Ozan Lumber Company v. McNeely

217 S.W.2d 341, 214 Ark. 657, 8 A.L.R. 2d 261, 1949 Ark. LEXIS 617
CourtSupreme Court of Arkansas
DecidedFebruary 14, 1949
Docket4-8736
StatusPublished
Cited by44 cases

This text of 217 S.W.2d 341 (Ozan Lumber Company v. McNeely) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ozan Lumber Company v. McNeely, 217 S.W.2d 341, 214 Ark. 657, 8 A.L.R. 2d 261, 1949 Ark. LEXIS 617 (Ark. 1949).

Opinion

MiNOR W. Millwee, justice.

Appellant, Ozan Lumber Company, bas appealed from judgments rendered against it and C. M. Kirby in favor of appellees, Ruth McNeely, Pearl McClelland, J. Y. McClelland, Jr., a minor, and Wallace Moorehead, for damages on account, of injuries resulting from a collision of an automobile in which appellees were riding and a truck owned and operated by 0. M. Kirby at the time of the collision. The wreck occurred about 7:30 p. m. September 27, 1947, on U. S. highway No. 67 between Prescott and Gfurdon in Clark county.

Appellees filed separate complaints alleging that the collision was caused by the negligence of the defendants in permitting a loaded log truck to remain on the highway from 3:00 p. m. until the time of the collision without putting out lights or flares to warn appellees and others using the highway of the presence of the truck on the road.

The original complaints alleged that C. M. Kirby was the driver of the log truck and working for Ozan Lumber Company and for himself at the time of the collision. Amendments to the complaints were later filed alleging that, ‘ ‘ the' defendant, Ozan Lumber Company, was further negligent in employing C. M. Kirby to haul logs for it, knowing that he was a reckless, careless and negligent driver, or at least had this knowledge prior to the time of the accident complained of herein and was negligent in retaining him. ’ ’

The answers of appellant denied generally the allegations of the complaint and specifically that Kirby was acting for it in any capacity at the time of the accident, and further alleged contributory negligence on the part of appellees as a bar to recovery. The cases were consolidated for trial, resulting in judgments aggregating $36,000. Kirby has not appealed and it is conceded that a case was made for the jury on the question of his liability in the case.

We first consider appellant’s contention that the trial court erred in submitting to the jury the question whether C. M. Kirby was an employee of the appellant lumber company at the time of the collision. This question was submitted in instructions Nos. 1 and 4, given at the request of appellees, and special interrogatory No. 1, given by the court on its own motion, over the specific objections of appellant.

It is earnestly insisted that the undisputed evidence shows that Kirby was engaged by appellant as an independent contractor and that there was no evidence upon which to base the finding by the jury that he was acting as an employee of the company at the time of the collision. On this point appellees offered the testimony of the appellant’s vice-president showing that the company had the same kind of written contract with all its log haulers. Appellees also introduced the testimony of two other haulers, Jesse and Sidney Humphries, who stated that they paid social security and unemployment taxes on men in their employ, but that appellant carried the workmen’s compensation insurance on such employees. This testimony was objected to by appellant as being immaterial and unrelated to what was done under the contract with Kirby. In admitting the testimony, the trial court instructed the jury to disregard it unless it was also found that appellant had the same contract with Kirby.

Although Kirby was called as a witness by appellees to show that he was operating the truck which he left on the highway about 3:00 p. m., he was not questioned as to the manner of his operations under the written contract. The only other evidence showing the method of Kirby’s operations was that appellant paid one claim voluntarily and another after suit for damages resulting from collisions in which Kirby was involved. These collisions occurred two or three years prior to the one involved here and the jury’s consideration thereof was limited to the question as to whether appellant engaged Kirby knowing that he was a careless, reckless and incompetent contractor.

If it had been shown that appellant paid workmen’s compensation insurance on Kirby or his employees, such testimony would have been relevant as a circumstance to be considered by the jury in determining whether Kirby was an employee or an independent contractor of appellant. In Delamar & Allison v. Ward, 184 Ark. 82, 41 S. W. 2d 760, we beld (headnote 3): “Evidence that defendants were carrying liability insurance covering the negligence of a truck driver hauling gravel was a circumstance to be considered in determining whether the truck driver was employed by defendants or was an independent contractor. ’ ’ Since appellees failed to make the proof here, it is unnecessary to decide whether the procurement of such insurance is sufficient in itself to establish the relationship of master and servant. See, Anno: 20 A. L. A. 787; 85 A. L. R. 784.

After appellees introduced testimony showing that Kirby was engaged in hauling logs for appellant at the time of the injuries complained of, the burden rested upon the company to show that Kirby was an independent contractor. Warren, Administrator v. Hale, 203 Ark. 608, 158 S. W. 2d 51. To discharge this burden appellant introduced its written contract with Kirby, executed on September 22, 1947, and under which Kirby was operating the truck at the time of the collision five days later.. This contract contained no provision concerning the payment of workmen’s compensation insurance. We do not set out the terms of the written contract, but it is sufficient to say that under our decisions it established the relationship of employer and independent contractor between appellant and Kirby, unless there was other substantial evidence that the written contract was modified by the practice under it indicating a right of control reserved by appellant over Kirby’s manner of doing the work. Although a written contract creates the relation of employer and independent contractor, such relation may be destroyed by conduct of the employer through direction of means and methods of producing physical results, and it becomes a question of fact for the jury if there is any substantial evidence to show that such conduct became operative. Arkansas Fuel Oil Co. v. Scaletta, 200 Ark. 645, 140 S. W. 2d 684.

Appellees rely on the case of Ozan Lumber Co. v. Tidwell, 210 Ark. 942, 198 S. W. 2d 182, in which the same driver, Kirby, was involved in an auto-truck collision in 1945. The evidence in that case disclosed that Kirby was not operating under a written contract with appellant at the time of the collision and there were other circumstances, not proven in the instant case, which we held sufficient to support the jury’s finding that the relationship of master and servant existed between appellant and Kirby. We there approved the general rule stated in 27 Am. Jur., Independent Contractors, § 60, p. 539, as follows: “If a contract providing for the performance of certain work is in writing and is unambiguous, its construction is generally a question solely for the court. But where a written contract has been modified by the practice under it, or one not a party to it asserts that it does not express the real relation of the parties and produces evidence tending to show that the relation is that of master and servant, the question whether an independent contractor relationship has been created is generally for the determination of the jury.

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Bluebook (online)
217 S.W.2d 341, 214 Ark. 657, 8 A.L.R. 2d 261, 1949 Ark. LEXIS 617, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ozan-lumber-company-v-mcneely-ark-1949.