Kevin James v. Facility Matrix Group

CourtMichigan Court of Appeals
DecidedJune 23, 2015
Docket321442
StatusUnpublished

This text of Kevin James v. Facility Matrix Group (Kevin James v. Facility Matrix Group) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kevin James v. Facility Matrix Group, (Mich. Ct. App. 2015).

Opinion

STATE OF MICHIGAN

COURT OF APPEALS

KEVIN JAMES, UNPUBLISHED June 23, 2015 Plaintiff-Appellant,

v No. 321442 Oakland Circuit Court FACILITY MATRIX GROUP and BILLY LC No. 2012-129264-NO JOHNSON,

Defendants-Appellees.

Before: MARKEY, P.J., and OWENS and GLEICHER, JJ.

PER CURIAM.

The issue in this case is whether plaintiff, Kevin James, was an employee of Facility Matrix Group (FMG) when he suffered an accidental injury so that plaintiff’s sole and exclusive remedy under Michigan law against defendants FMG and Billy Johnson is under the Worker’s Disability Compensation Act (WDCA), MCL 418.101 et seq. See James v Commercial Carriers, Inc, 230 Mich App 533, 536; 583 NW2d 913 (1998); Fletcher v Harafajee, 100 Mich App 440, 442; 299 NW2d 53 (1980); MCL 418.131(1) (“The right to the recovery of benefits as provided in this act shall be the employee’s exclusive remedy against the employer for a personal injury or occupational disease.”). The trial court granted defendants’ motion for summary disposition and plaintiff appeals by right. We affirm.

I. SUMMARY OF FACTS & PROCEEDINGS

Defendant Billy Johnson is an employee of FMG, and plaintiff’s uncle. Johnson was instructed by his supervisor to locate men willing to work as temporary laborers to help remove wooden pallets that had accumulated on the FMG property. Johnson had two unemployed nephews, plaintiff and Anthony Smith, who agreed to work on the pallet job for $100 in compensation per day. Johnson brought plaintiff and Smith to the FMG facility on the day of the accident. Plaintiff was using FMG’s forklift (hi-lo) to load pallets onto a truck to then be hauled away from the FMG facility. At some point, the forklift became stuck in broken parts of asphalt paving near where the pallets were stored. Johnson attached a tow strap between the front of the forklift and the rear of the truck that was being used to haul away the pallets. Johnson then attempted to pull the forklift free while plaintiff remained in its operator’s seat. As Johnson successfully pulled the forklift out of the pothole, one of its wheels struck a rock, which caused the forklift to tip over on top of plaintiff’s right leg, causing severe injuries.

-1- Plaintiff initially sought worker’s compensation benefits, which FMG opposed by filing a “Notice of Dispute” that asserted: “Claimant is not an employee of insured.” Thereafter, plaintiff filed this tort action against defendants. FMG then reversed its legal position by asserting that plaintiff was its employee when he was injured and began paying worker’s compensation benefits. FMG asserted as an affirmative defense to plaintiff’s complaint that plaintiff’s tort claims against FMG were barred by the exclusive remedy provision of the WDCA. FMG also filed with the Worker’s Compensation Agency (WCA), a “Notice of Compensation Payments” that indicated payments to plaintiff of $73.88 per week starting April 28, 2012. The notice also stated that FMG paid benefits of $2,617.46 in 2012 and $3,915.31 in 2013. FMG continued to attempt to pay WDCA benefits to plaintiff by sending payments to plaintiff’s attorney.

Plaintiff filed his first amended complaint on August 9, 2013, which asserted theories of automobile negligence, premises liability, and general negligence. On January 28, 2014, defendants filed a motion for summary disposition under MCR 2.116(C)(10) on the basis of the exclusive remedy provision WDCA because plaintiff was an employee of FMG under the terms of MCL 418.161(1)(l) and not divested of “employee” status under MCL 418.161(1)(n). FMG argued that plaintiff failed to satisfy any of the statutory exception criteria: (1) plaintiff did not maintain a separate business; (2) plaintiff did not hold himself out to and render service to the public, and (3) plaintiff was not an employer subject to the WDCA. In support of its motion, FMG attached the depositions of plaintiff and his cousin Anthony Smith.

In response to the motion, plaintiff asserted he was not an employee of FMG because the $100 compensation was insufficient to establish a “contract of hire.” MCL 418.161(1)(l); Hoste v Shanty Creek Mgt, Inc, 459 Mich 561, 576; 592 NW2d 360 (1999). Plaintiff also pointed to responses FMG filed with the WCA in which FMG denied that plaintiff was its employee. Plaintiff also asserted that FMG continued to refuse to pay WDCA benefits to plaintiff. Further, plaintiff argued that his status should be decided by the WCA under MCL 418.841(1), which provides in part, that “[a]ny dispute or controversy concerning compensation or other benefits shall be submitted to the bureau and all questions arising under this act shall be determined by the bureau or a worker’s compensation magistrate, as applicable.”

In its reply to plaintiff’s response, FMG acknowledged that it had changed its legal position and that its position was now unequivocal that plaintiff was its employee. Further, FMG asserted that for the last six months it had been trying to pay plaintiff WDCA benefits by sending checks to plaintiff’s counsel, but none had been cashed. Defendants also asserted that the circuit court had the jurisdiction to decide the fundamental issue of whether plaintiff was an employee of FMG. Sewell v Clearing Machine Corp, 419 Mich 56, 62; 347 NW2d 447 (1984). Further, citing Reed v Yackell, 473 Mich 520, 532; 703 NW2d 1 (2005), $100 per day compensation was sufficient to establish a “contract of hire.”

The parties presented their arguments on the motion to the trial court at a hearing on April 2, 2014. The trial court ruled from the bench, citing Sewell, 419 Mich at 62, that it had jurisdiction to decide whether plaintiff was an employee of FMG on the day of the accident. The court also ruled that the undisputed evidence established plaintiff constituted an employee of FMG under MCL 418.161(1)(l) on the day of the accident under an implied contract because “plaintiff expected to be paid by defendant for lifting and removing the subject wooden pallets from defendant’s place of business, and, in turn, defendant expected to compensate plaintiff for

-2- this work.” The trial court next considered MCL 418.161(1)(n) and ruled that “there is no dispute that plaintiff does not maintain a separate business, that plaintiff does not hold himself out to and render service to the public, and that plaintiff is not an employer subject to the Workers’ Disability Compensation Act.” Thus, the trial court ruled that plaintiff was an employee of FMG because he was “in the service of another, under any contract of hire, express or implied,” MCL 418.161(1)(l), and not excluded under MCL 418.161(1)(n). Consequently, the trial court granted defendants’ motion for summary disposition under the exclusive remedy provision of the WDCA, MCL 418.131(1). Plaintiff now appeals by right.

II. ANALYSIS

A. STANDARDS OF REVIEW

This Court reviews de novo a trial court’s decision on a motion for summary disposition. DeFrain v State Farm Mutual Automobile Ins Co, 491 Mich 359, 366; 817 NW2d 504 (2012). A motion under MCR 2.116(C)(10) tests the factual sufficiency of a claim and must be supported by affidavits, depositions, admissions, or other documentary evidence. Corley v Detroit Bd of Ed, 470 Mich 274, 278; 681 NW2d 342 (2004). When deciding the motion, the trial court must view the substantively admissible evidence submitted up to the time of the motion in a light most favorable to the party opposing the motion. Maiden v Rozwood, 461 Mich 109, 121; 597 NW2d 817 (1999). Summary disposition is proper if the evidence, affidavits, pleadings, and admissions viewed in a light most favorable to the other party demonstrate that there is no genuine issue of any material fact, and a party is entitled to judgment as a matter of law.

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Kevin James v. Facility Matrix Group, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kevin-james-v-facility-matrix-group-michctapp-2015.