Sam Horne Motor and Implement Company v. Gregg

279 S.W.2d 755, 53 A.L.R. 2d 626, 1955 Ky. LEXIS 530
CourtCourt of Appeals of Kentucky (pre-1976)
DecidedMay 20, 1955
StatusPublished
Cited by35 cases

This text of 279 S.W.2d 755 (Sam Horne Motor and Implement Company v. Gregg) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky (pre-1976) primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sam Horne Motor and Implement Company v. Gregg, 279 S.W.2d 755, 53 A.L.R. 2d 626, 1955 Ky. LEXIS 530 (Ky. 1955).

Opinion

CLAY, Commissioner.

Plaintiff suffered personal injuries when the automobile in which she was riding as a passenger collided with one driven by defendant Spangler. She recovered a judgment for $6,000 against both Spangler and his alleged employer, the defendant company.

The principal contention on this appeal is that Spangler was an independent contractor and therefore the defendant company was not liable.

Spangler was an automobile salesman who was compensated on a commission basis. He was authorized to take automobiles from the company’s used car lot for demonstration purposes. He had been instructed not to take a vehicle from the lot unless he had a prospect with him, and not to demonstrate one after 5:30 p. m. He was not authorized to close any sale, this being done by officials of the company.

The accident happened about 7:00 p. m. Spangler was taking one of the company cars home for the purpose of demonstrating it the next morning to his son-in-law who was spending the night with him. He was not acting on any specific instructions, and there was no proof of supervision by the company with respect to the hours he worked, who he interviewed, or how he demonstrated an automobile to prospective buyers.

Many factors enter into the determination of whether or not at the time a tort is committed a person is the servant of another or is an independent contractor. It is not necessary that the person occupy the same position with respect to another at all times or for all purposes.- The question always concerns the nature of the relationship at the time the injury occurred.

' In Restatement of the Law, Agency, Section 220(2), are set forth the nine most significant facts to be considered in determining whether one acting for another is a servant or an independent contractor. They are:

"(a) the extent of. control which, by the agreement, the master may exercise over the details of the work;
*757 “(b) whether or not the one employed is engaged in a distinct occupation or business;
“(c) the kind of occupation, with reference to whether, in the locality, the work is usually done under the direction of the employer or by a specialist without supervision;
“(d) the skill required in the particular occupation;
“(e) whether the employer or the workman supplies the instrumentalities, tools, and the place of work for the person doing the work;
“(f) the length of time for which the person is employed;
“(g) the method of payment, whether by the time or by the job;
“(h) whether or not the work is a part of the regular business of the , employer; and
“(i) whether or not the parties believe they are creating the relationship of master and servant.”

We will leave (a), the matter of control, to later discussion because it is closely inter-related with the other aspects of the relationship. Concerning the other factors, let us examine Spangler’s relationship to the defendant company.

(b) Spangler was not engaged in a dis^ tinct occupation or business. While he was ■employed part-time by another company, he had no independent business of his own. Under this test his position is more that ■of an agent or servant than an independent ■contractor.

(c) With respect to the kind of occupation, it cannot be said that Spangler was a specialist with unusual training and skill. This seems evident because of the fact that he was not authorized to complete transactions with prospective buyers. As a matter of fact, he could not complete a specific job of selling an automobile, and in that respect the work was definitely under the direction of defendant company. The application of this test indicates the master-servant relationship.

(d) The question of the skill of Spangler is answered by.what we have just said.

(e) Clearly the defendant company furnished the instrumentality and the place of Spangler’s work. When working for it he would normally be either on the company’s lot or in one of its automobiles. This seems a most important consideration in this case for the reason that the instrumentality causing the injury was not only owned by the defendant company but its use at the time was for the specific and only purpose for which Spangler was employed. In the traveling salesmen cases the vehicle usually involved is a means! of transportation. The automobile here' involved was more than a means of transportation, its prospective sale for the company being the very object of its use. This use will be further discussed when we consider the matter of control.

(f) With respect to the length of time for which Spangler was employed, the terms thereof are not shown in this record. It is evident to us that the relationship between him and the company could be terminated by either at will because of the nature of the services performed by Spang-ler. In Bowen v. Gradison Construction Company, 236 Ky. 270, 32 S.W.2d 1014, we pointed out that the right of the employer to terminate the employment at any time may be incompatible with the independent contractor relationship.

(g) With respect to the method of payment, it must be conceded that Spangler was paid by the job, which would be the completed sale- of a motor vehicle. This test indicates the existence of the independent contractor relationship.

• (h) Clearly Spangler’s work was a part of the regular business of the defendant company. They were both engaged in the same business and Spangler’s rights, duties and responsibilities were of a subordinate character. ¡’This tends to put him in the category of an employee.

*758 (i) In a letter written by the highest official of the company to its local manager concerning the use of the company’s automobiles for demonstration purposes, Spang-ler appears to have been classed with the other “employees” of the company. While the intention of the parties is not controlling, this fact indicates the parties believed the relationship of master and servant existed.

Considering all of the factors above mentioned, it is evident that Spangler may be' more fittingly characterized as an employee or servant than as an independent contractor. This' brings us to the question of control by the company, which is probably She most significant consideration because by exercising the right of control the em-rployer is afforded a means of protecting himself from such liability as is here sought to be imposed. See Bowen v. Gradison Construction Company, 236 Ky. 270, 32 S.W.2d 1014, above cited.

Defendant company relies principally upon the case of Shedd Brown Mfg. Co. v. Tichenor, Ky.1953, 257 S.W.2d 894.

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Bluebook (online)
279 S.W.2d 755, 53 A.L.R. 2d 626, 1955 Ky. LEXIS 530, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sam-horne-motor-and-implement-company-v-gregg-kyctapphigh-1955.