Mobil Oil Corp. v. Roumeliotis

647 N.E.2d 69, 38 Mass. App. Ct. 245
CourtMassachusetts Appeals Court
DecidedMarch 16, 1995
DocketNo. 94-P-1177
StatusPublished
Cited by4 cases

This text of 647 N.E.2d 69 (Mobil Oil Corp. v. Roumeliotis) is published on Counsel Stack Legal Research, covering Massachusetts Appeals Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mobil Oil Corp. v. Roumeliotis, 647 N.E.2d 69, 38 Mass. App. Ct. 245 (Mass. Ct. App. 1995).

Opinion

Smith, J.

This is an appeal by the Mobil Oil Company (Mobil) and its insurer for workers’ compensation, National Union Fire Insurance Company (National), of a decision by the Industrial Accident Reviewing Board (board) ruling that [246]*246Mobil was liable for workers’ compensation benefits to be paid, pursuant to G. L. c. 152, § 18, to John Roumeliotis (employee).2 The statute provides, among other things, that “[i]f an insured employer contracts to have part of his work done by an uninsured independent contractor and an employee of such an uninsured independent contractor suffers an industrial injury, . . . the [insured employer] must pay the compensation provided by the act .... To come within the statute, the particular activity in which the employees of an independent contractor are engaged must be a ‘part of or process in’ the trade or business conducted by the insured principal and not ‘merely ancillary and incidental’ thereto.” Locke, Workmen’s Compensation § 152, at 162 (1981).

The facts underlying the controversy are not in dispute. The employee was employed by George Popa, doing business as Huntington Auto Service (Popa), a sole proprietorship located at 670 Huntington Avenue, Boston. Popa was in the business of selling gasoline, and providing automobile repair and towing services. On April 22, 1983, Popa entered into a contract with Mobil in which Popa agreed to purchase between 300,000 and 600,000 gallons of gasoline per year from Mobil for a period of three years beginning May 1, 1983, and ending April 30, 1986. Popa also entered into a contract with Mobil, entitled “Sign and equipment rent rider,” in which Popa agreed to lease one twelve foot sign and one im[247]*247printer from Mobil for a lease period beginning May 1, 1983, to continue for a period of three years.

On November 2, 1984, the employee was working at the service station. A robbery occurred during which the employee was assaulted and severely beaten resulting in serious injuries. Popa, at the time of the employee’s injuries, was without workers’ compensation coverage in violation of G. L. c. 152, § 25A.3

The employee filed a claim against Mobil, contending thát G. L. c. 152, § 18, controlled the matter. After a conference (G. L. c. 152, § 10A), the employee’s claim was denied. The employee appealed and, after a hearing, an administrative judge ruled against him. The employee then filed an appeal with the board. See G. L. c. 152, § 11C.

The board, in a two-to-one decision, reversed the administrative judge’s decision. The majority ruled that Popa was an independent contractor engaged by Mobil to do its work. The majority further ruled that the work performed by Popa was part of Mobil’s business and was not merely ancillary and incidental to Mobil’s business. In contrast, the administrative law judge who wrote the minority opinion stated that Popa was not an independent contractor and that the relationship between Popa and Mobil was that of buyer and seller. The minority judge also ruled that there was a lack of proof as to whether Popa was doing Mobil’s work.

As a result of the board’s decision, the matter was remanded to the administrative judge to determine the employee’s average weekly wages and to enter an appropriate order consistent with the board’s opinion. Mobil, however, filed an appeal of the board’s decision and also filed a motion requesting a stay of judgment pending an appeal. A single justice of this court allowed the motion for a stay of judgment and the employee filed an appeal regarding the allow[248]*248anee of the stay. The single justice consolidated both appeals and reported the matters to the full bench. No judgment has been entered as to the board’s decision ruling against Mobil and, therefore, Mobil’s appeal is interlocutory.

We deem the report of the single justice to be a grant of leave to take an interlocutory appeal of the board’s decision to the full bench, and, therefore, we consider the merits of the board’s decision concluding that Mobil was liable to the employee under G. L. c. 152, § 18. Because of our decision, the employee’s appeal from the single justice’s order granting a stay of the judgment is dismissed.

The first issue to be resolved is whether Popa is “a dealer buying and selling petroleum products in his own right... or an independent contractor doing part of [Mobil’s] work.” Locke, Workmen’s Compensation § 152, at 163. In determining whether the service station owner is an independent contractor doing part of the oil company’s business, a key factor is the amount of control that the oil company exerts over the operator of the service station.

The relationship between Popa and Mobil closely resembles the one described in Whitehouse v. Cities Serv. Oil Co., 315 Mass. 108 (1943). In Whitehouse, the injured worker was employed by Albert Culver Co. (Culver), a distributor of, among other things, petroleum products. Culver had entered into a contract with Cities Service Oil Company (Cities Service) to buy certain petroleum products from Cities Service. The employee was injured on Cities Service’s premises and brought a tort action against that company. Cities Service, as a defense, claimed that Culver had entered into a contract to perform Cities Service’s work and, therefore, argued that the “common employment doctrine” of the worker’s compensation act barred the employee’s action.4 The court addressed the issue of the relationship between Culver and Cities Service to determine “whether the stipulated facts, which included the written contract, were sufficient to support the contention of [Cities Service], or at least [249]*249sufficient to present a question of fact, that Culver was an independent contractor performing the oil company’s work.” Id. at 111.

The court observed that Cities Service controlled certain aspects of Culver’s operation of its business through various conditions stated in the contract. The court noted that “[t]he goods that Culver bought from [Cities Service] were to be resold only in the territory described in the contract at prices posted by [Cities Service], and a provision was required in all [of the contracts that Cities Service made] with its customers that they could resell only at the said posted prices.” Ibid. In addition, Culver “agreed to paint its bulk and service stations, station equipment, pumps and tank trucks in the customary colors employed by [Cities Service].” Ibid.

The court, in reaching its decision, recited other stipulated facts concerning the relationship between Cities Service and Culver. It noted that Culver bought and paid for goods that it purchased from Cities Service. The goods belonged to Culver, and it could resell them to any customer it chose within the territory described in the contract. The proceeds of its sales belonged to Culver. It was under no obligation to furnish Cities Service with a list of customers or in any way to account to Cities Service for any transaction Culver had with its customers. Ibid. The court concluded, based on the contract and the stipulated facts, that “Culver conducted its own business, selling to its own customers and receiving as its only compensation whatever profits accrued from the business. Culver was paid nothing by [Cities Service]. No part of the regular business of [Cities Service] was entrusted to Culver .... [T]he only relationship that [the contract] created was that of buyer and seller.” Id. at 111-112.

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Bluebook (online)
647 N.E.2d 69, 38 Mass. App. Ct. 245, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mobil-oil-corp-v-roumeliotis-massappct-1995.