Smith v. Price Bros. Co.

131 F.2d 750, 25 Ohio Op. 481, 1942 U.S. App. LEXIS 2941
CourtCourt of Appeals for the Sixth Circuit
DecidedDecember 1, 1942
DocketNo. 9285
StatusPublished
Cited by4 cases

This text of 131 F.2d 750 (Smith v. Price Bros. Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Price Bros. Co., 131 F.2d 750, 25 Ohio Op. 481, 1942 U.S. App. LEXIS 2941 (6th Cir. 1942).

Opinion

HAMILTON, Circuit Judge.

Appellant, Frank Smith, complains of the ruling of the lower court directing the jury peremptorily to find a verdict for the appellee, Price Brothers Company.

Taking the view of the evidence most favorable to the appellant, the facts are that appellant suffered severe fractures of the vertebi'ae while working on a scaffold from which he claims he was caused to fall by reason of the negligence of appellee.

Appellee, Price Brothers Company, was the general contractor for construction of a building at Toronto, Ohio, and in connection therewith a partnership, of which appellant was a member, made a written pi'oposal to the appellee to clean certain parts of the building which proposal was accepted. The pertinent part of this proposal is found in the margin.1

Appellant and his partner, Frank P. Meglan, commenced work under this contract on June 17, 1940, and on June 18, 1940, while appellant was standing on a swinging platform, a hoisting cable being operated by employees of appellee doing a different part of the work, struck the swinging platform causing appellant to fall. He was taken immediately to the Ohio Valley Hospital at Steubenville, Ohio, where after examination, his physician found him to be suffering from shock, a broken neck, contusions on his head, neck and spine with involvement of the ulnar nerve. He was treated for three days for shock and then placed in a plaster cast which he wore until October, after which he was placed in a neck brace, which he continues to wear.

On the morning after the accident, appel-lee’s purchasing agent and paymaster prepared and signed a written acceptance of appellant’s partnership proposal and antedated it June 12, 1940. It was therein stated: “In accordance with second paragraph of his proposal, we to carry ycur men on our payroll at mason’s wages ($1.75 per hr.) total cost not to exceed $560. less $20.00 for acid.”

[753]*753Thereupon appellee’s paymaster caused the name of the appellant and his partner, Frank P. Meglan, to be placed on appel-lee’s payroll records as its employees. On the day this was done appellee’s purchasing agent stated to Meglan that by antedating appellee’s acceptance of the partnership contract and making the addition thereto just stated and by placing the names of the members of the partnership on ap-pellee’s payroll record, appellant would be eligible to obtain compensation from the State Insurance and Occupational Disease Fund through the Industrial Commission of Ohio. Meglan, appellant’s partner, stated to appellee’s purchasing agent that if the purchasing agent was of the opinion that was the best thing to do, it was all right. Appellant had no knowledge of these transactions.

On June 19, 1940, the morning after the accident, appellee’s paymaster prepared, in the name of the appellant, an application to the Industrial Commission of Ohio seeking payment of compensation, medical service and hospitalization, on the ground appellant was an employee of appellee. Some of the facts stated in the application were furnished by appellant’s partner, Meglan. Appellee’s paymaster gave the application to Dr. Ben L. Casey, appellant’s first attending physician, who completed the medical part. About four days after the accident Dr. Casey took this application to the hospital and had appellant sign it. The claim was then mailed (by someone whose name is not shown in the record) to the Industrial Commission of Ohio at Columbus, Ohio, and was allowed by the Commission. Subsequently all of appellant’s hospital and medical hills were paid out of the State Insurance and Occupational Disease Fund, and compensation was paid also to appellant to and including October 26, 1941, all of which he has retained.

Dr. Casey, who died before the trial in the lower court, was physician for the Ohio Edison Company, which corporation was the owner of the building on which appellant was working at the time of his injury. Appellant testified at the time he signed the application he was advised by Dr. Casey it was made to the State of Ohio and appellant believed because the partnership of which he was a member had paid into the State Insurance and Occupational Disease Fund, the premiums required to entitle it to the rights and benefits of said fund, that he was applying for insurance benefits from that source. Appellant said he continued in this belief until his deposition was taken in this case in October 1941, at which time he learned that he had been receiving insurance on the ground that he was an employee of the appellee, Price Brothers Company.

Appellant also testified that at the time he signed the application presented to him by Dr. Casey, he did not read it and was unaware that it showed he was an employee of appellee. He also testified that at the time the paper was signed he was in bed at the hospital, encased in a cast and suffering great pain, mental and physical, and was under the influence of opiates.

On June 26, 1940, appellee issued its check for $27.72 with appellant as payee and noted thereon “Registered F-4945-$27 and 72{5,” which check was accepted by appellant, indorsed and cashed.

Appellant commenced this action against appellee on February 15, 1941, by an amended complaint, it having been originally filed October 1, 1940, against the Babcock & Wilcox Company, and the Bab-cock & Wilcox Tube Company. On October 8, 1940, appellant’s attorneys, pursuant to written authority from appellant, examined the files of the Industrial Commission of Ohio at Columbus, Ohio, which files showed that appellant was receiving compensation insurance as an employee of appellee at the time of his injury. The partnership of Frank P. Meglan & Company was a contributor to, and entitled to all the rights and benefits of, the Ohio Workmen’s Compensation Fund, at the time appellant was injured. The lower court concluded as a matter of law that appellant having filed his application for Workmen’s Compensation with the Industrial Commission of Ohio and his claim having been allowed and paid by the Commission, he was estopped from instituting this action.

Under the laws of Ohio a person who renders service to another in the course of an occupation representing the will of his employer only as to the result of his work, and not as to the means by which it is accomplished, is an independent contractor and not an employee of his employer. City of Cincinnati v. Stone, 5 Ohio St. 38; Hughes v. Railway Company, 39 Ohio St. 461; Schickling v. Post Publishing Company, 115 Ohio St. 589, 155 N. [754]*754E. 143; Industrial Commission of Ohio v. McAdow, 126 Ohio St. 198, 184 N.E. 759.

Applying this rale of law to the facts we have here, appellant was an independent contractor and not an employee of appellee at the time of his injury. Appellee had no control over the manner or method of performing the services required of appellant under the employment contract.

Employee members of a partnership, firm or association are not embraced within the terms “workmen” and “employees” as used in Section 35 of Article 2 of the Constitution of Ohio relating to Workmen’s Compensation, and the General Assembly of the State lacked the power to provide for compensation for employee-members of a partnership, firm or association. Goldberg v. Industrial Commission of Ohio, 131 Ohio St. 399, 3 N.E.2d 364.

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Bluebook (online)
131 F.2d 750, 25 Ohio Op. 481, 1942 U.S. App. LEXIS 2941, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-price-bros-co-ca6-1942.