Tyson Farms v. Uninsured Emp. Fund.

241 A.3d 929, 471 Md. 386
Court of Appeals of Maryland·Decided November 20, 2020·No. 5/20·Published·Cited by 5 cases

Opinion

Tyson Farms, Inc., et al. v. Uninsured Employers’ Fund, No. 5, September Term, 2020

WORKERS’ COMPENSATION – DETERMINATION OF EMPLOYER- EMPLOYEE RELATIONSHIP – CO-EMPLOYMENT – Court of Appeals held that Court of Special Appeals erred in concluding, as a matter of law, that chicken farm owner and company that provided chickens were co-employers of farm worker at time that he was injured and erred in reversing trial court’s judgment. Court of Appeals determined that trial court properly denied motion for judgment, as evidence adduced at trial was susceptible to differing reasonable inferences, including inference that company did not exercise control over worker necessary to be deemed co-employer and thus was not co- employer of worker. Court of Appeals concluded that there was sufficient evidence from which reasonable juror could find—as jury did—that company was not co-employer of worker.

Circuit Court for Worcester County Case No. 23-C-16-000233

Argued: October 5, 2020 IN THE COURT OF APPEALS

OF MARYLAND

No. 5

September Term, 2020

TYSON FARMS, INC., ET AL.

v.

UNINSURED EMPLOYERS’ FUND

Barbera, C.J.

McDonald

Watts

Hotten

Getty

Booth

Biran,

JJ.

Opinion by Watts, J.

McDonald, J., dissents.

Filed: November 20, 2020

Pursuant to Maryland Uniform Electronic Legal Materials Act (§§ 10-1601 et seq. of the State Government Article) this document is authentic.

Suzanne Johnson

2020-12-01 15:05-05:00

Suzanne C. Johnson, Clerk

This case involves the question of whether an injured worker who is an employee of a chicken farm is also the employee of a company that through a contractual relationship with the owner of the farm furnishes chickens, feed, and other supplies, and instructions as to how to produce/grow the chickens. Stated otherwise, the issue concerns whether the owner of a chicken farm and the company that provides the chickens to be raised and ultimately retrieves/buys them from the farm owner are co-employers of a farm worker. More broadly, the case pertains to “employee” status in the workplace. This Court has recognized that “[a] worker may simultaneously be the employee of two employers.” Whitehead v. Safway Steel Prod., Inc., 304 Md. 67, 79, 497 A.2d 803, 809 (1985) (citation omitted). To determine whether an employer-employee relationship exists, this Court has established the following five factors: “(1) the power to select and hire the employee, (2) the payment of wages, (3) the power to discharge, (4) the power to control the employee’s conduct, and (5) whether the work is part of the regular business of the employer.” Mackall v. Zayre Corp., 293 Md. 221, 230, 443 A.2d 98, 103 (1982). The most important factor in that determination, and indeed the decisive one, is the factor of control. See id. at 230, 443 A.2d at 103. Ordinarily, the question of whether an employer-employee relationship exists is for the jury to determine. See id. at 230, 443 A.2d at 103. And, significantly, where the evidence supports an inference that more than one individual or company controls a person in the performance of a given duty, “the question of whether an employer-employee relationship exists is a question of fact to be determined by the jury.” Id. at 230, 443 A.2d at 103 (citations omitted).

In this case, Mauro Jimenez Garcia1 sustained an occupational disease of the lungs while working and residing on a chicken farm in Worcester County, Maryland, owned by Dai K. Nguyen, Ind. t/a TN, LLC.2 The chickens on the farm were raised for, and owned by, Tyson Farms, Inc., Petitioner. Pursuant to the Maryland Workers’ Compensation Act, Md. Code Ann., Lab. & Empl. (1991, 2016 Repl. Vol.) (“LE”) §§ 9-101 to 9-1201, Garcia filed a claim with the Workers’ Compensation Commission against Nguyen. Because Nguyen did not have workers’ compensation insurance, the Uninsured Employers’ Fund (“UEF”), Respondent,3 became involved in the claim. Subsequently, Garcia and UEF impleaded Tyson into the claim. Following a hearing, the Commission issued an award of compensation, determining that Garcia was a covered employee who sustained an occupational disease arising out of and in the course of his employment and that Nguyen and Tyson were co-employers of Garcia.

Tyson sought judicial review in the Circuit Court for Worcester County and requested a jury trial. The circuit court conducted a two-day jury trial, at which the sole issue was whether Tyson was a co-employer of Garcia. After the conclusion of the evidence in the case, both UEF and Tyson moved for judgment. The circuit court denied the motions. The jury returned a verdict in favor of Tyson, finding that Tyson was not

1 Garcia is listed as a petitioner in this case.

2 Nguyen owned two adjacent farms, the Carrera Farm and the Cayenne Farm (collectively, “the farm”).

3 Pursuant to LE § 9-1002, the purpose of UEF is “benevolent and remedial, that being to protect injured workers whose employers failed, either willfully or negligently, to carry workers’ compensation insurance for them.” W.M. Schlosser Co. v. Uninsured Employers’ Fund, 414 Md. 195, 210-11, 994 A.2d 956, 965 (2010) (cleaned up).

Garcia’s co-employer.

UEF noted an appeal, raising a single question for review—whether the circuit court erred in denying its motion for judgment. In a reported opinion, a majority of a panel of the Court of Special Appeals reversed the circuit court’s judgment, determining that no reasonable inference could be drawn from the evidence other than that Tyson was Garcia’s co-employer. See Uninsured Employers’ Fund v. Tyson Farms, Inc., 243 Md. App. 406, 422, 220 A.3d 429, 438-39 (2019). The Court of Special Appeals concluded that “Tyson’s control over [] Garcia’s work was more than sufficient to establish an employment relationship as a matter of law[,]” reasoning that “Tyson’s extensive involvement in, and control over, [] Garcia’s day-to-day operation of the farm gave rise to an employment relationship as a matter of law.” Id. at 416, 417, 220 A.3d at 435, 436. The Honorable Steven B. Gould dissented and stated that, “[i]n [his] view, there are sufficient facts in the record to allow a reasonable jury to determine, as it in fact did here, that Tyson was not [] Garcia’s co-employer.” Id. at 422, 220 A.3d at 439 (Gould, J., dissenting).

Against this backdrop, we must decide whether the Court of Special Appeals was correct in concluding that no reasonable inference could be drawn from the evidence presented at trial other than that an employment relationship existed between Tyson and Garcia and that the evidence established the employment relationship as a matter of law. We hold that the Court of Special Appeals erred in concluding that the evidence was sufficient to establish that Tyson was Garcia’s co-employer as a matter of law and in reversing the circuit court’s judgment. Like Judge Gould, we conclude that there was sufficient evidence from which a reasonable jury could find—as it did—that Tyson was

not a co-employer of Garcia. The circuit court properly denied UEF’s motion for judgment, as the evidence adduced at trial was susceptible to differing reasonable inferences, including the inference that Tyson did not exercise the control over Garcia necessary to be deemed a co-employer. Accordingly, we reverse the judgment of the Court of Special Appeals.

BACKGROUND

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Tyson Farms v. Uninsured Emp. Fund., 241 A.3d 929, 471 Md. 386 (Md. 2020).

241 A.3d 929 (Tyson Farms v. Uninsured Emp. Fund.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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