McGuire v. Christian Cnty.

• Decision Date: 05 May 2014
• Docket Number: No. SD 32731.,SD 32731.
• Citation: 442 S.W.3d 117
• Court: Missouri Court of Appeals
• Parties: Mark E. McGUIRE, Claimant–Respondent, v. CHRISTIAN COUNTY, Employer–Appellant, and Missouri Association of Counties, Insurer–Appellant.

442 S.W.3d 117

Mark E. McGUIRE, Claimant–Respondent

v.CHRISTIAN COUNTY, Employer–Appellant, and Missouri Association of Counties, Insurer–Appellant.

No. SD 32731.

Missouri Court of Appeals, Southern District, Division Two.

May 5, 2014.

Motion for Rehearing and/or Transfer to Supreme Court Denied May 28, 2014.

Application for Transfer Denied Aug. 19, 2014.

Rick L. Montgomery, Atwill & Montgomery, Attorneys at Law, LLC, Columbia, MO, Attorney for Appellants, Christian County and Missouri Association of Counties.

Robert O. Musick and Douglas M. Greenwald, McAnany, Van Cleave & Phillips, Springfield, MO, Attorneys for Respondents, Ozark Baseball Club, L.C. and Travelers Commercial Cas. Co.

Opinion

GARY W. LYNCH, J.

Christian County and its insurer, Missouri Association of Counties, appeal the Final Award of the Labor and Industrial Relations Commission (“the Commission”) issued in favor of Mark E. McGuire (“Claimant”), Ozark Baseball Club, L.C. (“OBC”), and Travelers Commercial Casualty Co., OBC's insurer. Christian County brings three points for our review: (1) that the Commission erred in dismissing OBC as a party because section 287.130¹ mandates joint and several liability between joint employers and Rule 57.04² requires all necessary parties to be joined in an original proceeding; (2) that the Commission erred in finding that the Administrative Law Judge (“ALJ”) violated principles of due process in determining whether contribution on the part of OBC was appropriate under section 287.130 ; and (3) that the Commission erred in not considering whether the apportioned rate of contribution determined by the ALJ was supported by competent and substantial evidence. Finding Christian County's first point meritless and dispositive, we affirm.

Factual and Procedural Background

Claimant worked for the Christian County Sheriff's Department (“CCSD”) as a deputy sheriff. Claimant normally worked ten-hour shifts on Monday through Thursday. Claimant also worked as a security officer for OBC, which operated a baseball team known as the Ozark Ducks. OBC wanted to hire security personnel who had the ability to arrest people if necessary, and Claimant learned about the OBC job through a sign-up sheet posted at the CCSD. Although CCSD authorized its employees to work security for OBC, no employee was required to do so.

On Friday, August 9, 2003, Claimant had already worked forty hours that week for the CCSD; if at any time he incurred more than forty hours of CCSD duties in a single week, the additional time would be compensated through “comp time,” which was time off that could be utilized at a later date. At approximately 10:30 that evening, while working security for OBC after a baseball game, Claimant encountered an inebriated couple who were intent on driving their vehicle to leave the ballpark. Claimant stopped the couple and secured a cab, but when the cab arrived, the couple got into their own vehicle and attempted to leave the parking lot. Claimant anticipated the commission of a crime and contacted CCSD to request back-up assistance, as well as to indicate that he was going “on duty” as a deputy sheriff at that time. The drunk driver started his vehicle and, as Claimant attempted to stop the vehicle from leaving through the facility's only exit, the vehicle struck Claimant. The impact flipped Claimant over the hood of the car, into the windshield, and onto the ground. Claimant sustained severe injuries to his knee and back; in addition to a torn medial meniscus, Claimant ruptured disks at three levels on his spine and suffered recurrent herniations, which prompted two discectomies, an artificial disc replacement, and eventually a back fusion. As a result of the injuries sustained that night, Claimant never returned to work as a deputy sheriff and was forced to leave his employment in law enforcement. He continued to operate a floor covering business, which he had operated for several years, but not in the same capacity as before the accident.

Claimant filed a claim for workers' compensation benefits against Christian County and its insurer. A hardship hearing on this claim was held on November 17, 2006. At that time, the ALJ issued a Temporary/Partial Award directing Christian County and its insurer to provide certain medical care to Claimant.

On March 16, 2009, Christian County and its insurer filed a motion entitled “Application of Christian County Pursuant to Section 287.040.[4] ^{[ 3 ]} to Make [OBC] a Party to the Proceedings” and recited in its application the provisions of sections 287.040.1 and 287.040.4, which pertain to contractors and subcontractors and their joinder as a party in a workers' compensation proceeding. The application to join OBC was sustained by the ALJ, but the determination of other issues was deferred.

Claimant thereafter settled his claim for compensation against Christian County and its insurer.

At the final evidentiary hearing on the remaining issues, OBC asserted and contended that section 287.040 was an insufficient basis for its joinder as a party because it was not a contractor or subcontractor of Christian County. Christian County responded by claiming that section 287.040 “was just one of many reasons in the application that we offered in support, so we weren't specifically limiting just to that.”

In her decision, the ALJ specifically found that Claimant was not an independent contractor and that OBC was not a contractor or subcontractor of Christian County. Rather, the ALJ found that OBC and Christian County were joint employers of Claimant. The ALJ went on to find that, although the initial joinder of OBC pursuant to section 287.040 was incorrect, because OBC was found to be a joint employer, section 287.130 permitted the joinder of OBC because Christian County and its insurer would be entitled to proceed against OBC in a civil action for contribution. In making this determination, the ALJ noted, “It is not only fair for [Christian County] to seek contribution against [OBC] in this proceeding, but it would be patently unfair to refuse to join such entity when it is liable for a share of the benefits received by [Claimant] if [OBC] was a joint employer.” The ALJ further cited to Tate v. Dir. of Revenue, 982 S.W.2d 724, 727 (Mo.App.1998), stating, “A bench-tried ruling that reaches the correct result will not be set aside even if the court gives a wrong or insufficient reason.” Finally, the ALJ found that OBC was liable to Christian County for 14.8 percent of the agreed-upon settlement amount of $381,318.27, totaling $56,435.10. This amount was calculated using the statutory minimum set forth in section 287.190.5, as OBC did not produce any evidence of Claimant's compensation under its employ.

OBC timely sought review by the Commission of the ALJ's award on several issues, including whether the ALJ lacked the authority to join OBC as a joint employer and the accuracy of the ALJ's determination of OBC's imputed rate of contribution. Christian County also sought review by the Commission, contending that the ALJ should have found OBC to be Claimant's sole employer at the time of the accident, and that, if they were joint employers, the ALJ erred in limiting OBC's rate of contribution to 14.8 percent.

In its Final Award Allowing Compensation, the Commission struck OBC as a party to the proceeding and reversed the ALJ's award of contribution from OBC to Christian County. The Commission found that the ALJ's decision to continue OBC as a party to the action once joinder under section 287.040 was deemed inapplicable was erroneous. The Commission concluded that section 287.130, the section upon which the ALJ relied to keep OBC a party to the case, “does not confer upon [Christian County], the [ALJ], or the Commission the power to add OBC as a party to employee's workers' compensation claim.” Rather, the Commission concluded that section 287.130 confers upon the employee the discretionary right to pursue claims against any or all of his or her employers, while permitting an employer to initiate an action for contribution against another alleged joint employer in a subsequent action. The Commission relied upon Leach v. Bd. of Police Comm'rs of Kansas City, 118 S.W.3d 646, 651–52 (Mo.App.2003), and Schultz v. Moerschel Prods. Co., 142 S.W.2d 106 (Mo.App.1940), in reaching this conclusion.

This appeal timely followed.

Standard of Review

Our review of this case is governed by Section 287.495.1, which provides, in pertinent part:

Upon appeal no additional evidence shall be heard and, in the absence of fraud, the findings of fact made by the commission within its powers shall be conclusive and binding. The court, on appeal, shall review only questions of law and may modify, reverse, remand for rehearing, or set aside the award upon any of the following grounds and no other:

(1) That the commission acted without or in excess of its powers;

(2) That the award was procured by fraud;

(3) That the facts found by the commission do not support the award;

(4) That there was not sufficient competent evidence in the record to warrant the making of the award.

“In conducting our review, we review the findings of the Commission, and not those of the ALJ.” Bowers v. Hiland Dairy Co., 132 S.W.3d 260, 264 (Mo.App.2004). We “defer to the commission on issues of fact, the credibility of the witnesses, and the weight given to conflicting evidence.” Treasurer of State–Custodian of Second Injury Fund v. Witte, 414 S.W.3d 455, 460 (Mo. banc 2013) (citing Hornbeck v. Spectra Painting, Inc., 370 S.W.3d 624, 629 (Mo. banc 2012) ). Issues of law are reviewed de novo. Id. (citing Difatta–Wheaton v. Dolphin Capital Corp., 271 S.W.3d 594, 595 (Mo. banc 2008) ). “An issue of statutory interpretation is a question of law, not fact.” Id. (citing City of St. Joseph v. Village of Country Club, 163 S.W.3d 905, 907 (Mo. banc 2005) ).

Discussion

In its first point, Christian County contends that the Commission erred in concluding that neither the ALJ nor the...