Knauf v. Easy Eddie's

CourtNorth Carolina Industrial Commission
DecidedJanuary 10, 2007
DocketI.C. NO. 450509.
StatusPublished

This text of Knauf v. Easy Eddie's (Knauf v. Easy Eddie's) is published on Counsel Stack Legal Research, covering North Carolina Industrial Commission primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Knauf v. Easy Eddie's, (N.C. Super. Ct. 2007).

Opinion

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The undersigned reviewed the prior Opinion and Award, based upon the record of the proceedings before Deputy Commissioner Ledford. The appealing party has not shown good grounds to reconsider the evidence, receive further evidence, or rehear the parties or their representatives. Having reviewed the competent evidence of record, the Full Commission affirms the Opinion and Award of Deputy Commissioner Ledford with minor modifications.

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The Full Commission finds as fact and concludes as matters of law the following, which were entered into by the parties at the hearing before the Deputy Commissioner as:

STIPULATIONS
1. The parties are subject to and bound by the North Carolina Workers' Compensation Act.

2. The employee-employer relationship existed between plaintiff and defendant at all times relevant to this claim.

3. The workers' compensation carrier on the risk is CompCarolina.

4.Plaintiff's average weekly wage may be determined from a Form 22, which was to be submitted by defendants post-hearing. Defendants faxed a Form 22 to the deputy commissioner and to plaintiff's counsel. Although the cover letter was dated June 10, 2005, neither the Commission nor plaintiff's counsel have a record of receiving this Form 22 prior to the date of the filing of the deputy commissioner's Opinion and Award.

5. The parties submitted the following documents: plaintiff's medical records, Dr. Kellam's questionnaire dated December 22, 2004, and I.C. forms.

6. Plaintiff submitted the following exhibits: Internet page from www.easyeddiesmc.com, Full Throttle Magazine Issue 82 dated March 1, 2005, and Accident Report dated November 1, 2005.

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Based upon all of the competent evidence of record and reasonable inferences flowing therefrom, the Full Commission makes the following:

FINDINGS OF FACT
1. As of the date of the hearing before the deputy commissioner, plaintiff was 43 years of age. He quit high school in the eleventh grade. His work history has all involved physical labor. He did some welding and has worked in the motorcycle business.

2. Plaintiff began working for defendant in July 2003 as a parts manager and was employed by defendant as a parts manager on November 1, 2003. Defendant was in the business of selling and servicing motorcycles and was owned by Edgar "Eddie" Dean Ellis. Plaintiff's job duties and required skills included providing customer service, having knowledge about motorcycles and parts, helping with company events and helping to promote defendant's business.

3. Plaintiff testified that he was paid $10 per hour and often worked more than forty hours per week, but was only paid wages for a 40-hour week, which would equal average weekly wages of $400. The Form 22 submitted by defendants shows that plaintiff worked consistently, every day, but would indicate wages averaging only $313.53 per week. The Form 22 was not submitted in a timely manner and in reviewing the Form 22, in which numbers have been marked through, and weighing it against plaintiff's testimony, the Full Commission gives more weight to plaintiff's testimony.

4. "Poker runs" are events in which participating bikers would go from stop to stop, such as motorcycle dealers and pubs or adult establishments, and play a poker hand, picking a different card at each stop. These poker runs are generally sponsored by motorcycle dealerships and other businesses, such as the pubs. The sponsors would pay the expenses of the run, and would often provide food and beverages at stops during the run. The sponsors would also provide t-shirts with the name of their establishment for employees to wear while participating.

5. The participants would purchase a hand at the beginning of the run and would complete a registration form for the hand of cards. At the end of the run, the winning hand would receive a share of the proceeds. If the event was for a charity, the charity also received a portion of the proceeds. Otherwise, the sponsor, such as Easy Eddie's, would split the proceeds with the holder of the winning poker hand.

6. Defendant was well known as a sponsor of poker runs. These runs were advertised on defendant's web site and in biker publications such as Full Throttle, a free magazine, which was provided at dealerships, including Easy Eddie's. Motorcycle friendly establishments, including the sponsors, would often distribute flyers for the runs. These establishments would often have in-store listings of all upcoming events, including runs. The sponsor would handle the sign-ups and registration cards.

7. Plaintiff had helped defendant with fundraising and other events prior to plaintiff's employment with defendant. Plaintiff was not compensated for this work, but had offered his help solely to assist defendant and its owner Eddie Ellis, someone plaintiff had considered a close friend.

8. Defendant encouraged and expected its employees to participate in poker runs sponsored by defendant. Defendant provided business cards for the participating employees to hand out. Defendant was particularly interested in employees who had contact with the public, such as the parts manager, participating in the poker runs and promoting defendant's business.

9. Non-employee participants on poker runs would often ask employees questions about motorcycles during the runs. Employees would answer questions, as part of their responsibility to promote the business of their employer. Employees would hand out business cards, mingle with the other participants and patrons at the various stops, and would wear company t-shirts. A poker run was a good opportunity for a dealership to get publicity and to display motorcycles, such as the custom bikes built at defendant's business.

10. The greater weight of the evidence shows that poker runs benefit the sponsor because the sponsor appears charitable and the runs ensure a steady flow of traffic at the sponsor's place of business, thus increasing store sales. The runs help spread the sponsor's name in the biker community and the runs increase goodwill between the sponsor and the biker community.

11. Defendant was the only named sponsor of Easy Eddie's Annual Adult Poker Run. This Adult Run was not for charity and the proceeds were split between the people with the winning hands and defendant. Eddie Ellis' wife, Judy Fitch, started the Adult Run, which was held twice a year every year. The Run was set for November 1, 2003. Defendant advertised for the Adult Run in Full Throttle Magazine, in the store, and on its web site, www.easyeddiesmc.com.

12. Defendant also advertised for its upcoming runs by email from the defendant's email address, easyeddiesmc@cs.com. Plaintiff received these emails, including one on March 1, 2005, which advertised the 2005 Adult Run. Plaintiff had been on several poker runs in the past as an employee of defendant, and had a customary practice of attending poker runs as an employee.

13. Although he is a recovering alcoholic and does not drink, or otherwise frequent bars, plaintiff participated in these runs because he felt it was expected by defendant, who encouraged employees to go on its poker runs. Defendant was demanding of its employees and tried to persuade those employees who dealt with the general public on a daily basis, such as plaintiff, to participate in these runs. Defendant was not pleased if an employee declined to participate.

14. Plaintiff personally observed Eddie Ellis in an argument with another employee, Kevin Kok, regarding Mr. Kok's participation at a company event.

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Related

Martin v. Mars Manufacturing Co.
293 S.E.2d 816 (Court of Appeals of North Carolina, 1982)
Keziah v. Monarch Hosiery Mills
323 S.E.2d 356 (Court of Appeals of North Carolina, 1984)

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Bluebook (online)
Knauf v. Easy Eddie's, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knauf-v-easy-eddies-ncworkcompcom-2007.