GRADEX, INC. v. Arbuckle

903 N.E.2d 969, 2009 WL 567183
CourtIndiana Court of Appeals
DecidedMarch 31, 2009
Docket93A02-0811-EX-1043
StatusPublished

This text of 903 N.E.2d 969 (GRADEX, INC. v. Arbuckle) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
GRADEX, INC. v. Arbuckle, 903 N.E.2d 969, 2009 WL 567183 (Ind. Ct. App. 2009).

Opinion

MEMORANDUM DECISION

BAKER, Chief Judge.

Appellant-defendant Gradex, Inc. (Gra-dex), appeals the order entered by the Full Worker's Compensation Board (the Board) in which the Board ordered Gradex to pay over 95% of appellee-plaintiff Patrick Ar-buckle's medical expenses and permanent impairment compensation. Gradex argues that the Board erroneously concluded that (1) Arbuckle's employer, M & W Septic and Excavating ("M & W"), was a subcontractor of Gradex pursuant to Indiana Code section 22-3-2-14(c); and (2) M & W was financially unable to pay the worker's compensation award, so Gradex was required to foot the lion's share of the bill. Finding no error, we affirm.

FACTS

Mark Wheeler and his wife, Janis Wheeler, own M & W, which had been in business for twenty-four years at the time of the incident herein. M & W was in the business of cleaning septic tanks and sewer lines. Mark and Janis ran the business out of their home and had only one employee, Arbuckle. M & W did not carry worker's compensation insurance for Ar-buckle.

During the relevant period of time, Gra-dex was the prime contractor on an Indiana Department of Transportation project to rebuild a street in Kokomo. A Gradex employee mistakenly tore through a water line, causing sewage to back up into the basements of three or four homes that were serviced by that line. As a result, on April 20, 2006, Gradex called M & W to clean the sewer line. Gradex did not verify whether M & W carried worker's compensation insurance, and Gradex and M & W neither executed a written contract nor agreed upon a price for M & W's services ahead of time. Gradex had hired M & W in the past, as a need for M & W's services arose on particular projects.

Mark and Arbuckle arrived at the work- *971 site and ran a jet rodder 1 on the sewage line in an effort to determine how the affected homes were hooked up to the line. After pumping sewage out of one of the homes, Mark left to empty the truck. Ar-buckle remained, continuing to use the jet rodder. He went to investigate the source of a strange noise he had heard and, while in close proximity to the uncovered sewer line, a stream of highly pressurized water and sewage debris broke through an opening and injured his hand. Arbuckle ended up having five different surgeries to repair the injury to his hand, incurring over $70,000 of medical bills in the process. He also missed eight weeks of work, but M & W has continued to pay his salary. Ar-buckle's physician from the Indiana Hand Center testified that he has a 26% permanent partial impairment affecting his left hand and arm below the elbow.

On January 29, 2007, Arbuckle filed his application for adjustment of claim against M & W and Gradex, seeking compensation for the injuries to his hand. The case was tried on January 22, 2008, to a Single Hearing Member, and on February 18, 2008, he issued an order finding, in relevant part, as follows:

4. [Gradex] had contracted with M & W for the performance of a job ... in Kokomo, Indiana. [Arbuckle] sustained the accidental injury during the performance of that job.
Jeo ok
8. As of the date of hearing, neither [M & WJ nor [Gradex] has provided medical benefits or compensation pursuant to the Worker's Compensation Act.
9. It appears that [M & WJ, however, has paid ongoing wages to [Arbuck-le] during periods that he may have been partially or totally disabled and during periods of time that [Arbuck-le] was undergoing medical treatment.
10. The evidence is that [Arbuckle] therefore did not suffer a wage loss as the result of his accidental injuries....
11. Although [M & WJ did not have a policy of worker's compensation in place as of the date of [Arbuckle's] accidental injury, [M & WJ advises that it is now in compliance with the Worker's Compensation Act. It appears that [M & WJ continued to pay [Arbuckle's] wages after the occurrence of the accidental injury and continues to employ [Arbuck-le].
12. [M & WI, a small family-owned business, is commended for retaining [an] attorney ... in this matter, for participating in the preparation of this matter for hearing and for purchasing worker's compensation insurance.
18. Although [Gradex] did not avail itself of the opportunity to exact a certificate of insurance from [M & W), [Gradex] is commended for retaining [an] attorney ... in this matter and for participating in the preparation of this matter for hearing.
14. Because [Gradex] failed to exact proof of insurance with respect to [M & WJ, both Defendants in this matter have been and remain liable to [Arbuckle] pursuant to Ind.Code § 23-3-2-14.
15. It is found by a preponderance of the evidence that [M & WJ does not *972 have the financial ability to pay the entire award in this case.
16. When asked, [M & WJ does not provide to the Board a specific amount or estimated amount of the compensation that it believes it can afford to pay [Arbuckle]. [M & W's] responses to questions posed by counsel for [Gradex] suggest that [M & WJ has not taken steps to estimate its ability to pay the award in this case, either in a lump sum or in installments.
17. It is found that [Gradex] has the financial ability to pay the entire award in this case.
AWARD AND ORDER
1. ... The award of medical benefits in this matter shall include the sum [of] $73,526.57, to be paid directly to [Ar-buckle's] medical providers, with deduction of the 10% attorney's fee payable directly to {[Arbuckle's] counsel.
tto ok
3. It is found that Dr. Idler's PPI rating is accurate. [Arbuckle] is entitled to compensation for the 25% permanent partial impairment affecting his left upper extremity below the elbow. [Arbuckle] is therefore awarded compensation for 10.4 degrees of permanent impairment for a total of [$13,600].
4. Based on [M & W's] representations that it has not procured worker's compensation insurance and that it continues to employ [Arbuckle], [M & WJ shall pay to [Arbuckle] ... the sum of [$1,500]. ...
5. IT IS FURTHER ORDERED that [Gradex] shall have liability for the entire award of medical benefits and compensation for impairment herein, with credit to [Gradex] for the portion of the award payable to [Ar-buckle] by [M & WI.

Appellant's App. p. 7-9. On March 14, 2008, Gradex filed an application for a review of the order by the Board, and after hearing argument, the Board entered an order on July 25, 2008, summarily affirming the Single Hearing Member's order. Gradex now appeals.

DISCUSSION AND DECISION

"I. Standard of Review

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Cite This Page — Counsel Stack

Bluebook (online)
903 N.E.2d 969, 2009 WL 567183, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gradex-inc-v-arbuckle-indctapp-2009.