Nochta v. Industrial Commission

436 P.2d 944, 7 Ariz. App. 166, 1968 Ariz. App. LEXIS 347
CourtCourt of Appeals of Arizona
DecidedFebruary 7, 1968
Docket1 CA-IC 152
StatusPublished
Cited by9 cases

This text of 436 P.2d 944 (Nochta v. Industrial Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nochta v. Industrial Commission, 436 P.2d 944, 7 Ariz. App. 166, 1968 Ariz. App. LEXIS 347 (Ark. Ct. App. 1968).

Opinion

CAMERON, Chief Judge.

This is a writ of certiorari to review an award of the Industrial Commission which found that the petitioner, Joseph Nochta, was not an employee of Chanen Construe *167 tion Company at the time he was injured and “ordering” reimbursement for the amounts paid by the Commission for accident benefits and compensation.

We are called upon to determine whether petitioner was an employee or an independent contractor at the time of the accident on 26 October 1965.

From the Reporter’s Transcript of the hearing conducted by the Commission and from the file, the facts necessary for a determination of this matter are as follows. For several years prior to the accident petitioner, Joseph Nochta, had been doing business as Frontier Floor Finishers. In this capacity he had worked as a subcontractor for Chanen Construction Company on other jobs, and during the summer of 1965 petitioner d/b/a Frontier Floor Finishers subcontracted a “clean up” for Chanen Construction Company at Moon Valley High School. It is the testimony of petitioner that at this time he got tired of his losses in the contracting business and decided at the end of the third quarter of 1965 to cease the contracting business and work as an employee. It is his testimony that his report to the Industrial Commission for industrial insurance submitted at the end of the third quarter of 1965 contained a statement to this effect. That document was not presented by the Commission or the petitioner at the hearing, nor was petitioner’s statement in this regard contradicted by the Commission.

It was the testimony of the construction manager for respondent, Chanen Construction Company (James Raine), that petitioner had done work for the respondent company as a subcontractor for over three years, and that on the Moon Valley job in October the petitioner had to color the floor in the gym after it had been poured, and that:

“In order to minimize the expenditure by Chanen Construction we were buying the material and Joe was furnishing the labor on a cost basis.”

It was also Mr. Raine’s testimony that they seldom did business on the basis of verbal contract, and that where a subcontractor is present it is usually by written contract. He further testified that there was no written contract in regard to the work being performed in October of 1965, and that petitioner was to be paid at the rate of $4.40 per hour.

Mr. Raine was questioned by the attorney for the Fund as follows:

“Q In your capacity as construction superintendent do you know whether that job was under the supervision or control of anybody in the Chanen Construction Company ?
“A At that time it was under the control of Martin Quinn.
“Q Martin Quinn ?
“A Yes.
“Q But would he, Martin Quinn, have had any control, actually, or supervision, of Mr. Nochta except, perhaps, to show him the kind of job he wanted done?
“A I don’t suppose. There was just one room to do, and one thing to do on it, so it didn’t require, wouldn’t require much supervision.”

The testimony of the job superintendent, Martin Quinn, indicated that he hired Nochta and that he, Quinn, exercised a certain amount of control over his work, that he was to receive finisher’s wages, and that it was at his direction that Mr. Nochta was put on the payroll and that was done “about three weeks before the accident”.

Mrs. Kline, the comptroller of Chanen Construction Company, contradicted this and testified that on 26 October Mr. Nochta was acting as a subcontractor, and that sometime after the accident, “He (Mr. Quinn) came in and asked if I could possibly put Joe on the payroll for this one particular phase of the work, which was coloring of the gym floor, and I consented to do it.” Both Quinn and Mrs. Kline testified Nochta was to receive $4.40 per hour for the work done and there was no mention of a total contract price.

*168 The evidence indicates that petitioner also worked for Malouf Enterprises in October 1965 as an employee, and that Malouf made payments to the Arizona Basic Crafts Health and Welfare Trust Fund for petitioner. Chanen Construction Company filed a Quarterly Report of wages for State Unemployment Insurance for the quarter ending 3/31/66 which listed Joseph Nochta as an employee receiving $1,237.91 in wages. However, the report to the Arizona Basic Crafts Health and Welfare Trust Fund carrying the notation “Sept.-Oct. Supplemental” listing J. Nochta as an employee for September and October 1965 and enclosing the amount of $41.63 in health and welfare contributions was not filed until 21 April 1966.

The testimony is sufficient to indicate that the job performed by Mr. Nochta of finishing and staining the floor of Moon Valley High School Gymnasium was a job in which he was pretty well left on his own. At times he would have to work in the afternoon and evening after the students left. The testimony is clear, however, that there was some degree of control exercised by the employer over the petitioner.

Petitioner was injured on 26 October while moving some bleachers, and the Commission accepted jurisdiction. To add to the confusion of all concerned, after Joseph Nochta was injured, the job was completed by a cousin also named Joseph Nochta, d/b/a A-l Floors, and a draft issued 19 April 1966 was made jointly to Frontier Floor Finishers and A-l Floors.

Invoices submitted by the petitioner, Joseph Nochta, 9 and 17 October and 15 November 1965 contained the number of hours worked, and only Joseph Nochta’s name was at the top of the page with a total of $1,465.20. The invoices submitted for the work in August and September of 1965 carried the title “Frontier Floor Finishers”, Nochta’s name, and his license number. Chanen Construction Company deducted $234.07 as a backcharge for the bleachers, and no objection was made by Joseph Nochta.

After further action by the Commission an award was issued finding that Nochta was an independent contractor, and the Commission demanded the return of sums spent on his behalf.

We are called upon to determine whether or not petitioner was an independent contractor at the time of the accident. The evidence is sufficient from which the Commission could find that both petitioner’s immediate supervisor and Joe Nochta himself made an attempt to be listed as an employee of the respondent Chanen Construction Company after the accident by having payroll deductions taken from the amount that he was to receive and other acts done after the accident had occurred. These acts in and of themselves do not negate the possibility that petitioner was in fact an employee of the Chanen Construction Company at the time of the accident. Cur Supreme Court has indicated that even where the parties intend to enter into a contractual relationship, the legal result may be one of employer-employee. When this becomes apparent, the parties may take such steps as are necessary to comply with the Workmen’s Compensation Law:

“It appears that the employer acted in good faith and under the belief that Trout was an independent contractor. It was for these reasons that it failed to pay premiums.

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Bluebook (online)
436 P.2d 944, 7 Ariz. App. 166, 1968 Ariz. App. LEXIS 347, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nochta-v-industrial-commission-arizctapp-1968.