Locklear v. Dial, I.C. NOS. W06275 PH-2309.

Plaintiff James Locklear, 57, worked for Dial's Drywall as a hanger/framer, paid $13/hour for 40 hours/week; project was in Myrtle Beach, SC and pay involved cash with regular end-of-week wages.
Employer’s crew met at Locklear’s home at 5:00 a.m. daily to ride in a company van to the job site; 12 employees were on the medical building project at that time.
On January 26, 2009, Locklear fell from a scaffold, injuring his right heel, and was treated at Grand Strand Medical Center with later referrals for surgery.
Locklear remained unable to return to work and underwent multiple medical evaluations and surgeries; doctors projected potential permanent limitations.
Travelers Indemnity via Appalachian Underwriters provided workers’ compensation coverage beginning August 21, 2008; premium payments were mishandled and notices of cancellation were misaddressed, leading to an undeliverable cancellation notice.
Locklear died March 26, 2010 due to causes unrelated to the work injury; his widow Kathleen Locklear pursued benefits under the act.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Did an employer–employee relationship exist on Jan 26, 2009?	Locklear maintained an employer–employee relationship with Dial's Drywall.	Dial's Drywall contended the relationship did exist.	Yes, an employee–employer relationship existed.
Was the Jan 26, 2009 injury compensable and were benefits owed to the widow?	Injury arose out of and in the course of employment; widow entitled to benefits.	Policy cancellations and lack of coverage argued against benefits.	The injury was compensable; widow entitled to TTD and PPDI benefits.,
Was Travelers' cancellation of the policy proper under statute?	Policy cancellation was not completed due to invalid notice address.	Cancellation followed standard process.	Travelers did not properly cancel; carrier liable for the injury.
Should penalties be assessed for failure to provide insurance?	Penalty action should apply for noncompliance.	No penalties in light of the cancellation issues.	Penalty Action 2309 dismissed with prejudice.
What is the correct average weekly wage?	AWW should reflect actual wages earned.	AWW properly computed by statutory standard.	AWW = $520.00; compensation rate = $346.68.

Hayes v. Board of Trustees, 224 N.C. 11, 29 S.E.2d 137 (1944) (NC Supreme Court 1944) (establishes standard for employment relationship in workers' comp.)
Arrington v. Texfi Industries, 123 N.C. App. 476, 473 S.E.2d 277 (1966) (NC App. 1966) (disability as diminished earning capacity; burden on employee to show wage loss caused by injury.)
Peoples v. Cone Mills Crop., 316 N.C. 426, 342 S.E.2d 798 (1986) (NC Supreme Court 1986) (disability definition and earning capacity standard under the Act.)