Liberty Mut. Ins. Co. v. D & G TRUCKING, INC.

966 So. 2d 266, 2006 Ala. Civ. App. LEXIS 682, 2006 WL 3335451
CourtCourt of Civil Appeals of Alabama
DecidedNovember 17, 2006
Docket2041086
StatusPublished
Cited by4 cases

This text of 966 So. 2d 266 (Liberty Mut. Ins. Co. v. D & G TRUCKING, INC.) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Liberty Mut. Ins. Co. v. D & G TRUCKING, INC., 966 So. 2d 266, 2006 Ala. Civ. App. LEXIS 682, 2006 WL 3335451 (Ala. Ct. App. 2006).

Opinion

966 So.2d 266 (2006)

LIBERTY MUTUAL INSURANCE COMPANY.
v.
D & G TRUCKING, INC.

2041086.

Court of Civil Appeals of Alabama.

November 17, 2006.
Certiorari Denied April 13, 2007.

Richard B. Garrett of Rushton, Stakely, Johnston & Garrett, P.A., Montgomery, for appellant.

Thomas R. Jones, Jr., and Randal Kevin Davis of Wiggins, Jones, Parsons & Fisher, P.C., Tuscaloosa, for appellee.

Alabama Supreme Court 1060361.

PITTMAN, Judge.

Liberty Mutual Insurance Company appeals from a summary judgment in which the Fayette Circuit Court determined that D & G Trucking, Inc., did not owe additional premiums to Liberty Mutual for workers' compensation insurance coverage. We reverse and remand.

D & G Trucking filed a complaint for a declaratory judgment in the trial court, alleging in pertinent part that it had been insured under a policy of insurance issued by Liberty Mutual that afforded coverage for claims brought against D & G Trucking under workers' compensation laws between April 1, 2003, and April 1, 2004. That policy, D & G Trucking alleged, provided for retrospective premium adjustments based upon Liberty Mutual's determination of, among other things, "remuneration paid or payable during the policy period for . . . all [of D & G Trucking's] officers and employees" and "all other persons engaged in work that could make [Liberty Mutual] liable under Part One (Workers' Compensation Insurance) of th[e] policy." According to D & G Trucking's complaint, Liberty Mutual had issued an endorsement to the policy so as to increase the premium by $64,080 on the stated basis that D & G Trucking had incorrectly categorized a number of its truck drivers as "independent contractors" rather than as employees; that amount was reduced by Liberty Mutual, after further auditing, to $59,718. D & G Trucking requested, among other things, that it be declared not to owe Liberty Mutual that additional premium. Liberty Mutual filed an answer agreeing that a *267 justiciable controversy had been presented and substantially admitting the factual averments of the complaint but denying D & G Trucking's entitlement to a judgment in its favor; Liberty Mutual requested the trial court to determine the correct amount owed by D & G Trucking and to enter a monetary judgment in Liberty Mutual's favor for that amount.

After discovery had taken place, Liberty Mutual filed a motion for a summary judgment that was supported by three deposition transcripts[1] and a brief. Relying principally on Ex parte Curry, 607 So.2d 230 (Ala.1992), Liberty Mutual contended that it was entitled to a judgment as a matter of law in its favor because, it asserted, certain drivers who had operated trucks for D & G Trucking as employees before 2003 had been improperly reclassified as independent contractors. D & G Trucking filed a response to Liberty Mutual's motion in which it contended that "genuine issues of material fact are present in this action in regard to [Liberty Mutual's] contentions related to the independent contractor status of the drivers D & G [Trucking] contracts with"; D & G Trucking also sought a summary judgment in its favor, contending that its drivers were statutorily excluded from the definition of "employee" under Ala.Code 1975, § 25-5-1(4), a portion of the Alabama Workers' Compensation Act ("the Act"), Ala.Code 1975, § 25-5-1 et seq. After a hearing, the trial court denied Liberty Mutual's summary-judgment motion and entered a summary judgment in D & G Trucking's favor, determining not only that § 25-5-1(4) applied but also that D & G Trucking (rather than Liberty Mutual) was entitled to a judgment as a matter of law based on the status of the drivers. Liberty Mutual appealed to the Alabama Supreme Court, which transferred the appeal to this court pursuant to § 12-2-7(6), Ala.Code 1975.

Our review of the trial court's summary judgment is based upon the following settled principles of law:

"An appellate court reviews a summary judgment by the same standard the trial court uses in determining whether to grant a summary-judgment motion. Pryor v. Brown & Root USA, Inc., 674 So.2d 45, 47 (Ala.1995); Bussey v. John Deere Co., 531 So.2d 860, 862 (Ala.1988). A summary judgment is appropriate if there is no genuine issue of material fact and the movant is entitled to a judgment as a matter of law. Rule 56(c)(3), Ala. R. Civ. P. The movant has the burden of making a prima facie showing that there is no genuine issue of material fact and that he is entitled to a judgment as a matter of law. Bass v. SouthTrust Bank of Baldwin County, 538 So.2d 794, 797-98 (Ala. 1989). If the moving party makes that prima facie showing, then the burden shifts to the nonmoving party, who then has the burden of presenting substantial evidence creating a genuine issue of material fact. Id. In determining whether the evidence creates a genuine issue of material fact, this court must review the record in the light most favorable to the nonmovant and must resolve all reasonable doubts against the movant. Wayne J. Griffin Elec., Inc. v. Dunn Constr. Co., 622 So.2d 314 (Ala.1993). Evidence is `substantial' if it is of `such weight and quality that fair-minded persons in the exercise of impartial judgment can reasonably infer the existence of the fact sought to be proved.' West v. Founders Life Assurance Co. of Florida, 547 So.2d 870, 871 (Ala.1989)."

*268 Millican v. McKinney, 886 So.2d 841, 843 (Ala.Civ.App.2003).

The dispositive issue, as framed by the parties, is whether there is a genuine issue of material fact concerning whether D & G Trucking's drivers, which were treated as employees until 2003, were thereafter transformed into "independent contractors" so as to reduce the number of employees on D & G Trucking's payroll and, consequently, to reduce its premium liability to Liberty Mutual. Stated another way, and in interrogative form, did the trial court properly foreclose inquiry by the trier of fact into the true relationship between D & G Trucking's drivers and D & G Trucking based upon the evidence appearing in the record? Based upon our review of the pertinent evidence, we must answer that question in the negative.

In White v. Henshaw, 363 So.2d 986 (Ala.Civ.App.1978), this court affirmed a judgment, entered after an ore tenus proceeding, determining a truck driver for a cotton-hauling brokerage to be an independent contractor. In doing so, we noted the settled test of who is an "employee" for purposes of the Act: "`For one to be an employee, the other party must retain the right to direct the manner in which the business shall be done, as well as the result to be accomplished or, in other words, not only what shall be done, but how it shall be done.'" 363 So.2d at 988 (quoting Weeks v. C.L. Dickert Lumber Co., 270 Ala. 713, 714, 121 So.2d 894, 895 (1960)). We further noted that "[t]he principal factors showing right to control are (1) direct evidence of right or exercise of control, (2) method of payment, (3) furnishing of equipment, and (4) the right to fire," although we added the caveat that "if the right of control of details goes no further than is necessary to ensure a satisfactory end result, it does not establish employment." White, 363 So.2d at 988.

The enunciation in White of factors demonstrating a right of control was expressly followed by the Alabama Supreme Court in Ex parte Curry, supra, the primary case upon which Liberty Mutual relies in this appeal. In

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