Thomas v. Farnsworth Chambers Co.

286 F.2d 270, 1960 U.S. App. LEXIS 3036
CourtCourt of Appeals for the Tenth Circuit
DecidedDecember 15, 1960
DocketNos. 6490, 6491
StatusPublished
Cited by19 cases

This text of 286 F.2d 270 (Thomas v. Farnsworth Chambers Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas v. Farnsworth Chambers Co., 286 F.2d 270, 1960 U.S. App. LEXIS 3036 (10th Cir. 1960).

Opinion

MURRAH, Chief Judge.

The common and decisive question presented by these consolidated appeals is whether an employee of a Colorado subcontractor who has elected to receive workmen’s compensation benefits from his insured subcontractor may maintain a common law negligence action against the general contractor for the injuries received in the course of his employment.

Holding that the asserted common law actions were abrogated by the relevant provisions of Colorado’s Workmen’s Compensation Act, the trial court dismissed both actions and these appeals are from [271]*271judgments for the appellee in each of the cases.

The answer to our question turns on the interpretation of the relevant provisions of Colorado’s Workmen’s Compensation Act.

Section 81-3-2, C.R.S.1953 provides in presently material part and substance that any employer who elects to be subject to the provisions of the Workmen's Compensation Act shall not be “ * * * subject to any other liability whatsoever for the death of or the personal injury to any employee, except as provided in this chapter * *

Section 81-13-8 preserves the common law right of action by the injured employee or his representative against a third party tortfeasor and upon election to take compensation, provides for the right of subrogation to the employer who pays the compensation award.

The answer to our narrow question whether the general contractor-appellee may be liable as a third party tortfeasor to these injured and compensated employees of a subcontractor turns on whether the general contractor was an employer of these employees within the meaning of section 81-9-1, C.R.S.1953 which comprehensively defines an employer subject exclusively to the provisions of the act. This section pertinently provides that “ * * * Any person, company or corporation * * * conducting any business by * * * contracting out any part or all of the work thereof to any * * * subcontractor, * * * shall be construed to be and be an employer as defined in this chapter, and shall be liable * * * to pay compensation fcr injury * * * resulting therefrom to said * * * subcontractors and their employees, and such employer as in this section defined, before commencing said work, shall insure and shall keep insured his liability as herein provided and such * * * subcontractor as well as any employee of such * * * subcontractor, shall be deemed employees as defined in this chapter. Such employer shall be entitled to recover the cost of such insurance from said * * * subcontractor, and may withhold and deduct the same from the contract price * * * or other money due, owing or to become due said * * * subcontractor. If said * * * subcontractor * * * shall himself be an employer as defined in this chapter in the doing of such work and shall before commencing said work insure and shall keep insured his liability for compensation as herein provided then such person, company or corporation engaged in or conducting said business shall not be subject to the provisions of this section.”

The appellants take the position that since the subcontractor fully complied with the Workmen’s Compensation Act, and has compensated his employees thereunder, the general contractor was not subject to its provisions and is. consequently liable at common law as a third party tortfeasor.

Admittedly the Colorado courts have not had occasion to consider this identical question. The trial court interpreted section 81-9-1 to impose upon the general contractor an employer-employee relationship with the employees of a subcontractor, even though such subcontractor had complied with the Workmen’s Compensation Act and fully compensated his injured employee. The court took the view that a statutory employer-employee relationship subsisted to vouchsafe the benefits of the act to an employee of a subcontractor if for any reason the subcontractor failed to comply with the act. And that having thus contingently imposed liability upon the general contractor, it was reasonable to infer that the legislature intended such liability to be exclusive and the asserted common law actions were consequently abrogated. The court was obviously influenced by a recent decision of this court construing pertinent provisions of the Oklahoma Workmen’s Compensation Law to immunize a principal contractor from common law liability to an injured and duly compensated employee of its subcontractor. Burk v. Cities Service Oil Company of Delaware, 10 Cir., 266 [272]*272F.2d 433. We of course followed the Oklahoma Court’s construction of the pertinent provision of its own act to the effect that the general contractor was a “principal employer” not only of his direct employees but the employees of any subcontractor as well. “The effect of the law,” said the Oklahoma Court, “is to prescribe a liability which is to become absolute unless a certain thing is done. The fact that the absolute character is dependent on a contingency does not alter the fact of its being a liability if designed as such.” Mid Continent Pipe Line Co. v. Wilkerson, Okl., 193 P.2d 586, 589. See also Jordon v. Champlin Refining Co., Okl., 198 P.2d 408; Standard Roofing & Material Co. v. Chas. M. Dunning Construction Co., 10 Cir., 224 F.2d 449.

The Missouri Court has construed relevant statutory provisions to the same effect. The Missouri statute makes the principal contractor the employer of the employees of all his intermediate subcontractors and further provides that the principal contractor and all his subcontractors may be made parties to the compensation proceedings on application of an injured employee with primary liability on the immediate employer and secondary liability on the remote employers in their order. The statute then provides that “no such employer shall be liable as in this section provided, if the employee was insured by his immediate or any intermediate employer.” Mo.St. Ann. § 3308.(d). The Missouri Supreme Court construed this latter exculpatory provision as not attempting to “ * * * fix the liability so far as the person injured is concerned * * * but deals with the liability inter sese of the persons who are liable to the person injured.” Bunner v. Patti, 343 Mo. 274, 121 S.W.2d 153, 154, 156.

In a series of annotations culminating in 166 A.L.R. 813, the editors have analyzed and classified roughly into two categories cases bearing on our question. One group of cases construe relevant provisions of workmen’s compensation acts as imposing liability upon the general contractor only if the independent or intermediate subcontractor fails to fully comply with the provisions of the act. All of these cases generally favor the retention of a common law right of action of an insured and compensated employee of a subcontractor against a negligent general contractor.

The other group of cases construe relevant provisions of their acts as imposing absolute liability for the benefits of the act upon the general contractor, with consequent immunization from common law liability. See Anderson v. Sanderson & Porter, 8 Cir., 146 F.2d 58; Larson on Workmen’s Compensation, Vol. 2, § 72.31, p. 175.

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Bluebook (online)
286 F.2d 270, 1960 U.S. App. LEXIS 3036, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-v-farnsworth-chambers-co-ca10-1960.