers Auto Company, herein referred to as defendant, at the time in question was engaged in the sale of automobiles in Chattanooga. In connection with its business it also maintained a. used car lot for the purpose of disposing* of used cars. Faircloth and others were engaged as salesmen to sell used cars, Faircloth having been in defendant’s employ for fifteen years. His status, whether that of an ag’ent or servant of defendant or an independent contractor, is a controverted issue. Under the facts to be stated we think this was a question for the jury to determine.

As indicated defendant introduced no proof but the undisputed proof introduced by plaintiffs shows that Fair-cloth’s duties, in addition to selling cars, required him to *22 open and close the used car lot for which purpose he carried a key; that he was required to look after used cars in the lot, reporting needed repairs to defendant’s officer's; that he was required to g'ather from prospects, for defendant’s use, information bearing upon the credit standing of prospects and that, for this purpose, he was furnished blanks by defendant.

In connection with the sale of cars, the proof shows that he was furnished a car for demonstration purposes and to enable him to canvass the city for prospects. At times he was furnished the name of prospects but, generally speaking, prospects were originated as a result of his own efforts. When ready to close a trade, he was required to submit the offer of the prospect to defendant, as we presume, along with information as to the credit standing of the prospect. If acceptable to defendant, the sale would then be closed and Faircloth paid a commission which constituted his sole compensation for looking after the used car lot and selling cars.

To facilitate his activities in behalf of defendant, Fair-cloth was furnished gasoline and oil for the demonstration car and, for reasons not definitely appearing, was allowed one gallon of gasoline each day for going from defendant’s place of business at night to his home and returning the following morning.

It appears from Faircloth’s testimony that he was required to open the used car lot at a definite time in the morning and close at a definite time at night. When he desired to be off from work he was required to notify defendant and testified that his request might or might not be granted depending upon whether defendant could spare his services at the time.

It thus appears that defendant, by the contract of employment, had control over the activities and mode of *23 travel of Fair cío til. It could and did require his presence on the used car lot, at least at opening and closing time and while there he performed services in defendant’s interest. His mode of travel was dictated by the nature of the services to be performed as well as by the terms of the agreement. The fact that he was paid a commission rather than a salary is not controlling.

To say the least, the facts presented are as consistent with the relationship of master and servant as with that of an independent contractor and the proof is insufficient to show as a matter of law that defendant did not retain to a material degree the right to direct, in material respects, the manner of carrying out the acts to be performed by Faircloth. This is the controlling, issue. Mayberry v. Bon Air Chemical Co., 160 Tenn., 459, 26 S. W. (2d), 148; Income Life Insurance Co. v. Mitchell, 168 Tenn., 471, 477, 79 S. W. (2d), 572; Powell v. Virginia Construction Co., 88 Tenn., 692, 13 S. W., 691, 17 Am. St. Rep., 925; Marshall v. South Pittsburg Lumber and Coal Co., 164 Tenn., 267, 47 S. W. (2d), 533, 544; Tennessee Valley Appliances, Inc., v. Rowden, 24 Tenn. App., 487, 146 S. W. (2d), 845.

An employer seeking to be relieved from liability for injuries for the act of another done in behalf of the employer must carry the burden of showing that the act of the one inflicting' the injury was in the performance of an independent contract and not the act of an employee or servant. Welch v. Reiling et al., 170 Tenn., 698, 99 S. W. (2d), 216. And where the facts presented are as consistent with the relationship of agency as that of independent contractor, the one asserting the existence of the latter relation has the burden of proof. Tennessee Valley Appliances, Inc., v. Rowden, supra.

*24 Defendant cites and relies particularly upon the cases of Income Life Insurance Co. v. Mitchell, 168 Tenn., 471, 473, 79 S. W. (2d), 572, and American Nat. Insurance Co. v. Poole, 24 Tenn. App., 596, 148 S. W. (2d), 14. Both of these cases involved insurance salesmen engaged in building an insurance debit. In both the salesman furnished his own car and bore the expense of its operation. In both cases he was free to select his own mode of travel, could work when and where he pleased within the assigned territory and was required to report only once each week upon sales and collections. It was no part of the duty of the salesman in either case to look after the business establishment of the employer or personal property on its premises. For these reasons we think these two cases are distinguishable from the. one under consideration.

Other cases cited from foreign jurisdictions involving automobile salesmen are distinguishable upon their facts mainly upon the ground that the salesman was either engaged solely in the sale of cars or furnished his' own car and bore the expense of its operation.

While each case must be determined upon its own facts, the general rule is that an automobile salesman who has no power to fix the price, dictate terms of sale, extend credit or pass on securities given in case of credit, who does not become- responsible to the dealer and owner for the payment of any hills and who is only authorized to make sales of cars belonging to the dealer must be regarded as the agent of the dealer and not an independent contractor. 5 Blashfield’s Cyclopedia of Automobile Law and Practice, Perm. Ed., Sec. 2968. See also 27 Am. Jur., 496, Sec. 14, dealing with salesman on a commission basis and Tennessee Valley Appliances, Inc., v. *25 Rowden, 24 Tenn. App., 487, 491, 146 S. W. (2d), 845. Other eases in point are digested at 107 A. L. R., 425.

AVliile not decisive, the fact that the employer owns and furnishes for the use of the one eng’aged to do the work an appliance necessary for its performance tends to show that the relationship is that of master and servant rather than that the person doing the work is an independent contractor. Porter v. Withers Est. Co., 201 Mo. App., 27, 210 S. W., 109. And see, also, 27 Am. Jur., 493, Sec. 12.

The circuit judge appears to have directed a verdict upon the ground that, at the time plaintiffs were injured, Faireloth was not acting within the course and scope of his employment.

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Bluebook (online)
167 S.W.2d 355, 26 Tenn. App. 19, 1942 Tenn. App. LEXIS 35, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ely-v-rice-bros-tennctapp-1942.