McGowen v. Southwestern Bell Telephone Co.

529 P.2d 97, 215 Kan. 887, 1974 Kan. LEXIS 586
CourtSupreme Court of Kansas
DecidedDecember 7, 1974
Docket47,510
StatusPublished
Cited by7 cases

This text of 529 P.2d 97 (McGowen v. Southwestern Bell Telephone Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McGowen v. Southwestern Bell Telephone Co., 529 P.2d 97, 215 Kan. 887, 1974 Kan. LEXIS 586 (kan 1974).

Opinion

The opinion of the court was delivered by

Kaul, J.:

This is an action by employees against a corporation to recover wages and statutory penalties under the provisions of K. S. A. 44-301, et seq., [Repealed, Laws of 1973, now K. S. A. 44-313, et seq.]. The underlying question presented is whether plaintiffs’ claims fall within the contemplation of K. S. A. 44-306.

Southwestern Bell Telephone Company (defendant-appellee) is a public utility providing communications services to die public in the State of Kansas.

Plaintiffs-appellants were employees of D & M Cable Company. D & M contracted with Southwestern Bell Telephone Company, defendant-appellee, to construct and install an underground telephone cable. The contract was terminated before completion of the project by D & M. At the time of the contract termination, the wages in question were due plaintiffs from D & M and re *888 mained unpaid. Pursuant to the provisions o£ 44-306 plaintiffs made a demand for payment of the wages on defendant Southwestern Bell. Defendant refused the demand and this litigation was instituted.

After issues were joined by the pleadings both parties filed motions for summary judgment on the liability of defendant under 44-306. The parties stipulated to all material facts, submitted briefs, and made oral arguments to the trial court concerning the applicable law. The trial court entered judgment that plaintiffs were not entitled to recover from defendant for the unpaid wages owed them by D & M and this appeal ensued.

The journal entry of judgment indicates that the only issue presented to, and determined by, the trial court was the liability of defendant under 44-301, et seq. The sections of the statute referred to which are relevant to- this action were repealed in 1973. (See Laws of 1973, Chapters 203 and 204.) The critical statute in effect at the time and bearing upon the precise issue before us in this case is 44-306 which reads:

“Whenever any such corporation shall contract any or all of its work to any contractor, then it shall become the duty of such corporation to provide that the employees of such corporation or contractor shall be paid according to the provisions of this act, and such corporation shall become responsible and liable to the employees of such contractor in the same manner as if said employees were employed by such corporation.” (Emphasis supplied.)

The statute as revised and reenacted in 1973 now appears as K. S. A. 44-317.

On appeal plaintiffs state their position in these terms:

“The stipulation clearly sets forth the fact that work of Southwestern Bell was in fact contracted to D & M. That being the case, Southwestern Bell must be found to be liable in such amounts and with or without penalty as further evidence would reveal due.
“This statute is not unfair. It could have been met by Southwestern Bell, either overseeing the payment of wages or by requiring a bond of its contractor. When it failed to do either, it assumed the risk of paying wages to the workmen installing the network of lines.”

Defendant, on the other hand, contends that 44-306 applies only when a corporation contracts with a contractor to perform “its work”, which means, defendant claims, the statute would only apply to it when it contracts with a contractor to furnish telephone service in some of its certificated telephone exchanges. We agree with defendant that the determination of the issue in this case depends upon the meaning to be given the words “its work” as used in the *889 statute; however, we cannot agree with the narrow definition of the words proposed by defendant.

The only case before this court in which 44-306 was involved is Brewer v. Kansas Electric Power Co., 148 Kan. 434, 83 P. 2d 103. Both parties argue that our decision in Brewer supports their respective positions herein. After a careful reading of the opinion in Brewer, we are convinced the holding therein fails to support either party with respect to the issue presented in the instant case. In Brewer Kansas Electric Power Company owned a franchise granted by the City of Emporia to operate a motorbus transportation system, the operation of which was delegated, by a written contract, to Reeves and Callison, a partnership. Brewer, an employee of Reeves and Callison, sued Kansas Electric Power Co. pursuant to 44-306 for wages due from Reeves and Callison, which were unpaid. The defense was that Reeves and Callison were lessees or assignees of a franchise rather than contractors who were doing work for Kansas Electric Power Co. In the opinion the issue was stated in these terms:

“. . . The question here is whether they [Reeves and Callison] should be regarded as contractors, in the instant case, in view of the apparent intent and purpose of the act in question. . . .” (p. 437.)

The decision, holding for Brewer, does not deal with the issue presented in the instant case. The fact that Kansas Electric Power Co. had delegated the operation of its franchised business by contract was only incidental to the decision and not 'the basis of the court’s holding as defendant herein contends. The decision turned on the issue whether Reeves and Callison should be regarded as contractors.

.Since Brewer, the only case dealing with 44-306, is of no avail; we must look elsewhere for authority which sheds light on the issue presented. K. S. A. 44-503 deals with compensation rather than wages and is couched in language different from that appearing in 44-306. However, we believe the import and purposes of the two statutes are of significant similarity. The purpose of 44-503 is to give employees of a subcontractor a remedy against the principal and to prevent employers from evading liability under the Workmen s Compensation Act by the device of contracting with outsiders to do part of the work which is undertaken by the principal. (Durnil v. Grant, 187 Kan. 327, 356 P. 2d 872; Lessley v. Kansas Power & Light Co., 171 Kan. 197, 231 P. 2d 239; and Bailey v. *890 Mosby Hotel Co., 160 Kan. 258, 160 P. 2d 701.) The general purpose of K. S. A. 44-301, et seq., is to aid an employee of a contractor in the enforcement of his rights to earned — but unpaid — wages by providing for penalties against any corporation which fails to pay such wages under conditions prescribed by the statute. K. S. A. 44-306, like 44-503 with respect to a principal, is intended to prevent a corporation from evading liability for unpaid wages by contracting away its work.

We see little difference in the import of a corporation contracting away “its work” under 44-306 and a principal contracting “away any work which is a part of his trade or business” as phrased in 44-503. The meaning of the latter phrase has been considered by the court in numerous cases (See annotations, notes 11-24, following K. S. A.

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Cite This Page — Counsel Stack

Bluebook (online)
529 P.2d 97, 215 Kan. 887, 1974 Kan. LEXIS 586, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcgowen-v-southwestern-bell-telephone-co-kan-1974.