Honeysuckle v. Curtis H. Stout, Inc.

• Decision Date: 28 October 2010
• Docket Number: No. 09–1222.,09–1222.
• Citation: 2010 Ark. 328,368 S.W.3d 64
• Parties: Carlos HONEYSUCKLE, Appellant, v. CURTIS H. STOUT, INC., Valley Forge Insurance Co., Death & Permanent Total Disability Trust Fund, and Michael S. McCarthy, Appellees.
• Court: Arkansas Supreme Court

2010 Ark. 328
368 S.W.3d 64

Carlos HONEYSUCKLE, Appellant,
v.
CURTIS H. STOUT, INC., Valley Forge Insurance Co., Death & Permanent Total Disability Trust Fund, and Michael S. McCarthy, Appellees.

No. 09–1222.

Supreme Court of Arkansas.

Sept. 16, 2010.
Rehearing Denied oct. 28, 2010.

[368 S.W.3d 66]

McMath Woods P.A., by: James Bruce McMath, Little Rock, for appellant.

Phillip Hicky, II, Forrest City, for appellees.

JIM GUNTER, Justice.

This [2010 Ark. 1]is a workers' compensation case in which the main issue is whether Appellee Michael McCarthy is immune from tort liability pursuant to the exclusive-remedy statute found at Ark.Code Ann. § 11–9–105 (Repl.2002). The Workers' Compensation Commission determined that McCarthy was protected by the statutory immunity because he was Appellant Carlos Honeysuckle's employer at the time of the accident that caused his compensable injury. This case was first submitted to the court of appeals, which reversed the decision of the Commission. Appellee Michael McCarthy petitioned this court for review, which we granted. Therefore, our jurisdiction is pursuant to Rule 1–2(e) of the Arkansas Supreme Court Rules.

Honeysuckle argues on appeal that the Commission erred in finding McCarthy was immune from third-party tort liability. Honeysuckle presents three points on appeal to support [2010 Ark. 2]his contention: (1) whether McCarthy was Honeysuckle's employer within the meaning of the statute at the time of the accident; (2) whether the statute extends immunity to a “principle, officer, director, stockholder” without regard to whether such a person is “acting within the capacity as an employer;” and (3) whether under the statute, a “principle, officer, director, stockholder” is necessarily “acting in the capacity as an employer” by virtue of the accident occurring during the course and scope of such a person's employment. Although Honeysuckle frames the issue on appeal as three separate points all involving statutory interpretation, the actual issue on appeal is whether the Commission erred in finding—as a matter of fact—that McCarthy was Honeysuckle's employer at the time of the compensable injury. Because the Commission's decision is supported by substantial evidence, we affirm.

The parties submitted stipulated facts to the Commission. Those stipulated facts are as follows. Curtis H. Stout, Inc. (“Stout, Inc.”), an Arkansas corporation, sells electrical components to public utilities and private companies. It has places of business in Arkansas, Louisiana, Tennessee, and Mississippi. Stout, Inc., was founded by McCarthy's grandfather. At all relevant times, McCarthy was an employee of the company, as well as president, a member of the board of directors, and a major stockholder in Stout, Inc. Similarly, at all relevant times, Honeysuckle was an employee of Stout, Inc., in a sales position.

McCarthy was an instrument-rated pilot and duly licensed to fly a Model 114A Aero Commander aircraft, one of which he owned. At times, he used the aircraft as a means of transportation in connection with Stout, Inc., business. Prior to the accident at issue, [2010 Ark. 3]McCarthy had carried employees of the company on several business trips. Both McCarthy and Honeysuckle were required to travel as part of their employment with Stout, Inc., and the company reimbursed each employee for his expenses related to his travel. When McCarthy used his aircraft in connection with business trips, the company reimbursed him on a cost-of-operation basis.

On December 5, 2002, Honeysuckle and McCarthy traveled from Little Rock, Arkansas, to Addison, Texas, for a business meeting. The two traveled to the Little Rock airport in McCarthy's car and boarded McCarthy's aircraft. McCarthy piloted his aircraft, and Honeysuckle was a passenger.

[368 S.W.3d 67]

Upon arrival in Texas, they were picked up by a business associate of the company and went to the meeting. At the conclusion of the meeting, they returned to the Addison airport where they boarded McCarthy's aircraft for the return trip to Little Rock. On the return trip, the aircraft experienced a loss of engine power, and McCarthy attempted an emergency landing in Hot Springs, Arkansas. The aircraft crashed in a residential area approximately one mile southwest of the Hot Springs airport. Honeysuckle was fatally injured in the crash, and McCarthy was severely injured.

Claims were filed on behalf of both McCarthy and the Estate of Carlos Honeysuckle for workers' compensation benefits in connection with the injuries they sustained as a result of the aircraft accident. Both McCarthy and Honeysuckle's Estate collected workers' compensation benefits. Thereafter, Janan Honeysuckle, Administratrix of Honeysuckle's estate, filed a wrongful-death action in Pulaski County Circuit Court against McCarthy, the...