FIDELITY CONSTRUCTION COMPANY аnd Southern Indemnity Insurance Co., Petitioners.
v.
ARTHUR J. COLLINS & SON, INC., Phoenix of London Group, Florida Industrial Commission, and Charles Knight, Respondents.
Supreme Court of Florida.
Pallot, Marks, Lundeen, Poppell & Horwich and Frank M. Marks, Miami, for petitioners.
Errol S. Cornell, of Welsh, Cornell, Pyszka & Carlton, Miami, for Arthur J. Collins & Son, Inc., and London Guarantee & Accident Co.
Paul E. Speh and Burnis T. Coleman, Tallahassee, for Florida Industrial Commission and Edward L. Forer, Hollywood, for Charles Knight.
ROBERTS, Justice.
This is a petition for writ of certiorari to review a decision of the District Court of Appeal, Second District, Arthur J. Collins & Son, Inc. v. Knight et al.,
Both decisions involve a dispute as to liability for workmen's compensation under Section 440.10(1), Florida Statutes, F.S.A., reading as fоllows:
"Every employer coming within the provisions of this chapter * * * shall be liable for and shall secure the payment to his employees of the compensation payable under § 440.13 * * *. In сase a contractor sublets any part or parts of his contract work to a subcontractor or subcontractors, all of the employees of such contractor and subсontractor or subcontractors engaged on such contract work shall be deemed to be employed in one and the same business establishment, and the contractor shall be liаble for and shall secure the payment of compensation to all such employees, except to employees of a subcontractor who has secured such pаyment." (Emphasis supplied.)
In the case at bar the petitioner Fidelity Construction Company subcontracted a portion of its construction contract to the respondent Collins, who in turn was found to have subсontracted to one Humphries *613 The claimant Knight was an employee of Humphries, who failed to secure compensation payments. The deputy commissioner found Fidelity and Collins еqually responsible for benefits due under the act. Upon review the respondent commission held that the subcontractor Collins was solely liable, and the commission was in turn reversed by the District Cоurt, which concluded that the duty devolved upon the contractor Fidelity Construction Company to secure compensation or be liable primarily for claims by a worker whose immediаte employer, a subcontractor of a subcontractor, was uninsured.
Upon very similar facts in the Shirey case, supra, the District Court, Third District, without opinion, left standing a commission ruling, under the samе statute, that subcontractors, as well as employees, of a subcontractor would be covered by compensation policies of the latter, who "had become a contractor within the meaning of this section." Decision No. 2-819, Florida Industrial Commission, filed April 22, 1959.
There exists a prima facie conflict between the two decisions upon the pivotal point оf law and on closely related facts, and one which is in this instance nonetheless direct because of the failure of the court to write an opinion in the Shirey case to substantiatе its decision therein. Lake v. Lake, Fla.,
The liability imposеd by the commission in the Shirey case could, upon the face of its opinion, have rested on no logical ground other than the statutory rule announced, in view of the commission's exprеss refusal in that case to resolve an alleged conflict as to whether claimant's immediate employers were in fact subcontractors or were themselves employees of the first subcontractor against whom the award was made. The statute in controversy, Section 440.10(1), was therefore necessarily, and expressly, construed as prescribing a rule of law оpposite to that announced in the opinion of the court in the case at bar. See Florida Power & Light v. Bell, Fla.,
The ultimate question here is whether the Florida Industrial Commission has correctly interpreted the provision of the Workmen's Compensation Act here in question. As the administrative body charged with the responsibility of administering the Act, its interpretation is entitled to great weight. While not conclusive upon the courts, such an administrative interpretation should not be overturned by the courts unless clearly erroneous and for the most cogent reasons. Gay v. Canada Dry Bottling Co., Fla.,
The appellate court, in the decision here reviewed, relied upon "the legislative *614 intent and policy as interpreted by the Florida cases cited herein, and [the] reasons illustrated in the quote from the Qualp cаse * * *". Arthur J. Collins & Son, Inc. v. Knight, supra,
It was also pointed out in the Qualp case, supra, that the general contractor (referred to as "the employer") could have avoidеd liability to employees of subcontractors and sub-subcontractors "by providing for compensation liability in his subcontract, in the event of a secondary subcontract." The meaning of this stаtement is made clear by the Pennsylvania court in the later case of Byrne v. Henry A. Hitner's Sons Co., 1927,
We agree with the statement in the decision here reviewеd that "It is manifest that the purpose of Section 440.10(1) is to protect employees of irresponsibile and uninsured subcontractors by imposing ultimate liability on the general contractor whо has it within his power to insist upon adequate compensation protection for employees of his subcontractors." [
Accordingly, for the reasons above stated, the decision of the Second District Court of Appeal here reviewed should be and it is hereby quashed, and the order of the commission reinstated.
TERRELL, HOBSON and DREW, JJ., concur.
THOMAS, C.J., and THORNAL, and O'CONNELL, JJ., dissent.
