TOMMY PATRICK v. DEREK MULVANEY d/b/a MULVANEY CONSTRUCTION, LLC, JERRY DIERKER CONSTRUCTION, and CITY OF MONETT
SD36956
| Mo. Ct. App. | Jul 22, 2021Background
- In 2015 the City of Monett elected to manage renovation of City Hall itself after bids were higher than expected; City Council member Jerry Dierker (a contractor) coordinated the project.
- Dierker engaged subcontractors, including Derek Mulvaney d/b/a Mulvaney Construction, LLC; Mulvaney hired Tommy Patrick as an hourly employee who performed roofing, framing, metalwork and other tasks.
- Mulvaney sometimes provided transport and tools; Patrick was paid by Mulvaney and had a regular, continuous employment relationship for about a year.
- On March 17, 2016 Patrick suffered a severe hand injury while hanging sheetrock at City Hall; Mulvaney told Patrick he lacked workers’ compensation insurance.
- An ALJ found Patrick was an employee of Mulvaney (not an independent contractor) and that the City acted as the general contractor/part of its usual business, making the City Patrick’s statutory employer under §287.040 and secondarily liable.
- The City appealed, arguing (1) the work was not an operation of the City’s usual business under §287.040.1 and (2) the owner-of-premises exception and Patrick’s status as an independent contractor preclude statutory-employer liability; the court affirmed the Commission’s award.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the City was Patrick’s statutory employer because the work was an operation of the City’s usual business under §287.040.1 | Patrick: City managed the project as general contractor; remodeling was part of City’s usual business, so City is statutory employer | City: The work was not an operation of its usual business; City was merely property owner/coordinator | Court: Affirmed. Commission had competent evidence and credibility findings that City acted as general contractor and was statutorily liable. |
| Whether §287.040.1 does not apply because City was merely owner of premises and Patrick was an independent contractor | Patrick: Patrick was an employee of Mulvaney; City acted as general contractor, so statutory-employer rule applies | City: Owner-of-premises exception applies and Patrick was an independent contractor | Court: Rejected. ALJ/Commission found Patrick an employee and City acted as general contractor; City’s appeal also failed for not following required Nichols analytical sequence. |
Key Cases Cited
- Treasurer of the State of Missouri v. Parker, 622 S.W.3d 178 (Mo. banc 2021) (standard of review for Commission awards)
- Annayeva v. SAB of TSD of City of St. Louis, 597 S.W.3d 196 (Mo. banc 2020) (deference to Commission credibility and weight determinations)
- Nichols v. Belleview R-III School District, 528 S.W.3d 918 (Mo. App. S.D. 2017) (three-step analytical formula for challenging Commission factual findings)
- Houston v. Crider, 317 S.W.3d 178 (Mo. App. S.D. 2010) (source of analytical framework applied in Nichols)
- Ziade v. Quality Bus. Solutions, Inc., 618 S.W.3d 537 (Mo. App. W.D. 2021) (failure to follow required analytical sequence is fatal)
- Doe Run Co. v. Fenwick, 599 S.W.3d 906 (Mo. App. S.D. 2020) (arguments lacking required analysis lack persuasive value)
- Maryville R-II School District v. Payton, 516 S.W.3d 874 (Mo. App. W.D. 2017) (treat ALJ findings as part of the Commission award)
