Dockery v. McMillan

• Decision Date: 05 May 1987
• Docket Number: No. 8610IC970,8610IC970
• Citation: 355 S.E.2d 153,85 N.C.App. 469
• Court: North Carolina Court of Appeals
• Parties: Maxine DOCKERY, Widow Rex Dockery, Deceased, Employee, Plaintiff, v. Robert B. McMILLAN, d/b/a McMillan Homes, Incorporated, Employer; Non-Insured, and/or Randy Dockery, Employer; Non-Insured, Defendants.

Page 153

355 S.E.2d 153

85 N.C.App. 469

Maxine DOCKERY, Widow Rex Dockery, Deceased, Employee, Plaintiff, v. Robert B. McMILLAN, d/b/a McMillan Homes, Incorporated, Employer Non-Insured, and/or Randy Dockery, Employer Non-Insured, Defendants.

No. 8610IC970.

Court of Appeals of North Carolina.

May 5, 1987.

Don H. Bumgardner, Harris, Bumgardner & Carpenter, Gastonia, for employee, plaintiff.

Essex, Richards & Morris by B. Garrison Ballenger, Jr., Charlotte, for employer, defendant Robert B. McMillan, d/b/a McMillan Homes, Inc.

COZORT, Judge.

Plaintiff appeals the Commission's Opinion and Award, filed 27 May 1986, adopting Deputy Commissioner Sellers' 27 January 1986 Opinion and Award, finding that Rex Dockery was not an employee within the meaning of N.C.G.S. § 97-2(2) but was a "mere volunteer." Commissioner Charles A. Clay dissented. We reverse.

Robert G. McMillan, president of McMillan Homes, Inc., as general contractor for the construction of a residence at 4105 Columbine Circle in Charlotte, North Carolina, subcontracted with roofing contractor Randy Dockery in the middle of July of 1983 to put a roof on the house under construction. When Robert McMillan contracted with Randy Dockery, Dockery did not give McMillan any certificate of insurance as to workers' compensation, and McMillan does not remember whether he asked Dockery for such a certificate.

Randy Dockery learned the roofing business from his father, Rex Dockery. Due to problems with his back Rex Dockery stopped working full time in the roofing business in 1975, and he went on disability in September 1975. In 1975 or 1976 Randy Dockery formed his own roofing business. After Rex Dockery stopped roofing full time and went on disability he would "work" for his son, Randy, on a part-time basis. On 23 July 1983, a Saturday, Rex Dockery went with Jeff Roberson and Curt Dockery, Rex's son and Randy's brother, to roof the house on Columbine Circle. Jeff Roberson and Curt Dockery were Randy Dockery's only full-time employees at the Columbine Circle house. While working on the roof, Rex Dockery fell off the roof and to his death on a concrete patio.

In finding and concluding that Rex Dockery was not an "employee" within the meaning of the Workers' Compensation Act, and thus leaving the Commission without jurisdiction in this case, the Commission made three numbered findings of fact:

1. The deceased, Rex Dockery, was in partnership with his brother for a number of years working as a roofing subcontractor until back difficulties, which qualified him for social security disability benefits since September of 1975, caused him to dissolve the partnership. Thereafter, on an occasional basis the deceased assisted his son, defendant Randy Dockery, who had also become involved in the roofing business. There existed between the deceased and defendant Randy Dockery no written contract for hire and, in fact, there was no implied contract for hire for the reason that the deceased "came and went as he pleased." Further, he was not subject to being fired by defendant Randy Dockery, nor did defendant Randy Dockery have a right of control over what the deceased did or when he might do what he did. Any monies which defendant Randy Dockery paid the deceased was not based on the value of services rendered, but was rather gratuitous based on whether the deceased was in need of money for medicine, for shoes or for a house payment.

2. Defendant Robert G. McMillan d/b/a McMillan Homes, Inc., is a general contractor in the business of constructing residential dwellings. On one such dwelling the roofing work had been subcontracted to defendant Randy Dockery. On 23 July 1983 the deceased fell to his death from the roof of this house.

3. At the time of his death, the deceased was not an employee of defendant Randy Dockery who was a subcontractor for the general contractor, defendant Robert McMillan d/b/a McMillan Homes, Inc., but was rather a mere volunteer who occasionally received monies unrelated to the values of services rendered.

In his dissenting opinion Commissioner Clay stated:

I believe the majority errs in dismissing this claim for lack of jurisdiction. Contrary to the Deputy Commissioner's conclusion, an employer-employee relationship clearly existed between the deceased worker and his son, a sub-contractor. The fact that this relationship was some-what [sic ] unusual or informal because it was between father and son does not, in my opinion, mean that the relationship did not exist within the meaning of the Act.

The decision affirmed by the majority finds that money paid to the father by the son was "not based on value of services rendered, but was rather gratuitous based on whether the deceased was in need of money for medicine, for shoes or for a house payment." These are among the basic things, of course, that most people work to earn money for.

Certainly the $300.00 to $400.00 a month the son paid the father before the latter was killed in a fall on a roofing job was of substantial if not great benefit to the son from the standpoint of furthering the son's business. The son testified that after he took over the business, his father priced roofing and did other things the son didn't know how to do. This is evidence that the father did indeed perform valuable services in his job and more than earned the $300.00 to $400.00 a month he was paid for his work.

We agree with Commissioner Clay.

N.C.G.S. § 97-19 holds a general contractor, in this case defendant McMillan, who fails to require a subcontractor to obtain from the Industrial Commission a certificate of compliance with N.C.G.S. § 97-93, liable to a subcontractor's employees for compensation under the Workers' Compensation Act to the same extent the subcontractor would be liable if the subcontractor were subject to the Act, irrespective of the number of employees the subcontractor employs.

An injured person, however, is entitled to compensation under the Act only if he was an employee of the alleged employer at the time of the accident. Askew v. Leonard Tire Co., 264 N.C. 168, 141 S.E.2d 280 (1965). Since the Act applies only in an employer-employee relationship, the question of whether the relationship existed at the time of the accident is jurisdictional. Carter v. Frank Shelton, Inc., 62 N.C.App. 378, 303 S.E.2d 184 (1983), disc. rev. denied, 310 N.C. 476, 312 S.E.2d 883 (1984). Therefore,

[n]otwithstanding G.S. 97-86, the finding of a jurisdictional fact by the Industrial Commission is not conclusive upon appeal even though there be evidence in the record to support such finding. The reviewing court has the right, and the duty, to make its own independent findings of such jurisdictional facts from its consideration of all the evidence in the record.

Lucas v. Li'L General Stores, 289 N.C. 212, 218, 221 S.E.2d 257, 261 (1976) (emphasis added). Thus, our task is to examine the whole record and make our own determination of whether Rex Dockery was an employee, within the meaning of the Act, at the time he fell to his death. The claimant has the burden of proof that the employer-employee relationship existed at the time the injury by accident occurred. Id.

N.C.G.S. § 97-2(2) defines an employee as "every person engaged in an employment under ... [a] contract of hire ..., express or implied, oral or written, ... whether lawfully or unlawfully employed, but excluding persons whose employment is both casual and not in the course of the trade, business, profession or occupation of his employer...." This statutory definition adds nothing to the common law meaning of the term, and whether an employer-employee relationship existed is to be determined by the application of ordinary common law tests. Lucas v. Li'L General Stores, 289 N.C. 212, 221 S.E.2d 257. The relationship of employer-employee "is essentially contractual in its nature, and is to be determined by the rules governing the establishment of contracts, express or implied." Hollowell v. North Carolina Department of Conservation and Development, 206 N.C. 206, 208, 173 S.E. 603, 604 (1934). "An employee is one who works for another for wages or salary, and the right to demand pay for his services from his employer would seem to be essential to his right to receive compensation under the Workmen's Compensation Act, in case of injury sustained by accident arising out of and in the course of the employment." Id. at 210, 173 S.E. at 605.

In essence, what we must determine is whether at the time of the accident resulting in Rex Dockery's death there existed a contract of hire between Randy Dockery and his father, Rex. For the reasons stated herein, we hold there was an implied oral contract of hire, and the Commission erred in finding Rex Dockery was not...