Lindsey v. Trinity Communications, Inc.

275 S.W.3d 411, 2009 Tenn. LEXIS 20
CourtTennessee Supreme Court
DecidedJanuary 12, 2009
StatusPublished
Cited by35 cases

This text of 275 S.W.3d 411 (Lindsey v. Trinity Communications, Inc.) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lindsey v. Trinity Communications, Inc., 275 S.W.3d 411, 2009 Tenn. LEXIS 20 (Tenn. 2009).

Opinion

OPINION

JANICE M. HOLDER, C.J.,

delivered the opinion of the court,

in which CORNELIA A. CLARK, GARY R. WADE, and WILLIAM C. KOCH, JR., JJ., and FRANK F. DROWOTA, III, Sp.J., joined.

In this workers’ compensation ease, the plaintiff was injured while splicing cable for the defendant subcontractor. The subcontractor did not have workers’ compensation insurance, and the plaintiff therefore filed suit against the intermediate subcontractor and cable company for benefits under Tennessee Code Annotated section 50-6-113. The intermediate subcontractor’s workers’ compensation insurance carrier, a Texas company, moved for summary judgment, arguing that the trial court did not have personal or subject matter jurisdiction. The defendants also argued that the plaintiff could not recover under Tennessee Workers’ Compensation Law because he was an independent contractor and not an employee. The trial court held that the plaintiff was an employee of the subcontractor and a statutory employee of the intermediate subcontractor and cable company, that the trial court had both personal and subject matter jurisdiction over the Texas insurance carrier, and that the plaintiff was entitled to temporary total disability benefits, permanent partial disability benefits, and medical benefits. We hold that the trial court did not have personal jurisdiction over the Texas insurance carrier but that the plaintiff is entitled to recover benefits as an employee of the subcontractor and as a statutory employee of the intermediate subcontractor. Therefore, we reverse in part and affirm in part the judgment of the trial court and remand for proceedings consistent with this opinion.

Facts & Procedural History

In November 2003, Trinity Communications, Inc. (“Trinity”), a cable television provider in Marion County, Tennessee, contracted with Broadband Specialists, Inc. (“Broadband”), a Texas corporation, to install a cable system in Marion County. Broadband subsequently subcontracted with HFC Services (“HFC”), a Texas partnership, to perform some of the work on the project. HFC hired the plaintiff, Richard Lindsey (“Lindsey”), to splice cable for the project.

On May 18, 2004, Lindsey was injured while splicing cable. He subsequently filed this action against the following: Trinity; Trinity’s workers’ compensation insurance carrier, St. Paul Fire and Marine Insurance Company (“St. Paul Fire and Marine”); Broadband; Broadband’s workers’ compensation insurance carrier, [416]*416Texas Mutual Insurance Company (“Texas Mutual”); and HFC.

During the course of several hearings, the trial court held that Lindsey was an employee of HFC, not an independent contractor, and was eligible to receive benefits under the Tennessee Workers’ Compensation Law. The trial court found that HFC, Lindsey’s primary employer, had no workers’ compensation coverage and therefore applied Tennessee Code Annotated section 50-6-118(a) (2005).1 The trial court held that Broadband qualified as a “statutory employer” of Lindsey under section 50-6-113(a) and ordered Texas Mutual, Broadband’s workers’ compensation insurer, to pay a portion of the award. The trial court also concluded that Trinity qualified as Lindsey’s “statutory employer” under section 50-6-113(a) and required St. Paul Fire and Marine, Trinity’s workers’ compensation insurer, to pay an unspecified portion of the award.

At the conclusion of a trial held on June 4, 2007, the trial court awarded Lindsey temporary total disability benefits for fifty-two weeks, permanent partial disability benefits based on 55% disability to the body as a whole, and medical benefits totaling $127,190.00 for treatment of his work-related injuries.

Texas Mutual appealed the trial court’s decision, arguing that the trial court lacked both personal and subject matter jurisdiction over Texas Mutual, that the trial court erred in applying Tennessee’s “statutory employer” rule under section 50-6-113(a) to a policy governed by Texas law, and that Texas Mutual’s insurance policy with Broadband does not provide coverage to employees of Broadband’s subcontractors. Trinity also appealed the ruling of the trial court, arguing that Lindsey is an independent contractor and that Trinity is not a principal contractor under section 50-6-113(a). We granted review before the case was heard by a Special Workers’ Compensation Appeals Panel.

Analysis

I. Jurisdiction over Texas Mutual

Texas Mutual is a non-profit mutual insurance company created by the Texas Legislature to create competition in the Texas market, to guarantee workers’ compensation insurance in Texas, and to serve as an insurer of last resort in Texas. See Tex. Ins.Code Ann. art 5.76-3(c) (2005). Texas Mutual issues workers’ compensation insurance policies only in Texas to Texas companies. Texas Mutual’s workers’ compensation insurance policy (“the policy”) with Broadband states that the workers’ compensation law applicable to the policy is the law of Texas. In a section entitled “Locations,” the policy states that it covers only work locations in Texas.

The trial court found that Texas Mutual consented to personal jurisdiction in Tennessee based on a provision in Broadband’s coverage contract that states, “Jurisdiction over [insured] is jurisdiction over us for purposes of workers’ compensation law. We are bound by decisions against [insured] under that law, subject to the provisions of the policy that are not in conflict with that law.” It is undisputed that the trial court had jurisdiction over Broadband, Texas Mutual’s insured. We are unpersuaded, however, that this provision shows Texas Mutual’s consent to ju[417]*417risdiction in Tennessee. The agreement defines the term “worker’s compensation law” as the law of the territory named in Item 3.A., which is Texas.2 Thus, under a plain reading of this provision, Texas Mutual consented to jurisdiction only under the laws of Texas.

In the absence of consent, Tennessee courts may exercise personal jurisdiction over nonresident defendants under the long-arm statute, Tennessee Code Annotated section 20-2-214 (1994), for any reason not inconsistent with the state or federal constitutions. Chenault v. Walker, 36 S.W.3d 45, 52 (Tenn.2001); see J.I. Case Corp. v. Williams, 832 S.W.2d 530, 531 (Tenn.1992). The Due Process Clause of the Fourteenth Amendment requires that a nonresident defendant be subject to personal jurisdiction “only if he has minimum contacts with the forum such that ‘the maintenance of the suit does not offend traditional notions of fair play and substantial justice.’ ” Masada Inv. Corp. v. Allen, 697 S.W.2d 332, 334 (Tenn.1985) (quoting Int’l Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945)). Due process requires that a defendant have “ ‘fair warning that a particular activity may subject [the defendant] to the jurisdiction of a foreign sovereign.’ ” J.I. Case Corp., 832 S.W.2d at 532 (quoting Burger King Corp. v. Rudzewicz, 471 U.S. 462, 472, 105 S.Ct. 2174, 85 L.Ed.2d 528 (1985)).

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Cite This Page — Counsel Stack

Bluebook (online)
275 S.W.3d 411, 2009 Tenn. LEXIS 20, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lindsey-v-trinity-communications-inc-tenn-2009.