Florida Industrial Commission v. Schoenberg

117 So. 2d 538
CourtDistrict Court of Appeal of Florida
DecidedJanuary 28, 1960
Docket59-150
StatusPublished
Cited by9 cases

This text of 117 So. 2d 538 (Florida Industrial Commission v. Schoenberg) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Florida Industrial Commission v. Schoenberg, 117 So. 2d 538 (Fla. Ct. App. 1960).

Opinion

117 So.2d 538 (1960)

FLORIDA INDUSTRIAL COMMISSION, an Agency of the State of Florida, Appellant,
v.
Phil SCHOENBERG, Appellee.

No. 59-150.

District Court of Appeal of Florida. Third District.

January 28, 1960.

*539 Burnis T. Coleman, Tallahassee, for appellant.

Tobias Simon, Miami, for appellee.

CARROLL, CHAS., Judge.

By this appeal the Florida Industrial Commission challenges the correctness of a declaratory decree which ruled that the appellee, a real estate broker, was not an employer of the real estate salesmen affiliated with him in his business, held that the salesmen were independent contractors and did not come within the provisions for employees under the Florida Workmen's Compensation Law, Ch. 440, Fla. Stat., F.S.A., and enjoined appellant from requiring appellee to secure workmen's compensation insurance for the subject salesmen.[1]

Appellee is a licensed real estate broker. Under oral agreements, he utilizes the services *540 of some nine registered and licensed real estate salesmen. He maintains two offices, provides desks and telephones therein to the salesmen, and pays all incident rents and utilities. All sales are solicited and consummated in appellee's name, and all checks and payments are in his name. The salesmen collect no money, and have no authority to close transactions in their individual identities. The association between appellee and his salesmen can be terminated by either party at any time without liability. The salesmen draw no wages or salaries as such, but are compensated by becoming entitled to 60% of the commissions accruing to the broker through their efforts. The salesmen have no expense accounts, provide their own means of transportation, and use their own judgment in contacting and negotiating with prospects. In all other respects the salesmen are independent of the broker, and not accountable to him for their time or activities. The broker exercises no control over the manner, method and performances of their services and he does not concern himself with the details of their work, but only in the results thereof.

The term "employee" is defined in the Florida Workmen's Compensation Law (§ 440.02(2), Fla. Stat., F.S.A.), as follows:

"The term `employee' means every person engaged in an employment under any appointment or contract of hire or apprenticeship, express or implied, oral or written, including aliens. and also including minors whether lawfully or unlawfully employed, but excluding independent contractors and excluding persons whose employment is both casual and not in the course of the trade, business, profession or occupation of his employer."

It will be noted that in defining employees, the statute expressly excludes independent contractors. But the statute does not define independent contractors. We are left, therefore with the necessity of using the common law definition and meaning of independent contractors, in determining the status of real estate salesmen under this act. See Gentile Bros. Co. v. Florida Industrial Commission, 151 Fla. 857, 10 So.2d 568; Florida Industrial Commission v. Peninsular Life Ins. Co., 152 Fla. 55, 10 So.2d 793.

The determinative question of whether the legal relationship of an employer and employee exists between the appellee and the real estate salesmen is one which does not appear to have been passed on by an appellate court in this state, but the question has been considered numerous times in other jurisdictions as will be noted from the authorities cited herein. We are *541 inclined to decide this question, as did the learned chancellor, in accordance with the weight of authority on the point. While each such case must depend upon the particular facts there presented, a reading of the cases shows that the principal facts as to the status of the salesmen and the degree of control of the broker are largely the same in these real estate salesman cases.

Our research of the authorities, while by no means complete, disclosed that the question has been answered by appellate courts in eight states and in two federal circuits, in cases presenting substantially similar circumstances, by holding that real estate salesmen are independent contractors and are not employees of the broker with whom they are affiliated;[2] and that appellate courts in four states have held real estate salesmen to be employees and within the scope of compensation acts.[3]

In determining whether a real estate salesman, under the Florida Workmen's Compensation Law, is an employee or is excluded from coverage as being an independent contractor, we must observe the established rule that "the Workmen's Compensation Act should be liberally construed in relation to those it was designed to reach but the rule of liberal construction can not be strained to the point of extending it to employments not within its scope or intent[4]."

*542 Those cases which, under substantially similar statutory provisions, hold real estate salesmen to be independent contractors, reach that conclusion through application of generally accepted common law definitions of such a status. They rely heavily on the presence or absence of supervisory power to control the method and detail of performance of the services rendered. Thus, absence of immediate control of such a real estate salesman, freedom of movement and activity in his work, and a free choice in the allocation and disposition of his time, have been held to establish the salesman's status as an independent contractor. See Louis A. Demute, Inc. v. Michigan Employment Security Comm., supra, 339 Mich. 713, 64 N.W.2d 545, 550. The broker's right to terminate the salesman's services at any time is not per se indicative of an employee-employer status when other evidence fully supports the presence of an independent contractor relationship. California Employment Stabilization Comm. v. Morris, supra, 28 Cal.2d 812, 172 P.2d 497, 501.

Florida cases dealing with the problem of determining whether one is an employee or independent contractor reveal the following: In Magarian v. Southern Fruit Distributors, 146 Fla. 773, 1 So.2d 858, 861, the Supreme Court said:

"It appears generally conceded that no hard and fast rule may be stated to control the determination of the question as to whether one occupies the status of an employee or that of an independent contractor and that each case must stand on its own facts and, therefore, no useful purpose may be served by citing particular cases involving different factual conditions."

In Baya's Bar & Grill v. Alcorn, Fla. 1949, 40 So.2d 468, 469, it was said:

"Of course independent contractors are excluded from the operation of the Workmen's Compensation Law. Section 440.02(2), Florida Statutes 1941, and F.S.A. In the case of Gulf Refining Company v. Wilkinson, 94 Fla. 664, 114 So. 503, text 505, it was stated that the right of control as to the manner of doing work was the principal test in determining whether one engaged was an independent contractor or a servant and that another `test is whether the employee represents his employer as to the result of the work only, or as to the means as well as the result.' So, if an employee is subject to the control or direction of the owner only as to the result, he is an independent contractor, but if controlled by the employer as to the means used, he is not.

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

Related

Amantiad v. Odum
977 P.2d 160 (Hawaii Supreme Court, 1999)
Potter v. Hawaii Newspaper Agency
974 P.2d 51 (Hawaii Supreme Court, 1999)
Survivors of Iida v. Oriental Imports, Inc.
935 P.2d 105 (Hawaii Intermediate Court of Appeals, 1997)
Edwards v. Caulfield
560 So. 2d 364 (District Court of Appeal of Florida, 1990)
ABT Corp., Inc. v. CITY OF FORT LAUDERDALE, FLA.
664 F. Supp. 488 (S.D. Florida, 1987)
Pearson v. Harris
449 So. 2d 339 (District Court of Appeal of Florida, 1984)
Hughes v. Industrial Commission
558 P.2d 11 (Arizona Supreme Court, 1976)
Hughes v. Industrial Commission
551 P.2d 962 (Court of Appeals of Arizona, 1976)

Cite This Page — Counsel Stack

Bluebook (online)
117 So. 2d 538, Counsel Stack Legal Research, https://law.counselstack.com/opinion/florida-industrial-commission-v-schoenberg-fladistctapp-1960.