Hall v. Spurlock

310 S.W.2d 259
CourtCourt of Appeals of Kentucky (pre-1976)
DecidedDecember 5, 1957
StatusPublished
Cited by11 cases

This text of 310 S.W.2d 259 (Hall v. Spurlock) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky (pre-1976) primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hall v. Spurlock, 310 S.W.2d 259 (Ky. 1957).

Opinion

STANLEY, Commissioner.

The judgment in this workmen’s compensation case confirms an award based upon estoppel to deny coverage. The conclusion rests upon the view that it was immaterial whether the claimant, Frank Spurlock, was ah independent contractor or an employee of John Hall and Bill Hall, partners doing business as Hall Lumber Company. Other than the issue suggested, we have the formidable question whether the injury was sustained in an accident arising out of and in the course of his employment. KRS 342.005(1). There is no disagreement whatever as to the facts.

The accident occurred October 4, 1955. Prior to September 13, 1954, Spurlock had been employed at the appellants’ sawmill on an hourly wage. On this date Spurlock and Ezra Shortridge made a contract with the lumber company under which they undertook to operate the mill for the consideration of $10 per thousand feet of lumber sawed. Spurlock’s work at the mill thereafter seems to have been substantially the same as it was before the making of the contract. His status as an employee was not changed in fact. The Halls continued to exercise supervision of the work. John Hall was there practically all the time, acting as “the boss” and “directing the men what to do and how to do it.” The workmen had previously been hired by Hall. The crew came along when the mill was moved to this site. If there was any other hiring, it was by agreement between Hall and Spurlock. The men’s time was kept by the company’s bookkeeper, the same as before this contract was made. They were paid by the company and the sums deducted from the contract price paid Spurlock and his partner.

The Hall brothers testified that they had regarded Spurlock and the other men working at the mill as being covered by their compensation insurance. Spurlock and the others had signed the compensation register some time before. It appears that there was never any change in the insurance coverage from that which existed before the contract, the company continuing to pay the premiums and also to pay the social security taxes. Spurlock was advised of this.

It is sometimes difficult to classify a particular relationship as either that of an independent contractor or that of an employee. There may be a twilight area in which the distinction is obscure. In this case, notwithstanding the difference between methods of compensation — hourly wages or based on production of the mill-— there was but little change in the relationship. Although Spurlock under the terms of his written contract might have assumed greater, if not complete, authority and control of the operations, he did not do so. Considering that the settled course of work continued as before, the mode of paying Spurlock for his services is as consistent with the employer-employee relation as it is with an independent contractor relation. As stated by Larson, Workmen’s Compensation Law, § 43.00, after referring to the general definition of “employee”: “However, a recognition of the difference between compensation law and vicarious liability in the purpose and function of the employment concept has been reflected both in statutory extensions of the term ‘employee’ beyond the common-law concept and in a gradual broadening of the interpretation of the term to bring within compensa *261 tion coverage borderline classes for whom compensation protection is appropriate and practical.” But the decisive point here is that Spurlock was regarded by all of the parties as being covered by the company’s compensation liability.

We have held that liability for workmen’s compensation may be based on estoppel, not only as regards mutual compliance with the provisions of the law, but as regards assurance given a workman that he was covered as an employee. We are of opinion that where the relationship partakes of both that of contract and that of employer-employee, and a workman has been assured by the other party that he was covered by the provisions of the Workmen’s Compensation Law, estoppel should be decreed. It is of importance that the insurance carrier received and still has premiums for its liability to this man. In principle Smith Coal Co. v. Feltner, Ky., 260 S.W.2d 398, controls this case. We have no difficulty in concurring in the finding of the Board and the judgment confirming it insofar as the question of general coverage is concerned.

Spurlock and the other workmen lived in shanties at the mill site. It was his custom to go home, several miles away, every Friday evening for the weekend. It was a part of Spurlock’s duties to go to a wholesale grocery in Allen and buy groceries and other supplies for the men and oil for the mill for the following week. He would take them to his home, leave them in the truck, and take them to the mill when he returned to work Monday morning. Sometimes he would use the company’s truck and sometimes his own truck. After the new arrangement, this settled course of conduct was continued in the same way, but the supplies were charged to a joint account of Spurlock and his partner and the Hall Lumber Company. The Company would pay the bills and deduct the amounts in their accounting with Spurlock and his partner.

On the day of the accident, a Saturday afternoon, Spurlock had obtained the week’s supplies at the grocery and was taking them to his home in order to have them early Monday morning when he would be returning to the mill. On the way to his home Spurlock was severely injured when his truck, driven by his young son, ran off the road.

The appellants contend the appellee’s injury was not sustained in or did not result from an accident arising out of and in the course of his employment. KRS 342.005 (1). They rely particularly upon Harlan Collieries Co. v. Shell, Ky., 239 S.W.2d 923. In that case it was held that there was no causal relation between an accident and the employment where the employee of a mining company was fatally injured on his way home when a truck owned and operated by another workman ran off a road which was part of the employer’s premises. The employees were transported daily to and from work under a private arrangement with which the company had nothing to do. It is stated in the opinion that the deceased employee was not performing any duties for his employer. The distinction between that case and the present one is that this man, Spurlock, was engaged in a service that was an incident of the operation of the sawmill.

The present case is like Turner Day & Woolworth Handle Co. v. Pennington, 250 Ky. 433, 63 S.W.2d 490. An employee, one Pennington, lived in Bowling Green an worked at a sawmill located in Logan County. During the week he lived at or near the mill site. He went home every Saturday night and returned to the mill on Sunday. It was the practice of the company to have him deliver messages to its office in Bowling Green and to pay for gasoline used in his transportation in his own car. He was injured in an automobile accident while en route home.

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Bluebook (online)
310 S.W.2d 259, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hall-v-spurlock-kyctapphigh-1957.