477 P.3d 429
Or. Ct. App.2020Background
- Claimant (Ward) leased a tractor-trailer from Bob Murray Trucking (BMT) and signed an "Operator Lease/Independent Contractor Agreement" that limited use of the truck to hauling for BMT and disclaimed any proprietary or transferable interest.
- BMT dictated routes, monitored deviations, required BMT signage, inspections, maintenance directives, and paid liability insurance, fuel, and certain equipment. Lease payments and fees were deducted from claimant’s pay.
- Claimant was injured in a crash while hauling a load. SAIF (insurer) denied the claim relying on ORS 656.027(15), which exempts persons who have an "ownership or leasehold interest in equipment and who furnish, maintain and operate [it]" from being subject workers.
- An ALJ upheld SAIF’s denial; the Workers’ Compensation Board reversed, finding the lease did not give Ward a transferable interest and thus he did not "furnish" the truck for purposes of the exemption.
- On appeal, the Court of Appeals reviewed statutory construction issues (meaning of "leasehold interest" and "furnish") and affirmed the Board, holding the lease did not convey an interest separate from the mere right to use the truck in BMT’s service.
Issues
| Issue | SAIF's Argument | Ward's Argument | Held |
|---|---|---|---|
| Whether ORS 656.027(15) exempts a driver who leased a carrier-owned truck for the sole purpose of driving for that carrier | The lease gives a leasehold interest and Ward "furnished, maintained, and operated" the truck, so he is not a subject worker | Ward lacked a transferable leasehold interest and therefore did not "furnish" the truck; he is a subject worker | The exemption requires a leasehold interest that is more than the limited right to use the vehicle in the carrier’s service; Ward is a subject worker |
| Whether "furnish" and "leasehold interest" can be satisfied by a paper lease that only permits use for the carrier's service | "Furnish" is satisfied by making the truck available to haul carrier loads; no transferable interest needed | "Furnish" must be read with "leasehold interest"; a lease must confer possession/use beyond supplying the vehicle to the carrier | The terms are conjunctive; the lease must convey an interest allowing possession/use other than furnishing/operating for the lessor; a purely limited lease does not qualify |
Key Cases Cited
- State v. Gaines, 346 Or 160 (statutory interpretation: give effect to statutory text)
- Crystal Commc’ns, Inc. v. Dept. of Rev., 353 Or 300 (avoid redundancy; give effect to all statutory provisions)
- Delta Logistics, Inc. v. Employment Dept. Tax Section, 279 Or App 498 (definition of lease/leasehold in trucking context)
- 3P Delivery, Inc. v. Employment Dept. Tax Section, 254 Or App 180 (lease-and-lease-back as paper transaction insufficient to create required interest)
- May Trucking Co. v. Employment Dept., 279 Or App 530 (lease that forbids use outside carrier service fails to create requisite interest)
- State v. Glushko, 351 Or 297 (use dictionary to determine ordinary meaning of statutory verb)