Builders & Contractors Association of Mississippi v. Laser Line Construction Company, LLC
220 So. 3d 964
| Miss. | 2017Background
- Laser Line, a general contractor, purchased statutory workers’ compensation coverage from BCAM for successive annual periods; final premiums were subject to post-period audit.
- During an audit for July 27, 2010–July 27, 2011, Laser Line produced subcontractor payment records and certificates showing each subcontractor claimed exemption from the Workers’ Compensation Act.
- BCAM assessed an additional premium of $12,006 based on payments to those allegedly exempt subcontractors and demanded coverage for subcontractor employees unless subcontractors independently maintained coverage.
- Laser Line refused to pay; BCAM canceled Laser Line’s policy for nonpayment. Laser Line sued for breach of contract, declaratory relief, and related claims; BCAM counterclaimed.
- The trial court granted Laser Line partial summary judgment, holding that subcontractor certificates of exemption prevented BCAM from demanding additional premiums or cancelling coverage; BCAM appealed interlocutorily.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Miss. Code § 71-3-7 requires a general contractor to secure workers’ compensation for employees of subcontractors who are themselves exempt | Laser Line: subcontractors certified exemption; thus contractor not required to secure coverage for those subcontractor employees | BCAM: where subcontractor does not secure coverage, the general contractor must secure coverage for subcontractor employees regardless of subcontractor’s employee count | The Court held the statute requires general contractors to secure coverage for employees of uninsured subcontractors; subcontractor employee count is not a defense |
Key Cases Cited
- Mills v. Barrett, 56 So. 2d 485 (Miss. 1952) (interpreting original statute to make subcontractor employees the responsibility of general contractor when subcontractor fails to secure coverage)
- Jackson v. Fly, 60 So. 2d 782 (Miss. 1952) (applies 1950 statutory amendment regarding employee-threshold interpretation)
- United States Fid. & Guar. Co. v. Martin, 998 So. 2d 956 (Miss. 2008) (summary judgment standard is de novo)