Qualp v. James Stewart Co.

109 A. 780, 266 Pa. 502, 1920 Pa. LEXIS 598
Supreme Court of Pennsylvania·Decided March 8, 1920·No. Appeal, No. 16·Published·Cited by 57 cases

Opinion

Opinion by

Mr. Justice Kephart,

Do the facts as found by the referee under the law sustain the allowance of the award? is the only question raised by this appeal.

James Stewart Co., Inc., made a contract with one Hibbs to perform the work covered by his contract with the owner, according to plans and specifications furnished by the Stewart Co. Hibbs in turn made an agreement with Wolfarth & Greenfield to perform the same work according to the same plans and specifications. A laborer employed by Wolfarth & Greenfield died from an injury received during the course of his employment. His widow claimed and was allowed compensation from the Stewart Co., the original contractor; which the compensation board and the court below refused to disturb; the Stewart Co. and its insurer appeal. The referee found, in addition to the foregoing facts, that the work performed upon the premises was a part of the regular business of the Stewart Co., and it had control over that part of the building where the work was being performed by the second contractor. This company had no control over the employees of Wolfarth & Greenfield, nor had Hibbs, the intermediate subcontractor. Both were interested in securing completion of the work in accordance with the plans and specifications. It does not appear the Stewart Co. knew of the subcontract to Wolfarth & Greenfield.

Appellants resist the claim for the reasons: (1st) that it was not an employer under section 302 (b) of the Act of June 2,1915, P. L. 736; (2d) Wolfarth & Greenfield was not a “contractor” and claimant’s husband was not “a laborer hired by an employee or contractor” under the foregoing section; (3d) to hold otherwise would render section 302 (b) unconstitutional.

In determining liability under the Workmen’s Compensation Law, we must be guided by the clear intendment of the act as expressed by the words and definitions there used; if prior judicial decisions tend to limit or [507] curtail tbe effect of words and phrases that are used with a certain meaning defined by theyict, tbe legal rule announced by sucb decisions must give way to what tbe lawmaking body prescribed tbe use and meaning of tbe words to be. Sucb action witbin tbe legislative authority must control. Section 302 (b) of article III reads : “After December 31, 1915, an employer who' permits tbe entry, upon premises occupied by him or under bis control, of a laborer or an assistant hired by an employee or contractor, for tbe performance upon sucb premises of a part of tbe employer’s regular business entrusted to that employee or contractor, shall be conclusively presumed to have agreed to pay to sucb laborer or assistant compensation in accordance with tbe provisions of article III.”

Tbe Stewart Co., as original contractor in control of tbe premises to perform tbe work it bad engaged to do, is regarded by tbe Workmen’s Compensation Law as tbe employer to those engaged on or about work witbin tbe scope of tbe undertaking. It was tbe first, so far as claimant is concerned, to assume charge of tbe premises and to agree to do tbe work looking to at least a partial completion of tbe structure or^enterprise as contemplated by tbe owner. This relation of employer to those employed about tbe premises includes only those whose work is a part of that embraced witbin tbe terms of tbe employer’s contract with tbe owner. Tbe work of a contractor, on tbe same premises, in furtherance of tbe owner’s general plan, on tbe same structure or enterprise, performing under another and different contract with tbe owner, is, as to tbe person under consideration, tbe work of an independent contractor under tbe law, and bis employees or those under him must look to Mm for compensation. Each is separate and distinct, operating witbin Ms own sphere, though engaged on tbe same general work.

The claimant, a laborer on tbe premises under tbe employer’s control, was engaged by a contractor to do' a [508] part of the work undertaken by the original contractor; this work was a part of the employer’s regular business; made so by his contract with the owner.

The work so performed by the laborer was intrusted by the original contractor to a contractor ordinarily known as a subcontractor, who, by the terms of the act, is included in the designation “contractor.” He is a subcontractor because his contract is subordinate to and under the principal contract, though in the business world he may be independent; but as regards this transaction his contract is a dependent one wherein he agrees to do all or a part of that which another has agreed to do. This subcontractor in turn “entrusted” the same work to another “contractor” (a second subcontractor) who employed claimant. The essential consideration is, that the work of the original contractor, to be performed under his contract, was entrusted to a contractor (a subcontractor being under this designation), to be carried out as part of the original contractor’s regular business. The act did not intend to limit the “hiring a laborer” to a “contractor” standing in immediate contractual relation with the employer (original contractor); it intended to include those laborers or employees who did work in furtherance of the employer’s business, who were employed by any one having a lawful right or duty to engage in the business undertaking by the employer; the section of the act reads, in substance, an employer who permits, upon premises under his control, a laborer hired by a contractor for the performance of a part of the employer’s regular business entrusted to that contractor. Certainly a stranger, without lawful authority from or through the employer (original contractor), could not force himself into a position where the employer would be held for compensation liability to his (the stranger’s) employees. He must be entrusted with the work by one who had the right to so entrust him, and this right has been so broadened by the terms of the act as to exclude some of the ordinary rules of master and servant, prin[509] cipal and agent, contractor and contractee, as applied and understood at common law.

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Qualp v. James Stewart Co., 109 A. 780, 266 Pa. 502, 1920 Pa. LEXIS 598 (Pa. 1920).

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