State v. Joule Technical Corp.

315 A.2d 697, 126 N.J. Super. 496
CourtNew Jersey Superior Court Appellate Division
DecidedFebruary 7, 1974
StatusPublished
Cited by4 cases

This text of 315 A.2d 697 (State v. Joule Technical Corp.) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Joule Technical Corp., 315 A.2d 697, 126 N.J. Super. 496 (N.J. Ct. App. 1974).

Opinion

126 N.J. Super. 496 (1974)
315 A.2d 697

STATE OF NEW JERSEY, DEPARTMENT OF LAW AND PUBLIC SAFETY, BOARD OF EXAMINERS OF ELECTRICAL CONTRACTORS, PLAINTIFF-RESPONDENT,
v.
JOULE TECHNICAL CORPORATION, DEFENDANT-APPELLANT.

Superior Court of New Jersey, Appellate Division.

Remanded May 18, 1973.
Reargued December 10, 1973.
Decided February 7, 1974.

*497 Before Judges LYNCH, MEHLER and MICHELS.

Mr. Charles K. Kurebanas argued the cause for appellant.

Mr. Bertram P. Goltz, Jr., Deputy Attorney General, argued the cause for respondent (Mr. George F. Kugler, Jr., Attorney General, attorney; Mr. Stephen Skillman, First Assistant Attorney General, of counsel).

The opinion of the court was delivered by LYNCH, J.A.D.

The issue in this case is whether appellant Joule Technical Corporation (Joule) is engaged in the business of an "electrical contractor," within the meaning of N.J.S.A. 45:5A-1 et seq., which requires anyone engaged in such business to obtain a license from the Board of Examiners of Electrical Contractors (Board). N.J.S.A. 45:5A-9. Joule contends that it is not engaged in such business and needs no license from the Board to do so.

On August 24, 1972 the Board, after a hearing, rendered a decision reaffirming a previous determination by it that Joule was engaged in the business of electrical contracting *498 and imposed a penalty of $200.[1] Joule appealed to this court which, pursuant to an unreported per curiam opinion of May 18, 1973, remanded the matter to the Board for a full hearing, with directions that it make express findings of fact as to the nature of Joule's operation, and conclusions of law. We retained jurisdiction.

A hearing was held before the Board's hearing officer, who thereafter filed findings of fact, conclusions, and recommendations. He recommended that the Board rescind its previous decision that Joule was an "electrical contractor" and remit any fines collected. Upon review the Board rejected the hearing officer's recommendation and reaffirmed its previous position. That determination is now before us for decision.

In making his findings of fact, the hearing officer accepted the testimony which was uncontradicted and which generally described Joule's operation as follows. It hired out temporary employees, including electricians, to companies which needed them as "fill-ins" on a temporary basis. The incident which gave rise to this proceeding involved Joule's providing an electrician to Celanese Corporation. The employee was on Joule's payroll but under the complete supervision of Celanese. After the employee's payroll taxes and fringe benefits, as well as Joule's overhead and profit, were deducted, the employee received the remainder.

The hearing officer concluded:

It is clear from the evidence adduced at this hearing that [Joule] was not in the business of being an electrical contractor, rather they were in the business of supplying manpower on an hourly basis for industries' temporary needs. Modern industry has a need from time to time for fill-ins or temporary help, both technical and otherwise. Service companies spring up to supply this need, and Joule Technical Corporation is just one such company.

*499 The Board, after reviewing the transcript of the hearing and considering the hearing officer's recommendations, made its own "Findings of Fact." In their entirety they were stated:

FINDINGS OF FACTS

1. Between April and October, 1971, Joule Technical Corporation entered into a contract or contracts to supply Celanese with an electrician.

2. Said electrician, one W. Dmytreshin, performed various duties in connection with the maintenance of electrical facilities at the Celanese plants located in Clark and Summit, New Jersey.

3. Mr. Dmytreshin performed such electrical work without the supervision of a licensed electrical contractor, nor is he [sic] a regular employee of Celanese who is a qualified journeyman electrician.

The Board concluded that the facts thus found established Joule as an "electrical contractor" within the statutory definition thereof contained in N.J.S.A. 45:5A-2(d). That definition reads as follows:

"Electrical contractor" means a person who engages in the business of contracting to install, erect, repair or alter electrical equipment for the generation, transmission or utilization of electrical energy; * * *.

Was Joule, then, "contracting" to install, erect or repair electrical equipment when it hires out an electrician as a "fill-in" to another company?

Websters' New International Dictionary of the English Language (2d ed. 1950), 579, defines "contractor" as follows:

One who contracts; a party to a bargain; one who formally undertakes to do anything for another; specif., one who contracts to perform work, or supply articles on a large scale, at a certain price or rate, as in building houses or provisioning troops. Such a contractor specializing in a [specified] material or type of work, as in:

advertisement coal contractor road contractor contractor stone contractor timber contractor

For a person to come within the statutory definition of "contractor," it is clear that he must be undertaking to do *500 the work. It is also evident that, if he engages someone (as an electrician) to do it, the alleged "contractor" is not himself undertaking to do the work unless the person he engages (the electrician) is his servant or agent. Conversely, if that person is not the alleged "contractor's" servant or agent but the work as the servant or agent of the company to whom he is hired out (here Celanese), then the latter (vicariously through the hired electrician), is doing the work and the alleged "contractor" has not undertaken to do it.

When a servant is directed or permitted by his master to perform services for another, he may become the servant of such other. The question of whether the general employer, or the special employer, is the master turns largely upon the decision as to who has the right to exercise control over the servant. Younkers v. Ocean County, 130 N.J.L. 607, 608 (E. & A. 1943). We are not unmindful of differences of opinion as to the influence of the "right of control" test in determining a master and servant relationship, and that, indeed, it depends upon whether the issue involves liability to third persons, or liability of the employer to employee or other considerations. See concurring opinion by Judge Schettino in Devone v. Newark Tidewater Terminal, Inc., 14 N.J. Super. 401, 406 (1951) (concurring opinion). True, the "right of control" standard is not the sole test of the master and servant relationship, but it is the predominant one. See Falk v. Unger, 33 N.J. Super. 589 (App. Div. 1955). So too, in Devone v. Newark Tidewater Terminal, Inc., supra, the majority opinion recognized the "control" test as "not merely the important one, but decisive" and the law of New Jersey. 14 N.J. Super. at 405.

We are aware that, in Viggiano v. Reppenhagen, 55 N.J. Super. 114 (App. Div. 1959), where defendant rented a car and driver to another and the driver struck and injured one of the rentee's employees, it was held that the driver remained defendant's master so as to hold it vicariously liable for the injuries.

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