Searfus v. Northern Gas Company

472 P.2d 966, 1970 Alas. LEXIS 156
CourtAlaska Supreme Court
DecidedJuly 31, 1970
Docket1148
StatusPublished
Cited by34 cases

This text of 472 P.2d 966 (Searfus v. Northern Gas Company) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Searfus v. Northern Gas Company, 472 P.2d 966, 1970 Alas. LEXIS 156 (Ala. 1970).

Opinion

RABINOWITZ, Justice.

Appellant Alydane Searfus brought an action for personal injuries against appel-lee Northern Gas. In its answer, Northern Gas denied any negligence on its part, asserted that Alydane Searfus was contribu-torily negligent, and as a separate affirmative defense contended that since appellant was its employee at the time the accident happened her sole remedy was under the Alaska Workmen’s Compensation Act. A superior court jury returned a general verdict in Northern Gas’ favor and by special interrogatory found that Alydane Searfus was an employee of Northern Gas.

The gist of appellant’s appeal is that the trial court erroneously defined the term “employee” in its instructions to the jury and erroneously instructed on the effect which the jury was required to give to a determination that an employment relationship existed between Northern Gas and appellant. Study of the record and applicable law has led us to the conclusion that the superior court’s judgment should be affirmed.

Regarding Northern Gas’ defense that appellant’s exclusive remedy was under the Workmen’s Compensation Act, the trial court instructed that:

The relation of master and servant arises out of a contract of employment between a master or employer and a servant or employee, and usually contemplates the employer’s right both to prescribe the end and to direct the means and methods of doing the work. In a specific sense a servant is one who represents the will of the master, not only in the ultimate result of the work but in the details by which the result is accomplished.

In determining this question four principal factors may be considered, namely:

(1) Direct evidence of the right to control or the exercise of control;
(2) Method of payment;
(3) Furnishing of equipment; and
(4) The right to terminate the employment relationship

*968 This instruction was based upon our decision in Cordova Fish & Cold Storage Co. v. Estes, 370 P.2d 180, 184 (Alaska 1962), and reflects the reliance placed upon that decision by the trial court and counsel for both parties to this appeal. In Cordova, we said that

one is to be regarded as an employee if the principal has the right to control the details of the work. 1

Perhaps overlooked at trial is the fact that the Cordova opinion rests on a statutory provision which was repealed in 1959. 2 The controlling statutory provision in Cor-dova read as follows:

Any person rendering service for another, other than as an independent contractor, * * * is presumed to be an employee within the meaning of this Act. The term “independent contractor” shall be taken to mean, for the purposes of this Act, any person who renders service, other than manual labor, for a specified result, under the control of his principal as to the result of his work only and not as to the means by which such result is accomplished. 3
(emphasis added)

Using the foregoing as a guiding criterion, we said in Cordova that:

It is clear from the Board’s decision that it had evidence before it on the four principal factors showing right of control, namely: (1) direct evidence of right or exercise of control; (2) method of payment; (3) furnishing of equipment; and (4) the right to fire. 4

Since our compensation act has no provision comparable to the one construed in Cordova, there is now no controlling authority, in case or statute, defining “employee.” 5 Counsel for appellant states that the Cordova decision is “directly in point,” and then argues that Northern Gas did not produce any evidence as to the requisite four factors establishing its right to control the details of Alydane Searfus’ work.

We hold that the trial court’s instruction defining “employee” was not prejudicial error. Most jurisdictions define “employee” as a servant in the master-servant sense. 6 Alaska’s present compensation act treats some persons as “employees” who are not servants and excludes some servants from the category of employee. For example, an uninsured subcontractor’s employees are considerd employees of the contractor, though they are not servants of the contractor; 7 part-time baby sitters, cleaning persons, and harvest help are not treated as employees, though they may be servants in the common law sense. 8 Use of the common law definition of “servant” as the definition of “employee” for workmen’s compensation purposes has been sub *969 jected to thoughtful criticism. 9 To a large extent we are in accord with criticism of the master-servant test of control. In our view, such an approach employs too narrow a criterion for determination of employee status in light of the rationale of compensation acts. In Gordon v. Burgess Construction Company, 425 P.2d 602, 605 (Alaska 1967), we said:

The social philosophy responsible for workmen’s compensation legislation has been well expressed by Professor Larson as follows:
“The ultimate social philosophy behind compensation liability is belief in the wisdom of providing, in the most efficient, most dignified, and most certain form, financial and medical benefits for the victims of work-connected injuries which an enlightened community would feel obliged to provide.”

Professor Larson states that the theory of compensation legislation is that the costs of all industrial accidents should be borne by the consumer as a part of the cost of the product. From this principle, Professor Larson infers that “the nature of the claimant’s work in relation to the regular business of the employer” should be the test for applicability of workmen’s compensation, rather than the master-servant test of control which has been developed to delimit the scope of a master’s vicarious liability to third persons for torts committed by his servants.

It follows that any worker whose services form a regular and continuing part of the cost of that product, and whose method of operation is not such an independent business that it forms in itself a separate route through which his own costs of industrial accident can be channelled, is within the presumptive area of intended protection. 10

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Bluebook (online)
472 P.2d 966, 1970 Alas. LEXIS 156, Counsel Stack Legal Research, https://law.counselstack.com/opinion/searfus-v-northern-gas-company-alaska-1970.