24 N.E.3d 421
Ind.2015Background
- Hood's Gardens contracted Discount Tree Extraction orally to remove a large tree; agreed cash price was $600 to be paid on completion.
- The contractor was permitted to keep the wood/debris from the job and planned to sell it as firewood.
- The contractor hired Jason Young (plaintiff) to perform the tree removal; Young was severely injured and rendered a paraplegic on the job.
- Hood's Gardens did not obtain a worker's compensation certificate from the contractor, and the contractor had no workers' compensation insurance.
- Hood's Gardens sued for a declaratory judgment asserting it was not secondarily liable under Ind. Code § 22-3-2-14(b) because the work's value did not exceed $1,000.
- Trial court granted summary judgment for Hood's Gardens; Court of Appeals affirmed; Indiana Supreme Court granted transfer to address whether "value" includes nonmonetary consideration (e.g., the wood).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the statutory $1,000 "value" threshold in Ind. Code § 22-3-2-14(b) is measured solely by cash payment or also includes ancillary nonmonetary consideration | Value equals the total consideration exchanged; include the wood's value so combined consideration may exceed $1,000 | Value should be the contract (monetary) price only; ancillary benefits are extracontractual and uncertain, so they should not trigger the statute | The Court held "value" includes direct monetary payment plus ancillary consideration received by the contractor; summary judgment reversed due to factual dispute about wood's value |
Key Cases Cited
- Everett Cash Mut. Ins. Co. v. Taylor, 926 N.E.2d 1008 (Ind. 2010) (describing secondary liability under Ind. Code § 22-3-2-14(b))
- Kroger Co. v. Plonski, 930 N.E.2d 1 (Ind. 2010) (summary judgment standard and appellate review)
- State v. Int'l Bus. Machines Corp., 964 N.E.2d 206 (Ind. 2012) (statutory interpretation reviewed de novo)
- Christopher R. Brown, D.D.S., Inc. v. Decatur Cnty. Mem'l Hosp., 892 N.E.2d 642 (Ind. 2008) (Act construed liberally for employees but not extended beyond clear legislative intent)
- City of Carmel v. Steele, 865 N.E.2d 612 (Ind. 2007) (read statutory sections together to give effect to the whole)
- Robinson v. Wroblewski, 704 N.E.2d 467 (Ind. 1998) (give statutes common and ordinary meaning)
- Hood's Gardens, Inc. v. Young, 976 N.E.2d 80 (Ind. Ct. App. 2012) (prior appellate decision addressing jurisdictional/procedural issues)