WPC Y@+qÐ ԄЃo^SeP՚쥸lYs9z9(i{!wPXNH>w>mGʭܭ~~eBAcLEC=%5tJG{LYG_&SHkd3\5u>qWeuy`<iT^]{M.CLڒg>KդZћEc?i#3 tmWEY B]r/~ Ӳh,4&G\nMcA$+"0ҁoui6;a^ˬ13_SAے,`v?SZú҄˸GB5& 2 {"vړ !5zeo[8(=M5" :4~/=UiAH31J\ F"LS ^*HP׭陫,) *# F UNQ % 0 U : 4  U:  7 DJw@RU: B D3 0D AO` 0Du D/ BHP LaserJet 4Si/4SiMX PS 600dpiPSCRIPT0 (hH  Z 6Times New Roman RegularX(H=$  HTR[A' Legal[A' LegalA' LegalA' LegalTX_XXX7XXdXXd7,  AZ"Arial RegularU!x3|x <6X9`("Courier 10cpi  XșXXX fX Xș   Ad FILED XșX f   October30,1996  CecilCrowson,Jr. ZX XșAppellateCourtClerk HR  D D V   D   Ӏ,cAZ"Arial Regular d%%%%'dxd(3$ !  -C<< CLevel 1Level 2Level 3Level 4Level 5($$   1  ' dxdP Pd H=!  HTR[A' Legal3'A' Legal3'TXșXXX7uXXdd7  ݛX      @  INTHESUPREMECOURTOFTENNESSEE  @9 9 SPECIALWORKERS'COMPENSATIONAPPEALSPANEL@%% ATKNOXVILLEMAY1996SESSION    r *<,(j 8` `@E6q` ttx$np rߛ HARLEYR.RUCKER, h     ) p ROANECHANCERY    `     h     ) p     ` Plaintiff/Appellant h     ) p NO.03S019511CH00127 l   `     h     ) p  R  v. `     h     ) p HON.FRANKV.WILLIAMS, 8x  `     h     ) p CHANCELLOR x  ^ ROCKWOODELECTRICUTILITIES,  ) D etal, `     h     ) *  `     h     ) ` Defendants/Appellees    )   `     h   @.  FortheAppellant:   h     FortheAppellee:   JamesL.Milligan,Jr. h     JohnT.Batson,Jr. !! 607MarketSt.,10thFlr. h     Suite1700,FirstTennesseePlaza "" Knoxville,TN37902 h     800S.GayStreet t##  `     h     P.O.Box313 `     h     Knoxville,TN37902  @%!% @>>MEMORANDUMOPINION@PP&MembersofPanel:@# JusticePennyJ.White ^/+0 @!SeniorJudgeJohnK.Byers@SpecialJudgeJosephC.Loser,Jr. REVERSEDandREMANDED.     p     BYERS,SeniorJudge ;28>   ` Thisworkers'compensationappealhasbeenreferredtotheSpecialWorkers' CompensationAppealsPaneloftheSupremeCourtinaccordancewithTenn.CodeAnn.506225(e)(3)forhearingandreportingtotheSupremeCourtoffindingsoffactandconclusionsoflaw. ` PlaintiffwasinjuredwhenhefellandhithisarmonabuzzsawwhilecuttingtreesalongutilitylinesasanemployeeofWoodlandTreeService,whichhadacontracttocutthetreesforRockwoodElectricUtilities. ` Thetrialjudgedismissedplaintiffscomplaint,findingthatRockwoodElectricUtilitieswasnotplaintiffsstatutoryemployerunderTenn.CodeAnn.506113.  ` However,hefoundplaintifftohavesustaineda45%permanentpartialdisabilitytohisrighthand. ` Wereversethejudgmentandremandthecasetothetrialcourt. ` PlaintiffwashiredbyWoodlandTreeServicetohelpfulfillWoodlandscontractwithRockwoodElectricUtilities.TheagreementbetweenWoodlandTreeServiceandRockwoodElectricUtilitieswasintheformofawrittencontractwhichwasintroducedattrial.H ` PlaintiffreportedeverymorningtoRockwoodElectricUtilitieswherehemetwithDonWhite,asupervisoratRockwood,tolearnwhetherheshouldcontinueworkingonthepresentjoborifheneededtoworkonsomeemergencyproject.Hewouldalsopickupa buckettruckownedbyRockwoodtobeusedincuttingtrees.Woodlandprovidedalloftheotherequipmentusedbyitsemployees.Occasionally,RockwoodsupervisorswouldcometothesitewhereWoodlandemployeeswereworkingtocheckontheprogressofthework,occasionallytellingtheemployeestohurryupormovingthemelsewheretoa hotspot.Woodlandhadabsoluteauthoritytohireandfireitsownemployees. ` Underthecontractbetweentheparties,RockwoodreservedtherighttoprovideequipmentandmaterialsatalowercostifthoseprovidedbyWoodlandweretoohigh.WoodlandpaiditsemployeesdirectlybutaccordingtoascheduleofwagessetbyRockwood.WoodlandwasrequiredtonotifyRockwoodofchangesinwagerates.Undertheircontract,RockwoodreservedtherighttoinspectWoodlandsworkandaudititsbooks.ThecontractalsoprovidedthatWoodlandemployeescouldnotentertheareawherepowerlineswerelocatedunless t;7> Rockwoodhadobtainedthelegalrighttoentertheproperty.Woodlandwastoprovideworkerscompensationinsurancetocoveritsemployeesandliabilityinsurance. ` RockwoodsassistantmanagertestifiedthatitwastheresponsibilityofRockwoodtoprovideelectricservice,whichresponsibilityincludedkeepingthepowerlinesclearedofdangerouslimbsandtrees. ` Ourreviewoffindingsoffactbythetrialcourtisdenovoupontherecordofthetrialcourt,accompaniedbyapresumptionofthecorrectnessofthefinding,unlessthepreponderanceoftheevidenceisotherwise.Tenn.CodeAnn.506  ` 225(e)(2). ` Tenn.CodeAnn.506113provides:  r`   Liabilityofprincipal,intermediatecontractor,orsubcontractor.(a)A j principal,orintermediatecontractor,orsubcontractor,shallbeliableforcompensationtoanyemployeeinjuredwhileintheemployofanyofhissubcontractorsandengageduponthesubjectmatterofthecontracttothesameextentastheimmediateemployer.(b)Anyprincipal,orintermediatecontractor,orsubcontractorwhoshallpaycompensationundertheforegoingprovisionsmayrecovertheamountpaid,fromanypersonwho,independentlyofthissection,wouldhavebeenliabletopaycompensationtotheinjuredemployee,orfromanyintermediatecontractor. (b)Anyprincipal,orintermediatecontractor,orsubcontractorwhoshallpaycompensationundertheforegoingprovisionsmayrecovertheamountpaid,fromanypersonwho,independentlyofthissection,wouldhavebeenliabletopaycompensationtotheinjuredemployee,orfromanyintermediatecontractor. Everyclaimforcompensationunderthissectionshallbeinthefirstinstancepresentedtoandinstitutedagainsttheimmediateemployer,butsuchproceedingsshallnotconstituteawaiveroftheemployee'srightstorecovercompensationunderthischapterfromtheprincipalorintermediatecontractor,providedthatthecollectionoffullcompensationfromone(1)employershallbarrecoverybytheemployeeagainstanyothers,norshallhecollectfromallatotalcompensationinexcessoftheamountforwhichanyofsaidcontractorsisliable. (d)Thissectionshallapplyonlyincaseswheretheinjuryoccurredon,in,oraboutthepremises,onwhichtheprincipalcontractorhasundertakentoexecuteworkorwhichareotherwiseunderhiscontrolormanagement.` Kr=Yk `  ` Theintentofthestatuteistoinsureasfaraspossibletoallworkerspaymentofbenefitswhentheyareinjuredinthecourseoftheiremployment.Billingsv. 74: Dugger,362S.W.2d49(Tenn.1962);Clendeningv.LondonAssuranceCo.,336 95< S.W.2d535(Tenn.1960);Poseyv.UnionCarbideCorp.,510F.Supp.1143 |;7> (M.D.Tenn.1981).Thesectionpassescoveragefromemployerswhomightnothavecoveragetointermediateorprincipalcontractorswhodohavecoverage.Thispreventsemployersfromcontractingoutnormalworksimplytoavoidliabilityforworkerscompensation.Strattonv.UnitedInterMountainTelephone,695S.W.2d $ d 947(Tenn.1985). ` Anindependentcontractor,oronewhocontractstoperformaservicebyhisownmethodsandwithoutcontrolordirectionbyhisemployerexceptastotheresulttobeachieved,isnot,asageneralrule,acoveredemployee.Amongthetestsfordeterminingwhethertheworkrelationshipisthatofemployeremployee,orofindependentcontractorare:  ` (1)righttocontrolconductofwork   ` (2)rightoftermination ` (3)methodofpayment ` (4)whetherornottheworkerfurnisheshisownhelpers ` (5)whetherornottheworkerfurnisheshisowntools, ` (6)selfschedulingofworkinghours,and ` (7)freedomtorenderservicestootherentities. ` Butthesetestsarenotabsoluteandmustnotbeappliedabstractly.CromwellGeneralContractorsv.Lytle,439S.W.2d598(Tenn.1969);Bargeryv.  ObionGrainCo.,785S.W.2d118(Tenn.1990).     ` Noneofthesetests,standingalone,isconclusive.Tenn.CodeAnn.506 X"" 102(a)(9).Whiletheprimarytestfordeterminingwhetheraninjuredworkerisanemployeeorindependentcontractoris righttocontrol,itisnotthesoletest,andeachparticularrelationshipshouldbecarefullyexamined.Onceitisestablishedthatanemploymentrelationshipexists,theburdenisontheemployertoprovetheworkerwasanindependentcontractorratherthananemployee.Gallowayv. T+', MemphisDrumService,822S.W.2d584(Tenn.1991). $-d).  ` ThefactsinthiscaseindicatethatRuckerwasanemployeeofWoodlandTreeServiceandnotanindependentcontractor.WoodlandTreeServiceexercisedhiringandfiringauthorityoveritsemployees,controlledtheirwork,paidthemandfurnishedthetools. ` WenowturntotheissueofwhetherRockwoodElectricUtilitieswasaprincipalcontractoractingasitsowngeneralcontractorandthereforeastatutory employerunderTenn.CodeAnn.506113. 95<  ` Tennesseeimposesworkerscompensationliabilityon statutoryemployers, i.e.,thosewhogetpartoftheirregularworkdonebytheemployeesofasubcontractorandareheldresponsibleforworkrelatedinjuriessustainedbythoseemployees,ifthesubcontractorisuninsured.Theprincipalpurposeofsuchastatutoryschemeis toprotectemployeesofirresponsibleanduninsuredsubcontractorsbyimposingultimateliabilityonthepresumablyresponsibleprincipalcontractor,whohasitwithinhispower,inchoosingsubcontractors,topassupontheirresponsibilityandinsistuponappropriatecompensationfortheirworkers.Brownv.CanterburyCorp.,844S.W.2d134(Tenn.1992).Whereabusiness  ` enterpriseundertakestoactasitsowngeneralcontractorandcontractsdirectlywithsubcontractorsforvariousphasesofconstructiononitsownpremises,suchbusinessenterpriseissubjecttotheliabilityimposedbytheworkerscompensationlawupongeneralcontractors.Fuguntv.TVA,545F.Supp.977(E.D.Tenn.1982). T Anownerwhoactsasthegeneralcontractoronhisownprojectanddoesnotimmediatelycontroltheworkofthesubcontractorsemployeesisaprincipalcontractorunderthissection.Posey,Id.   ` ThefactsofthiscasearesimilartothoseinStratton.There,theinjured    workerwasemployedbyasubcontractorofUnited%  IntermountainTelephoneCompanytostringtelephonewireoverhazardousareas.Thecourtinthatcasewasimpressedbythefactthatthesubcontractorwasperformingworkthattheprimarycontractorsownemployeesperformed.TheSupremeCourtheldthatplaintiffsexclusiveremedywasundertheprovisionsoftheWorkersCompensationAct.Therefore,hecouldrecoverfromhisemployeror,iftheemployerdidnothaveworkerscompensationinsurancecoverage,fromtheprincipalcontractorandstatutoryemployer,UnitedIntermountainTelephoneCompany. ` Inthiscase,althoughthereisevidencethatRockwoodsemployeesdidnotperformthistypeofwork,RockwoodsassistantmanageradmittedthatkeepingthelinesclearofdangerouslimbsandfallentreesisafunctionofRockwoodsprincipalbusiness.Wefindthatplaintiff,liketheplaintiffinStratton,isentitledtocoverage  6`28 undertheWorkersCompensationActfromhisemployer,WoodlandTreeService,andbecauseWoodlandTreeServicehasnoworkerscompensationinsurance,fromthegeneralcontractor,RockwoodElectricUtilities. ;7>  ` WereversethejudgmentofthetrialcourtthatRockwoodElectricUtilitieswasnotthestatut oryemployeroftheplaintiff.Wefindthatplaintiffis  entitledto  45%  permanentpartialdisabilitybenefits  vocationallydisabled  andremandthecasetothetrialcourtfor anorderconsistentwiththisopinion  .  and hearingonthemerits . 񛀀Costsareassessedtotheappellee. `     h     _______________________________ `     h     JohnK.Byers,SeniorJudgeCONCUR:______________________________PennyJ.White,Justice______________________________JoeC.Loser,Jr.,SpecialJudge `     h      `   `   \    ` XXXXXH  0   @DINTHESUPREMECOURTOFTENNESSEE `    ATKNOXVILLE  HARLEYR.RUCKER, h     ) p ROANECHANCERY H   `     h     ) p No.12,291   ` Plaintiff/Appellee    ) x  `     h     ) p Hon.FrankV.Williams @ v. `     h     ) p Chancellor h   `     h     )ROCKWOODELECTRICUTILITIES,  ) p S.Ct.No.03S019511CH00127#XHXXXE:#  XEqXXXH#XHXXXEq=#   XXXXH  uXX#XXu>#      ETAL.,    h     ) `   `     h     ) ` Defendants/Appellees  )Reversedandremanded P  @(DJUDGMENTORDER H   `  ThiscaseisbeforetheCourtuponmotionforreviewpursuanttoTenn.CodeAnn.506225(e)(5)(B),theentirerecord,includingtheorderofreferraltotheSpecialWorkers'CompensationAppealsPanel,andthePanel'sMemorandumOpinionsettingforthitsfindingsoffactandconclusionsoflaw,whichareincorporatedhereinbyreference.#XHXXX2>#  XEqXXXH#XHXXXEq