Roybal v. Bates Lumber Co.

• Decision Date: 28 March 1966
• Docket Number: No. 7669,7669
• Citation: 76 N.M. 127,1966 NMSC 57,412 P.2d 555
• Parties: Mrs. Felipe ROYBAL, Plaintiff-Appellant, v. BATES LUMBER COMPANY, Inc., a New Mexico corporation, United States Fidelity and Guaranty Company, an Ohio corporation, Licensed to do business within the State of New Mexico, Defendants-A
• Court: New Mexico Supreme Court

Page 555

412 P.2d 555

76 N.M. 127

Mrs. Felipe ROYBAL, Plaintiff-Appellant, v. BATES LUMBER COMPANY, Inc., a New Mexico corporation, United States Fidelity and Guaranty Company, an Ohio corporation, Licensed to do business within the State of New Mexico Defendants-A

No. 7669.

Supreme Court of New Mexico.

March 28, 1966.

Patricio S. Sanchez, Santa, Fe, for appellant.

Seth, Montgomery, Federici & Andrews, Santa Fe, for appellees.

COMPTON, Justice.

The widow of Felipe Roybal, deceased, on behalf of herself and decedent's minor children, instituted this action against Bates Lumber Company, hereinafter referred to as Bates, and Apache, Inc., hereinafter referred to as Apache, as employers, and United States Fidelity and Guaranty Company, hereinafter referred to as insurer, to recover workmen's compensation benefits for the death of the decedent allegedly arising out of and in the course of his employment. At the trial Apache was dismissed as a party to the action and the cause was prosecuted against Bates and insurer. The trial court found that at the time of his death the decedent was an employee of Apache, an independent contractor, and that he was not employed by Bates nor covered by any workmen's compensation insurance issued to Bates by insurer. Judgment was entered accordingly and the plaintiff appeals.

In 1956 Bates entered into a timber sale contract with the United States Forest Service for the removal and sale of timber in Carson National Forest near Penasco, Taos County, New Mexico, known as the Trampas Unit. Bates owned a sawmill near the area where the cut timber was rough milled before being transported to its lumber yard in Albuquerque. In March, 1959, Bates entered into an option agreement with one Frank Cofmann, or his assigns, whereby Cofmann would lease the sawmill and take over the operations under the timber contract. The option was exercised by Cofmann in April, 1959. Shortly thereafter, Apache, specifically mentioned in the option agreement as an assignee, took possession of the mill from Cofmann and commenced logging operations.

It is the appellant's first contention that the option agreement, as well as the conduct of the parties, shows that the decedent was an employee of Bates as a matter of law. She contends further that regardless of the relationship between Bates and Apache the policy issued by insurer to Bates specifically covered employees of Apache at the Trampas Unit. We disagree.

The nature of the relationship between Bates and Apache was a matter of law to be determined by the court from the facts. Nelson v. Eidal Trailer Co., 58 N.M. 314, 270 P.2d 720; Latta v. Harvey, 67 N.M. 72, 352 P.2d 649. And if the court's findings have substantial support in the evidence, the conclusions reached are correct, and the judgment must be affirmed.

The decedent was hired by Apache as a laborer and tree cutter. On September 1, 1959, he was crushed beneath a tree he was cutting and died within a few hours. Contrary to the terms of the option agreement, Apache did not carry workmen's compensation insurance. On September 4, 1959, three days after the fatal accident, by agreement between Bates and Apache, the logging operations arising out of the exercise of the option agreement were terminated and an accounting had between the parties. The termination agreement specifically exempted therefrom any claims arising from Apache's failure to provide the insurance called for in the option agreement.

In determining whether one is or is not an independent contractor this court has adhered to the general doctrine that the principal consideration is the right to control. The relationship of master and servant or employer and employee usually results where there is control over physical details such as the manner and method of performance of a contract. On the other hand, where control is limited to the ultimate results to be achieved under the contract the relationship is usually that of independent contractor. Burruss v. B.M.C. Logging Co., 38 N.M. 254, 31 P.2d 263; Sucetti v. Jones' Estate, 38 N.M. 327, 32 P.2d 815; Bland v. Greenfield Gin Co., 48 N.M. 166, 146 P.2d 878; Nelson v. Eidal Trailer Co., supra; Huff v. Dunaway, 63 N.M. 121, 314 P.2d 722; Latta v. Harvey, supra; Campbell v. Smith, 68 N.M. 373, 362 P.2d 523; Romero v. Shelton, 70 N.M. 425, 374 P.2d 301; Shaver v. Bell, 75 N.M. 700, 397 P.2d 723; and Jaramillo v. Thomas, 75 N.M. 612, 409 P.2d 131. In Burruss v. B.M.C. Logging Co., supra, we said:

'The employee renders personal service. The independent contractor may or may not. In both cases, the employer exercises authority. Beyond doubt the character of such authority or control is the usual and generally accepted test. The result to be achieved by the independent contractor is controlled by the employer. But, when the control descends to the details or to the means and methods of performance, we have a servant or employee. * * *'

The option agreement under which Apache conducted the logging operations required that it maintain and keep in repair the sawmill and compensate Bates for its use; that all timber and milled lumber remain the property of Bates and that Apache's work be paid for at the rate of $39.50 per thousand board feet; that Apache be familiar, and comply in all respects, with the provisions of the Forest Service timber sale contract to the satisfaction of the Forest Service and of Bates. In this connection, it was provided that the agreement would terminate and Bates be held harmless in the event of Apache's failure to correct within a reasonable time...