Lickhalter v. Industrial Commission

50 N.E.2d 729, 383 Ill. 527
CourtIllinois Supreme Court
DecidedSeptember 21, 1943
DocketNo. 27087. Reversed and remanded.
StatusPublished
Cited by4 cases

This text of 50 N.E.2d 729 (Lickhalter v. Industrial Commission) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lickhalter v. Industrial Commission, 50 N.E.2d 729, 383 Ill. 527 (Ill. 1943).

Opinion

Mr. Justice Stone

delivered the opinion of the court:

Plaintiff in error filed with the Industrial Commission an application for compensation for injuries received. On hearing, the arbitrator recommended against allowance of compensation and on review the commission found that the applicant was an independent contractor and not an employee of the defendants in error and so not entitled to compensation. This finding was confirmed by the circuit court of Cook county. The cause is here on writ of error granted.

The facts are not in dispute. Plaintiff in error, a traveling salesman with twenty-five years’ experience, became associated with defendants in error through a contract by which he was to sell ladies’ clothing manufactured by defendants in error and receive a commission" of seven per cent of the amount billed for goods sold in Illinois, Wisconsin, Iowa, Nebraska, Minnesota and the Dakotas. This percentage was to apply whether the orders were personally taken by plaintiff in error or came in by mail. Plaintiff in error received as an advance, $40 per week for his personal and household expenses, and $70 per week for traveling expenses, same to be charged against his seven per cent commission on all sales. A settlement was to be made each six months and any commissions earned over and above the amount advanced were to be paid to plaintiff in error. If, at the settlement time, his seven per cent commissions earned did not amount to the sums advanced during the preceding six months, the excess advanced was cancelled and not charged against his commissions earned thereafter. Shortly before the injury complained of plaintiff in error’s advance for personal expense was increased to.$55 per week. He testified that after paying expenses his average earnings were about $60 per week.

Upon entering into this agreement plaintiff in error opened an office in Chicago, placing defendants in error’s firm name on the door. Under his contract he sold women’s garments at wholesale. Orders were taken on regular printed order blanks of defendants in error Schaeffer Garment Company. The evidence discloses that by reason of their relationship plaintiff in error was called upon to take care of certain customers indicated by defendants in error, who also cautioned him about selling the same style of coats to different stores in Chicago. Evidence also discloses that he was at times directed to see certain persons who were buyers in the retail stores in the city of Chicago. Instructions were given as to what he was to say to these persons in order to determine whether an order for certain styles of coat might be secured. Defendants in error retained the right to discharge plaintiff in error and exercised it in September, 1941.

Plaintiff in error travelled in an automobile which he furnished at his own expense and in which he carried samples, furnished by defendants in error. On October 28, 1940, while on one of his business trips, his car skidded on the highway and turned over, severely injuring him. He was taken to a hospital in Peoria where he remained for about six weeks. Thereafter he was removed to a hospital in Chicago, remaining there until January 7, 1941. Medical testimony showed he received severe injuries. ■

About March 15, 1941, he resumed his work of selling, but his physical condition was such he could not take long trips. It was necessary for him to take a boy along to handle the sample cases. His earnings became reduced because of smaller sales and additional expense. The amount of hospital, medical and ambulance bills incurred was stipulated and the evidence shows they were not paid by defendants in error.

The record made by the arbitrator shows it was stipulated, among other things, that on October 28, 1940, the parties were operating under and subject to the provisions of the Workmen’s Compensation Act and that notice of the accident had been given as required by the act. The record before the arbitrator also stipulates the age of plaintiff in error to be 47 years and that he had no children under sixteen years of age. That record recites that all other issues were in dispute and that compensation has been paid under the Illinois act, the last payment being on April 4, 1941.

The question involved here is whether plaintiff in error was an independent contractor or an employee of defendants in error. No claim is made that he was not in the usual course of his duties in the performance of his contract at the time he was injured. The evidence shows that the defendants in error garment company caused a policy of insurance to be issued under the Workmen’s Compensation Act, covering the services of plaintiff in error. Such policy was issued by the Great American Indemnity Company, a defendant in error here. The only person connected in any way with the business of defendants in error in Illinois was plaintiff in error.

Defendants in error argue that the stipulation was limited to the issue whether the parties were operating under the act, and as all other issues are in dispute, the issue of employment was disputed and plaintiff in error had the burden of proving he was an employee, and as the arbitrator and the Industrial Commission found that issue to be lacking in proof, the rule that the findings of the commission may not be set aside unless clearly and manifestly against the weight of the evidence obtains here. Plaintiff in error, on the other hand, argues that since the record of the arbitrator shows that it is stipulated the parties were operating under the act, no question of employment is involved. However, his counsel did not rest upon that contention but offered evidence to show that he was not an independent contractor but an employee, and therefore, regardless of the technical sufficiency of his argument, we are disposed to treat that issue as in the case. There is no contradiction of the evidence offered by plaintiff in error. Where the facts are not in controversy the issue involved is one of law. Grossman v. Industrial Com. 376 Ill. 198; Puttkammer v. Industrial Com. 371 Ill. 497; Ervin v. Industrial Com. 364 Ill. 56.

Defendants in error, and apparently the circuit court and the commission, relied principally upon Postal Telegraph Sales Corp. v. Industrial Com. 377 Ill. 523, as supporting the finding that plaintiff in error was a contractor and not an employee. In that case the rule of distinction between an employee and an independent contractor is fully set forth. .One Lewis was engaged with the respondent sales corporation to sell clocks. He worked on a commission basis entirely and paid all his expenses including those of transportation. The clocks were to be delivered to him as he needed them. He could sell the clocks either for cash or on the installment plan. His commission was affected as to amount by the character of sale. After some months of this relationship he was appointed a supervisor by the sales corporation and as such received larger commissions. He had a right to and did appoint, and discharge other salesmen and from their sales he received additional commissions. This was the relationship existing between him and the sales corporation. It is there held, after citing the elements which mark employment from an independent contract, that Lewis was an independent contractor. In the opinion in.that case it was pointed out, however, that it was not to be construed to mean that all commissioned salesmen were independent contractors, as each case must depend upon its own facts.

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Bluebook (online)
50 N.E.2d 729, 383 Ill. 527, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lickhalter-v-industrial-commission-ill-1943.