Teel v. Superior Scrap Metals

675 So. 2d 1169, 1996 La. App. LEXIS 1022, 1996 WL 252706
CourtLouisiana Court of Appeal
DecidedMay 15, 1996
Docket95-CA-969
StatusPublished
Cited by4 cases

This text of 675 So. 2d 1169 (Teel v. Superior Scrap Metals) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Teel v. Superior Scrap Metals, 675 So. 2d 1169, 1996 La. App. LEXIS 1022, 1996 WL 252706 (La. Ct. App. 1996).

Opinion

675 So.2d 1169 (1996)

Kelly TEEL, Sr.
v.
SUPERIOR SCRAP METALS.

No. 95-CA-969.

Court of Appeal of Louisiana, Fifth Circuit.

May 15, 1996.

*1170 James C. Klick, Herman, Herman, Katz & Cotlar, New Orleans, for Plaintiff/Appellant.

Jacqueline L. Egan, Baton Rouge, for Defendant/Appellee.

Before BOWES and WICKER, JJ., and CHARLES V. CUSIMANO, II, J. Pro Tem.

WICKER, Judge.

Kelly Teel, Sr. (Teel), a subcontractor, filed a claim for worker's compensation benefits against Superior Scrap Metals (Superior), the contractor, for alleged injuries from an explosion. Teel had no worker's compensation insurance at the time of the accident. Teel argued before the hearing officer that he was a covered employee of himself, a subcontractor, under La.R.S. 23:1061. The hearing officer denied benefits on the basis Teel was not covered under Superior's worker's compensation policy by virtue of this provision. We reverse on other grounds and remand.

On appeal Teel specifies the following errors:

1. The hearing officer erred in considering the issue of whether Teel was covered under the Louisiana Workers' Compensation Statute when no party raised that issue in a pre-trial statement.
2. The hearing officer erred in finding that Teel was not covered where Teel was clearly performing the work of Superior's own employees at the time of the accident and was therefore a covered employee.

Considering the first specification of error, we note that even assuming the issue was not raised, the hearing officer as well as this court could notice on its own motion the failure to state a right of action. La.Code Civ.P. art. 927. Teel stipulated at trial he was a subcontractor to Superior. La.R.S. 23:1061[1] provides for worker's compensation *1171 protection for the employee(s) of the subcontractor and not the subcontractor. Freeman v. Moss Well Service, Inc., 614 So.2d 784 (La.App. 2nd Cir.1993), writ denied, 618 So.2d 413 (La.1993).

Thus the hearing officer correctly concluded that 1061 does not allow a subcontractor coverage under the Worker's Compensation Act. However, our analysis does not end here since La.R.S. 23:1021(6) does allow coverage for a certain type of independent contractor. La.R.S. 23:1021(6) provides:

As used in this Chapter, unless the context clearly indicates otherwise, the following terms shall be given the meaning ascribed to them in this Section:
* * *
(6) "Independent contractor" means any person who renders service, other than manual labor, for a specified recompense for a specified result either as a unit or as a whole, under the control of his principal as to results of his work only, and not as to the means by which such result is accomplished, and are expressly excluded from the provisions of this Chapter unless a substantial part of the work time of an independent contractor is spent in manual labor by him in carrying out the terms of the contract, in which case the independent contractor is expressly covered by the provisions of this Chapter.

In 13 MALONE & JOHNSON, LOUISIANA CIVIL LAW TREATISE: WORKERS' COMPENSATION § 71 at 126 (1994) [Malone & Johnson], Malone & Johnson note that the determination of the status of independent contractor has been a difficult one. Employers may label certain employees as independent contractors in order to avoid paying compensation. Id. Malone & Johnson opine that the 1948 amendment to La. R.S. 23:1021(6) was designed to address this problem by allowing certain independent contractors to receive compensation "who spent a substantial portion of the work time carrying out the contract in manual labor." Id. at 126, n. 3. Thus, it is the substance of the relationship and not the label used which determines whether an independent contractor recovers under the Act.

In Riles v. Truitt Jones Construction, 94-1224 (La. 1/17/95) 648 So.2d 1296, 1298 the Supreme Court held that 1021(6) "creates a coverage exception for those independent contractors who spend a substantial part of their worktime in manual labor." The first inquiry is to determine whether Teel is an independent contractor. The Supreme Court cited with approval the definition for independent contractor used in Hickman v. Southern Pacific Transport Company, 262 La. 102, 262 So.2d 385 (La.1972) at 390-391 as follows:

[one who has contracted for] a specific piecework as a unit to be done according to the independent contractor's own methods, without being subject to the control and direction, in the performance of the service, of his employer ... It must also appear that a specific price for the overall undertaking is agreed upon; that its duration is for a specific time and not subject to termination or discontinuance at the will of either side without a corresponding liability for its breach.

The testimony is uncontroverted in this regard. Superior is a recycling business. It used subcontractors at times when it had more work than it could handle with its regular employees. Teel was paid a lump sum by Superior for cutting metal into 2 × 5 pieces, and stacking these for hauling by Superior. Teel was only hired for the duration of this particular job at the ADM grain elevator. Stephen Frechou, Superior's general manager, testified Teel had control over how the job would be accomplished. He also stated that Teel controlled and supervised his own employees.

The next inquiry is whether Teel can be classified as a manual laborer. The Riles court held at 1300:

*1172 The jurisprudence has uniformly defined "manual labor" as work where the "physical element predominated over the "mental" element. This is the correct interpretation of the term "manual labor" in LSA-R.S. 23:1021(6).

Teel testified he and two other men hired by him cut metal into 2 × 5 pieces, and stacked these for hauling. He worked alongside his employees and therefore performed a substantial part of his time in manual labor so as to be covered under La.R.S. 23:1021(6). Riles, supra.

Superior argues in brief that under 23:1061 and 23:1063[2] it would have an action for indemnification from Teel for worker's compensation benefits paid to Teel. It contends that this would lead to an absurd result. We note that Superior has not filed a third party action for indemnification against Teel and that issue is not before the court.[3]

We agree with the hearing officer's interpretation of La.R.S. 23:1061 but find coverage under 23:1021(6). Having found reversible error of law, we now turn to a de novo review of the record to determine whether Teel proved entitlement to worker's compensation benefits. Menard v. Winn Dixie Louisiana, Inc., 93-1497 (La.App. 3rd Cir. 6/1/94) 640 So.2d 775. Teel claims he was temporarily totally disabled from June 3, 1993 through December 15, 1993. Under La.R.S. 23:1221(1)(c) he has the burden of proving by clear and convincing evidence such disability. Bailey v. Smelser Oil & Gas, Inc., 620 So.2d 277 (La.1993). "Disability can be proven by medical and lay testimony." Id. at 280.[4]

At trial the parties stipulated an explosion occurred at the ADM grain elevator on June 3, 1993, and if compensation was awarded it was to be awarded at the minimum compensation rate. Teel testified his left eye and shoulder were injured from the fire in the explosion. Other workers were badly burned. Teel went to St.

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Bluebook (online)
675 So. 2d 1169, 1996 La. App. LEXIS 1022, 1996 WL 252706, Counsel Stack Legal Research, https://law.counselstack.com/opinion/teel-v-superior-scrap-metals-lactapp-1996.