Watkins v. USA Trucking, Inc.

2013 Ark. App. 444, 429 S.W.3d 308, 2013 WL 4552886, 2013 Ark. App. LEXIS 478
CourtCourt of Appeals of Arkansas
DecidedAugust 28, 2013
DocketCV-12-1070
StatusPublished

This text of 2013 Ark. App. 444 (Watkins v. USA Trucking, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Watkins v. USA Trucking, Inc., 2013 Ark. App. 444, 429 S.W.3d 308, 2013 WL 4552886, 2013 Ark. App. LEXIS 478 (Ark. Ct. App. 2013).

Opinion

RITA W. GRUBER, Judge.

IxJoe Watkins appeals the denial of his workers’ compensation claim that, while working as a long-haul truck driver and unloading tires from a tractor trailer, he suffered a compensable injury to his back and was entitled to medical and total-temporary disability benefits related to the injury. USA Trucking, Inc., controverted the claim in its entirety, contending that Watkins was not a USA employee. The Arkansas Workers’ Compensation Commission, affirming and adopting a decision of an administrative law judge, found that Watkins failed to prove the existence of an employee-employer relationship. Watkins contends on appeal that substantial evidence does not support the Commission’s decision that he was an independent contractor rather than an employee. We affirm.

When deciding any issue, administrative law judges and the Commission shall determine, on the basis of the record as a whole, whether the party having the burden of 12proof on the issue has established it by a preponderance of evidence. Ark.Code Ann. § ll-9-705(a)(3) (Supp.2011). The appellate court views the evidence and all reasonable inferences deducible therefrom in the light most favorable to the Commission’s findings. Cedar Chem. Co. v. Knight, 372 Ark. 233, 273 S.W.3d 473 (2008).

We defer to the Commission on issues involving the weight of the evidence and the credibility of the witnesses. Woodmancy v. Framco, Inc., 2011 Ark.App. 785, 387 S.W.3d 286. If reasonable minds could have reached the result shown by the Commission’s decision, we must affirm. Id. When the Commission denies a claim because of the claimant’s failure to meet his burden of proof, the substantial-evidence standard of review requires that we affirm the Commission’s decision if its opinion displays a substantial basis for the denial of relief. Id.

The following factors are to be considered in determining whether one is an employee or independent contractor:

(a) the extent of control which, by the agreement, the master may exercise over the details of the work;
(b) whether or not the one employed is engaged in a distinct occupation or business;
(c) the kind of occupation, with reference to whether in the locality, the work is usually done under the direction of the employer or by a specialist without supervision;
(d) the skill required in the particular occupation;
(e) whether the employer or the workman supplies the instrumentalities, tools, and the place of work for the person doing the work;
(f) the length of time for which the person is employed;
la(g) the method of payment, whether by the time or by the job;
(h) whether or not the work is a part of the regular business of the employer;
(i) whether or not the parties believe they are creating the relation of master and servant; and
(j) whether the principal is or is not in business.

Cloverleaf Express v. Fouts, 91 Ark.App. 4, 16-17, 207 S.W.3d 576, 583 (2005). Here, the Commission found that some factors pointed to employee and others pointed to independent contractor, but that Watkins’s “ownership of an essential piece of equipment, namely the truck/tractor, in his work activities” tipped the scale in favor of independent contractor.

The Commission considered a document entitled “Contractor Operating Agreement,” signed by both parties, as the foundation of their relationship. The document stated that the agreement and intent of Watkins and USA was to “create an independent contractor relationship between the parties and not a master-servant, employer-employee or principal-agent relationship.” The document included the obligations of Watkins as “contractor” and of USA as carrier:

The contractor agrees to furnish the equipment together with drivers and all other necessary labor to transport, load, and unload on behalf of carrier or on behalf of such other certified carriers as carrier may designate through “trip lease” or interchange agreements, such commodities as the carrier may from time to time make available to the contractor.

The Commission discussed Cloverleaf factors that were relevant to the relationship between Watkins and USA, first reciting the following evidence pertinent to Factor (a) — the extent of control which, by the agreement, the master may exercise over the details of the work. USA would instruct Watkins to pick up a loaded trailer with his truck/tractor at point 14A and deliver it to point B by a certain time and date. Other than his ability to refuse to carry a load and to have the dispatcher remove him from short loads and place him on longer ones, he had very little part in deciding the type of load or where it was to go. However, the Commission found that, “due to his ownership of the truck,” Watkins did have the ability to control the details of taking the load: he had worked as owner/operator for other motor carriers, and testified that he operated his truck as owner/operator because he could make more money. He stated, “You just watch your money. You don’t let your truck sit and run all night. You don’t let it run all day if you’re parked. You’re easier on your tires. You can make stuff make last longer if you own it and take care of it.” He answered affirmatively that he had an ownership interest, he operated as his “own business,” and he was, to an extent, his own boss.

The Commission recited the following evidence relevant to Factor (b) — whether the one employed is engaged in a distinct occupation or business — and Factor (d)— the skill required in the particular occupation. Watkins was in a distinct occupation or business as an over-the-road truck driver, had a high level of skill involving the ability to move thousands of pounds of material via highways and interstates in a safe and efficient manner, and through tests to operate the tractor trailer, had shown the skills necessary for licensing or certification.

Under Factor (e) — which party supplied the instrumentalities, tools, and place of work for the person doing the work — the Commission noted the following evidence. First, Watkins owned his own truck/tractor. He testified that the differences between being a company driver or owner/operator were “money” and taking care of his own truck in the |fiway he wanted; that he purchased his truck from Mid-Am Truck in Missouri, not from USA, which told him only that the truck had to be 2001 or newer and had to pass USA’s inspection; and that USA supplied him with a Qualcomm communications system, a fuel card, a DOT (Department of Transportation) card, and a card that allowed him to pass through certain tolls and weight stations.

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Related

Arkansas Transit Homes, Inc. v. Aetna Life & Casualty
16 S.W.3d 545 (Supreme Court of Arkansas, 2000)
Cedar Chemical Co. v. Knight
273 S.W.3d 473 (Supreme Court of Arkansas, 2008)
Cloverleaf Express v. Fouts
207 S.W.3d 576 (Court of Appeals of Arkansas, 2005)
D.B. Griffin Warehouse, Inc. v. Sanders
986 S.W.2d 836 (Supreme Court of Arkansas, 1999)
Steinert v. Arkansas Workers' Compensation Commission
361 S.W.3d 858 (Court of Appeals of Arkansas, 2009)
Grady v. Estate of Smith
385 S.W.3d 854 (Court of Appeals of Arkansas, 2011)
Woodmancy v. Framco, Inc.
387 S.W.3d 286 (Court of Appeals of Arkansas, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
2013 Ark. App. 444, 429 S.W.3d 308, 2013 WL 4552886, 2013 Ark. App. LEXIS 478, Counsel Stack Legal Research, https://law.counselstack.com/opinion/watkins-v-usa-trucking-inc-arkctapp-2013.