Merick Trucking, Inc. v. Missouri Department of Labor & Industrial Relations, Division of Employment Security

933 S.W.2d 938, 1996 Mo. App. LEXIS 1920, 1996 WL 678775
CourtMissouri Court of Appeals
DecidedNovember 26, 1996
DocketNo. WD 52376
StatusPublished
Cited by4 cases

This text of 933 S.W.2d 938 (Merick Trucking, Inc. v. Missouri Department of Labor & Industrial Relations, Division of Employment Security) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Merick Trucking, Inc. v. Missouri Department of Labor & Industrial Relations, Division of Employment Security, 933 S.W.2d 938, 1996 Mo. App. LEXIS 1920, 1996 WL 678775 (Mo. Ct. App. 1996).

Opinion

SMART, Judge.

This case involves an appeal from the Labor and Industrial Relations Commission (“Commission”) affirming a ruling of the Appeals Tribunal holding that truck drivers [940]*940working for Merick Trucking, Inc. (“Merick”) are employees and not independent contractors under the Missouri Employment Security Law. Merick contends that the drivers are independent contractors. Because there was competent and substantial evidence from which the Commission could determine that Merick had the right of control as to the truck drivers’ performance of their services, and because the evidence did not show that the drivers were truly independent contractors, we affirm the decision of the Commission.

The Division of Employment Security (“Division”) determined that as of October 1, 1990, D.L. James, S.C. Webb, A. Newell, C.S. Pikey, J.R. Wilburn and all others similarly engaged as truck drivers, as shown on the Field Report of Wages, performed services for “wages” in “employment” by Merick within the meaning of those terms as defined in §§ 288.034.5 and 288.036, RSMo 1994. Merick appealed this determination and a hearing was held before an Appeals Tribunal. The referee issued a decision that the drivers are employees pursuant to § 288.034.5, RSMo 1994. Merick filed an application for review with the Commission contending the referee had erred in applying the law. The Commission affirmed the decision of the Appeals Tribunal, adopting the findings and decision of the referee. This appeal followed.

Standard of Review

This case is governed by Chapter 288, the Missouri Employment Security Law. In reviewing a decision of the Commission, an appellate court may not substitute its judgment on factual matters for that of the commission. Section 288.210 provides that the Commission’s findings of fact, if supported by competent and substantial evidence and absent fraud, shall be conclusive. Substantial evidence is evidence which has probative force on the issues, and from which the trier of facts can reasonably decide the case. Nettie’s Flower Garden, Inc. v. SIS, Inc., 869 S.W.2d 226, 231 (Mo.App.1993). This court is not bound by the Commission’s conclusions of law, including statutory interpretation. Division of Employment Sec. v. Hatfield, 831 S.W.2d 216, 218 (Mo.App.1992). It is the court’s duty to interpret and determine the legislative intent of the Missouri Employment Security law. Division of Employment Sec. v. Labor & Indus. Relations Comm’n, 617 S.W.2d 620, 622 (Mo.App.1981). Section 288.210, RSMo, Supp.1996, like § 287.495, RSMo 1994, provides that the reviewing court may grant relief only when 1) the commission acted without or in excess of its powers, 2) the decision was procured by fraud, 3) the facts found by the commission do not support the award, or 4) there was no sufficient competent evidence in the record to warrant the making of the award. In view of the fact that § 288.210, Supp.1996, and § 287.495, RSMo 1994, prescribe exactly the same grounds for the granting of relief on appellate review, we regard Davis v. Research Medical Center, 903 S.W.2d 557 (Mo.App.1995) as applicable to employment security decisions as well as worker’s compensation decisions. In Davis, which dealt with review of worker’s compensation decisions, we said:

Findings and awards of the Commission which are clearly the interpretation or application of the law, as distinguished from a determination of facts, are not binding on the court and fall within the court’s province of independent review and correction where erroneous. And, where the findings of ultimate fact are reached not by a process of natural reasoning from the facts alone, but rather by application of law, it is a conclusion of law and subject to reversal by the court.

Id. at 571. Thus, to the extent this appeal involves issues of law, we do not defer to the Commission. To the extent that it involves evaluating evidence supporting findings of the Commission, there is a two-step process set out in Davis.

In the first step, the court examines the whole record, viewing the evidence and all reasonable inferences drawn therefrom in the light most favorable to the award, to determine if the record contains sufficient competent and substantial evidence to support the award. If not, the Commission’s award must be reversed. If there is competent and substantial evidence supporting the award, the court moves to the second step, where it views the evidence in the [941]*941light most favorable to the award, but must consider all evidence in the record, including that which opposes or is unfavorable to the award, take account of the overall effect of all of the evidence, and determine whether the award is against the overwhelming weight of the evidence.

Davis, 903 S.W.2d at 571.

This case differs from the usual truck driver case in that here the drivers enter into an agreement whereby they are designated the lessee of a particular truck belonging to Mer-ick. The lease is terminable at will by either party. Merick maintains the trucks, pays for the fuel, and insures the trucks, which bear the Merick name and logo. The truckers pay nothing in order to have possession of the truck, except that Merick retains the bulk of the freight charges which are paid to Merick, paying a percentage to the drivers.

The Commission’s Decision

In the decision adopted by the Commission, the referee began the analysis with § 288.034.5, RSMo 1994, which states:

Service performed by an individual for remuneration shall be deemed to be employment subject to this law unless it is shown to the satisfaction of the division that such services were performed by an independent contractor. In determining the existence of the independent contractor relationship, the common law of agency right to control shall be applied. The common law of agency right to control test shall include but not be limited to: If the alleged employer retains the right to control the manner and means by which the results are to be accomplished, the individual who performs the service is an employee. If only the results are controlled, the individual performing the service is an independent contractor.

The referee, in the decision, noted that Merick, which had to bear the burden of proof, did not offer evidence as to some of the factors relating to the right of control, such as whether Merick trained the drivers, whether the drivers were required to perform their services personally (or could subcontract or hire assistants), and whether during the period of association with Merick the drivers could perform driving services for any other ICC carrier.

The referee noted that the evidence showed that the relationship between the drivers and Merick was an ongoing relationship. Merick pays for maintenance of the equipment, fuel costs, and liability insurance costs. The referee considered these expenses significant expenses in the operation of the business.

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Bluebook (online)
933 S.W.2d 938, 1996 Mo. App. LEXIS 1920, 1996 WL 678775, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merick-trucking-inc-v-missouri-department-of-labor-industrial-moctapp-1996.