McGrail v. Workmen's Compensation Appeal Board

604 A.2d 1109, 145 Pa. Commw. 595, 1992 Pa. Commw. LEXIS 156
CourtCommonwealth Court of Pennsylvania
DecidedFebruary 20, 1992
Docket783 C.D. 1991
StatusPublished
Cited by8 cases

This text of 604 A.2d 1109 (McGrail v. Workmen's Compensation Appeal Board) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McGrail v. Workmen's Compensation Appeal Board, 604 A.2d 1109, 145 Pa. Commw. 595, 1992 Pa. Commw. LEXIS 156 (Pa. Ct. App. 1992).

Opinion

BARBIERI, Senior Judge.

Thomas M. McGrail (Claimant) petitions this Court to review an order of the Workmen’s Compensation Appeal Board (Board) which affirmed the referee’s decision denying his October 14, 1988 claim petition. We reverse.

Employed as an electrician-laborer for A.C. Electric, Inc. (ACE), Claimant was badly burned while engaged in electrical work at the County of Lackawanna’s (Lackawanna) Fourth of July Festival, held at the Montage Mountain Ski Resort (Montage). Further relevant facts are as follows:

12. In the years 1985, 1986, 1987 and 1988, a special public event festival was held to celebrate the Fourth of July, and give to the public a form of entertainment, goodwill, and public relations in celebrating this National event.
*598 13. A group of volunteers, made up basically from officials of the ... County government, together with private entrepreneurs formed a committee to run the event.
14. Lackawanna County sanctioned the Volunteer Committee to have the Fourth of July event and contributed sources of money to underwrite part of the costs as seed money, with the expectation of repayment, if any available, from the proceeds of the event.

Findings of Fact Nos. 12-14.

I. THE STATUTORY EMPLOYER QUESTION

This is a case involving a statutory employer issue. We note at the outset, however, that it is not within the stereotype, represented by such cases as our Supreme Court’s decision in McDonald v. Levinson Steel Co., 302 Pa. 287, 153 A. 424 (1930), and its progeny. In those cases, you have simply an owner, who has work to be done on his premises and hires a general contractor to perform such work; the general contractor then apportions out to each of the subcontractors that part of the work which calls for the expertise and type of service offered by the individual subcontractors. It is in this context that the Pennsylvania Legislature demonstrated its intent to include safeguards within the Workmen’s Compensation system which would provide a source for funding benefits to an injured worker of an uninsured and financially irresponsible subcontractor under The Pennsylvania Workmen’s Compensation Act (Act). 1

*599 To implement this intent, Section 302(b) of the Act, 77 P.S. § 462, 2 contains a clause which provides that if the immediate employer of the injured worker has not provided insurance coverage or is not a qualified self-insurer, thus providing necessary safeguards to insure payment of benefits, the employer next up the ladder from the immediate employer, usually the general contractor, for failing to require adequate financial responsibility by insurance or self-insurance of his subcontractor, becomes liable to pay benefits due the injured employee. Such an employer, having usually insured his own employees, but having failed to make certain that his subcontractor’s employees are adequately covered for liability payments, pays the price, or his insurer instead pays the price, for failure of such a general contractor to require its subcontractor to provide the necessary financial responsibility to pay for injuries suffered in performing part of the general contractor’s work. Section 302(b) of the Act, 77 P.S. § 462, sets forth the Legislature’s basis for such a statutory employer status in workmen’s compensation cases as follows:

Any employer who permits the entry upon premises occupied by him or under his control of a laborer or an assistant hired by an employe or contractor, for the performance upon such premises of a part of such employer’s regular business entrusted to that employe or contractor, shall be liable for the payment of compensation to such laborer or assistant unless such hiring employe or contractor, if primarily liable for the payment of such compensation, has secured the payment thereof as provided for in this act. Any employer or his insurer who shall become liable hereunder for such compensation may recover the amount thereof paid and any necessary ex *600 penses from another person if the latter is primarily liable therefor.

Section 203 of Article II of the Act, 3 as noted, has to do with tortious liabilities, but also contains a statutory employer provision. In decisions of our courts under Section 203, certain similarities in the two sections, Sections 203 and 302(b) of the Act, have been discussed. Thus, in Caldarelli v. Workmen’s Compensation Appeal Board (Mastromonaco), 115 Pa.Commonwealth Ct. 611, 542 A.2d 181, petition for allowance of appeal denied, 520 Pa. 592, 551 A.2d 218 (1988), 4 we enunciated the five conditions for establishing statutory employer status laid down in McDonald as follows:

Although the meaning of ‘statutory employer’ under Section 302(b) of the Act, 77 P.S. § 462, has not itself been interpreted, our Supreme Court has construed similar language in Section 203 of the Act, 77 P.S. § 52, and has required five elements to be shown:
‘(1) An employer who is under contract with an owner or one in the position of an owner. (2) Premises occupied by or under the control of such employer. (3) A subcontract made by such employer. (4) Part of the employer’s regular business intrusted [sic] to such subcontractor. (5) An employee of such subcontractor.’

Caldarelli, 115 Pa.Commonwealth Ct. at 616, 542 A.2d at 183.

Obviously, this case does not fit neatly into the more customary setting for application of the five criteria for establishing a statutory employer-statutory employee relationship; the difference is that while Section 203 contains the same statutory employer immunity provision extending it to the statutory employer in negligence cases as is provided in the workmen’s compensation cases under Sec *601 tion 302(b), Section 302(b) has a more vital mission: to provide security for payment of benefits in workmen’s compensation cases. See Holland v. Norristown State Hospital, 136 Pa.Commonwealth Ct. 655, 584 A.2d 1056 (1990).

The following designated findings, insofar as they are factual findings, present substantially the background of this case:

6. On July 5,1988, at the direction of Mr. Cummings, A. C. Electric, claimant’s employer, [5] claimant was at the Montage site to meet with his employer. Claimant waited at the site for approximately two (2) hours, and on three (3) occasions attempted to contact him but was unsuccessful. Claimant then spoke to Mr. Brazil [sic] [6] , a supervisor for the County ...

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Bluebook (online)
604 A.2d 1109, 145 Pa. Commw. 595, 1992 Pa. Commw. LEXIS 156, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcgrail-v-workmens-compensation-appeal-board-pacommwct-1992.