Miss. Loggers Self-Insured Fund, Inc. v. Andy Kaiser Logging
| Docket Number: | 2007-WC-00554-COA Linked Case(s): 2007-WC-00554-COA ; 2007-CT-00554-SCT |
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| Court of Appeals: |
Opinion Link Opinion Date: 05-06-2008 Opinion Author: CHANDLER, J. Holding: Affirmed |
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| Additional Case Information: |
Topic: Workers’ compensation - Statutory employer - Section 71-3-37(13) - Independent contractor - Section 71-3-3(r) - Hearsay - M.R.E. 801(c) Judge(s) Concurring: KING, C.J., LEE AND MYERS, P.JJ., IRVING, BARNES, ISHEE, ROBERTS AND CARLTON, JJ. Concurs in Result Only: GRIFFIS, J. Procedural History: Admin or Agency Judgment Nature of the Case: CIVIL - WORKERS' COMPENSATION |
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| Trial Court: |
Date of Trial Judgment: 02-26-2007 Appealed from: Lawrence County Circuit Court Judge: R. I. Prichard, III Disposition: MISSISSIPPI WORKERS' COMPENSATION COMMISSION'S DECISION AFFIRMED Case Number: A2001-0032 |
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| Party Name: | Attorney Name: | Brief(s) Available: | ||
| Appellant: | MISSISSIPPI LOGGERS SELF INSURED FUND, INC. |
STEVEN D. SLADE |
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| Appellee: | ANDY KAISER LOGGING, KCS LUMBER CO., INDIANA LUMBERMEN'S INSURANCE COMPANY AND MISSISSIPPI PACIFIC CO. | CHRISTOPHER ERIC KELLEY, CLIFFORD B. AMMONS, SUZANNE N. SAUNDERS, ANASTASIA G. JONES | ||
| Appellee #2: | ||||
| Appellee #3: | ||||
Synopsis provided by:  If you are interested in subscribing to the weekly synopses of all Mississippi Supreme Court and Court of Appeals hand downs please contact Tammy Upton in the MLI Press office. |
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| Topic: | Workers’ compensation - Statutory employer - Section 71-3-37(13) - Independent contractor - Section 71-3-3(r) - Hearsay - M.R.E. 801(c) |
| Summary of the Facts: | The Mississippi Loggers' Self-Insured Fund, over an approximate ten-year period, attempted to recoup the workers' compensation benefits it paid to Howard McDonald under the mistaken belief that it insured his employer, Andy Kaiser Logging. The Fund sought reimbursement of the benefits it had mistakenly paid to McDonald from Kaiser and from three companies that owned timber on the Selman tract: KCS Lumber Company, Columbus Lumber Company, and Tri-Lake Timber Company. The Fund filed a notice of lien and a motion for reimbursement of lien, seeking a determination of the party solely liable for the payment of McDonald's benefits pursuant to section 71-3-37(13). The Fund argued that either KCS, Columbus, or Tri-Lake was responsible for providing workers' compensation coverage for McDonald. The Commission initially held that section 71-3-37(13) did not apply, but on appeal, the circuit court remanded the case to the Commission to determine the solely liable party. On remand, the Commission determined that Kaiser was the party solely liable for workers' compensation coverage for McDonald. The circuit court affirmed this determination. The Fund appeals. |
| Summary of Opinion Analysis: | The Fund argues that the Commission committed an error of law in its interpretation of section 71-3-37(13). The Fund argues that the Commission erroneously limited its analysis of whether KCS, Columbus, or Mississippi Pacific/Tri-Lake was the solely liable party to a consideration of whether any of these companies was McDonald's statutory employer, and a determination of the solely liable party under section 71-3-37(13) is not co-extensive with a statutory employer analysis under section 71-3-7. In its order, the Commission found that neither KCS, Columbus, nor Mississippi Pacific/Tri-Lake had been McDonald's statutory employer. The Commission found that, based on the testimony of Andy Kaiser and of representatives of the three companies, Kaiser was an independent contractor within the definition of section 71-3-3(r). The Commission based its finding upon the testimony that Kaiser was hired by each of the three companies to cut timber to specified sizes and deliver it to certain sawmills. Also, Kaiser controlled the methods by which these results were accomplished. The Commission also found that Kaiser was not a subcontractor of any of the three companies; therefore, Kaiser's employee, McDonald, was not a statutory employee of any of the three companies under section 71-3-7. While not every independent contractor is a subcontractor, every subcontractor is an independent contractor. Section 71-3-7 makes a contractor liable for the payment of compensation to a subcontractor's employees, unless the subcontractor has secured such payment. For an employee to be a "statutory employee," the employee must be employed by a subcontractor in a contractor-subcontractor relationship. Here, neither of the three companies had already contracted for the performance of the work done by Kaiser; therefore, Kaiser was a contractor, not a subcontractor, of the three timber owners. Clearly, the Commission correctly determined that neither KCS, Columbus, nor Mississippi Pacific/Tri-Lake was McDonald's statutory employer under section 71-3-7 and had no statutory responsibility to insure McDonald. Because none of the three companies was McDonald's statutory employer, the Commission concluded that none of the companies was the solely liable party for the workers' compensation benefits erroneously paid by the Fund. The Commission determined that Kaiser, McDonald's employer, was the solely liable party. The Fund argues that the Commission ignored evidence of a letter establishing that Mississippi Pacific/Tri-Lake had agreed to provide workers' compensation insurance to Kaiser's employees. Because Mississippi Pacific/Tri-Lake was not McDonald's statutory employer, it lacked any responsibility under the Act for providing workers' compensation insurance to McDonald. The only evidence supporting the existence of an agreement was the letter, and the only parties to the letter were Allen of KCS and Slade, the Fund's attorney. Allen's representation in the letter about what Mississippi Pacific/Tri-Lake had agreed to was hearsay under M.R.E. 801(c). Assuming the Commission was empowered under section 71-3-37(13) to determine whether Mississippi Pacific/Tri-Lake was contractually bound, the Commission was entitled to accept the testimony of Parker that Tri-Lake never agreed to provide workers' compensation coverage for Kaiser, but instead, Tri-Lake required Kaiser to have its own workers' compensation insurance. Parker's testimony on behalf of Mississippi Pacific/Tri-Lake was substantial evidence that no such agreement existed. The decision of the Commission that Kaiser was the solely liable party was supported by substantial evidence and was not arbitrary and capricious. |
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