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Elms v. Renewal by Anderson
96 A.3d 175
Md.
2014
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Background

  • Elms operated an unincorporated home improvement business, Elms Construction, providing window/door installation and carpentry.
  • Renewal by Andersen engaged Elms Construction to perform installations and trained its workers, with Renewal controlling scheduling and methods.
  • Elms carried workers’ compensation insurance under his sole proprietorship but did not elect to include himself as a covered employee.
  • At the time of injury, Elms claimed he was Renewal’s common law employee; Renewal contended he was an independent contractor.
  • The Workers’ Compensation Commission found Elms to be an independent contractor; Circuit Court reversed, finding a common law employment relationship.
  • The Court of Special Appeals vacated and remanded; the Maryland Court of Appeals granted certiorari to address the proper analytical sequence between common law and § 9-508.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Did the Commission misconstrue the law by deeming Elms an independent contractor? Elms contends common law control shows employee status; the commission misapplied law. Renewal contends independent contractor status is correct under the record and § 9-745 standards. No; Elms was a common law employee as a matter of law.
Does § 9-508 abrogate the common law employer/employee definitions when a statutory employer relationship exists? § 9-508 broadens coverage and should apply after a common law test shows no direct employer. § 9-508 creates an alternative statutory employer/employee and can override common law. § 9-508 does not abrogate the common law relationship; it is a remedial option only when no direct common law employer exists.

Key Cases Cited

  • Rodrigues-Novo v. Recchi America, Inc., 381 Md. 49 (2004) (explains remedial purpose and starting inquiry for covered employee under the Act)
  • Whitehead v. Safway Steel Products, Inc., 304 Md. 67 (1985) (controls analysis; greatest weight given to the right to control the employee)
  • Mackall v. Zayre Corp., 293 Md. 221 (1982) (illustrates extensive control through uniform rules and regulations)
  • Inner Harbor Warehouse, Inc. v. Myers, 321 Md. 363 (1990) (illustrates statutory employer concept where principal contractor steps into subcontractor’s shoes)
  • Honaker v. W.C. & A.N. Miller Dev. Co., I, 278 Md. 453 (1976) (establishes two-contract requirement for § 9-508 applicability)
  • Honaker v. W.C. & A.N. Miller Dev. Co., II, 285 Md. 216 (1979) (refines two-contract theory for statutory employer liability)
  • Bennett Bldg. Co., 154 Md. 159 (1928) (historic rationale for statutory employer liability in multi-contractor contexts)
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Case Details

Case Name: Elms v. Renewal by Anderson
Court Name: Court of Appeals of Maryland
Date Published: Jul 21, 2014
Citation: 96 A.3d 175
Docket Number: 89/13
Court Abbreviation: Md.