By executing Industrial Commission Forms 21 and 26, Edwards and its compensation insurance carrier admitted their liability to pay compensation to the injured employee. The question presented by this appeal is whether the Industrial Commission was correct as a matter of law in ruling that Wooten Asphalt Company and its compensation insurance carrier must share in that liability. More precisely, the question is whether the facts disclosed by the record support the Commission’s conclusion of law that a joint employment relationship existed such as to make both Edwards and Wooten and their respective carriers liable to pay compensation to the injured employee. We hold that they do not.
Certainly situations may exist under which an employee may properly be considered to be in the joint employment of two employers so that both become jointly responsible to pay compensation if the employee is injured by accident arising out of and in the course of such employment.
Leggette v. McCotter,
“When a general employer lends an employee to a special employer, the special employer becomes liable for workmen’s compensation only if
“ (a) the employee has made a contract of hire, express or implied, with the special employer;
“(b) the work being done is essentially that of the special employer; and
“ (c) the special employer has the right to control the details of the work.
“When all three of the above conditions are satisfied in relation to both employers, both employers are liable for workmen’s compensation.” 1A, Larson, Workmen’s Compensation Law, § 48.00.
By statutory definition, the term “employee” for purposes of the Workmen’s Compensation Act means “every person engaged in an employment under any appointment or contract of hire or apprenticeship, express or implied, oral or written. ...” G.S. 97-2(2). Because of this statutory requirement that the employment be under an “appointment or contract of hire,” Larson states that the first question which must be answered in determining whether a lent employee has entered into an employment relationship with a special employer for Workmen’s Compensation Act purposes is: Did he make a contract of hire with the special employer? If this question cannot be answered
“In one sense, the lent-employee doctrine is not a separate doctrine at all. Theoretically, the process of determining whether the special employer is liable for compensation consists simply of applying the basic tests of employment set out earlier in this chapter. If they are satisfied, the presence of a general employer somewhere in the background cannot change the conclusion that the special employer has qualified as an employer of this employee for compensation purposes.
“What gives the lent-employee cases their special character, however, is the fact that they begin, not with an unknown relation, but with an existing employment relation. The conflict of interest becomes one not between employer and employee (who is assured of recovering from someone) but between two employers and their insurance carriers. There is here no place for presumptions based on the beneficent purposes of the act. The only presumption is the continuance of the general employment, which is taken for granted as the beginning point of any lent-employee problem. To overcome this presumption, it is not unreasonable to insist upon a clear demonstration that a new temporary employer has been substituted for the old, which demonstration should include a showing that a contract was made between the special employer and the employee, proof that the work being done was essentially that of the special employer, and proof that the special employer assumed the right to control the details of the work; failing this, the general employer should remain liable.” Pages 8-208, 8-210, and 8-211.
Here, the general employer, Edwards, has stipulated that it is liable to pay compensation to its employee, Collins, and no question is raised as to Collins’s right to receive compensation payments from Edwards and its compensation insurance carrier. In our opinion, however, the facts do not support the Commission’s conclusion of law that an additional special employment relationship was entered into between Collins and Wooten Asphalt Company such as to make Wooten jointly liable with Edwards for compensation payments to Collins.
As noted above, entering into any such special employment relationship would result in Collins losing certain rights while gaining others, and such a relationship could not arise without his express or implied consent. As pointed out by Larson in the treatise above cited:
“The necessity for the employee’s consent to the new employment relation stems, of course, from the statutory requirement of ‘contract of hire,’ discussed in the preceding section. The consent may be implied from the employee’s acceptance of the special employer’s control and direction. But what seems on the surface to be such acceptance may actually be only a continued obedience of the general em ployer’s commands.” 1A, Larson, Workmen’s Compensation Law, § 48.10, pages 8-214, 8-215.
Here, there was no evidence nor is there any contention that Collins and Wooten ever expressly consented to enter into any employment relationship with each other, and certainly there was no express “appointment or contract of hire” entered into between them. In our opinion the facts in this case do not show such acceptance by Collins of control and direction by Wooten employees over his activities as a truck driver for Edwards as to warrant the conclusion that he impliedly consented to enter into a new and special employment relationship with Wooten. It is true that a
The facts here distinguish this case from Leggette v. McCotter, supra. In Leggette, the general employer assigned its employee to work at the job site of the special employer continuously for a period of six months prior to the accident. The employee operated a front-end loader, a versatile machine capable of doing a number of diverse jobs. The machine and its operator were furnished by the general employer to the special employer at a rate of $10.00 per hour to perform whatever tasks the special employer’s supervisor requested, and the employee performed these different tasks with the machine as the supervisor from time to time directed. As quoted in the Supreme Court opinion, the special employer’s supervisor testified:
“We used the machine as a multi-purpose machine, not for just digging dirt. It does anything you need if you pay ten bucks an hour. Mostly, Mr. Leggette moved earth. If I told him to move something else he did if he could. He loaded trucks, pulled them out of the ditch, even poured concrete with the bucket. I told him to pour concrete. * * * I directed him what I wanted him to do.” Leggette v. McCotter, 265 N.C. @ p. 619.
Our Supreme Court held that the facts in Leggette were sufficient to support the Commission’s conclusions of law upon which it based its decision splitting the workmen’s compensation award between the general and special employer defendants and their carriers.
In the present case, the employee was not assigned to work at the Wooten Asphalt Company for any extended period of time or to perform a number of different operations as Wooten’s superintendent might direct. On the contrary, he was sent there by his general employer to perform one specific task, hauling asphalt, which his general employer had contracted with Wooten to perform. He was injured on the morning of the first day he was engaged in carrying out his general employer’s contract with Wooten. Had he not been injured, nothing in the evidence suggests that any of the parties involved contemplated that he would be assigned to hauling Wooten’s asphalt except on a temporary basis and for a short period of time. His general employer retained the right to withdraw him and the truck which
We think the present case is controlled not by
Leggette v. McCotter, supra,
but by
Perley v. Paving Co.,
Since we find that the conclusion of the Industrial Commission that an employment relationship existed between Collins and Wooten was not supported by the facts in this case, we do not pass upon appellants’ remaining contentions that in any event the Industrial Commission lacked jurisdiction in this proceeding to enter an award against them. In this connection we do observe, however, that the record does not reveal any claim filed by Collins against appellants, and appellants did not sign and cannot be bound by stipulations signed by others that Collins sustained an injury by accident arising out of and in the course of his employment.
The award of the Industrial Commission is reversed and this matter is remanded to the Commission for entry of an award not inconsistent with this opinion.
Reversed and remanded.
