Singleton v. JP Stevens & Co., Inc.

• Decision Date: 22 January 1982
• Docket Number: Civ. A. No. 80-1780-14.
• Citation: 533 F. Supp. 887
• Court: U.S. District Court — District of South Carolina
• Parties: Carlos A. SINGLETON and Shelby Singleton, Plaintiffs, v. J. P. STEVENS & COMPANY, INC., Defendant and Third Party Plaintiff, v. HUNTINGTON AND GUERRY ELECTRIC COMPANY, Third Party Defendant.

533 F. Supp. 887

Carlos A. SINGLETON and Shelby Singleton, Plaintiffs, v. J. P. STEVENS & COMPANY, INC., Defendant and Third Party Plaintiff, v. HUNTINGTON AND GUERRY ELECTRIC COMPANY, Third Party Defendant.

Civ. A. No. 80-1780-14.

United States District Court, D. South Carolina, Greenville Division.

January 22, 1982.

R. Frank Plaxco, Greenville, S.C., for plaintiffs.

W. Francis Marion, Jr., Paul J. Foster, Jr., Greenville, S.C., for defendant and third party plaintiff.

ORDER

WILKINS, District Judge.

Plaintiffs, residents of South Carolina, brought this action based on diversity of citizenship, claiming actual and punitive damages resulting from injuries Mr. Singleton allegedly sustained in July, 1976 when he received electrical shock causing him to fall onto a concrete floor. At the time of his accident, Mr. Singleton was repairing a main electrical line owned by J. P. Stevens & Company, Inc. (hereinafter "Stevens") at its mill in Walterboro, South Carolina. Stevens raises three defenses. The third defense, which is the basis of the present controversy, alleges that the service provided by Mr. Singleton through his immediate employer, Huntington and Guerry Electric Company (hereinafter "Huntington"), was part of the trade, business or occupation of Stevens in maintaining its textile mill. Consequently, it asserts that Mr. Singleton's sole and exclusive remedy is found under The South Carolina Workmen's Compensation Law, § 42-1-10 et seq. of the Code of Laws of South Carolina (1976) and that Stevens is therefore not amenable to this common law action.

This matter comes before the Court on Cross-Motions for Summary Judgment pursuant to Rule 56 of the Federal Rules of Civil Procedure. Plaintiffs moved for partial summary judgment in their favor as to the third defense on the ground that "there are no genuine issues of fact favorable to the defendant in support of its Third Defense" and that Mr. Singleton "was at most a casual employee within the provisions of said Act."

Stevens moved for summary judgment as to its third defense "on the basis that there is no genuine issue as to any material fact" that Mr. Singleton was a statutory employee of Stevens and that Stevens "is not a third party as defined under the Workmen's Compensation Act, § 42-1-10 et seq. of the South Carolina Code...."

The issue before the Court is whether Mr. Singleton is a "statutory employee" of Stevens, thereby guaranteeing but limiting his remedy to the benefits of the South Carolina Workmen's Compensation Law, § 42-1-10 et seq. of the Code of Laws of South Carolina (1976). The same issue viewed another way would be presented by asking whether Singleton would be entitled to workmen's compensation benefits from Stevens, assuming Huntington did not carry any. Since the answer is yes, Singleton may not also sue at common law. While this result may seem harsh in this or any particular given case, the overall benefits to all those injured during their employment is substantial.

The South Carolina Supreme Court has on numerous occasions defined in explicit terms when a person will be found a statutory employee. It is recognized that in federal court the question of a company's trade, business or occupation is often one of fact for the jury. See Byrd v. Blue Ridge Rural Electric Cooperative, Inc., 356 U.S. 525, 78 S.Ct. 893, 2 L.Ed.2d 953 (1958), reversing Blue Ridge Rural Electric Cooperative, Inc. v. Byrd, 238 F.2d 346 (4th Cir. 1956). However, Byrd does not stand for the proposition that if there is no issue genuinely in dispute, the question of employment status must be nevertheless submitted to a jury. There being no issue genuinely in dispute as to Mr. Singleton's employment status, and both plaintiffs and defendant having moved for summary judgment, this matter should properly be decided by the Court since only an issue of law emerges. Walker v. United States Gypsum Company, 270 F.2d 857 (4th Cir. 1959).

UNDISPUTED FACTS

1. J. P. Stevens & Company, Inc. owns and operates a textile mill in Walterboro, South Carolina. The electrical power necessary to operate the plant is supplied through heavy electrical lines owned and maintained by Stevens.

2. In March of 1976, problems developed in a main power line at the mill. Huntington electricians were dispatched to make repairs. At that time other problems were found. On April 23, 1976, a Work Order Contract (Exhibit A attached hereto) was entered into between Huntington and Stevens for repair of the main electrical lines. The Work Order Contract incorporated by reference the "General Terms and Conditions of Work Contracts" entered into between the parties on September 6, 1966. Part of the conditions called for under this agreement required Huntington to maintain workmen's compensation insurance for Stevens. Stevens has used this agreement continuously since 1966 for the numerous repair services provided by Huntington during the past 15 years.

3. The "5 KV power feeder" lines designated to be repaired are high voltage electrical lines owned, operated and maintained by Stevens. These power lines supply the entire electrical current necessary to operate this textile plant. Without the proper functioning of these electrical lines, the textile machinery and plant itself could not operate.

4. In 1976, Stevens employed one full-time electrician to handle the electrical maintenance at the Walterboro plant. His primary responsibility was to repair electrical motors, test electrical equipment, and make small runs of electrical cable which were not unduly time-consuming or needed more than one man to perform the necessary maintenance.

5. The repair of the "5 KV power feeder" lines required the services of more than one electrician and the use of tools which were not normally stocked by Stevens. It should be noted that Stevens' full-time electrician was capable of making these repairs, however, Stevens chose not to maintain regular employees for such repairs but instead hired independent contractors.

6. In order to avoid an unnecessary shutdown of its entire mill, Stevens designated that the work on the power lines be completed during the vacation week of July 4, when production employees were given the entire week as a paid vacation. Huntington electricians worked during this week to complete these repairs.

7. Upon completion of the repairs, Stevens inspected and approved the work performed by Huntington.

8. The "5 KV power feeder" lines were an integral part of the mill business and essential in the operation of the business of the mill.

9. On July 8, Mr. Singleton, working as an employee of Huntington and doing repair work called for under the work order contract, received an electrical shock and was seriously injured.

10. As a result of his injuries while performing the called-for electrical repairs, he received workmen's compensation from the insurance carrier which Huntington had specified as providing workmen's compensation insurance in accordance with the "General Terms and Conditions of Work Contracts" agreement mentioned above.

CONCLUSIONS OF LAW

The clear and numerous enunciations from the South Carolina Supreme Court setting forth the criteria necessary to find an individual a "statutory employee" under The South Carolina Workmen's Compensation Law is persuasive. Further inquiry beyond this case law is unnecessary for a determination in this action. The undisputed facts in the present matter so closely parallel existing state court decisions that this Court finds them conclusive on the issue.

In order for Mr. Singleton to elude the statutory bar of the Workmen's Compensation Law, he must not be performing or executing any work which is part of the owner's trade, business or occupation. Section 42-1-400 of the Code of Laws of South Carolina (1976) states in part:

When any person, ... referred to as "owner," undertakes to perform or execute any work which is a part of his trade, business or occupation and contracts with any other person (... referred to as "subcontractor") for the execution or performance by or under such subcontractor of the whole or any part of the work undertaken by such owner, the owner shall be liable to pay to any workman employed in the work any compensation under this Title which he would have been liable to pay if the workman had been immediately employed by him.

Section 42-1-130 states in part:

The term "employee" means every person engaged in an employment under any appointment, contract of hire or apprenticeship, express or implied, oral or written, including aliens and also including minors, whether lawfully or unlawfully employed, but excluding a person whose employment is both casual and not in the course of the trade, business, profession or occupation of his employer; ....

If an individual falls within the purview of the above sections, then the employee's sole and exclusive remedy is controlled by The South Carolina Workmen's Compensation Law and all other common law actions against the employer are barred. See § 42-1-540, Code of Laws of South Carolina (1976).

It is extremely difficult to lay down any hard and fast rule in determining what is a "statutory employee". However, the courts have set forth several essential factors in making this determination. The South Carolina Supreme Court since 1939 has consistently held that a person is performing the trade, business or occupation of the employer if the person contracts with the owner to perform a duty which is essential to the function of the owner's continued business despite the fact the owner may never have performed the same chore with his own employees. See Marchbanks v. Duke Power Co., 190 S.C. 336, 2 S.E.2d 825 (1939); Boseman v. Pacific Mills, 193 S.C. 479, 8 S.E.2d 878 (1940); Smith v. Fulmer, 198 S.C. 91, 15 S.E.2d 681 (1941); Kennerly v. Ocmulgee Lumber Company, 206 S.C. 481, 34 S.E.2d 792 (1945). In Marchbanks v. Duke Power Co., the Court found that an independent...