ÿWPCò 2” #Çè³>¦L=#_{ô9¾Ž¿ÛWáåPØ =6w>ëïhðë~¯ÉAÙãL€ ìQŸûåâ1-\\rS52Ej‰Ã’|qcîô¾')"‹èµä¢mq¾¤]Èj×Â/²Dâî¤KL"åb ÏêíÍÊùS©ó}wÂÏy:¡ÚH{Qj;yú Éd<ãapaUÏyjÁ¬¨å‚ÓÔ ·‹³ (Zy®k0Üð@ô”bÁg;‡×ùÊ7vˆ ²4J Fù”R_¼¿‡ð¯©RµÕácºù²C†ÍßùYîu7¡bF,¼ðMÚàoŠô á ˆ,2]:¯ú3! 1c¶ê<£”HÿµŠßÙNQ”YÛKX²³ùÔ•ôJÅþ"òË…XwBÛþV;iäµBsAW~굊uPwPI¢ÍíñçÐ ‰fô’ñÙ 2Hk7¢ ÃEƒ× ¸™åíûz…D#fñÿ¾ÙõH‚ÄËúx©3^•½,vÔÎüi ±0GV›Ä›äiËk:Q°¡l ÅeC¥@=ñ‡7*Žû€c³œ¡Â5É?ó½,~v]ÜV¾z/Þ§6hÇj)¹("Î΢Là•7[DKÍ ã™ÛR<=¡?²`@si·‡b#Á\ % ^ # 0ˆ/ U?N· w 4 z Ò— i x mz ˆ‘ ÆÆßÆ¥Æk 0D1NuNwVyEÏ 1uÑ 72F 1‡x 72ÿ 0c1”wœ8 zKÒÅÅUN————————————båååååååååååååååååååååååååååååååååååå 0ëíííí B ØØ 0¤õ D5™ D-Î 0Kûû ASFÆ™ 0¤_ 0D A«G˜HP LJ 4000/4050 PCL 5eÈÈ,,,,ÈÈ0»æg+â (`£ª$¡¡Ñ€.ÑÑ8€½­»»d»»d8ÑÑ ý ÑÓ  Ó(í€"  Z6Times New Roman Regular j-+ice  ˜C:\PROGRA~1\COREL\WORDPE~1\TEMPLATE\CUSTOM~1\REVISE~1.WPTC:\Program Files\Corel\WordPerfect Office 2000\Template\Custom WP Templates\revised standard opinion.wpt3|x ÿU‹ÿÀÀÀ ~Ý ƒR‘g$ÝÓ  Óà  àòòÚ  Ú4Ú  ÚóóÔ€X…X»»ÔÝ  ÝÔ_ÔAs€of€the€date€of€the€accident,€Mr.€Outland€had€not€purchased€workersðð€compensationÐ ° Ðinsurance€for€his€employees,€believing€that€they€had€agreed€to€a€contract€by€which€they€were€engagedÐ œì Ðas€independent€contractors.€€Mr.€Outland€claimed€that€he€did€not€know€that€this€type€of€contract€wasÐ ˆØ Ðnot€legally€binding€at€the€time€of€Mr.€Matthewsðð€work€accident,€and€has€since€obtained€workersððÐ tÄ Ðcompensation€insurance€for€his€employees.Level 1Level 2Level 3Level 4Level 5‚Level 1Level 2Level 3Level 4Level 5„Level 1Level 2Level 3Level 4Level 5…Level 1Level 2Level 3Level 4Level 5(#Ã$òòÚ  Ú0Ú  Úóó LÝ ƒR‘g$ÝÓ  Óà  àòòÚ  Ú3Ú  ÚóóÔ€X…X»»ÔÝ  ÝÔ_Ô€€At€trial,€Mr.€Matthews€stated€he€was€in€the€hospital€for€€ð ðtwenty„something„oddðð€days,€€butÐ ° Ðthe€record€reflects€€he€was€discharged€8€days€after€the€accident.Ð œì Ð3#37=CIQYag­­1.a.i.(1)(a)(i)1)a)i)(нCEKQW]cioAutoList11)1)1)1)1)1)1)1)1)(;3£$´´Ô2#ÔÚ  Ú0Ú  Ú.Ô3  Ôà0  à  mÝ ƒR‘g$ÝÓ  Óà  àòòÚ  Ú1Ú  ÚóóÔ€X…X»»ÔÝ  ÝÔ_ÔThe€contract€provided€that€Richardson€Lumber€Co.€would€convey€title€to€the€property€viaÐ ° Ðgeneral€warranty€deed€upon€payment€in€full€of€the€purchase€price€to€be€paid€in€monthly€installmentsÐ œì Ðof€$894.01. .Ý ƒR‘g$ÝÓ  Óà  àòòÚ  Ú2Ú  ÚóóÔ€X…X»»ÔÝ  ÝÔ_Ô€€He€had€fired€Mr.€Matthews€in€the€past€for€marijuana€use€on€the€job.€€He€later€re„hired€himÐ ° Ðafter€Mr.€Matthews€informed€him€he€had€stopped€using€marijuana. ˜C:\PROGRA~1\COREL\WORDPE~1\TEMPLATE\CUSTOM~1\REVISE~1.WPTC:\Program Files\Corel\WordPerfect Office 2000\Template\Custom WP Templates\revised standard opinion.wpt(ÖÃ9 Z ‹6Times New Roman Regular- ù-(|G2‘g$¤¤Ý ƒ£ª!ÝÑ€.ÑÑ8€L}»»dd8ÑÑ ý ÑÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  ÚóóÔ€XáX»»Ô d(|3Ç‚$££Ý ƒ£ª!ÝÑ€.ÑÑ8€L}»»dd8ÑÑ ý ÑÓ  ÓÝ  ÝVVVV)ÿÿ!dxdx)!ÈÈÈÈdxdx( ±þ$’’ò òFigure€Ú  Ú1Ú  Úó ó^_X`YEþÿ<<CÿÿƒLevel 1Level 2Level 3Level 4Level 5(|3Ç‚$¢¢Ý ƒ£ª!ÝÑ€.ÑÑ8€L}»»dd8ÑÑ ý ÑÓ  ÓÝ  Ý($$””ò òÚ  Ú1Ú  Úó óX[Z&OLE 2.0 Box <=8ÿÿÿÿÿÿÿÿÿÿCÿÿ HKKKKÝ ƒ£ª!ÝÑ€.ÑÑ8€@)»»ddÈ8ÑÑ ý ÑÓ  ÓÝ  ÝÔ_ÔÔ€¼@)»»»ÔÑ8€…XXdì»»d8ÑÓ  ÓÔ‡îOX@)Ôà@@7 7 ìàIN€THE€SUPREME€COURT€OF€TENNESSEEÐ ° ÐSPECIAL€WORKERSðð€COMPENSATION€APPEALS€PANELÐ Ö& Ðà@@ƒƒìàAT€NASHVILLEÔ#†¼@)»îîOXî#ÔÐ üL ÐMarch€2001€SessionÐ "r ÐÔ‡X…X»¼@)ÔÌò òÔ#†¼@)»XX…#ÔTERRY€€LEE€MATTHEWSòòóó€v.€LARRY€OUTLAND,€òòet€alóó.Ô‡X…X»¼@)Ôó óÐ  p ÐÌà@@¼¼ìàò ò€Direct€Appeal€from€the€Circuit€Court€for€Ô_ÔHumphreysÔ_Ô€CountyÐ  p Ðà@@ôôìàNo.€8441€€€€€€Robert€E.€Burch,€JudgeÐ  \ ÐÌÌà@@ìì*ìàßA€V) °°` d€÷E<Ï` AßÐ Ð  ÐÌNo.€M1998„00578„Ô_ÔWCÔ_Ô„R3„CV€„€Mailed€„€October€5,€2001Ð Ë  ÐÔ#†¼@)»XX…“#ÔÔ‡X…X»¼@)ÔFiled€„€November€7,€2001Ð ·  ÐÌßA€V) °°` dE<Ž` AßÐ ß Ðó óÌÓ  ÓÓ  ÓThis€workers'€compensation€appeal€has€been€referred€to€the€Special€Workers'€Compensation€AppealsÐ ŠÚ ÐPanel€of€the€Supreme€Court€in€accordance€with€òòTennessee€Code€Annotated€óóðð50„6„225(e)(3)€forÐ vÆ Ðhearing€and€reporting€to€the€Supreme€Court€of€findings€of€fact€and€conclusions€of€law.€€The€plaintiff,Ð b² Ða€logger€employed€by€L&L€Logging€Co.€who€was€injured€when€a€tree€fell€on€him,€appeals€theÐ Nž Ðjudgment€of€the€trial€court€in€which€the€trial€court€found:€1)€that€Ô_ÔWaverlyÔ_Ô€Wood€Products,€a€sawmill,Ð :Š Ðwas€not€a€statutory€employer€under€òòTennessee€Code€Annotatedóó€ðð€50„6„113€and€2)€the€plaintiff€hadÐ &v Ðsustained€a€10%€permanent€partial€disability€to€the€body€as€a€whole.€€Ô#†¼@)»XX…#ÔÔ‡X…X»¼@)ÔAfter€a€complete€review€of€theÐ b Ðentire€record,€the€briefs€of€the€parties,€and€the€applicable€law,€we€affirm€the€judgment€of€the€trialÐ þN Ðcourt.Ô#†¼@)»XX…¥#ÔÔ‡X…X»¼@)ÔÐ ê: ÐÓCÓÌò òÓ  ÓTenn.€Code€Ann.€ðð€50„6„225(e)€(1999)€Appeal€as€of€Right;€Judgment€of€the€Circuit€CourtÐ Â ÐAffirmed.ó óÐ ®þ ÐÌòòÓ  ÓÓ  ÓJames€L.€Ô_ÔWeatherfordÔ_Ô,€Ô_ÔSR.J.Ô_ÔÔ#†¼@)»àX…š #ÔÔ‡X…X.¼@)Ôóó,€delivered€the€opinion€of€the€court,€in€which€òòÔ_ÔAdolphoÔ_Ô€A.€Birch,Ð † Ö ÐJr.,J.,óó€and€òòJoe€C.€Loser,€Jr.,€Ô_ÔSp.J.Ô_Ôóó,€joined.Ð r!  Ðà  àà ` àà ¸ àà  àà h àà À àÌJoe€Ô_ÔBednarzÔ_Ô€and€Joe€Ô_ÔBednarzÔ_Ô,€Jr.,€Nashville,€Tennessee,€for€the€appellant€Terry€Lee€Matthews.Ð J#š" ÐÌÔ_ÔBlakeleyÔ_Ô€D.€Matthews€and€Ô_ÔKristenÔ_Ô€Murphy€Anderson,€Nashville,€Tennessee,€for€the€appelleeÐ "%r $ ÐÔ_ÔWaverlyÔ_Ô€Wood€Products,€Inc.Ð &^!% ÐÌÓ ÓÓ  Óò òMEMORANDUM€OPINIONó óÔ#†¼@)»XX… #ÔÔ‡X…X»¼@)ÔÐ æ'6#' ÐÌÓ  ÓÔ#†¼@)»XX…m#ÔÔ‡X…X»¼@)Ôà  àMr.€Terry€Lee€Matthews€was€34€years€old€at€the€time€of€trial€and€had€an€eleventh€gradeÐ ¾)%) Ðeducation.€€His€employment€history€includes€Ô_ÔgunnelingÔ_Ô€boats€and€Ô#†¼@)»XX…Ñ#ÔÔ‡X…X»¼@)Ôworking€in€€fast€food€restaurantsÐ ª*ú%* Ðand€€construction.Ô#†¼@)»XX…ê#ÔÔ‡X…X»¼@)Ô€€In€the€late€1980's€to€early€1990's,€Mr.€Matthews€went€to€work€for€Mr.€LarryÐ –+æ&+ ÐOutland€and€L&L€Logging€Company.€€His€job€duties€included€cutting€logs€to€specified€lengths,Ð ‚,Ò', Ðworking€on€equipment,€picking€up€parts€and€doing€other€errands€as€needed€for€Mr.€Outland.€€Ð n-¾(-ý ÐÔ_Ô‡à  àMr.€Outland€had€had€a€long€history€of€business€dealings€with€Mr.€James€Richardson.€Mr.€Ð ° ÐRichardson,€owner€of€Waverly€Stave€Co.€and€Richardson€Lumber€Co.,€had€been€in€the€lumberÐ œì Ðbusiness€for€many€years.€Ð ˆØ ÐÌà  àIn€August€1992,€Todd€Richardson,€son€of€James€Richardson,€started€Waverly€WoodÐ `° ÐProducts,€Inc.,€a€sawmill,€with€a€loan€from€Richardson€Lumber€Co.€€Waverly€Wood€Products€alsoÐ L œ Ðleased€its€operating€equipment€from€Richardson€Lumber€Co.€€Todd€Richardson€was€the€presidentÐ 8 ˆ Ðand€€sole€shareholder€of€the€corporation€and€James€Richardson€was€employed€as€secretary„treasurerÐ $ t Ðreceiving€an€annual€salary€of€$18,000.€€Waverly€Wood€Products€bought€logs€from€more€than€20Ð  ` Ðdifferent€vendors.Ð ü L  ÐÌà  àIn€1993,€Richardson€Lumber€Co.€bought€the€property€where€the€accident€occurred€and€laterÐ Ô$  Ðsold€it€to€a€Jack€and€Margaret€Johnson€for€$119,000׃×Ý ƒ#ÃÝòòÚ  Ú1Ú  ÚóóÝ  Ý×  ×€€while€retaining€the€timber€rights.€€RichardsonÐ À  ÐLumber€Co.€thereafter€sold€the€timber€rights€to€L&L€Logging€Co.€and€Larry€Outland€for€$44,556.60Ð ¬ü  Ðon€December€7,€1993.Ð ˜è  ЀÌà  àOn€December€31,€1993,€L&L€Logging€and€Mr.€Outland,€individually,€purchased€loggingÐ pÀ Ðequipment€from€Richardson€Logging€Company€for€$77,000€via€a€purchase€money€promissory€noteÐ \¬ Ðin€favor€of€Waverly€Wood€Products,€Inc.,€and€a€corresponding€security€interest€in€said€equipmentÐ H˜ Ðto€Richardson€Lumber€Co.€€A€sub„clause€in€each€of€the€financing€and€security€documents€stated€thatÐ 4„ ÐLarry€Outland€and€L&L€Logging€would€sell€logs€to€Waverly€Wood€and€repayment€amounts€wouldÐ  p Ðbe€calculated€at€$2.50€per€ton€of€logs€and€pulpwood€with€a€minimum€payment€of€$2,000€per€month.€Ð  \ ÐThe€subclause€also€provided€that€if€such€deliveries€ceased,€the€full€loan€amount€would€be€due€withinÐ øH Ð30€days€of€the€date€of€the€last€delivery.Ð ä4 Ѐ€Ð Ð  Ðà  àAccording€to€Mr.€Outland,€payment€was€taken€out€of€each€of€his€deliveries€to€Waverly€WoodÐ ¼  ÐProducts.€€It€was€his€understanding€that€so€long€as€he€paid€$2,000€per€month€he€could€sell€the€woodÐ ¨ø Ðto€another€company€and€make€the€payments.€€He€did€not€sell€logs€to€any€other€company€besidesÐ ”ä ÐWaverly€Wood€Products€in€1994.€Mr.€Outland€saw€Mr.€Richardson€as€a€creditor.€Ð €Ð ÐÌÔ#†¼@)»XX…t#ÔÔ‡X…X»¼@)Ôà  àÔ#†¼@)»XX…«#ÔÔ‡X…X»¼@)ÔMr.€Outland€determined€where€to€cut€the€timber€and€what€type€of€trees€would€be€cut.€€He€hadÐ X ¨ Ðexclusive€control€over€the€hiring€and€firing€of€his€employees.׃T×Ý ƒ#ÃÝòòÚ  Ú2Ú  ÚóóÝ  Ý×  ×€€Mr.€Outland€provided€all€theÐ D!” Ðequipment€and€set€his€employeesðð€wages.€€He€also€determined€to€whom€to€sell€his€logs€and€pulpwoodÐ 0"€  Ðbased€upon€which€sawmill€was€ð ðpaying€the€most.ðð€Ð #l! ÐÌÐ ô$D # Ðà  àMr.€Matthews€testified€that€Mr.€Richardson€obtained€the€timber€for€Mr.€Outland,€and€wouldÐ ° Ðcome€out€to€the€job€site€2€or€3€times€a€month.€€He€also€stated€a€timber€cruiser€for€Waverly€WoodÐ œì ÐProducts€would€come€out€to€measure€cut€logs€and€verify€their€length.€€Mr.€Matthews€admitted€thatÐ ˆØ Ðneither€of€the€Richardsons€could€hire€or€fire€him,€set€his€wages,€control€his€job€duties€or€set€hisÐ tÄ Ðschedule.€€He€agreed€that€Mr.€Outland€was€ð ðthe€boss.ððÐ `° ÐÌà  àAfter€James€Richardsonððs€accountant€advised€€him€that€Richardson€Lumber€Co.€was€inÐ 8 ˆ Ðdanger€of€being€classified€as€a€holding€company€due€to€an€excess€of€lease€income,€Todd€RichardsonÐ $ t Ðelected€to€close€Waverly€Wood€Products,€€Inc.,€€in€August€of€1994.€€Richardson€Lumber€Co.€boughtÐ  ` Ðout€the€assets€of€the€company€and€began€running€it€as€a€new€business€entity,€Waverly€Wood.€€As€ofÐ ü L  Ðthe€time€of€trial,€Mr.€Outland€was€still€making€payments€on€the€note,€had€made€no€deliveries€toÐ è 8  ÐWaverly€Wood€Products€for€over€a€year€and€the€loan€had€not€been€called.Ð Ô$  ÐÌÔ#†¼@)»XX…ù#ÔÔ‡X…X»¼@)Ôà  àOn€February€2,€1994,€L&L€Logging€was€cutting€timber€on€the€land€where€Mr.€Outland€ownedÐ ¬ü  Ðthe€timber€rights.€€Mr.€Matthews€was€cutting€logs€when€a€tree€fell€on€him.€€He€was€taken€to€an€areaÐ ˜è  Ðhospital,€diagnosed€with€a€T„12€compression€fracture,€and€transferred€to€Vanderbilt€Medical€CenterÐ „Ô  Ðfor€further€treatment.Ð pÀ ÐÌà  àDr.€Michael€McNamara,€M.D.,€orthopedist,€examined€Mr.€Matthews€and€found€ð ðtendernessÐ H˜ Ðover€the€chest€wall€with€no€evidence€of€any€strong€contusion€or€fracture.ððÔ#†¼@)»XX…$#ÔÔ‡X…X»¼@)Ô€Mr.€Matthews€reportedÐ 4„ Ða€ð ðpins€and€needlesðð€sensation€throughout€his€right€lower€extremity.Ô#†¼@)»XX…¸&#ÔÔ‡X…X»¼@)ÔÐ  p ÐÌà  àDr.€McNamara€found€that€a€portion€of€Mr.€Matthewsðð€T„12€vertebra,€located€in€the€middleÐ øH Ðof€the€back,€had€been€crushed.€€A€CAT€scan€and€an€MRI€did€not€reveal€any€spinal€canal€compromise,Ð ä4 Ðcord€contusion,€or€ligamentous€damage.€€However,€in€Dr.€McNamaraððs€opinion,€Mr.€MatthewsÔ#†¼@)»XX…o'#ÔÔ‡X…X»¼@)Ô€hadÐ Ð  Ðsustained€some€form€of€spinal€cord€injury€because€his€sensory€exam€reflected€some€form€ofÐ ¼  Ðneurologic€damage.€€Dr.€McNamara€placed€Mr.€Matthews€in€a€removable€plastic€body€brace.€€He€wasÐ ¨ø Ðdischarged€from€Vanderbilt€on€€February€10,€1994.Ô#†¼@)»XX…)#ÔÔ‡X…X»¼@)Ô׃×Ý ƒ#ÃÝòòÚ  Ú3Ú  ÚóóÝ  Ý×  ×€€€Ô#†¼@)»XX…*#ÔÔ€X…X»¼@)ÔÐ ”ä ÐÌà  à€Mr.€Matthews€continued€to€see€Dr.€McNamara€for€follow„up€care€complaining€of€pain€€inÐ l¼ Ðhis€right€leg.€€Magnum€motor€exams€and€sensory€exams€were€normal.€€Dr.€McNamara€stated€that€theÐ X ¨ Ðfracture€gradually€healed€without€difficulty,€but€he€had€had€a€spinal€cord€injury€with€ð ðsignificantÐ D!” Ðdysesthetic€painðð€in€his€right€leg€that€made€it€difficult€for€him€to€walk.€€However,€this€pain€graduallyÐ 0"€  Ðimproved.€€Ð #l! ÐÌà  àAnother€MRI€performed€in€March€of€1995€revealed€no€evidence€of€neurocompression€ofÐ ô$D # Ðmalignment€of€the€spine,€and€Dr.€McNamara€did€not€believe€Mr.€Matthews€was€a€candidate€forÐ à%0!$ Ðsurgical€treatment.€€Ð Ì&"% ÐÐ ¸'#& Ðà  àDr.€McNamara€opined€that€Mr.€Matthews€had€reached€maximum€medical€improvement€onÐ ° ÐApril€7,€1995,€€and€assigned€a€23%€permanent€partial€impairment€to€the€body€as€a€whole.€€This€ratingÐ œì Ðaddressed€his€subjective€right€leg€pain€as€well€as€complaints€of€sexual€dysfunction€first€reported€onÐ ˆØ ÐApril€7,€1995,€some€14€months€after€the€work€injury.€€€He€also€noted€that€Mr.€Matthewsðð€€impairmentÐ tÄ Ðrating€relating€only€to€his€complaints€of€burning€and€tingling€in€his€right€leg€would€have€been€15%.Ð `° ÐÌà  àDr.€McNamara€last€saw€Mr.€Matthews€in€December€of€€1996.€He€continued€to€complain€ofÐ 8 ˆ Ðburning€and€tingling€in€his€right€leg€and€some€decreased€sexual€function.€€Dr.€McNamara€stated€thatÐ $ t Ðthese€symptoms€were€consistent€with€the€type€of€injury€he€had€sustained.€€He€agreed€that€dysestheticÐ  ` Ðpain€was€a€subjective€symptom.€€He€also€found€that€activity€aggravates€the€pain€in€Mr.€Matthewsðð€Ð ü L  Ðright€leg€making€it€not€safe€for€him€or€his€co„workers€for€Mr.€Matthews€to€return€to€the€loggingÐ è 8  Ðindustry.€€Ð Ô$  ÐÌà  àAn€ex„girlfriend,€Ms.€Thelma€Wessles,€testified€that€Mr.€Matthewsðð€physical€abilities€wereÐ ¬ü  Ðnot€affected€by€the€accident,€that€he€did€chores€around€the€house€and€would€only€complain€of€hurtingÐ ˜è  Ðwhen€they€went€out€or€were€around€other€people.€€€€€€€€òò€óóÐ „Ô  Ðà  àÌà  àAt€€the€time€of€trial,€€Mr.€Matthews€was€working€full€time€as€a€department€salesperson€atÐ \¬ ÐHome€Depot€with€no€accommodations€for€any€physical€disabilities.€€His€job€duties€included€loadingÐ H˜ Ðlumber€and€moving€supplies€on€occasion.€€Ð 4„ ÐÌà  àMr.€Matthews€filed€a€complaint€for€workersðð€compensation€benefits€against€Larry€Outland׃ ×Ý ƒ#ÃÝòòÚ  Ú4Ú  ÚóóÝ  Ý×  ×,Ð  \ ÐLarry€Mallard,€L&L€Logging,€Waverly€Wood€Products€and€James€Richardson.€€He€alleged,€amongÐ øH Ðother€things,€that€Waverly€Wood€Products€and€James€Richardson€were€statutory€employers€pursuantÐ ä4 Ðto€Tennessee€Code€Annotated€ðð€50„6„113.€On€the€morning€of€trial,€Mr.€Matthews€voluntarilyÐ Ð  Ðdismissed€Mr.€James€Richardson,€individually,€€from€the€lawsuit.Ð ¼  ÐÌà  àThe€trial€court€made€the€following€findings€of€fact:Ð ”ä ÐÌà  à1)€That€the€Plaintiff€was€a€full€time€employee€of€the€Defendants,€Mr.€Outland€and€Mr.Ð l¼ ÐMallard.€€They€controlled€the€hours€he€worked,€controlled€his€manner€of€work,€controlled€his€pay,Ð X ¨ Ðand€the€employer€furnished€tools.Ð D!” ÐÌà  à2)€That€the€ð ðIndependent€Contractorðð€employment€contract€is€a€nullity.Ð #l! ÐÌà  à3)€That€the€facts€establish€a€contractual€obligation€of€L&L€Logging€Company€to€sell€only€toÐ ô$D # ÐWaverly€Wood€Products,€Inc.,€at€the€time€of€the€accident.€€However,€this€provision€was€not€enforcedÐ à%0!$ Ðbetween€the€parties.Ð ° ÐÌà  à4)€That€Mr.€James€Richardson€had€no€right€to€control€Waverly€Wood€Products,€Inc.,€nor€L&LÐ ˆØ ÐLogging€Company.€€James€Richardson€was€simply€trying€to€help€his€son€in€his€dealings€with€L&LÐ tÄ ÐLogging€Company,€but€was€under€no€contractual€obligation€to€do€so.Ð `° Ðà  àÌà  à5)€The€only€evidence€presented€to€establish€the€element€of€control€over€L&L€Logging€wasÐ 8 ˆ Ðthe€plaintiffððs€testimony,€and€the€Court€found€that€the€Plaintiffððs€testimony€was€not€credible.Ð $ t ÐÓ€ (н83ÓØ! !Øà  àÌà  àThe€trial€court€made€the€following€conclusions€of€law:Ð ü L  ÐÌà  à1)€L&L€Logging€Company€was€not€a€subcontractor€of€Waverly€Wood€Products,€Inc.Ð Ô$  ÐÌà  à2)€There€was€no€control€of€L&L€Logging€Company€by€Waverly€Wood€Products,€Inc.€€AnyÐ ¬ü  Ðinfluence€of€James€Richardson€on€L&L€Logging€Company€was€not€attributable€to€Waverly€WoodÐ ˜è  ÐProducts,€Inc.€€Waverly€Wood€Products,€Inc.,€was€not€a€principal€contractor€and€had€no€connectionÐ „Ô  Ðto€the€plaintiff.Ð pÀ ÐÌà  à3)€The€defendants,€Larry€Outland€and€Larry€Mallard,€are€liable€to€plaintiff€for€workersððÐ H˜ Ðcompensation€benefits.Ð 4„ ÐÌà  à4)€The€plaintiffððs€anatomical€impairment€rating€of€23%€includes€sexual€dysfunction€whichÐ  \ Ðdoes€not€relate€to€employability;€and€most€of€the€plaintiffððs€symptoms€are€subjective.€€As€foundÐ øH Ðearlier,€the€plaintiff€is€not€a€credible€witness.Ð ä4 ÐÌà  àThe€trial€court€entered€judgment€against€Larry€Outland€and€Larry€Mallard€d/b/a€L&L€LoggingÐ ¼  ÐCo.€for€$17,319.00€in€medical€bills,€temporary€total€disability€benefits€and€permanent€partialÐ ¨ø Ðdisability€benefits€based€upon€10%€permanent€partial€disability€to€the€body€as€a€whole.€Ð ”ä ÐÌÓ  ÓANALYSIS€€€€€Ð l¼ ÐÓ½CÓÌà  à€Review€of€findings€of€fact€by€the€trial€court€shall€be€òòde€novoóó€upon€the€record€of€the€trialÐ D!” Ðcourt,€accompanied€by€a€presumption€of€the€correctness€of€the€finding,€unless€the€preponderance€ofÐ 0"€  Ðthe€evidence€is€otherwise.€€òòTenn.€Code€Ann.€óóðð€50„6„225(e)(2).òò€€Stone€v.€City€of€McMinnvilleóó,€896Ð #l! ÐS.W.2d€548,€550€(Tenn.€1995).€€The€application€of€this€standard€requires€this€Court€to€weigh€in€moreÐ $X" Ðdepth€the€factual€findings€and€conclusions€of€the€trial€courts€in€workersðð€compensation€cases.€Ð ô$D # ÐòòCorcoran€v.€Foster€Auto€GMC,€Inc.óó,€746€S.W.2d€452,€456€(Tenn.€1988).Ð à%0!$ ÐÌà  àWhere€the€trial€judge€has€seen€and€heard€witnesses,€especially€where€issues€of€credibility€andÐ ¸'#& Ðweight€of€oral€testimony€are€involved,€on€review€considerable€deference€must€still€be€accorded€toÐ ¤(ô#' Ðthose€circumstances.€€òòHumphrey€v.€David€Witherspoon,€Incóó.,€734€S.W.2d€315€(Tenn.€1987).Ð )à$( ÐÌà  àWhen€the€medical€testimony€is€presented€by€deposition,€as€it€was€in€this€case,€this€Court€isÐ h+¸&* Ðable€to€make€its€own€independent€assessment€of€the€medical€proof€to€determine€where€theÐ ° Ðpreponderance€of€the€evidence€lies.€€òòCooper€v.€Insurance€Co.€of€North€Americaóó,€884€S.W.2d€446,Ð œì Ð451€(Tenn.€1994).Ð ˆØ ÐÌà  àò òI.€€Whether€the€trial€court€erred€in€finding€that€Waverly€Wood€Products,€Inc.,€was€notÐ `° Ða€statutory€employer€of€Mr.€Matthews.Ð L œ ÐÌà  àó óòòTennessee€Code€Annotated€óóðð€50„6„113€provides:Ð $ t Ðò ò€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€ó óÐ  ` ÐÓ  Óà8  à(a)€€A€principal,€or€intermediate€contractor,€or€subcontractor€shall€be€liable€forÐ ü L  Ðcompensation€to€any€employee€injured€while€in€the€employ€of€any€of€theÐ è 8  Ðsubcontractors€of€the€principal,€intermediate€contractor,€or€subcontractor€andÐ Ô$  Ðengaged€upon€the€subject€matter€of€the€contract€to€the€same€extent€as€theÐ À  Ðimmediate€employer.Ьü Ð Ð  ЀÌÓ  Óà8 @ àà @ àà @` àà @¸ àà @ à*€*€*Ð „Ô  ÐÓÒLÓÌà8  à(d)€€This€section€applies€only€in€cases€where€the€injury€occurred€on,€in,€or€aboutÐ \¬ Ðthe€premises€on€which€the€principal€contractor€has€undertaken€to€execute€work€orÐ H˜ Ðwhich€are€otherwise€under€the€principal€contractor's€control€or€management.Ð4„Ð Ð  ÐÌÌà  àThe€purpose€of€this€provision€is€to€€"to€protect€employees€of€irresponsible€and€uninsuredÐ øH Ðsubcontractors€by€imposing€ultimate€liability€on€the€presumably€responsible€principal€contractor,Ð ä4 Ðwho€has€it€within€his€power,€in€choosing€subcontractors,€to€pass€upon€their€responsibility€andÐ Ð  Ðinsist€upon€appropriate€compensation€for€their€workers."€€òòBrown€v.€Canterbury€Corp.óó,€844Ð ¼  ÐS.W.2d€134,136€(Tenn.€1992).Ð ¨ø ÐÌà  àA€company€or€other€business€is€considered€a€principal€contractor€if€the€work€beingÐ €Ð Ðperformed€by€a€subcontractorððs€employees€is€part€of€the€regular€business€of€the€company€or€is€theÐ l¼ Ðsame€type€of€work€usually€performed€by€the€companyððs€employees.€€òòMurrayóó€òòv.€Goodyear€Tire€&Ð X ¨ ÐRubber€Co.,óó€46€S.W.3d€171,€176€(Tenn.€2001).Ð D!” ÐÌà  àWaverly€Wood€Products€employees€made€logs€into€staves€and€sold€those€products.€€TheÐ #l! Ðuncontroverted€testimony€established€that€Waverly€Wood€Products,€Inc,€did€not€have€employeesÐ $X" Ðharvest€timber.€€The€company€regularly€bought€logs€from€twenty€or€more€different€vendors.€€It€isÐ ô$D # Ðclear€from€the€record€that€the€employees€of€L&L€Logging€were€not€engaged€in€work€usually€orÐ à%0!$ Ðeven€sporadically€performed€by€Waverly€Wood€Products€employees.Ð Ì&"% ÐÌà  àAs€the€Supreme€Court€in€òòMurray,€óórecently€stated:Ð ¤(ô#' ÐÌà8  à[E]ven€if€a€company€contracts€out€work€other€than€the€type€of€work€usuallyÐ |*Ì%) Ðperformed€by€its€employees,€that€company€may€nevertheless€be€considered€aÐ h+¸&* Ðprincipal€contractor€based€on€the€right€of€control€over€the€conduct€of€the€work€andÐ ° Ðover€the€employees€of€the€subcontractor.€€We€emphasize€that€the€control€test€isÐ œì Ðsatisfied€if€the€proof€demonstrates€that€the€alleged€employer€had€a€òòright€to€controlóó,Ð ˆØ Ðregardless€of€whether€this€right€was€actually€exercised.€€ÐtÄÐ Ð  ÐÌòòId.€óó(citations€omitted)òò.€€€€€€€€€à  àà h àà À àà  àà p àà È àà  àÐ L œ ÐÌà  àóóAfter€reviewing€the€record€we€find€that€Waverly€Wood€Products€did€not€have€or€exerciseÐ $ t Ða€right€of€control€over€Mr.€Outlandððs€employees€or€the€conduct€of€their€work.€€Mr.€Outland€hadÐ  ` Ðexclusive€control€over€the€hiring€and€firing€of€his€employees€and€the€setting€of€their€wages.€€Mr.Ð ü L  ÐOutland€furnished€the€tools€to€his€employees.€Mr.€Outland€determined€where€timber€would€be€cutÐ è 8  Ðfirst€as€well€as€determining€the€type€of€trees€to€be€cut.€òòÐ Ô$  ÐÌà  àóóIn€its€ruling€from€the€bench,€the€trial€court€stated:€Ð ¬ü  ÐÌà8  à[T]he€only€testimony€of€record€that€Iððm€aware€of€that€either€Mr.€James€RichardsonÐ „Ô  Ðor€Waverly€Wood€Products€extended€any€control€toward€this€allegedÐ pÀ Ðsubcontractor€of€L&L€Logging€was€by€the€Plaintiff,€Mr.€Matthews.€€Based€on€theÐ \¬ Ðentire€proof€which€the€Court€has€heard,€the€Court€does€not€regard€Mr.€MatthewsÐ H˜ Ðas€a€credible€witness€and€therefore€discounts€his€testimony.Ð4„Ð Ð  Ðà  àÌÌà  àThe€trial€court€was€in€the€best€position€to€judge€the€credibility€of€the€witnesses€in€thisÐ øH Ðcase,€and€on€review€we€give€considerable€deference€to€that€finding.€€We€find€that€the€language€inÐ ä4 Ðthe€financing€and€security€agreements€is€not€sufficient€standing€alone€to€satisfy€the€right€toÐ Ð  Ðcontrol€test.€€After€reviewing€the€entire€record€in€this€case€we€find€that€the€evidence€does€notÐ ¼  Ðpreponderate€against€the€finding€of€the€trial€court.òòÐ ¨ø ÐÌ€€€€Ð €Ð Ðà  àóóò òII.òòóó€€Whether€the€trial€court€erred€in€finding€that€Mr.€Matthews€sustained€a€10%Ð l¼ Ðpermanent€€partial€disability€to€the€body€as€a€whole.ó óÐ X ¨ ÐÌà  àThe€employee€has€the€burden€of€proving€every€essential€element€of€his€claim.€òòWhite€v.Ð 0"€  ÐWerthan€Industriesóó,€824€S.W.2d€158,€159€(Tenn.€1992).Ð #l! ÐÌà  àIn€all€but€the€most€obvious€cases,€permanency€of€an€injury€must€be€established€by€expertÐ ô$D # Ðmedical€testimony€in€workersðð€compensation€cases.€òòCorcoran€v.€Foster€Auto€GMC,€Inc.óó,€746Ð à%0!$ ÐS.W.2d€452€(Tenn.1988).Ð Ì&"% ÐÌà  àThe€extent€of€vocational€disability€is€a€question€of€fact€to€be€determined€from€all€of€theÐ ¤(ô#' Ðevidence,€including€lay€and€expert€testimony€òòTenn.€Code€Ann.óó€ðð€50„6„241(c);€òòWorthington€v.Ð )à$( ÐModine€Manufacturing€Co.óó,€798€S.W.2d€232,€234€(Tenn.€1990).€€€The€assessment€of€thisÐ |*Ì%) Ðdisability€is€based€on€all€pertinent€factors,€including€lay€and€expert€testimony,€the€employee's€Ô_Ôage,Ð h+¸&* Ðeducation,€skills€and€training,€local€job€opportunities,€and€capacity€to€work€at€the€types€ofÐ ° Ðemployment€available€in€his€disabled€condition.€€òòOrman€v.€Williams€Ô_ÔSonomaÔ_Ô,€Inc.óó,€€803€S.W.2dÐ œì Ð672,€678€(Tenn.€1991).€The€test€is€whether€there€has€been€a€decrease€in€the€employee's€capacityÐ ˆØ Ðto€earn€wages€in€any€line€of€work€available€to€the€employee.€òòCorcoran€v.€Foster€Auto€Ô_ÔGMCÔ_Ô,€Incóó.,Ð tÄ Ð746€S.W.2d€452,€459€(Tenn.€1988).Ð `° ЀÌà  àThe€trial€court€found€that€the€23%€impairment€assigned€by€Dr.€McNamara€included€aÐ 8 ˆ Ðsexual€dysfunction€that€did€not€relate€to€employment.€€The€trial€court€found€ð ðthat€most€of€[Mr.Ð $ t ÐMatthewsðð]€symptoms€or€reported€symptoms€were€subjective,€as€the€court€understands€and€readsÐ  ` Ðthe€deposition€of€Dr.€McNamara.€€And€as€I€have€said€before,€the€Plaintiff€is€not€a€credibleÐ ü L  Ðwitness,€as€far€as€the€Court€is€concerned,€and€there€has€been€much€testimony€that€he€is€notÐ è 8  Ðinjured€so€much€as€he€would€have€us€believe.€Therefore,€the€Court€sets€his€permanent€partial€atÐ Ô$  Ð10€percent.ððÐ À  ÐÌà  àIt€is€clear€that€after€hearing€Mr.€Matthewsðð€testimony€the€trial€court€questioned€theÐ ˜è  Ðunderlying€facts€upon€which€Dr.€McNamara€based€his€anatomical€impairment€rating€and€workÐ „Ô  Ðrestrictions€ð!ð€namely€Mr.€Matthews€subjective€complaints€of€pain.€€In€addition,€at€the€time€ofÐ pÀ Ðtrial,€Mr.€Matthews€was€working€at€Home€Depot€with€no€restrictions€where€he€was€required€onÐ \¬ Ðoccasion€to€load€lumber€and€move€supplies.€€Ð H˜ ÐÌà  àAfter€reviewing€the€medical€testimony€and€the€entire€record€in€this€case,€we€find€that€theÐ  p Ðevidence€does€not€preponderate€against€the€finding€of€the€trial€court.Ð  \ ÐÌÓ  ÓCONCLUSIONÐ ä4 ÐÓ kÓÌà  àThe€judgment€of€the€trial€court€is€affirmed.€€Costs€are€taxed€to€the€appellant.Ð ¼  ÐÌòòóóà0  àà0` (#(#àà0¸ ` (#` (#àà0¸ (#¸ (#àà0h(#(#àà0Àh(#h(#àà0À(#À(#à_____________________________€Ð”ä(#(# Ðà  àà ` àà ¸ àà  àà h àà À àà  àJAMES€L.€Ô_ÔWEATHERFORDÔ_Ô,€SR.€J.Ð  €Ð ÐÔ‡¼@)»XX…ÔÓ  Óà@@7 7 ìàIN€THE€SUPREME€COURT€OF€TENNESSEEÐ ° ÐSPECIAL€WORKERSðð€COMPENSATION€APPEALS€PANELÐ Â ÐÌÔ#†X…X»¼@)"m#ÔÌò òÔ‡¼@)»XX…ÔTERRY€LEE€MATTHEWSòòóó€v.€LARRY€OUTLAND,€òòet€alóó.Ô#†X…X»¼@)n#Ôó óÐ Ò" ÐÌà@@¼¼ìàò òCircuit€Court€for€Ô_ÔHumphreysÔ_Ô€CountyÐ Ò " Ðà@@ôôìàNo.€8441Ð ¾  ÐÌÌà@@ìì*ìàßA€V) °°` d€÷E<` AßÐ ‚Ò  ÐÌNo.€M1998„00578„Ô_ÔWCÔ_Ô„R3„CV€„€Filed€„€November€7,€2001Ð }Í  ÐÌßA€V) °°` dE<T` AßÐ U¥  Ðó óÌÓ  ÓÓ  ÓÔ‡¼@)»XX…ÔÔ#†X…X»¼@)sp#ÔÌÌÓgpÓÓ  Óò òJUDGMENTó óÔ‡¼@)»XX…ÔÔ#†X…X»¼@)áp#ÔÐ (x ÐÌÓ  ÓÔ‡¼@)»XX…ÔÔ#†X…X»¼@)Eq#ÔÔ‡¼@)»XX…ÔÔ#†X…X»¼@)‡q#ÔÔ‡"X…XXX…Ôà  àThis€case€is€before€the€Court€upon€the€entire€record,€including€the€order€of€referral€to€theÐ P ÐSpecial€Workersðð€Compensation€Appeals€Panel,€and€the€Panelððs€Memorandum€Opinion€setting€forthÐ ì< Ðits€findings€of€fact€and€conclusions€of€law,€which€are€incorporated€herein€by€reference.Ð Ø( ÐÌà  àWhereupon,€it€appears€to€the€Court€that€the€Memorandum€Opinion€of€the€Panel€should€beÐ ° Ðaccepted€and€approved;€andÐ œì ÐÌà  àIt€is,€therefore,€ordered€that€the€Panelððs€findings€of€fact€and€conclusions€of€law€are€adoptedÐ tÄ Ðand€affirmed,€and€the€decision€of€the€Panel€is€made€the€judgment€of€the€Court.Ð `° ÐÌà  àCosts€will€be€paid€by€the€appellant,€for€which€execution€may€issue€if€necessary.Ð 8ˆ ÐÌà  àIT€IS€SO€ORDERED.Ð !`  ÐÌÌÌà  àà ` àà ¸ àà  àà h àà À àà  àPER€Ô_ÔCURIAMÔ_ÔÐ À$ $ Ðà  àÔ#†X…XX"X…Éq#Ô