Rice v. Keystone View Co.

297 N.W. 841, 210 Minn. 227, 1941 Minn. LEXIS 744
Supreme Court of Minnesota·Decided May 2, 1941·No. No. 32,675.·Published·Cited by 13 cases

Opinion

Loring, Justice.

This case comes here on writ of certiorari to the industrial commission to review its decision of July 9, 1940, vacating the order and findings of a referee and finding that the relation of employe and employer existed between S. E. Rice, deceased, and Bell & Howell Company, relator.

The facts are as follows: Relator, an Illinois corporation doing business in Minnesota, on April 17, 1936, entered into a contract with one S. E. Rice whereby the latter agreed to promote and sell exclusively the relator’s products in South Dakota, the western half of North Dakota, and the ten northwestern counties of Iowa; to confine his solicitation and sales to the above outlined territory; to keep a representative stock of equipment on hand at all times for demonstration purposes; to contact prospective customers and schools; to answer all correspondence; and to report regularly the activities of relator’s competitors in his territory. Rice was to receive a commission for the sales he made, which was to represent gross income, out of which he was to pay all his own expenses. This agreement Avas terminable by either party on 30 days’ Avritten notice. December 23, 1936, a new contract Avas entered into between the parties Avhich was substantially the same as the original one except that Rice was assigned a neAV territory, namely, all of South Dakota, all of North Dakota except three counties, ten counties in Ioave, and three counties in Minnesota. In the main, the same arrangement existed up to the time of Rice’s death on November 16, 1937.

In the afternoon of November 15, 1937, Rice left his home at Barnesville, this state, to make a demonstration of Keystone View Company products at Watertown, South Dakota, the following *229 morning. Arrangements had been made for a demonstration of relator’s equipment at Huron in the afternoon of November 16 with the understanding that if time did not permit the demonstration at Huron at that time the demonstration was to be had the following day. On the morning of November 16, as Eice was approaching Watertown from the east on U. S. highway No. 212, he lost control of his car because of slippery ice and collided with an oncoming truck. His skull was fractured, and he died a few hours later. In his car at the time of the accident Eice carried equipment such as a projector, a lantern, slides, which he had purchased from the Keystone company and relator, and advertising material.

Eespondent, Eice’s widow, filed her petition with the industrial commission against the Keystone View Company and relator, and proceedings were had before a referee, who on November 23, 1939, made findings substantially as follows: That Eice was employed under a Minnesota contract by the Keystone company; that the relation of employe and employer did not exist between Eice and relator; that on November 16, 1937, Eice met with a fatal accident arising out of and in the course of his employment with the Keystone company. The referee ordered the Keystone company to pay respondent $42 medical expenses, $150 funeral expenses, and $13.06 a week during the dependency of her three children. The referee further ordered that the proceeding against relator be dismissed. From these findings and order, respondent and the Keystone company appealed to the industrial commission, which on July 9, 1940, vacated and set aside the referee’s findings and decided that Eice was in the concurrent employment of the Keystone company and relator and was fatally injured while in the course and scope of his employment for both companies. From this decision relator brings the case here on certiorari.

Eelator contends that Eice was not its employe at the time of his death and that he was an independent contractor. The most important element in determining whether a person is an employe or independent contractor is the control which the al *230 leged employer has or exercises over the maimer and means of performance. Herron v. Coolsaet Bros. 158 Minn. 522, 198 N. W. 134; Bosel v. Henderson Holding Co. 167 Minn. 72, 208 N. W. 421; 12 Minn. L. Rev. 83. There was a contract between Rice and relator at the time of the fatal accident which, although referred to as a “dealership” arrangement, required Rice to promote exclusively the sale of relator’s products, to contact prospective customers, whose names were forwarded to relator, to answer all correspondence pertaining to relator’s business, and to report regularly the activities of relator’s competitors. In addition, in a great many instances relator gave Rice directions and suggestions as to how to handle certain situations, what prospects to contact, and the reports and information he should give it in certain dealings. A large number of letters of this type from relator to Rice were introduced in evidence at the trial. We think the facts show the exercise by relator of a degree of control over its representative sufficient to sustain the decision of the commission that Rice was not an independent contractor but was an employe at the time of his death.

Relator also contends that the contract of employment was not a Minnesota contract for hire. With this we do not agree. During the spring of 1936 Rice wrote relator expressing his desire to represent its products. Continued negotiations finally resulted on April 17, 1936, in relator’s sending to Rice at Barnesville, this state, for his acceptance, a contract assigning to him territory in North Dakota, South Dakota, and Iowa. The new contract, dated December 23, 1986, assigning Rice three counties in Minnesota and other out-of-state territory was also sent to Barnesville for his acceptance. The contract of employment was accepted in Minnesota. C. R. I. & P. Ry. Co. v. Lundquist, 206 Iowa, 499, 221 N. W. 228; 2 Beale, Conflict of Laws, § 325.1, p. 1069; Restatement, Conflict of Laws, § 326.

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Rice v. Keystone View Co., 297 N.W. 841, 210 Minn. 227, 1941 Minn. LEXIS 744 (Mich. 1941).

297 N.W. 841 (Rice v. Keystone View Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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