Wills v. Ellsworth Motor Freightlines, Inc.

1989 OK 29, 770 P.2d 565, 1989 Okla. LEXIS 40, 1989 WL 12840
CourtSupreme Court of Oklahoma
DecidedFebruary 21, 1989
DocketNo. 64482
StatusPublished
Cited by1 cases

This text of 1989 OK 29 (Wills v. Ellsworth Motor Freightlines, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wills v. Ellsworth Motor Freightlines, Inc., 1989 OK 29, 770 P.2d 565, 1989 Okla. LEXIS 40, 1989 WL 12840 (Okla. 1989).

Opinion

HARGRAVE, Chief Justice.

Before us for review is an order of the Workers’ Compensation Court en banc sustaining the trial authority’s order determining that claimant was not an employee of either Ellsworth Motor Freightlines, Inc., or Shamrock Coal Company, being instead an independent contractor, and denying [566]*566workers’ compensation to claimant. Claimant contends that respondent Ellsworth was his workers’ compensation carrier and that he was an employee of respondent Shamrock Coal Company at the time of his injury. We have considered the arguments separately as to each respondent and sustain the order of the court en banc.

Claimant, who owns his own truck and trailer, entered into a contract on January 17, 1983 to haul for Ellsworth Motor Freightlines, Inc. Claimant testified that he did not have his own hauling permit and hauled under Ellsworth’s permit. The contract specifically provided that claimant was an independent contractor, and that claimant would provide the necessary labor to haul, load and unload on behalf of Ells-worth. A section of the contract entitled “Workers’ Compensation Liability of Trucker” required claimant to provide workers’ compensation coverage for any employee, agent or servant employed by claimant in the performance of the contract. A second paragraph set out that claimant, as an independent contractor, was not covered by any workers’ compensation insurance of Ellsworth’s and that Ellsworth had no liability to claimant or his employees for same. Paragraph three, which gives rise to claimant’s first argument states:

TRUCKER shall secure Workers’ Compensation on himself and/or his employees through Carrier based on Carrier’s coverage ... Cost of said coverage is at the rate of one third of TRUCKER’s gross percentage times 10.64 percent
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Claimant trucker hauled for carrier Ells-worth under its permits and had Ellsworth decals on his truck. Claimant trucker testified that he called in every evening to learn whether Ellsworth had any work for him the following day. He worked only for Ellsworth from January 17,1983 to April 8, 1983. Workers’ compensation amounts were deducted from his checks based on the contract formula. Claimant did not employ any other drivers during this period. On the evening of April 8, 1983, claimant called Ellsworth’s dispatcher, but no work was available for him the next day with Ellsworth.

Shamrock Coal Company called Flood & Son to provide trucks to haul coal on Saturday, April 9, 1983. That morning, Shamrock’s supervisor, Mr. Wilson, drove to Flood & Son’s place of business, not having been able to reach Flood by telephone, to tell him that Shamrock needed an additional truck for hauling. Flood suggested the claimant and asked Wilson to call claimant. Claimant agreed to work and Wilson told him to come out immediately. Claimant spent the entire day hauling coal from Shamrock’s pit to its crusher, about three miles away. On what claimant had been told would be his last load of the day, his truck was struck by a train, resulting in the injuries for which he sought compensation.

After a lengthy hearing on the issue of claimant’s employment, the trial judge denied claimant’s claim for compensation, finding that, on the date of the accident, claimant was an independent contractor contracted to Flood & Son, and was not an employee of Ellsworth Motor Freightlines, Inc., or Shamrock Coal Company. The court additionally held that claimant was not covered by any workers’ compensation insurance. The order was affirmed by the Workers’ Compensation Court en banc on May 16, 1985.

I. ELLSWORTH

■ Claimant alleges that Ellsworth was his insurer for independent contractor workers’ compensation coverage. Claimant does not contend that Ellsworth was his employer, but rather that Ellsworth insured him for any and all injuries that might occur in his work as independent contractor, regardless of whether the work was done for Ellsworth. Ellsworth is an own-risk insurer belonging to the Associated Motor Carriers Group Self-Insurance Association. Ellsworth admits that if claimant had been working for Ellsworth he would have been covered. Ellsworth denies that it was acting as claimant’s workers’ compensation insurance company. Claimant’s primary arguments are: (a) that [567]*567the contract between claimant and Ells-worth does not specifically limit workers’ compensation coverage to work performed for Ellsworth and that, since the contract is an “integrated adhesion contract”, we must find that claimant was covered, and (b) that because it is unlawful in Oklahoma under Title 85 O.S.1981 § 46 for an employee to be required to pay his or her own workers’ compensation insurance premiums, Ells-worth must have been insuring claimant independently of its employees.

We are not persuaded by claimant’s arguments. We find no evidence that Ells-worth intended to act as an insurance carrier for claimant in all areas of claimant’s work. The contract covers only the operating contract between claimant and Ells-worth, specifying that the claimant is an independent contractor. The scope of the contract was limited to the employment relationship between Ellsworth and claimant. There was no evidence that any coverage purchased through Ellsworth’s insurance would not be limited to that employment relationship. If Ellsworth had intended to enlarge its scope as insurer, it is likely that Ellsworth would have so stated in the contract, or that the insurance coverage to be provided would have been addressed by an agreement entirely separate from the operating contract. Further, the language of the contract itself says “TRUCKER shall secure Workers’ Compensation on himself ... through Carrier based on Carrier’s coverage ...” (Emphasis added) This language indicates that claimant would purchase the same insurance that Ellsworth provided for its employees. This language does not imply that carrier is enlarging the scope of its coverage and there was no evidence that Ellsworth had ever provided blanket workers’ compensation coverage for its independent contractors.

The workers’ compensation insurance premiums were deducted from the amount owed by Ellsworth to claimant, based on the specified percentage of his gross earnings. During the contract term, aside from the date of the accident, claimant had worked only for Ellsworth; thus, there is no evidence of past dealings between the parties. We cannot know whether premiums would have been deducted by Ells-worth based on claimant’s gross earnings from any outside employment. Ellsworth maintained that claimant was not permitted to haul for anyone else while under contract with them, but that issue is not before us on appeal. Claimant tendered to Ellsworth a workers’ compensation insurance premium almost nine months after the accident, based on the specified percentage of his gross earnings from Shamrock, which Ellsworth rejected. If we are to believe claimant’s interpretation of the contract, Ellsworth would have had to keep a record of all work done anywhere, for anyone, by claimant in order to calculate the amount of the premiums to be deducted from amounts owed by Ellsworth to claimant. We will not speculate as to what the parties might have done under other circumstances. Claimant’s second argument, under Title 85 O.S.1981 § 46, is inapposite because it applies to employees, not independent contractors.

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Bluebook (online)
1989 OK 29, 770 P.2d 565, 1989 Okla. LEXIS 40, 1989 WL 12840, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wills-v-ellsworth-motor-freightlines-inc-okla-1989.