Great American Indemnity Co. v. Fleniken

134 F.2d 208, 1943 U.S. App. LEXIS 3517
CourtCourt of Appeals for the Fifth Circuit
DecidedFebruary 1, 1943
DocketNo. 10247
StatusPublished
Cited by8 cases

This text of 134 F.2d 208 (Great American Indemnity Co. v. Fleniken) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Great American Indemnity Co. v. Fleniken, 134 F.2d 208, 1943 U.S. App. LEXIS 3517 (5th Cir. 1943).

Opinion

HUTCHESON, Circuit Judge.

Brought directly against the insurer of the Capital City Press, the suit was for damages for personal injuries caused by an automobile driven by one Robert Neyland while delivering to subscribers papers published by the Press. Brought under Louisiana statutes, which authorize the action not as a matter of substantive right but of procedure, Mock v. Maryland Casualty Co., La.App., 6 So.2d 199, and, therefore, do not render the insurer liable in any case in which the named insured would not be, recovery depended upon whether a case of liability against the Press was made out. The claim was that Neyland, who was driving the car for Ewell, a regular carrier on that route, was an employee of the Capital City Press, and, therefore, a person for whose negligence it was liable. The defendant vouched in as third party defendants, first, United Employers Casualty Company, and, next, the Wm. Wolf Bakery, Inc., and that company in turn vouched in the Press. There was a trial to a jury, a motion of the third party defendants and of the defendant appellant for a verdict on the ground that the evidence had not shown that Neyland was a servant either of the Press or of the Bakery for whose acts in driving the car they would be liable, but that quite to the contrary, it had shown that he was not employed by or working for them at all; that he was not their servant but an employee of an independent contractor whose activities in driving the automobile neither the Press nor the Bakery could or did control or supervise. The Bakery’s motion was granted, and it, and all the other defendants brought in by, and as a result of, the third party proceedings, were dismissed from the case. Defendant appellant’s motion was denied, and plaintiff had a verdict for $20,000.00.

Appellant is here insisting that there was error in not directing a verdict in its favor because the plaintiff not only failed to make out a case, but the undisputed evidence affirmatively showed that Neyland was neither a servant, agent or employee of the Press, but an employee of one Ewell, and that Ewell was not a servant of the Press but an independent contractor for whose actions the Press was not responsible. It is urged, in the alternative, that if appellant was wrong in this, the court erred in dismissing the cause as to the third party defendants. The evidence is without conflict. It shows that the appellant insured Capital City Press, a newspaper publisher and distributor, under a non-ownership automobile policy1 obligating it “to [210]*210pay all sums which the named assured shall become liable to pay as damages imposed by law or arising out of bodily injuries, including death, at any time resulting to any person”. The Press publishes and distributes two newspapers in Baton Rouge. C. P. Manship is its president and Alvin E. Sholar is its circulation manager. The circulation of papers is handled through carriers operating under oral contracts under a plan known as the Little Merchants plan. The carriers are not bonded. They collect from their own customers'and keep the money for themselves. They are not carried on the publisher’s records or payrolls or in any manner treated or dealt with as employees. No social security tax was paid by the Press on their account. Ewell was one of these carriers. Linder his contract he was to be supplied with papers until the cost of same amounted to the usual motor. allowance to rural route carriers of about $1.00 per month per mile on the route, and the price of the papers furnished him never amounted to! as much as the car allowance. He supplied subscribers with their papers, collecting from them and keeping all the money he collected. He furnished his own car and maintained it at his own expense, drove it or employed others to drive it, at his option. The Press never employed any help for him, never told him whom he might or might not employ. He was in complete charge of his route and of the delivery of papers to his customers. No attempt was made by the Press to supervise or direct Ewell or anyone he might employ in regard to the driving or use of the cap- on the way in which he should deliver tfje papers. Nobody from the Press ever weht on his route with him. Concerned as it undoubtedly was in maintaining and increasing circulation, it would furnish carriers the names of newcomers on their routes and for two weeks would furnish the papers without cost for delivery to these newcomers. It also furnished free of charge to subscribers and carriers metal boxes to protect the papers, and while no supervision or direction of any kind was maintained over any of the carriers, of course, if enough subscribers should complain or if the Press believed that the carrier contractor was not sufficiently furthering the purpose of the contract to maintain and increase circulation, and that it was to the interest of the Press to terminate the contract and get another carrier, it' could and would do so. Each carrier’s contract covered a particular route and each agreed that he would not infringe on the routes of others. The Press knew that Ewell was buying bread from Wolf Bakery and delivering it to his customers on his route, and it not only did not object to this but was glad for him and other carriers to handle bread or any other commodity on the route, as this would tend to make them more satisfied with and permanent on their routes and more effective in furthering the purpose for which the contracts were made. There was evidence that some of the carriers, but not Ewell, had employed young boys to assist in making their deliveries, and that the Press had instructed them that this was a violation of law. There was evidence too that the papers carried advertisements giving their subscription rates as : one week by carrier, 150, and a statement that subscribers failing to get their papers promptly should notify the Circulation Department. The Press kept a truck and four colored porters on duty whose business it was to deliver a paper if a carrier failed to deliver one to a subscriber. Many persons subscribed direct to the Press, and the proper carrier was then instructed to deliver the papers. Some of the subscribers made payment for their papers direct to the Press, and these payments were turned over by the Press to the carriers. To persons who subscribed direct, the Press sent bills saying that they would have to stop delivering the paper unless check was sent to cover the bill. Ewell took Neyland to the Capital City Press to identify him and arranged so that Neyland could get the papers for him. [211]*211Ewell’s contract as to the Times covered only part of his route and as to the Advocate, the other paper, it covered the entire route. The president of the company testified that the paper owed its local advertisers the duty of delivering papers in the section covered hy Ewell and that in securing Ewell and the other carriers to deliver the papers, the Capital City Press was securing the performance of acts which were necessary to the continued existence and prosperity of the Press.

Ewell testified, and this was not disputed, that prior to 1935 he had handled bread and the New Orleans Item and Picayune and had delivered other articles to people who wanted him to bring them. That having had a disagreement with the Picayune, he made an agreement with the Press to deliver papers to be furnished by them and to build for them a route in the same territory where he had been delivering the Picayune. This agreement, like that with the other carriers, was terminable at any time. He built the route-, solicited his own customers, used his own car, paying the maintenance and operation costs and the insurance premiums on it, and employed and paid his own help.

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Bluebook (online)
134 F.2d 208, 1943 U.S. App. LEXIS 3517, Counsel Stack Legal Research, https://law.counselstack.com/opinion/great-american-indemnity-co-v-fleniken-ca5-1943.