Newsom v. Frank M. Hall & Co.

101 P.3d 1107, 2004 WL 352680
CourtColorado Court of Appeals
DecidedDecember 6, 2004
Docket02CA1375
StatusPublished
Cited by2 cases

This text of 101 P.3d 1107 (Newsom v. Frank M. Hall & Co.) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Newsom v. Frank M. Hall & Co., 101 P.3d 1107, 2004 WL 352680 (Colo. Ct. App. 2004).

Opinion

Opinion by

Judge VOGT.

In this personal injury action, defendant, Frank M. Hall & Company (Hall), appeals the judgment entered on a jury verdict in favor of plaintiff, Rick W. Newsom. Hall's primary contention is that it was plaintiff's statutory employer under the Workers' Compensation Act, § 8-40-101, et seq., CRS. 2008(Act), and thus was immune from common law liability. We disagree and therefore affirm.

Hall, a general contractor, subcontracted with an excavating company (subcontractor) to perform earthwork and site utilities work on a construction project. Plaintiff was employed by the subcontractor as a pipeline foreman. While working on the project, he fell and was impaled on uncapped rebar. His medical bills in the amount of $2548 were paid by the subcontractor's workers' compensation carrier.

Plaintiff sued Hall and others for damages arising out of their negligence. Alleging immunity as plaintiff's statutory employer under the Act, Hall moved for summary judgment. The trial court summarily denied the motion.

Hall renewed its immunity argument in its trial brief and again after the close of plaintiffs evidence, but the trial court declined to revisit the issue. After the jury returned a verdict in favor of plaintiff, the trial court denied Hall's motion for post-trial relief, which reasserted the immunity issue and, in the alternative, sought reduction of the jury's damages award.

L.

As a threshold matter, we do not agree with plaintiff that Hall failed to preserve the immunity issue.

In Feiger, Collison & Killmer v. Jones, 926 P.2d 1244 (Col.1996), the supreme court held that the propriety of a summary judgment denial is not appealable after a trial on the merits if the moving party did not preserve the issue by moving for a directed verdict or for judgment notwithstanding the verdict or by reasserting its argument as a defense at trial. In such cireumstances, the moving party is deemed to have abandoned the issue and waived the right to have it reviewed on appeal. To hold otherwise, the court reasoned, would work an injustice on the opposing party, which was prevented by the movant's inaction from developing a ree-ord on the issue.

Here, by contrast, Hall reasserted its immunity argument in its trial brief, again at the conclusion of plaintiff's case, and again in its post-trial motion. We perceive no basis for concluding that Hall abandoned the argument or otherwise prevented plaintiff from developing a record on the issue. Contrary to plaintiff's contention, Hall was not required to present additional evidence to preserve the issue where, in its view, evidence already before the court was sufficient to warrant judgment in its favor.

IL.

Hall contends the trial court erred in rejecting its contention that it was plaintiff's statutory employer under the Act and thus immune from suit. We disagree.

Workers' compensation is an employee's exclusive remedy against his or her employer for work-related injuries. Thus, an employer who has complied with the insurance provisions of the Act is immune from any common law liability for such injuries. Kelty v. Mile Hi Single Ply, Inc., 890 P.2d 1161 (Colo.1995). That immunity extends to actual employers and to "statutory" employers of the injured worker. See Finlay v. Storage Technology Corp., 764 P.2d 62 (Colo.1988).

*1106 Whether a person or entity is a statutory employer is generally a question of fact. Thornbury v. Allen, 991 P.2d 885 (Colo.App.1999). However, where the facts are undisputed, the trial court's determination of statutory employment status drawn from those facts is a question of law that we review de novo. See Virginians Heritage Square Co. v. Smith, 808 P.2d 366 (Colo.App.1991).

Here, although plaintiffs actual employer was the subcontractor, Hall contends that it was plaintiffs statutory employer under § 8-41-401(1)(a), C.R.S.2008. As relevant here, that section provides that a company that contracts out any part of its business to a subcontractor is deemed an employer for purposes of the Act. Under § 8-41-401(1)(b), C.R.S.2008, both the subcontractor and the subcontractor's employees are deemed employees of the company. See Finlay v. Storage Technology Corp., swpra; Thornbury v. Allen, supra.

However, there are exceptions to the statutory employment status conferred by § 8-41-401(1)(a). One such exception, characterized by plaintiff as "dispositive" of the issue raised by Hall, is § 8-41-401(1)(a)(ID), C.R.S. 20083. This subsection was added to § 8-41-401(1)(a) in 1995, see Colo. Sess. Laws 1995, ch. 112 at 344, and has not been the subject of any reported Colorado case.

Under the plain language of § 8-41-401(1)(a)(I), no company is to be construed to be an employer if the subcontractor to whom it has contracted out part of its work has "complied with section 8-40-202(2)(b) [C.R.S. 2008] relative to such work." Section 8-40-202(2)(b) sets forth the showing required to establish that one who performs services for another is an independent contractor, not an employee. Thus, under the § 8-41-01(1)(a)(I) exception, a statutory employment relationship does not exist if the subcontractor is an independent contractor as to the general contractor.

Section 8-40-202(2)(b)(I), C.R.98.2003, provides that "independence"-that is, the status of an independent contractor rather than an employee-may be shown by a written document or other evidence establishing that, as stated in § 8-40-202(2)(a), C.R.S.2003, the individual performing services for pay for another "is free from control and direction in the performance of the service, both under the contract for performance of service and in fact and such individual is customarily engaged in an independent trade, occupation, profession, or business related to the service performed."

Section 8-40-202(2)(b)(II), C.R.38.2003, sets out nine criteria of "independence." These include, among others, that the person for whom services are performed does not: require the individual to work exclusively for him or her; establish a quality standard, "except that the person may provide plans and specifications regarding the work"; pay a salary or pay at an hourly rate instead of at a fixed or contract rate; provide more than minimal training; provide tools or benefits; or dictate the time of performance.

Evidence in the record here establishes that plaintiff's employer, the subcontractor, was independent from Hall within the meaning of § 8-40-202(2)(b). Thus, under § 8-41-401(1)(a)(I), Hall could not be deemed plaintiff's statutory employer.

The written agreement between Hall and the subcontractor provided that Hall would pay the subcontractor $551,000 to perform all earthwork and site utilities work at the project. Although Hall gave the subcontractor plans and specifications, the subcontractor was responsible for furnishing all labor, materials, equipment, and services necessary to perform the work.

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Related

Frank M. Hall & Co. v. Newsom
125 P.3d 444 (Supreme Court of Colorado, 2005)

Cite This Page — Counsel Stack

Bluebook (online)
101 P.3d 1107, 2004 WL 352680, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newsom-v-frank-m-hall-co-coloctapp-2004.