Honsa v. Tombigbee Transport Corp.

141 S.W.3d 540, 2004 WL 1562363
CourtTennessee Supreme Court
DecidedJuly 13, 2004
DocketW2003-01048-SC-R3-CV/W200
StatusPublished
Cited by2 cases

This text of 141 S.W.3d 540 (Honsa v. Tombigbee Transport Corp.) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Honsa v. Tombigbee Transport Corp., 141 S.W.3d 540, 2004 WL 1562363 (Tenn. 2004).

Opinion

OPINION

JANICE M. HOLDER, J„

delivered the opinion of the court, in which

FRANK F. DROWOTA, III, C.J., and E. RILEY ANDERSON, ADOLPHO A. BIRCH, JR., and WILLIAM M. BARKER, JJ., joined.

The issue raised in these three workers’ compensation cases, consolidated for appeal, is whether the defendant is the employer of the plaintiffs and thus responsible for providing workers’ compensation insurance coverage for them. In each case, the trial court granted the defendant’s motion for summary judgment. We hold that under Tennessee Code Annotated section 50-6-106(l)(A), the defendant is not, as a matter of law, the plaintiffs’ employer so as to subject the defendant to liability under the Workers’ Compensation Law. Therefore, we affirm the judgments of the trial court.

Factual and Procedural Background

On August 4, 2000, William B. Stevenson fell from the back of a trailer, injuring his knee. On January 11, 2001, Pete Honsa was injured following a collision with a car when he fell to the ground while exiting the truck he was driving. On March 22, 2001, Eddie Gene Brown 1 hurt his back *542 while attempting to close a door on a trailer. All of the plaintiffs drove trucks for Tombigbee Transport Corporation (“Tombigbee”).

After these accidents, the plaintiffs sought workers’ compensation benefits from Tombigbee. Tombigbee asserted that pursuant to Tennessee Code Annotated section 50 — 6—106(1)(A), it was not the employer of the plaintiffs. The trial court agreed and granted summary judgment in favor of Tombigbee in each case.

The plaintiffs appealed, and the cases were consolidated for argument before this Court.

Analysis

We review an appeal from a grant of summary judgment de novo, according no presumption of correctness to the trial court’s disposition. See Edwards v. Hallsdale-Powell Util. Dist., 115 S.W.3d 461, 464 (Tenn.2003); Godfrey v. Ruiz, 90 S.W.3d 692, 695 (Tenn.2002). Tombigbee relies upon Tennessee Code Annotated section 50-6-106(l)(A) in support of its position that it is not the plaintiffs’ employer. Tennessee Code Annotated section 50-6-106(l)(A) provides in pertinent part that “no common carrier by motor vehicle operating pursuant to a certificate of public convenience and necessity shall be deemed the ‘employer’ of a leased-operator or owner-operator of a motor vehicle or vehicles under a contract to such a common carrier.” There is no dispute that Tombigbee is a “common carrier by motor vehicle operating pursuant to a certificate of public convenience and necessity.” Tenn.Code Ann. § 50-6-106(l)(A) (1999). The parties dispute, however, whether the plaintiffs were “leased-operator[s] ... of a motor vehicle or vehicles under a contract to” Tombigbee. Id.

The present cases involve statutory interpretation and present a common question of law. Our review of questions of law is de novo. See Wallace v. State, 121 S.W.3d 652, 656 (Tenn.2003). Our role in construing a statute is “ ‘to ascertain and give effect to the legislative intent without unduly restricting or expanding a statute’s coverage beyond its intended scope.’ ” Houghton v. Aramark Educ. Res., Inc., 90 S.W.3d 676, 678 (Tenn.2002) (quoting Owens v. State, 908 S.W.2d 923, 926 (Tenn.1995)). We determine legislative intent “from the natural and ordinary meaning of the statutory language within the context of the entire statute without any forced or subtle construction that would extend or limit the statute’s meaning.” State v. Flemming, 19 S.W.3d 195, 197 (Tenn.2000). “When the statutory language is clear and unambiguous, we apply the plain language in its normal and accepted use.” Boarman v. Jaynes, 109 S.W.3d 286, 291 (Tenn.2003).

A “leased-operator” for the purposes of Tennessee Code Annotated section 50-6-106(l)(A) is a “non-owner operating a vehicle pursuant to a lease agreement.” Long v. Stateline Sys., Inc., 738 S.W.2d 622, 623 (Tenn.1985). If the plaintiffs are “leased-operators ... under a contract to” Tombigbee, then Tombigbee is not the plaintiffs’ employer. In support of its position that the plaintiffs fall within this provision, Tombigbee relies upon a 1993 “Service Agreement” between itself and Transway Corporation (“Transway”). 2

*543 In the “Service Agreement” executed by Tombigbee and Transway on March 15, 1993, Transway agreed to provide drivers to Tombigbee. The agreement states that the personnel Transway supplied to Tom-bigee “shall at all times be employees of Transway only.” Additionally, the agreement specifically states that Transway would provide workers’ compensation insurance coverage for the personnel it supplied to Tombigbee.

By its terms, however, the March 1993 agreement between Transway and Tom-bigbee expired at the end of thirty days. Tombigbee asserts that it operated under an implied lease agreement when it continued to abide by the terms of the “Service Agreement” beyond the stated thirty-day term. The plaintiffs disagree, arguing that no contract existed between Tombig-bee and Transway at the time they were injured and thus Tennessee Code Annotated section 50-6-106(l)(A) is inapplicable. The plaintiffs point to the provision in the 1993 agreement that states that “[n]o change, alteration, modification, or addition to this Agreement shall be effective unless in writing and properly executed by the parties hereto” to bolster their argument that no valid contract existed between Tombigbee and Transway once the agreement’s thirty-day term expired.

Tennessee Code Annotated section 50-6-106(l)(A) requires that leased-operators be “under a contract” to a common carrier for the common carrier to be exempt from the Workers’ Compensation Law. The statute, however, does not specify what type of contract must exist. In particular, the statute does not state that the contract must be written. We conclude that the language of Tennessee Code Annotated section 50 — 6—106(1)(A) simply requires a contractual relationship between the lessor and the lessee.

We have held that if the same services continue to be rendered following the expiration of a contract for a definite term and no new agreement is executed, it is presumed a new contract has been created having the same terms and conditions as the original. See Delzell v. Pope, 200 Tenn. 641, 294 S.W.2d 690

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141 S.W.3d 540, 2004 WL 1562363, Counsel Stack Legal Research, https://law.counselstack.com/opinion/honsa-v-tombigbee-transport-corp-tenn-2004.