Cooke v. Skyline Swannanoa, Inc., 801928

• Decision Date: 09 September 1983
• Docket Number: No. 801928,801928
• Citation: 307 S.E.2d 246,226 Va. 154
• Parties: Doris L. COOKE v. SKYLINE SWANNANOA, INCORPORATED. Record
• Court: Virginia Supreme Court

Page 246

307 S.E.2d 246

226 Va. 154

Doris L. COOKE v. SKYLINE SWANNANOA, INCORPORATED.

Record No. 801928.

Supreme Court of Virginia.

Sept. 9, 1983.

Charles P. Ajemian, Waynesboro (Ajemian & McGratty, Waynesboro, on briefs), for appellant.

Stephen D. Busch, Richmond (Jay T. Swett, Charlottesville, McGuire, Woods & Battle, Richmond, on brief), for appellee.

Before CARRICO, C.J., and COCHRAN, POFF, COMPTON, STEPHENSON, RUSSELL and THOMAS, JJ.

THOMAS, Justice.

In this case, the issue is whether the appellant, Doris L. Cooke (Cooke), was the statutory employee of Skyline Swannanoa, Incorporated (Skyline), an entity against which Cooke filed a common law negligence action. If Cooke was the statutory employee of Skyline, then her remedies are limited to those provided by the Workmen's Compensation Act. ¹ Code § 65.1-40.

The trial court held that Cooke was Skyline's statutory employee because at the time of Cooke's injury her direct employer was engaged in work that was part of Skyline's trade, business, or occupation. As a result of its holding, the trial court sustained Skyline's Special Plea that Cooke's exclusive remedy was under the Workmen's Compensation Act. We think the trial court was correct. Therefore, we will affirm its decision.

Code § 65.1-29 controls the disposition of this case. That statutory provision reads in pertinent part as follows:

When any person [the owner] ... undertakes to perform or execute any work which is a part of his trade, business or occupation and contracts with any other person [the subcontractor] ... for the execution or performance by or under such subcontractor of the whole or any part of the work undertaken by such owner, the owner shall be liable to pay to any workman employed in the work any compensation under this Act which he would have been liable to pay if the workman had been immediately employed by him.

The issue whether a person is a statutory employee presents a mixed question of law and fact which must be resolved in light of the facts and circumstances of each case. Bassett Furniture v. McReynolds, 216 Va. 897, 224 S.E.2d 323 (1976). Here, the facts fall squarely within the sweep of the statute.

Cooke's direct employer was Aberdeen Barn-Afton, Inc. (Aberdeen Barn), a restaurant located at the Holiday Inn on Afton Mountain in Nelson County, Virginia. She was injured on the premises of the restaurant. She received workmen's compensation benefits from Aberdeen Barn's insurer.

At the time of Cooke's injury, Skyline had a license, executed November 15, 1965, to operate a Holiday Inn on Afton Mountain (the "License Agreement"). It describes the Holiday Inn system as one that includes providing "lodging, food and other accommodations." Further, it provides that a substantial and material violation of any of its terms gives Holiday Inn the right to terminate the license.

In an Addendum to the License Agreement (Addendum), Skyline and Holiday Inn refer specifically to the operation of a restaurant at the Afton Mountain facility. There, Skyline, the Licensee, agreed in pertinent part as follows:

Licensee agrees that whether it operates the restaurant or whether it is leased or sublet to others, Licensee agrees to be responsible for the restaurant in the proposed Holiday Inn, to maintain accommodations at an early hour for departure at breakfast and also to remain open a reasonably late hour for late arrivals in the evening. Licensee further agrees to be responsible for the restaurant to furnish room service to all rooms of the Holiday Inn, to display Holiday Inn advertising material exclusively, such as Directories, place mats, napkins, etc., and to conduct the entire operation of the restaurant compatible with and to the best interest of the Holiday Inn System.

(Emphasis added.) The License Agreement and the Addendum make clear that the provision of both food and lodging is fundamental to the operation of a Holiday Inn.

Subsequent to executing the License Agreement, Skyline executed a second agreement (the "Lease Agreement") with Angus Barn, Afton, Inc., the predecessor in interest to the present Aberdeen Barn-Afton, Inc. In that agreement, Skyline leased to Angus Barn the "existing restaurant area ... as set forth on the commercial building plan in the plans and specifications for a Holiday Inn located at Afton, Virginia." The Skyline/Angus Barn Lease Agreement makes several specific references to the Skyline/Holiday Inn License Agreement. Significantly, in the Lease Agreement, Angus Barn agreed to be bound by certain parts of the License Agreement.

The Lessee hereby agrees that it will observe all the covenants and terms of the said License Agreement insofar as they relate to the operation of the restaurant within the Holiday Inn. The Lessee undertakes and agrees to operate the restaurant so as to comply fully with the rules, regulations and requirements of the Holiday Inn International System Rules of Operations as in force from time to time.

(Emphasis added.) Angus Barn also agreed to submit to inspections by Holiday Inn personnel....