Franklin v. Arkansas Kraft, Inc.

• Decision Date: 20 June 1984
• Docket Number: No. CA83-431,CA83-431
• Citation: 670 S.W.2d 815,12 Ark.App. 66
• Parties: Eugene FRANKLIN, Appellant, v. ARKANSAS KRAFT, INC. and Employers Insurance of Wausau, Appellees.
• Court: Arkansas Court of Appeals

Page 815

670 S.W.2d 815

12 Ark.App. 66

Eugene FRANKLIN, Appellant, v. ARKANSAS KRAFT, INC. and Employers Insurance of Wausau, Appellees.

No. CA83-431.

Court of Appeals of Arkansas Division II.

June 20, 1984.

Bethell, Callaway, Robertson & Beasley, by John R. Beasley, Fort Smith, for appellant.

Harper, Young, Smith & Maurras by Tom Harper, Jr., Fort Smith, for appellees.

GLAZE, Judge.

This is the second time this workers' compensation case has been appealed to our Court. The sole issue on the first appeal was whether appellant was an employee of or an independent contractor for the appellee company. Franklin v. Arkansas Kraft, Inc., 5 Ark.App. 264, 635 S.W.2d 286 (1982). We thought that in reversing the administrative law judge's finding that Franklin was an employee, the Commission indicated that it believed the "control" test was the only test available under Arkansas law to determine whether one is an employee or an independent contractor. We reversed and remanded for the Commission to consider factors other than control. We noted that the Arkansas Supreme Court had considered the "relative nature of the work" test in Sandy v. Salter, 260 Ark. 486, 541 S.W.2d 929 (1976). See also 1C A. Larson The Law of Workmen's Compensation §§ 43.50-43.52 (1980). On remand, the Commission found that Franklin was an independent contractor under either the "control" test or the "relative nature of the work" test, and therefore not entitled to compensation. In addition, the Commission found that Franklin failed to show by a preponderance of the evidence that the appellee company was estopped to deny benefits.

On this appeal, the appellant Franklin contends that (1) substantial evidence does not support the Commission's denial of benefits, (2) the Commission erred by readopting the "control" test, and (3) appellant is entitled to benefits by estoppel. We find substantial evidence supports the decision of the Commission; therefore, we affirm.

The appellant Franklin was a pulpwood cutter who injured his back on June 15, 1978, while cutting timber under a contract with appellee Arkansas Kraft. The question of compensability has at all phases revolved around Franklin's status--whether he was an employee or an independent contractor. The Commission has twice decided that he was an independent contractor. Our question in this appeal is whether the Commission had substantial evidence to find that Franklin was an independent contractor. He contends that the facts of this case are almost indistinguishable from the facts in Silvicraft, Inc. v. Lambert, 10 Ark.App. 28, 661 S.W.2d 403 (1983), wherein both the administrative law judge and the Commission found that Lambert was an employee. We affirmed the Commission's decision in Silvicraft. It is well settled that the determination of whether, at the time of injury, a person was an employee or an independent contractor, is a factual one, and the Commission is required to follow a liberal approach, resolving doubts in favor of employment status for the worker. Id. at 33, 661 S.W.2d 405. Once the Commission makes that factual determination, we view the evidence in the light most favorable to the Commission's decision, and affirm if it is supported by substantial evidence. In order to reverse a decision of the Commission, we must be convinced that fair-minded persons, with the same facts before them, could not have arrived at the conclusion reached by the Commission. Id.

The question on appeal is not whether the facts at bar would have supported the opposite conclusion, but whether these facts supported the decision the Commission made. In his brief, the appellant has set out the nine factors this Court enumerated in Franklin v. Arkansas Kraft, Inc., 5 Ark.App. at 269-70, 635 S.W.2d at 289, as guidelines for the Commission to follow in determining whether one is an employee or an independent contractor for purposes of workers' compensation coverage. Appellant has compared the pertinent facts of this case and Silvicraft under each factor. Without setting out all nine factors or rehashing all of the facts of both cases, we note the following distinctions:

(1) The right to control the means and method by which the work is done. A primary distinction between Silvicraft and the case at bar is that in the former, the company expected the pulpwood cutter to haul wood exclusively for that company. The employee was told that promissory notes on equipment held by a bank and endorsed by the company would have been called had claimant worked for any other company. In the case at bar, it is undisputed that Franklin did not cut and haul wood exclusively for the appellee company, but instead worked for others as much as fifty percent of the time.

(2) The length of time for which the person is employed. In Silvicraft, the claimant had worked exclusively for and under an oral contract with the company for about a year and a half before he was injured. In the instant case, Franklin had worked under a written contract for the appellee company for five or ten years, but during that time he also worked for other lumberyards.

(3) In Silvicraft, the employment agreement between the...