Barnard v. State

• Decision Date: 21 September 1992
• Docket Number: A-05-011
• Citation: 642 A.2d 808
• Parties: John BARNARD, Claimant-Below Appellant, v. STATE of Delaware and Department of Correction, Employer-Below Appellee. C.A. NO. 92 . Submitted:
• Court: Delaware Superior Court

Page 808

642 A.2d 808

John BARNARD, Claimant-Below Appellant, v. STATE of Delaware and Department of Correction Employer-Below Appellee.

C.A. NO. 92A-05-011.

Superior Court of Delaware New Castle County.

Submitted: Sept. 21, 1992.

Decided: Nov. 17, 1992.

Upon Appeal of a Decision of the Industrial Accident Board. Reversed and Remanded.

David R. Scerba, Wilmington, for appellant.

James J. Maxwell, Dep. Atty. Gen., Wilmington, for appellee.

OPINION

BARRON, Judge.

The claimant, John Barnard (Barnard), is a convicted prison inmate incarcerated at the Delaware Correctional Center (DCC) in Smyrna, Delaware. In June 1991, he applied for and received acceptance into an off-grounds work program with Concrete Design Systems (CDS), a unit of the Department of Correction (DOC). On July 25, 1991, Barnard severed the little finger of his left hand while working on a construction project for CDS. He filed a Petition to Determine Compensation Due (petition) with the Industrial Accident Board (IAB) seeking benefits under the Workmen's Compensation Act, claiming that he was injured while in the employ of CDS. After a hearing on March 2, 1992, the IAB denied Barnard's petition, concluding that (1) the legislature did not intend for the class of beneficiaries covered by the Workmen's Compensation Act to include inmates in custody of the DOC and (2) no valid contract of hire existed between Barnard and either the DOC or CDS. In this appeal, Barnard challenges both of these findings, contending that at the time of the injury he was an "employee" of the State within both the statutory and the common law meaning of the word.

I. THE FACTS

Before being accepted for work with CDS, an inmate is usually required by CDS to fill out a CDS application form which asks for information regarding sentencing and security classifications as well as employment skills. The application is then reviewed by several DOC boards, and if it is approved, it is then submitted to CDS for a final determination as to whether the inmate has the types of skills necessary to work at CDS. The ultimate decision is made by the manager of CDS.

In June 1991, Barnard applied for employment at CDS. He was classified as an "outside status" inmate worker, which made him eligible for work assignments beyond the boundaries of the prison grounds. Of five possible levels of skill, Barnard was rated as a Category 2, semi-skilled laborer, under Administrative Regulation 1135. Bill Knots, the CDS manager, and a DOC employee, made the final acceptance of Barnard's application. He was assigned to work for CDS as a construction worker on a refurbishment project at the Kent County Superior Courthouse. Like other outside status inmate workers, Barnard received an hourly wage that was credited to his inmate account and good time credit toward his sentence. 11 Del.C., § 6532. He also received weekly payroll records, reflecting hours of daily work, overtime, total wages for the week and time credited toward his sentence.

While working at CDS, Barnard was under the supervision of Bill Knots, who also established the correct statutory amount of Barnard's hourly wage, did Barnard's six-month performance evaluation, and made the decision regarding his pay raise. After Barnard's six-month evaluation, Knots increased his hourly rate from $0.16 to $0.30 based on his performance at CDS.

In addition to supervising the inmate workers, Knots supervised the five DOC trade instructors responsible for inmate security, training, and on-the-job performance. One of the DOC staff instructors, Patrick Gellif, acted in a capacity similar to that of a foreman at the Kent County Courthouse project where Barnard was assigned. On July 25, 1991, while performing carpentry work at the Courthouse, Barnard severed the little finger of his left hand with an electric miter saw.

On September 30, 1991, Barnard filed a petition before the IAB, seeking benefits as an employee of the State for purposes of the Workmen's Compensation Act. The IAB conducted a hearing on March 2, 1992. In reaching its decision to deny Barnard benefits under the Act, the IAB determined that (1) the legislature did not intend for the class of beneficiaries covered by the Workmen's Compensation Act to include inmates in custody of the DOC and (2) no valid contract of hire existed between Barnard and either the DOC or CDS.

Barnard appealed that decision to this Court. His contentions are fourfold. First, he asserts that the IAB erred as a matter of law in determining that an employment relationship did not exist between Barnard and either DOC or CDS. Second, Barnard avers that at the time he was injured he met the common-law requirements used to determine whether such a relationship exists. Third, he finds no intent on the part of the legislature to exclude inmates from the class of beneficiaries under the Workmen's Compensation Act. Finally, he argues that because the State is self-insured for the payment of Workmen's Compensation claims to its employees it has waived any claim to immunity under 19 Del.C., §§ 2306 and 2309. The Court agrees with the appellant's contentions.

II. DISCUSSION

The first issue requiring resolution is which entity is the proper defendant. Barnard names CDS as the employer-below, whereas the State names itself and the DOC, and there is some debate over this matter in the briefs. The second issue is whether Barnard was an employee at the time of his injury for purposes of workmen's compensation, which raises a plethora of sub-issues, including the question of legislative intent. The final section discusses the State's claim to sovereign immunity.

The proper role of this Court when a decision of the IAB comes before it on appeal is twofold. The Court is to resolve errors of law and also to determine whether the Board's factual findings are supported by substantial evidence on the record. M.A. Hartnett, Inc. v. Coleman, Del.Supr., 226 A.2d 910 (1967). Substantial evidence is defined as "more than a scintilla and less than a preponderance." Olney v. Cooch, Del.Supr., 425 A.2d 610, 614 (1981). In absence of an error of law, the Court will not overturn a decision of the Board that is supported by substantial evidence. Asplundh Tree Expert Co. v. Clark, Del.Super., 369 A.2d 1084 (1975).

A. The Proper Defendant

Barnard has brought suit against Concrete Design Systems, and the caption to his case reads accordingly. In his brief, Barnard acknowledges that CDS is "a unit of the Department of Corrections" and refers to the appellee as "CDS/Department of Corrections" and "Department of Corrections and/or CDS." Appellant's Opening Brief, 1, 9, 11. However, the thrust of his argument is to establish CDS as the actual employer, separate from the DOC, for purposes of workmen's compensation.

The appellee lists the employer-below as the "State of Delaware, Department of Corrections." In a footnote to its brief, the appellee alleges that "The label attached to the appellee by the appellant is misleading. No legal entity by the name of 'Concrete Design Systems, Inc.' actually exists." Although Barnard's original petition to the IAB does refer to "Concrete Design Systems, Inc.," there is no such reference in the briefs submitted to this Court. The above-mentioned footnote raises an initial issue that must be resolved.

Concrete Design Systems is a unit of the DOC created pursuant to 11 Del.C., *812s 6531(f). ¹ It is one of several inmate work programs designed to "approximate normal conditions of employment in free agriculture, industry and business, with respect to equipment, management practices and general procedures." 11 Del.C., § 6532(a). CDS hires inmates to perform the labor involved in pre-cast concrete work and renovations for State agencies. At the time of Barnard's injury, CDS retained six employees who were not inmates: the manager and five instructor/trainers. All facets of inmate work with CDS, including amount and type of compensation, hours worked, overtime, good time credit, inmate accounts, are controlled by statute. 11 Del.C., §§ 6532, 6534. As a unit of the DOC, CDS is administered by the DOC's Bureau of Administration.

It is clear to the Court that Concrete Design Systems is inherently a part of the Department of Correction and has no legal existence apart from it. Hence, any liability incurred by CDS is in reality a liability of the State. If Barnard was an employee of CDS for purposes of workmen's compensation, it is the State who is ultimately liable. The Court is satisfied that for purposes of workmen's compensation, CDS and the DOC are one and the same. Thus, the focus is squarely on whether, under the circumstances of this case, Barnard was an employee of CDS/DOC at the time he was injured.

The finding that CDS and the DOC are part of the same legal entity will also bear on the discussion of relevant case law. Several of the cases strongly urged on this Court by the State address employee/employer issues different from the one presented in this case, such as which of several possible employers is the correct one for purposes of workmen's compensation, and whether the worker was a contractor or an employee. White v. Gulf Oil, Del.Supr., 406 A.2d 48 (1979); Lester C. Newton Trucking Co. v. Neal, Del.Supr., 204 A.2d 393 (1964).

B. The Employee/Employer Relationship Under Workmen's Compensation

It is well-settled that the Workmen's Compensation Act was "passed for the benefit of the employee." Hill v. Moskin Stores, Inc., Del.Supr., 165 A.2d 447, 449 (1960). Its philosophy "is to give an injured employee, irrespective of the merits of his cause of action, a prompt and sure means of receiving compensation and medical care without subjecting himself to the hazards and delays of a lawsuit." Frank C. Sparks Co. v. Huber Baking Co., Del.Supr., 96 A.2d 456, 461 (1953). The Act is to be construed and administered with reasonable liberality, with due regard for its protective purpose. Children's...