Gailey v. State Workmen's Insurance Fund

133 A. 498, 286 Pa. 311, 1926 Pa. LEXIS 549
CourtSupreme Court of Pennsylvania
DecidedApril 19, 1926
DocketAppeal, 149
StatusPublished
Cited by36 cases

This text of 133 A. 498 (Gailey v. State Workmen's Insurance Fund) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gailey v. State Workmen's Insurance Fund, 133 A. 498, 286 Pa. 311, 1926 Pa. LEXIS 549 (Pa. 1926).

Opinion

Opinion by

Mr. Chief Justice Moschzisker,

The owners of a coal mine entered into a business arrangement with David W. Gailey for the operation of their property; Gailey was killed, February 22, 1925, while in this employment, and his widow claimed compensation from the mine owners, designating them by name and also as the Miller Coal Company; an award was made in her favor from which the State Workmen’s Insurance Fund appealed to the compensation board, and when that body affirmed the referee, an appeal was taken to the court of common pleas, which likewise affirmed ; this appeal followed.

Before the referee and on all subsequent appeals, including the present one, the contention by claimant has been that her deceased husband was an employee of the Miller Coal Company, and, by the other side, that he was an independent contractor.

Section 104 of the Workmen’s Compensation Act of June 2, 1915, P. L. 736, provides that the term “employee,” as used in the statute, “is declared to be synonymous with servant and includes all natural persons who perform services for another for a valuable consideration,” stating certain exclusions with which we are not now concerned; but it has been judicially decided that one performing services for another as an independent contractor is not an employee within the meaning of the act: Smith v. State Workmen’s Ins. Fund, 262 Pa. 286; Simonton v. Morton, 275 Pa. 562, 567; Swartz v. Hanover Boro., 278 Pa. 134.

The tests for determining whether one is an independent contractor or a servant are fairly stated in the authorities cited by appellant (McColligan v. Penna. R. R. Co., 214 Pa. 229, 232; Smith v. State Workmen’s Ins. Fund, supra, 290-91; Kelley v. Del., L. & W. R. R. Co., 270 Pa. 426, 429; Simonton v. Morton, supra, 567-68; Swartz v. Hanover Boro., supra, 137), and need not be repeated further than to say the general principle *314 is that, if, in rendering services for a compensation, one is obliged to follow the will of his employer only as to the result of the work in hand and not as to the means by which it is to be accomplished, he is generally accounted an independent contractor. When, according to these tests, the evidence shows one, claiming as employee of a defendant, to be an independent contractor, relief under the Compensation Act must be denied; but neither the compensation authorities nor the courts should be solicitous to put claimants in that position when a reasonable view of the evidence warrants a finding that the injured person was an employee.

Here, the evidence shows, among other things, the following material facts: An averment in the answer filed by defendant firm to the effect that “David W. Gailey was employed at the time of his death by E. F. Diamond and E. S. Dickey,” the individual defendants; testimony by Diamond that the arrangement with Gailey was that, “besides getting out......coal,” he was to “take care of the mine......in general......, — keep the water out, keep the pump going,” — for which he was to receive a fixed compensation at the rate of from $1.90 to $2 a ton on the output, and that, in paying Gailey on the tonnage basis, they “allowed him more than otherwise, to compensate him for that work,” meaning the general care of the mine. Diamond said they told Gailey, from time to time, the amount of coal to mine, but the latter was free to hire whom he pleased to help him get it out. In conjunction with this, the witness stated that the reason for leaving Gailey free in hiring men to get out the coal was because “he knew more about mining coal than we did”; and this bit of testimony might be understood as tending to negative the idea, suggested by Gailey’s freedom of action in hiring men, that the owners were interested only in the results of the operation of mining the coal. Diamond stated also that, though in recent years the mine owners had not taken “any men out to the mine and put them to work,” yet *315 they had pursued this course “several years ago,” while Gailey (or his father, who had occupied a similar position) was in charge of getting out the coal; and the witness said nothing to suggest that the mine owners had surrendered such right. The product of the mine was generally sold from the main office, but Gailey at times disposed of coal at the mine itself, collecting the money and turning it in to the firm; and this latter service was considered part of his duties covered by the payment of so much per ton. Diamond testified that Gailey’s name did not appear on the bills sent to customers, but that his name did appear, as “foreman,” on the bills “as they came in.” In answer to the question, “Did you consider Mr. Gailey an employee of yours?” this witness said, “Well, in a way an employee, yes”; then he added that, under the arrangement with Gailey, they could have discharged him at any time; and he admitted that his firm had taken out an insurance policy in which David W. Gailey and the other men in the mine, whom the latter hired, were included as employees of the firm. R. R. Jones, who appeared as a witness for the mine owners and stated that he was in their employ, took care of their books, collected their bills, and “paid the men” (meaning the men at the mine), said that the payment was made directly to Gailey at regular intervals, in a lump cash sum based on the amount of tonnage reported by him. Gailey then paid the men, retaining the difference over their wages (about 86c a ton) as his net compensation. Finally, Jones stated, it was not only part of his duty to see, for the owners of the mine, that “the miners were paid,” but also to see that they “did their work in the right way”; so the record contains some evidence that the owners of the mine were interested in the manner in which the work in Gailey’s charge was performed, as well as in the results achieved, and that they assumed control, through their representative Jones, to the extent indicated.

*316 Taking the testimony as a whole, we cannot say that either the compensation authorities or the court below erred in concluding that deceased was an employee of the mine owners, rather than an independent contractor ; and the mere fact that he was paid, instead of fixed wages, a certain price on each ton of coal taken from the mine, and that, out of this price, he paid others, did not necessarily deprive him of the position of an employee: Kelley v. D., L. & W. R. R., 270 Pa. 426, 430-1; Decatur Ry. & L. Co. v. Industrial Board, 276 Ill. 472, 114 N. E. 915, 916; Barclay v. Puget Sound Lumber Co., 48 Wash. 214, 93 Pac. 430; Messmer v. Bell, etc., Co., 133 Ky. 19, 117 S. W. 346, 348; Knicely v. West Va. M. R. Co., 64 W. Va. 278, 61 S. E. 811. The owners of the mine testified that they considered Gailey an employee; and their action in securing compensation insurance to cover Mm and the five other men in the mine was some evidence to be considered by the referee in concluding that deceased was a specially compensated foreman rather than an independent contractor.

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

Related

Guglielmo v. Scotti & Sons, Inc.
58 F.R.D. 413 (W.D. Pennsylvania, 1973)
Swartz v. Eberly
212 F. Supp. 32 (E.D. Pennsylvania, 1962)
Rodgers v. P. G. Publishing Co.
24 Pa. D. & C.2d 81 (Alleghany County Court of Common Pleas, 1960)
Potash v. Bonaccurso
117 A.2d 803 (Superior Court of Pennsylvania, 1955)
Galler v. Slurzberg
92 A.2d 89 (New Jersey Superior Court App Division, 1952)
Gadd v. BARONE
75 A.2d 620 (Superior Court of Pennsylvania, 1950)
Felten v. Mellott
67 A.2d 727 (Superior Court of Pennsylvania, 1949)
Thomas v. Bache
40 A.2d 495 (Supreme Court of Pennsylvania, 1944)
Young v. Wilky Carrier Corp.
54 F. Supp. 912 (E.D. Pennsylvania, 1944)
Thomas v. Bache
38 A.2d 551 (Superior Court of Pennsylvania, 1944)
Commonwealth v. Continental Rubber Works
32 A.2d 878 (Supreme Court of Pennsylvania, 1943)
Bradley v. Chester Materials Co.
30 A.2d 206 (Superior Court of Pennsylvania, 1942)
Myers v. Maurer & Myers
19 A.2d 579 (Superior Court of Pennsylvania, 1941)
Healey v. Carey, Baxter & Kennedy, Inc.
19 A.2d 852 (Superior Court of Pennsylvania, 1941)
Beals v. State Workmen's Insurance Fund
200 A. 178 (Superior Court of Pennsylvania, 1938)
Yahnert v. Logan Coal Company
195 A. 450 (Superior Court of Pennsylvania, 1937)
Williams v. Baptist Church (Et Al.)
186 A. 168 (Superior Court of Pennsylvania, 1936)
Knisely v. Knisely (Et Al.)
182 A. 51 (Superior Court of Pennsylvania, 1935)
Holbrook v. City of Wilkes-Barre
161 A. 760 (Superior Court of Pennsylvania, 1932)

Cite This Page — Counsel Stack

Bluebook (online)
133 A. 498, 286 Pa. 311, 1926 Pa. LEXIS 549, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gailey-v-state-workmens-insurance-fund-pa-1926.