Erickson v. Holland, 50236.

• Decision Date: 03 July 1980
• Docket Number: No. 50236.,50236.
• Citation: 295 NW 2d 576
• Parties: Robert P. ERICKSON, Respondent, v. Dennis HOLLAND, d.b.a. Holland Trucking, Respondent, Curtis of Iowa, Inc. et al., Relators, State Treasurer, Custodian of Special Compensation Fund, Respondent.
• Court: Minnesota Supreme Court

295 N.W.2d 576 (1980)

Robert P. ERICKSON, Respondent, v. Dennis HOLLAND, d.b.a. Holland Trucking, Respondent, Curtis of Iowa, Inc. et al., Relators, State Treasurer, Custodian of Special Compensation Fund, Respondent.

No. 50236.

Supreme Court of Minnesota.

July 3, 1980.

Hansen, Dordell & Bradt and Gene P. Bradt, St. Paul, for relators.

Benshoof, Hummel, Sinclair, Schurman, Pearson & Evans and Joseph A. Evans, Detroit Lakes, for Erickson.

Rufer, Hefte, Pemberton, Schulze, Sorlie & Sefkow and Richard C. Hefte, Fergus Falls, for Holland.

Warren Spannaus, Atty. Gen., and Thomas G. Lockhart, Spec. Asst. Atty. Gen., for State Treasurer.

Considered and decided by the court en banc without oral argument.

ROGOSHESKE, Justice.

Curtis of Iowa and its workers' compensation insurer seek review of a decision of the Workers' Compensation Court of Appeals awarding compensation to Robert Erickson for disability resulting from an injury he sustained in a fall while taking a test intended to demonstrate his ability to operate a tractor leased by Curtis from Dennis Holland. Our review of the record requires us to reject relators' contention that as a matter of law Erickson was not Curtis' employee at the time of the accident and to conclude that there is substantial evidentiary support for the finding that he was.

Bearing on the issue of the disputed employment relationship is a lease between Curtis, a certified motor carrier based in Sioux City, and Holland, a resident of Barnesville, Minnesota, and the owner of a fleet of tractors which he leased to Curtis. The lease provided that Holland could drive a tractor himself, if qualified, and could hire drivers for his equipment "subject to approval by Curtis," and that Holland agreed "to comply, or cause compliance with all rules promulgated by Curtis, and to follow the provisions set forth in any Manual of Instructions or Bulletin that may be issued by Curtis from time to time." The lease also provided that Holland would pay for fuel, maintenance and operating costs of the tractors and would pay the drivers' wages. With respect to workers' compensation insurance for the drivers of Holland's tractors, the lease permitted Curtis to furnish such insurance and deduct its cost from sums due Holland. Both Holland and Curtis retained the right to discharge drivers.

Pursuant to the lease Holland himself recruited drivers and then sent them to Curtis, who usually required that an application form be filled out and then conducted a training session, a written test about "road rules," and a performance test in which applicants demonstrated their ability to handle and drive a tractor-trailer unit.

Erickson, a truckdriver living in north-western Minnesota, sought employment from Holland early in January 1977. Erickson testified that he filled out an application form because he "was trying to get on with Curtis" and expressed concern to Holland about several speeding violations which Erickson feared might cause Curtis to reject his application. Holland contacted Curtis by telephone and was told that if Erickson met Curtis' other qualifications he would be hired on a 30-day probationary status and would become a permanent employee at the end of that time if he had not been charged with violations during that period. Erickson agreed that he understood that Holland did not have authority to hire him for Curtis and that he would have to pass the tests administered by Curtis. He had had a physical examination in September 1975 and then obtained a permit from the Interstate Commerce Commission allowing him to drive for 2 years. He was certain that he had shown this permit to Holland.

A few days later Holland telephoned Erickson, saying that he should "come down and go to work." He did so the following day, and Holland directed him to go to Sioux City to attend the training session and take the employment tests. Erickson said he was told to drive a Holland-owned truck which Holland assigned to him and in which he placed his own CB radio. Erickson also testified that Holland telephoned Curtis to inquire if Curtis wanted a trailer in the Twin Cities area to be brought down to Sioux City, and Erickson himself then talked to "Keith," a safety man at Curtis, and received instructions to pick up the trailer and bring it to Sioux City. Erickson said he asked Keith if this meant that "I was going to go to work for him and how everything went and he said everything checked out. I just had to come down and take the test." He also said that Holland said he would receive 12 cents a mile and gave him credit cards and $10 in cash. Another driver, Ben Borstad, also wanted to take Curtis' tests so that he could drive another truck under lease to Curtis, so Borstad and Erickson left Barnesville in Holland's tractor on January 13.

Holland testified that he let Erickson and Borstad take the truck so they would not have to furnish their own transportation, that Borstad "rode along with Mr. Erickson," and that he gave Erickson the credit cards so that if he was cleared in Sioux City he could immediately go wherever Curtis directed. Holland could not recall whether Erickson filled out an application form,...