Johnson v. News & Observer Publishing Co.

604 S.E.2d 344, 167 N.C. App. 86, 2004 N.C. App. LEXIS 2078
CourtCourt of Appeals of North Carolina
DecidedNovember 16, 2004
DocketCOA03-1386
StatusPublished
Cited by7 cases

This text of 604 S.E.2d 344 (Johnson v. News & Observer Publishing Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. News & Observer Publishing Co., 604 S.E.2d 344, 167 N.C. App. 86, 2004 N.C. App. LEXIS 2078 (N.C. Ct. App. 2004).

Opinion

THORNBURG, Judge.

Plaintiffs appeal the trial court’s grant of summary judgment for defendant-newspaper publishers and the denial of their motion for summary judgment on the issue of vicarious liability.-

Plaintiffs’ personal injury claims arise out of an automobile accident involving plaintiffs and defendant Jack Roberts. Roberts worked as a newspaper carrier for the Smithfield Herald and was delivering newspapers when the accident occurred. Plaintiffs sought recovery from Roberts for negligence and from the Smithfield *87 Herald, its affiliate, and its parent company (collectively “the Herald”) on the basis of respondeat superior. The Herald denied liability for plaintiffs’ accident based on its contention that Roberts was an independent contractor rather than an employee. Plaintiffs and the Herald filed cross motions for summary judgment on the issue of vicarious liability. After holding that Roberts was an independent contractor as a matter of law, the trial court ruled that the Herald had no vicarious liability in this case. The trial court granted summary judgment in favor of the Herald and denied plaintiffs’ motion for summary judgment.

In support of summary judgment, the parties relied on the employment contract and transcripts from the depositions of Jack Roberts and the publisher of the Smithfield Herald. The record shows that when the accident occurred in 1999, Roberts had been delivering newspapers for the Herald for about ten years. In the employment contract, the Herald assigned Roberts a delivery route and permitted him to purchase newspapers from the Herald at a wholesale rate. However, the Herald reserved the right to renegotiate this wholesale rate upon thirty days notice to the carrier.

Roberts received as payment for his work the difference between the wholesale rate at which he bought the newspapers and the retail rate at which they were sold to customers. The Herald agreed to bill customers who prepaid by mail, but any amount a customer failed to pay would be deducted from Roberts’s paycheck. The contract provided that Roberts could bill the other customers in any manner he chose.

The Herald authorized Roberts to use his own judgment and discretion as to whether and in what manner to do business with customers. The contract only required that he “exert his best efforts to increase the number of customers for The Smithfield Herald . . . and to keep those customers satisfied.” Roberts could determine the means and manner in which he delivered newspapers to customers “without control or supervision” from the Herald. But the contract also provided that Roberts was responsible for “the prompt and satisfactory delivery” of the newspaper to customers on his route and required Roberts to deliver the papers “in a dry and readable condition . . . with delivery completed by 5:00 p.m.”

Pursuant to the contract, Roberts used his own vehicle to complete his route and purchased his own liability insurance. He was designated as an “independent contractor” and had authority to hire *88 assistants to help him, but those assistants were considered his employees and he was responsible for compensating them. The contract specifically assigned sole liability to Roberts for any third party claims arising out of tortious acts committed by him or his assistants.

The Herald did not withhold taxes from his paycheck or provide him with employee benefits. Either party could terminate this agreement for any reason with thirty days notice or could terminate it instantly for a breach of contract by the other party.

Under the doctrine of respondeat superior, an employer can be held vicariously liable for a worker’s negligence when an employer-employee relationship exists. Gordon v. Garner, 127 N.C. App. 649, 658, 493 S.E.2d 58, 63 (1997), disc. review denied, 347 N.C. 670, 500 S.E.2d 86 (1998). Generally, an employer is not liable for the negligent acts of an independent contractor. Id.

Whether a party is an independent contractor is a mixed question of law and fact. Yelverton v. Lamm, 94 N.C. App. 536, 538, 380 S.E.2d 621, 623 (1989). Determining the terms of the agreement between the parties is a question of fact. Id. Once the factual disputes are resolved, deciding whether that agreement establishes an independent contractor relationship is a matter of law. Id. “[W]here the facts are undisputed or the evidence is susceptible of only a single inference and a single conclusion, the court must determine whether a party is an employee or an independent contractor as a matter of law.” 41 Am. Jur. 2d Independent Contractors § 79 (2000); see also Little v. Poole, 11 N.C. App. 597, 600, 182 S.E.2d 206, 208 (1971).

Pursuant to N.C.R. Civ. P. 56(c), summary judgment is appropriate when “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that any party is entitled to a judgment as a matter of law.” N.C. Gen. Stat. § 1A-1, Rule 56(c) (2003). The party moving for summary judgment bears the burden of showing that no material issue of fact exists and the trial court must construe all inferences of fact in the light most favorable to the non-moving party. Caldwell v. Deese, 288 N.C. 375, 378, 218 S.E.2d 379, 381 (1975).

Essentially, the issue for this Court is whether the facts, considered in the light most favorable to plaintiffs, support the trial court’s conclusion that Roberts was an independent contractor. The Herald contends that the employment contract fully reflects the *89 conditions of Roberts’s employment and establishes that he was an independent contractor. Plaintiffs argue that the surrounding circumstances and the parties’ actions demonstrate the actual relationship between the Herald and Roberts was that of employer-employee. As we conclude that the evidence is susceptible to more than one inference, we hold that summary judgment was not appropriate for either party on the issue of whether Roberts was an independent contractor. We reverse and remand.

Under North Carolina law, an independent contractor is defined as one who exercises an independent employment and contracts to do certain work according to his own judgment and method, without being subject to his employer except as to the results of his work. Youngblood v. North State Ford Truck Sales, 321 N.C. 380, 384, 364 S.E.2d 433, 437 (1988). Although the contract with the Herald designates Roberts as an “independent contractor” and assigns to him sole liability for any third party claims against him, these types of contractual declarations are not determinative of the relationship or the rights of the parties. Yelverton, 94 N.C. App. at 540, 380 S.E.2d at 624.

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604 S.E.2d 344, 167 N.C. App. 86, 2004 N.C. App. LEXIS 2078, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-news-observer-publishing-co-ncctapp-2004.