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PAT LYNCH v. HUTCHINSON PRODUCE COMPANY AND ANOTHER

Minnesota Supreme Court1926-12-10No. No. 25,729
169 Minn. 329

Summary

Holding. The court reversed the Industrial Commission's decision and held that Lynch was an employee of Hutchinson Produce Company entitled to workers' compensation benefits. The court directed that compensation be awarded.

Pat Lynch, an experienced well driller, was hired by Hutchinson Produce Company to drill a well on its property in Granite Falls. Lynch owned his own drilling equipment and hired an assistant, but was paid on an hourly basis (10-hour days) rather than at a fixed rate per foot. The parties understood from the outset that successfully reaching water was uncertain, and Lynch was free to stop work if conditions became too difficult. While working on July 21, 1924, Lynch stepped on a board with a protruding nail, injuring his foot and ultimately requiring amputation of his leg below the knee.

The referee determined Lynch was an employee entitled to workers' compensation benefits. However, the Industrial Commission reversed, treating the question as one of law and concluding Lynch was an independent contractor. Lynch petitioned for review. The court applied established tests for distinguishing employees from independent contractors, focusing particularly on the right of control. Although Lynch furnished his own equipment and employed a helper, these factors did not outweigh other evidence of employment status. The produce company retained the right to discharge Lynch at any time and control his work, and Lynch had not contractually obligated himself to complete the well. The court found these circumstances demonstrated an employment relationship rather than an independent contracting arrangement.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether furnishing one's own equipment and hiring a helper establishes independent contractor status
  • Whether the right of control by the alleged employer is determinative of employment status
  • Whether uncertainty regarding project completion and freedom to cease work affects the employment relationship

Procedural posture

The case came before the court on a writ of certiorari to review the Industrial Commission's reversal of the referee's award of workers' compensation.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Lees, C.

The respondent Hutchinson Produce Company is the owner of a building in Granite Falls in this state, where it deals in and stores butter, eggs and .poultry. The respondent Hartford Accident Indemnity Company is its insurer under the Workmen’s Compensation Act. The business of the produce company was managed by a man named Johnson. The relator is an experienced well driller. Johnson asked him to drill a well on the produce company’s premises. The site of Granite Falls is underlaid by granite. Drilling a well to the depth where water is found is a difficult operation. It cannot always be accomplished successfully. The relator did not agree to complete the well or to drill until he struck water. Both he and Johnson knew that it was uncertain whether a supply of water could be procured. Relator told Johnson he would not drill at a fixed price per foot, and Johnson said the produce company would pay “what was right.” Johnson kept “tab” on relator to see how many hours he worked. He was paid on the basis of a day of 10 hours. Relator began to drill on July 5, 1924, and continued until July 21, when he stopped work at a depth of about 70 feet because the rock was so hard he could not go on without a different drill. He was paid $300 in all, payment being made on the basis of the time spent in drilling. Relator owned the well-drilling machine and handled the drill himself. He employed and paid a man to assist him. He made no separate charge for the use of the machine or for the services of the man he employed.

On the last day he worked, relator stepped on a board in which there was a projecting nail. The nail passed through his shoe and into his foot. The accident arose out of and in the course of his employment. As a result of the accident, an infection developed and relator’s leg had to be amputated below the knee.

The referee who took the testimony found that the relator was an employe of the produce company and awarded compensation.

On appeal, the Industrial Commission vacated the finding and set aside the award, holding as a matter of law that the undisputed facts showed that the relator was an independent contractor and not an employe of the produce company. A writ of certiorari brings the record to this court for a review of the decision.

Whether a workman claiming compensation for an accidental injury was- an independent contractor or an employe has recently been considered in a number of cases. Herron v. Coolsaet Bros. 158 Minn. 522, 198 N. W. 134; Ledoux v. Joncas, 163 Minn. 498, 204 N. W. 635; Schullo v. Village of Nashwauk, 166 Minn. 186, 207 N. W. 621; Bosel v. Henderson Holding Co. 167 Minn. 72, 208 N. W. 421; Angell v. White Eagle Oil Co. supra, page 183. It is unnecessary to restate the tests for the determination of the question. They are familiar to the Industrial Commission and to the bar. The difficulty comes in their application to the facts in a particular case. Rarely do two cases present substantially the same state of facts. Where, as here, the facts are not in dispute, the Industrial Commission has properly treated the question as one of law. Applying the tests adopted in the cases cited, we conclude that relator was an employe of the produce company.

The fact that relator furnished the drilling machine is of no particular importance. The situation is much the same as in cases where a man is hired to haul gravel in the construction of a highway and furnishes teams and wagons to do the work, or is hired to haul sewer pipe for the construction of a sewer and uses his own team and wagon for that purpose. In such cases we have held that the relation of employer and employe arises. Herron v. Coolsaet Bros, supra; Benson v. County of Marshall, 163 Minn. 309, 204 N. W. 40.

The mere fact that relator employed a man to assist him does not justify the contention that relator was an independent contractor. He was not a contractor or builder who took jobs and supervised the work of the men he employed. He did the principal work himself with the aid of a helper. Our decisions emphasize the importance of the right of control as a test. Here the produce company had the right to stop the work and discharge the relator at any time. As was said in State ex rel. V. & R. L. Co. v. District Court, 128 Minn. 43, 47, 150 N. W. 211, “this right afforded adequate means for controlling his work.” Apparently relator was also at liberty to stop work whenever drilling became too difficult a task. He had not undertaken to complete the well as a condition precedent to his right to compensation.

The decision of the commission is reversed with directions to award compensation. Relator will be allowed an attorney’s fee of $100.