Tayloe Paper Co. v. W. F. Jameson Construction Co.

364 S.W.2d 882, 211 Tenn. 232, 15 McCanless 232, 1963 Tenn. LEXIS 345
Tennessee Supreme Court·Decided February 7, 1963·Published·Cited by 7 cases

Opinion

Mr. Justice Burnett

delivered the opinion of the Court.

This suit was filed by a sub-contractor against the general contractor for contribution on a judgment that was rendered in a Workmen’s Compensation case against both the sub-contractor and the general contractor under sec. 50-915, T.C.A., when both of these parties were cast in a Workmen’s Compensation action for injuries to an employee of a contractor working under the sub-contractor. The Chancellor held that the sub-contractor was entitled to a judgment against the contractor for one-half of the amount paid on this award by the sub-contractor. Exceptions were taken and the question has been seasonably appealed to this Court, where after hearing argument, reading the briefs and studying the authorities, we now have the matter for disposition.

In 1957 the Memphis Park Commission entered into a contract with W. P. Jameson Construction Company, Inc. (appellant herein) for the construction of a community center and swimming pool at Prayser. Thereafter the general contractor, Jameson, entered into a contract with Tayloe Paper Company, Inc., for the furnishing and installation of basketball backstops and other things in the community center. Tayloe entered into a contract with one A. C. Murrell for the installation of the basketball backstops, etc. One Wells was an employee of Murrell and was injured while on the work involved under this contract. Murrell did not have five employees and thus could not be held for Workmen’s Compensation under our Act, therefore pursuant to reasons set forth by this Court in Bowling v. Whitley, 208 Tenn. 657, 348 S.W.2d 310, the sub-contractor and general contractor who had [235] been made parties pursuant to statute (sec. 50-915, T.C.A.) were cast in this lawsuit. After this judgment was rendered an execution was issued and Tayloe paid the entire judgment. The present suit is by this sub-contractor against Jameson, the general contractor for contribution.

The statute under which this liability was placed on the sub-contractor and general contractor sec. 50-915, T.C.A., insofar as here pertinent, reads:

“A principal, or intermediate contractor, or subcontractor shall be liable for compensation to any employee injured while in the employ of any of his subcontractors and engaged upon the subject-matter of the contract to the same extent as the immediate employer.”

The purpose of such a statute is to protect the employees of sub-contractors who are not financially responsible, and to prevent employers from relieving themselves of liability by doing through others what they would otherwise do through direct employees. The reasons are more fully set forth in the Whitley case, above referred to. This statute (sec. 50-915, T.C.A.) has been before this Court at various times, but the question here presented of the rights of one of those cast where they are not the immediate employer has never been determined in this State. Insofar as we can find there are very few reported cases on the question in foreign jurisdictions. We though have found one case which to our mind correctly settles the principles under the terms of this Act. We will hereinafter fully refer to this case.

[236] This Court had before it this statute in Reynolds & Co. v. McKnight, 177 Tenn. 228, 148 S.W.2d 357, and in that case said:

“The principal contractor and the subordinate contractors being by statute made liable, ‘to the same extent’ as immediate employer, they are jointly, or jointly and severally, liable, and under Code Section 8611 (now sec. 20-109, T.C.A.) all of them may he sued in the same action.”

The case most nearly in point, and which appeals to us in reason and logic, is that of Johnson v. Mortenson, 110 Conn. 221, 147 A. 705, 66 A.L.R. 1428, and the question here involved is briefly annotated beginning at page 1433. When running down this annotation through the Blue Books A.L.R., we find that there have been a number of cases over the years referred to in this annotation. We have not had an opportunity to read all of these cases. The reasoning and logic of the Johnson case though is that since the statute of Connecticut does not provide any method whereby the liability as between the contractor and the sub-contractor when cast in a suit of the kind under a similar statute to that here (sec. 50-915, T.C.A.), the question of the right to recover must be determined on equitable principles.

The Johnson case differs from the instant case only in that in the Johnson case an employee of a sub-contractor was injured and in his action, similar to that herein, he recovered Workmen’s Compensation against both the sub-contractor and the general contractor. The sub-contractor did not have insurance coverage, and the general contractor was cast in the Workmen’s Compensation action. This reported case is a suit of Johnson, the gen[237] eral contractor, .to recover against this snb-contractor for the award made the employee of the snb-contractor. The Connecticnt conrt discusses various Compensation Acts and points out the differences between some of these different state Acts. It is pointed out that in some states the Act itself imposes primary liability on a sub-contractor as the immediate employer, making’ the principal contractor only secondarily liable, while others have other provisions. The Connecticut Act made no distinction and in Connecticut the sub-contractor and the general contractor, without distinction between them, were made liable for the compensation to an injured employee very much as our Act does. The Connecticut Court said:

“The object of such provisions as those contained in section 5345 is to afford full protection to workmen, by preventing the possibility of defeating the act by hiring irresponsible contractors or subcontractors to carry on a part of the employer’s work. * * * This object in no way concerns the further and distinct consideration— the rights of principals and contractors and subcontractors between themselves. ’ ’

Our Act makes no provision.

Thus after pointing out various things that the Legislature of Connecticut might have done that court said:

“The answers to the questions reserved must be sought, not through construction of or implication from our Workmen’s Compensation Act, but by application of general principles growing out of the relations, to each other, of the parties to this action and the situation resulting from the application of section 5345, as [238] between them, on the one hand, and the claimants on the other.”

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Tayloe Paper Co. v. W. F. Jameson Construction Co., 364 S.W.2d 882, 211 Tenn. 232, 15 McCanless 232, 1963 Tenn. LEXIS 345 (Tenn. 1963).

364 S.W.2d 882 (Tayloe Paper Co. v. W. F. Jameson Construction Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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