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Grothe v. Olafson
659 P.2d 602
Alaska
1983
Check Treatment

*1 compen- not that it would territory, utor’s it GROTHE, in the event does such

sate distributor d/b/a Northern Lenhart servicing. Equipment Exploration & Co., Appellant, stake in the

Pettibone has an enormous good will reputation products its Distributors, other of its customers. OLAFSON, Appellee. T. Theodore hand, variety may prod- wide represent the de- variety suppliers; ucts from a 5766. No. territory re- mands of the limited of Alaska. Supreme Court may sources of combine the distributor inadequate service. incomplete result 18, Feb. agreement In the of an express absence manifestly it would be unrea- contrary, intended suppose sonable Pettibone give up right direct service its hold, accordingly,

to its customers. We acting was not in violation Pettibone

of its when it machines contract serviced law-

sold the customers involved

suit, result, Craig as a Taylor, and that claim ser- prevail

not entitled to on its fees. trial court on

vice The decision of the

the issue of fees is reversed. Since service fact, are

there no triable issues of order entered summary judgment in favor

of Pettibone on the issue of service fees.

Ill trial argues

Pettibone attorney’s and fees

denial costs amount-

ed to an abuse of discretion under Civil 82(a).

Rule

Because the trial court we have reversed issue,

as to the service fees we reverse and fees. attorney’s

remand the issue of part, REVERSED in

AFFIRMED

part.

CONNOR, J., participating. *2 Waggoner,

Paul Paul W. Waggoner, W. appellant. Anchorage, for Markham, Kodiak, appel- Gerald W. for lee. C.J., RABINOWITZ, BURKE,

Before COMPTON, JJ. MATTHEWS OPINION RABINOWITZ, Justice. damages an action for

This case involves re- Theodore Olafson personal injuries for blast- engaged ceived while The superior Grothe. ing work for Lenhart Olafson, judgment rendered a working afternoon before the accident Olaf- finding: 1) that Olafson was Grothe; 2) operating son was the machine when employee of chain, failing repair Olafson with drive chain To it negligent in broke. mast, remove, equipment; 3) necessary repair to lower the working safe conditions and chain, proximate and reinstall the and then raise negligence that Grothe’s Olafson; mast, and lower the *3 injuries cause of the to that- mast. order raise must connecting pins raise the defense one of the be removed Grothe was not entitled to the comparative negligence; repaired and then reinserted. Olafson of $56,133 evening to chain and returned the next damages. Olafson was entitled to reconnect the mast and resume appeals. morning Grothe drilling. Grothe, Explora- Lenhart d/b/a Northern Co., at- mining injured was while he was engineer tion & is a Olafson Equipment, so operates tempting align who a tin near Nome and to the holes that he could mine the connecting pin. Normally, the develops subdivisions in Kodiak. Theodore reinsert using holes positioned by hydrau- Olafson a retired of the laborer’s can be the is member system lic testi- years union who worked for over 40 as a to raise the mast. Olafson fied hydraulic system driller and blaster of rock.1 In the on the drill its developing parcel was a 32-acre land in was too weak to raise the mast from instead, attempted, large position. Kodiak which contained a rock forma- horizontal He pro- driving tion. wanted to the mast the drill for- by to level rock raise montory that he install its tracks while the bottom of the so sewer ward on against water lines as well build on levelled mast was braced a rock bank. Evi- gravel land. The rock and was pro- dently, attempting while Olafson pin, duced insert lever control- hydraulic would be available construc- ling position tion roads in the subdivision and for sale of the hammer vibrated open, causing to other the hammer to rise on the contractors.2 un- mast. This caused the mast become June of early Grothe hired Olaf- backwards, striking it flipped balanced and rock, son to drill and blast and Olafson right on the side.3 Olafson was Olafson began working. drilling The immediately hospital for taken to the treated large work involved the use aof tractor- rib fractures. He remained in multiple treaded is hydraulic drill which used hospital for four days. part drive into The steel rods the rock. injury, initially the drill which drives steel is filed a called After “hammer” Compensation which is mounted on the “mast” claim with the Worker’s learning and moves After that Grothe had no up down on chain. Board. insurance, mast is compensation attached to the “boom” which con- worker’s body nects to main to maintain a tort action for dam- of the tractor. elected by belonged ages compensation machine used rather than a worker’s to Grothe. claim.4 Although 1. At the time of the Olafson was 74 this account of accident accident parties years speculative, Although he he was somewhat both seem old. claimed retired accepted 1977, receiving this of the accident. have version from the union in his union pension security, and social Olafson continued part: provides in 4. AS 23.30.055 employment occasionally got jobs seek employer payment to secure fails [I]f as a driller and blaster. The trial court found required chapter, this except for the accident Olafson could have legal representative injured working years. continued for five more may injury in case death results from chap- compensation under this elect to claim ter, 4,000

2. Grothe testified he from wanted against the em- or to maintain an action 8,000 yards produced. cubic of rock admiralty damages ployer at law in injury or death.... account trial, At the conclusion a non-jury test we turned to the analysis advocated judgment rendered a fa- Professor Larson.8 vor, but ruled that would be Terming approach the “relative na- reduced to comparative reflect his own neg- test, ture of the work” Larson would ligence. Olafson then filed a motion for have the trier of fact ‘employ- determine amendment to findings and conclusions of ee’ through status consideration of the law.5 He asked court to recon- character of the claimant’s work or busi- ruling sider its regarding the defense of ness, and the relationship of the claim- comparative negligence in light Carroll v. ant’s work purported or business to the Irrigation, Universal 18 Wash.App. employer’s business. 854, 573 P.2d (Wash.App.1977).6 Id. at 969. In Ostrem Alaska Workmen’s granted Olafson’s motion and Board, Compensation 511 P.2d 1061 amended its preclude conclusions so as to 1973), subsequently refined the test: any reduction in damages for Olafson’s *4 The ‘relative nature of the work’ test comparative negligence. first, has parts: two the character of the then Grothe filed a motion for reconsider- business; second, claimant’s work or and ation of comparative the negligence issue. relationship the of the claimant’s work or Grothe also filed a motion for relief from purported business to the employer’s busi- judgment 60(b). under Civil Rule Both of ness. .. . With reference to the charac- denied, these motions were and this appeal ter of claimant’s work or business the followed. (a) factors degree are: the of skill in- volved; (b) degree the to which it is a I. Did The Superior Holding Court Err In business; separate calling (c) and the That Olafson Employee Was An Rather expected extent to which it can be Independent Than An Contractor? carry its own accident burden. The rela- The superior court concluded that tionship of the claimant’s work or busi- relationship the between Grothe and Olaf- purported ness to the employer’s business son was one of employer/employee rather requires (a) the consideration of: extent general than contractor/independent con regular part which claimant’s work is a tractor. The court based this determination work; employer’s regular (b) application on of the “relative nature of the whether claimant’s work is continuous or test, work” set out in Ostrem v. Alaska intermittent; (c) whether the dura- Compensation Board, Workmen’s hiring tion is sufficient to amount to the (Alaska 1973). claims the su continuing distinguished services as perior court’s unsupported determination is contracting completion from for the by the evidence and erroneous as a matter the particular job. of law. Id. at 1063. Co., Inc., In Searfus Northern Gas Initially, court 1970), superior P.2d 966 focused this court an- nounced that it was the “nature the character of Olafson’s work. The court adopting the work” employed test for found that Olafson was as an determining whether a person “employee” is an under Alaska unskilled laborer. While it is true that Compensation Worker’s Rejecting Act.7 Olafson was a member of the laborer’s un- ion, traditional “master-servant control” his work for involved pursuant (see 5. supra), employer may The motion was made to Alaska law at note plead employee’s comparative negli- R.Civ.Pro. 59. not gence as a defense. 376-77. Carroll, Washington appellate a in- terpreted Compensation the Alaska Worker’s 7. AS 23.30.005-.270. mandating employer Act as that when an fails I,aw insurance, to secure worker’s Larson, Compensation 8. 1C. Workmen’s and the elects to maintain an action (1980). 43.52 § was in mining because Grothe business blasting, requires a profession ex- licensing by the state. had been involved in previously certification job requires Even Olafson concedes The tracting from the rock subdivision. court rec- special some skills. Olaf- trial court also considered whether ognized this distinction in its second son’s was continuous or intermittent work “powder as a mon- that Olafson worked it was in nature and concluded that separate calling key,” and that this was a factor latter. third and final Ostrem only there since the evidence showed were court considered was whether in that people working three or four field hiring work amounted to Kodiak. as from continuing distinguished services job. The court contracting particular As to the extent to which Olafson for a insurance, his own sin- expected hired for a that Olafson was concluded that the inherent dan- found gle job, drilling blasting work. of the work made it un- ger (dynamiting) foregoing, Based on to be self-insured. reasonable that: court concluded emphasizes dangerous nature of whole, the Viewing the evidence as argument the work preponderates court has concluded that it Grothe, Olafson, bear the should burden rela- employer, employee favor of coverage. of insurance One commentator general than one of tionship rather has observed: tractor, independent contractor. most helpful suggested criterion question an ex- Although we view *5 the nature the examining for use one, tremely persuaded we are close the probably inquiry claimant’s work is finding an superior the court did not err in expect- into whether claimant can be the employment relationship.10 to accident ed his own burden. the This consideration focuses on econom- Finding Superior II. Court Err In Did The independent ics of the contractor’s status. Negligent? compensation de- Since workmen’s is help to signed ordinary the worker whom A. owed Duty has is unable to meet experience shown to avoid duty was under a the costs of accidents of his industrial out pose which would creating a situation resources, own it is relevant examine Na risk of harm to Olafson. unreasonable position whether realities of his actu- 1981). Urie, (Alaska P.2d zareno 638 671 v. ally dependence indicate this an em- addition, the drill In since Grothe furnished as a ployer’s assumption of risks normal Olafson, under he was which was used consequence hiring him.9 care reasonable duty the further exercise developer engaged in Grothe was a Since its the drill was safe for to ensure that rock, the use and sale of it occasional intended use.11 was more reasonable for Grothe bear production. risk of its findings, superior its In safety regulations cited federal several superior court next considered the to the originally promulgated, pursuant relationship of work to and Non-Metallic Mine Safe Federal Metal it superior business. court found that Thirty Act, 721-740. regular part ty §§ 30 U.S.C.A. Grothe’s business 40, Indus coverage. Lumber v. Alaska Juneau Co. 1 Law Review 55-56 U.C.L.A.-Alaska 1954). Board, F.Supp. (D.Alaska (1971). trial 122 663 regard also: v. Northern see Searfus 1970). 966, (Alaska significant Co., factors in our 10. One the more 969 Gas holding affirming finding of relationship employer-employee is resolu- Haskell, 898 91 Idaho 11.Metz v. We tion of the “burden of insurance” factor. 1966); (Second) (Idaho of Torts Restatement cognizant general trend are also of the towards (1965). 392 § liberalizing scope of workers’

607 C.F.R. 56.14-25 mining directs that “ma- change the position of the connecting chinery equipment should be main- pins. Two witnesses testified hy- properly.” tained Thirty C.F.R. 56.14r-26 draulics on the machine used states that equipment “unsafe machinery Olafson were weak and would sometimes be shall be removed from service immediate- unable to lift the boom. Olafson testified ly.” Finally, 30 C.F.R. provides: 56.18-20 that he had previously warned Grothe that hydraulic system was not

Mandatory. working prop- No employee shall be as- erly and that signed, allowed, promised Grothe had or be to have required per- it repaired. form Olafson stated that if any hy- work alone in area where haz- draulics had been working ardous properly, conditions exist that he would endan- would have been ger his able to use safety unless he can the normal communicate method others, with and thus would not heard, can be have been in- or can be seen. jured. Grothe claimed that hydraulics court did not specifically state strong were enough to raise the boom and that it found Grothe to negligent per se that he had been able to change position for violation of regulations. these Since the of the pins using the normal method. He court phrased its conclusions of negligence testified that after the accident the ma- in the language regulations, however, chine had been used in other jobs and that it seems the court did adopt the there had been no problems with the hy- regulatory provisions as applicable stan- hand, draulics. On the other Grothe admit- dard of care in this case. ted that Olafson had told him about a prob- Assuming that Grothe’s excavation lem with the hydraulics and that Grothe subject to the federal regulations and had thought that the weakness was due to applying the Baxter, criteria of Ferrell v. an air leak in the motor. Grothe stated P.2d 1971), Bailey that he had tried repair system but Lenord, (Alaska 1981), P.2d that his repairs did not seem to have made we conclude that court could very much difference. Grothe also admit- properly adopt (unsafe 30 C.F.R. 56.14-26 ted that the drive chain on the drill had not equipment removed) shall be and 30 C.F.R. broken during subsequent Thus, jobs. *6 56.18-20 (employee shall not be left alone in problem Olafson had faced may simply not conditions) hazardous work as codified stan have arisen on these later jobs. dards of due care.12 We think there was sufficient evidence in the record to the support superior court’s B. Did Grothe Breach Any Duty of Care finding that the hydraulic system drill’s was Owed To Olafson? defective and that Grothe had notice of this Unsafe Equipment problem. failure to repair the drill The superior court (or found that the adequately provide replacement) to a provided drill by Grothe had a defectively constituted a breach of his common law and weak hydraulic system prevented which the statutory duty provide Olafson with safe operator using from the procedure normal equipment.13 adopt statutory In order to a standard of 13. The court also found a breach in plain- provide care the court must find that the Grothe’s failure to Olafson with ade- protected by tiff quate is within the class the statute assistance. There is sufficient evidence harm/injury and the presence which occurred was the in the record to establish that the type protect which probably prevented the statute was intended to an assistant would have against. Baxter, Ferrell v. 484 P.2d 263 the accident since an assistant would have ob- (Alaska 1971); (Second) Restatement of Torts served the movement of the hammer and would (1965). must court also find that the have been able to warn Olafson before the mast statute/regulation prescribes specific conduct became unbalanced. Since Olafson was an em- merely general duty ployee, rather than a or abstract we conclude that there was sufficient Lenord, Bailey support care. evidence in the record to (Alaska 1981). negligently court’s conclusion that Grothe adequate failed to assistance. a plead not defense employer “may foreseea- the harm

C. Was to the contribu- injury ... was due ble? Further, employee.” of the negligence tory proximate the chain of Grothe claims that employer states that if 23.30.080 AS 1) was because: he causation was broken insurance, employer failed machinery; in the any not aware of defect injury liability personal “may escape the chain had 2) he not aware that was when the employee an ... sustained not have known Olafson broken so he could arises out of and in sustained injury assistance; method needed because employment of the usual course forward (driving the drill inserting pin negligent was (3) employee ... rock) was against the with the mast braced contrast, provides 23.25.020 In AS argu- all of these unforeseeable. We find employee against brought by action an merit, therefore affirm ments devoid of “the fact that employer, ruling that Olafson’s negli- guilty contributory may have been result of the injuries a foreseeable were bar a where gence does not lack of assistance defect in the drill and the slight contributory negligence given to Olafson.14 gross employer negligence shall be di- damages Err In Rul- but the Superior comparison, III. Did The Court to the Compara- jury proportion ing That The Defense minished to the Was Not Availa- attributable Negligence negligence tive amount of employee.” ble?15 decision, final the trial In its on Carroll v. Uni- heavily relies 23.- ruled that under 23.30.055 AS AS Inc., Wash.App. Irrigation, versal 30.080, to assert the Grothe was not entitled (Wash.App.1977), 573 P.2d 373 re negligence to comparative defense of 23.30.055 AS argument AS recovery. In the initial deci duce Olafson’s deny 23.25.020 and override AS 23.30.080 sion, found Olafson to be the court had comparative negligence defense. any and had reduced twenty percent negligent Carroll, Washington appellate argues that accordingly. the award fails to secure employer who held that negligence is comparative the defense of is barred insurance compensation worker’s 23.25.020. available under AS employee’s negligence asserting from court reasoned Id. at 377. The a defense. , that when an em- provides 23.30.055 AS deprive statutory provisions that the compensa- ployer payment fails to secure com- of certain employer tion, non-complying may elect injured employee to induce were intended ac- mon law defenses or to maintain an claim worker’s com- action, with the employers comply damages. In such an tion at law for *7 superior court erro- superior in 15. Grothe asserts that defect to be 14. The court found the negligence neously imputed hydraulic system Olafson’s record and the the drill’s negli- imputation problems no of There was that was aware of the Grothe. shows Grothe indepen- gence was held hydraulics. that case. Grothe had notice in this with the system faulty hydraulic' dently and was in need of the chain would break liable year- adequate repair. a 74 assistance Thus it was foreseeable that his failure to (with drilling blasting engaged a old in man to Olafson. machine) need assistance at defective would Similarly, in con- find no merit point. Although method of some Olafson’s erroneously superior court tention that raising repair drill was not a the mast required 56.18-20 that 30 C.F.R. cluded procedure, methods it was one of the standard superior to assist Olafson. chuck tender attempting align operators used in negli- that “the defendant court concluded pin this evidence holes on drill. Given allowing gent alone under to work in knowledge workings of the Grothe’s admitted implied No direct conditions.” hazardous machine, supe- we hold that the of this or to a to 30 C.F.R. 56.7-9 reference was made concluding rior court did not err requirement a chuck tender. by foreseeable method used Olafson was hydraulic system. light of the drill’s defective

609 pensation system. Id. at 376.16 The court parative negligence was inapplicable in the specifically rejected the argu- defendant’s context of this litigation.17 ment preserved AS 23.25.020 the de- IV. Was The Court’s Finding That Olaf- fense of comparative negligence for the em- son Was Disabled By Injury Erro- ployer. Id. at 377 n. 4. 18 neous? We think the Carroll decision is correct superior note with approval the concluded that following state- ment from that decision: Olafson was disabled due to the recurrent pain with injured

A associated showing ribs. Dr. comparative negligence of Loren diminish Halter’s plaintiff’s testimony supports award would allow this det the employer to escape liability por- However, for a ermination.19 other physicians plaintiff’s tion of injuries. This would be testified that Olafson was not disabled or inconsistent with the above noted policy that his inability to work by was caused purpose of the compensa- workmen’s pre-existing bronchial condition or his obesi tion laws. ty. Under Rule 52(a), Civil the superior Thus, Id. at 377. superior findings we hold that court’s shall not be set aside unless court did not err in its conclusion that com- clearly record, erroneous.20 On this we are Inc., Irrigation, 16. Carroll v. Universal argues that the court made Wash.App. (Wash.App.1977). 573 P.2d no ty. as to the of cause Olafson’s disabili- given conflicting He claims that testi- mony experts unpersuaded by specific finding argu- 17. We of the medical are the several disability on the ap- ments plication should have been that Grothe advances made. The of parties’ arguments alleged comparative negligence. on Olafson’s disabil- We deem ity only positions: 1) break argu- it sufficient down into three main to address one of his injuries general ments. Olafson’s Grothe claims were healed and he was that under the disability; 2) statutory free from rules of that Olafson was dis- construction the three stat- disability pre-existing abled but his give utes should was due to be construed so as to effect to bronchitis; them, Green, citing each of that Olafson was disabled State v. pain (Alaska 1978). the recurrent the unhealed He asserts fractured that this accomplished by holding can ribs. The court found that AS 23.30.- only pain preclude 055 and suffered broken ribs and severe AS 23.30.080 as a result the defense contributory negligence injuries the accident and compar- that Olafson’s and not the negligence earning capacity. provided by ative caused a loss in his future defense AS 23.25.- opinion Employers’ Liability findings our 020 of the prob- re- Act. The garding disability approach lem glosses with this Olafson’s are stated with suf- is that it over specificity satisfy apparent requirements ficient direct conflict between the stat- only Civil Rule 52. utes. While AS 23.30.055 mentions con- tributory negligence, AS 23.30.080 is couched 19.Dr. Halter conducted several examinations any in broader terms and seems to bar use of examinations, of Olafson. On the basis of his employee negligence as a defense. Where the including X-rays, he testified that Olafson’s rib provisions Employers’ Liability (AS Act properly fractures had not healed and that con- 23.25.010-.040) conflict with those of the sidering age they would not heal in Compensation Worker’s Act we have held that the future. Dr. Halter stated that com- prevail. the latter Haman v. Allied Concrete plained pain, pain that this was caused Products, (Alaska 1972); 495 P.2d 531 they prevent the unhealed ribs and that Burgess Co., Gordon v. Construction resuming him from his normal activities. Dr. (Alaska 1967). Halter further testified that he could not state prior whether Olafson’s bronchitis was severe conjunction specification 18. In with this of er- enough prob- to disable Olafson but that it was ror, Grothe asserts that ably aggravated by the rib fractures. findings regarding failed to make of fact Olaf- *8 disability. 52(a) provides son’s Rule Civil that clearly 20.. A erroneous is: court, jury, in actions tried without a rendering decision, specific [Ojne supreme its shall set out which leaves the court with a findings of fact and conclusions of law. The definite and firm entire conviction on the duty findings made, trial court’s is to make sufficient record that a mistake has been al- give understanding a clear though may of the basis of its there be evidence to intelligent finding. decision in order to enable an review appeal. I’Anson, 447, on Meyeres, (Alaska State v. 529 P.2d 188 Mathis v. (Alaska 1974). Saloon, Short, 1978), quoting Frontier Inc. v. that permitted testify if he would court’s that that persuaded not 1) ribs were substan- opinion: his Olafson’s disability are relating to Olafson’s findings trial, June by healed the time of tially erroneous.21 clearly 1979; 2) that early April as perhaps and Err In Re- Superior Court any signs pain V. Did had not exhibited Olafson For Motions test- fusing preliminary To Grant Grothe’s during fractures or rib 1980; no Judgment? 3) Relief From that there was ing May damage or defect. any lung indication 60(b) motion for filed a Rule re- be based on his testimony This would grounds of judgment on the relief from prior reports. lab X-rays view of the newly Specifically, evidence. discovered testimony does asserts that the trial in order sought reopen testimony of Dr. Halter contradict George of Dr. testimony present If alter the result. would therefore not alleged the issue of Olafson’s Stewart in- believed, testimony would Dr. Stewart’s summarily disability. recovered, fully that dicate denied the motion. mobility. pain no and normal with little or Thomas, 394 P.2d Montgomery Ward v. testi- asserts that Dr. Stewart’s 1964), the standard for (Alaska sets out evidence, new qualify not- mony does newly granting a new trial on the basis of identity was known to Grothe’s since his discovered evidence: parties trial and all well before the counsel the evidence requirements These are that was to be admit- report were aware that his (1) probably be such as would must only that he argues at trial. Grothe ted trial; (2) a new change the result on Dr. of the need for Stewart’s became aware trial; discovered since the must have been presented Dr. Halter testimony after (3) a nature that it could must be of such healed ribs had never opinion that Olafson’s by trial not have been discovered before con- main source of O'lafson’s and were the material; (5) diligence; (4) due must be claims he was disability. Grothe tinuing merely must not be cumulative or testimony Dr. Halter’s surprised by impeaching. were X-rays which the admission of a Rule Although Id. at 776. Grothe filed re- trial. Olafson day before taken 60(b) judgment for relief from rath- motion are surprise claims of that Grothe’s sponds trial, for a new er than a Rule 59 motion satisfy that he has failed to unjustified and underlying have indicated that when the the fol- requirement diligence the due analysis is ground is “new evidence” the no 1) gave counsel reasons: Grothe’s lowing Sedwick, similar. Patrick v. made no at trial and surprise indication of (Alaska 1966).22 to as- attempt a continuance to motion for testify; prior could in this case consists of if Dr. The new evidence certain Stewart with Stewart, trial, provided counsel was testimony prepared of Dr. who Grothe’s report which at of Dr. Halter’s reports copy one of the admitted in evidence Dr. Halter conclusions affidavit tained the same trial. Dr. indicated in his Stewart 1976) (per Inherent in our conclusion the bronchitis. cu- 557 P.2d riam). 781-82 findings pertaining to Olaf- clearly disability erroneous were not son’s expert 21. Grothe also contends that additional expert testimo- that Dr. Halter’s our conclusion testimony relate rib was needed to evidentiary requisite base ny established disability alleged that there fractures to his disability. relating findings for the court’s testimony any specific expert estab- was not injury lishing rib ánd a connection between this 60(b)(2) provides view, Procedure 22. Alaska R. Civil disability. claim that In our judg- may party connecting from a expert testimony the court relieve there was no Olaf- capaci- injuries earning son’s rib to his reduced ment where: ty argument is a reiteration of his Newly due dili- discovered evidence disability is the source of Olafson’s bronchitis gence in time not have been discovered evidence to and that there was insufficient 59(b) Rule .... a new trial under to move for aggravated demonstrate the rib fractures *9 involved; presented 3) degree in testimony; (b) Ms of skill Grothe’s the de- ample opportunity depose counsel had gree to to which it is a separate calling or Dr. Halter or but neglected business; Dr. Stewart to (c) extent which it so; do Grothe’s counsel made no expected can be its own carry accident attempt to submit new evidence in the relationship of the burden. claim- period six-week in the court had ant’s work or the purported business to matter under advisement. of On the basis employer’s requires business considera- the foregoing, we would that conclude -(a) tion of: to which extent claim- evi- failed to demonstrate that regular ant’s work is a of the em- part dence have upon could not been obtained work; regular (b) ployer’s whether claim- diligent investigation. intermittent; ant’s work is continuous argues

Finally, Olafson that Dr. Stew- (c) whether the is duration sufficient art’s testimony was cumulative testi- to the hiring to amount to the of continuing mony of Dr. Eufemio and Dr. Johnson. distinguished services as contracting from Both physicians testified that Olafson’s rib completion particular job. injuries from accident were healed Focusing first on the of character Olaf- present would not his future restrict work, it apparent son’s working ability. Grothe admits that Dr. special work involved skills and both was a testimony Stewart’s would be to the similar “separate calling” from business. other but physicians, claims that it would Thus, first two factors indicate that not be cumulative because of Dr. Stewart’s independent Olafson was an contractor expertise in this area. an employee. rather than third factor The standard for review of order focusing be considered when the char- denying 60(b) a Rule motion is whether the extent acter of Olafson’s work is superior court abused its Rever discretion. expected which Olafson could be justified only sal is if this court concludes his own insurance. The court con- trial court was clearly mistaken. danger of cluded that inherent Olaf- Davis, McCracken v. P.2d 771 dynamite with made it economi- son’s work 1977). We hold court’s Olafson to cally expect unreasonable to ob- denial was well within its discretion. factor, tain his own insurance. This accord- AFFIRMED. court, favor of con- ing weighs to the Olafson an There is no sidering employee. Justice, COMPTON, concurring part, indication, however, any evidence dissenting part. establishing whether presented to the court Although agree I performing type otherwise with or not the same persons of this appeal, disagree resolution I Olafson obtain own insurance. work as their with the that the conclusion there is no indication evidence Similarly, did not err in was an would have establishing how much it cost Grothe’s, employee I therefore also to obtain insurance and his own disagree with the conclusion that Olafson’s compensation percentage what be reduced should have been. It cost insurance would comparative amount of his negligence. was no eviden- appears therefore that there finding that it for the court’s indicates, tiary As basis the appropriate Olafson to ob- expect test was unreasonable to by which to determine whether engage one is to or an tain own insurance. If independent sense, tractor is as much that which set forth in Ostrem in it makes speculation, idle Board, Compensation more, Alaska Workmen’s to assume that Olafson was if not (Alaska 1973): P.2d sufficient for his in- provided dangerous permit him to herently work With reference to the character claim- (a) ant’s own insurance. work or business the factors are: obtain his *10 612 finding employee a of sta- analysis is to exam- cient step

The next in work relationship ine the between Olafson’s tus when all of the facts contradict this undisputed It is finding, they According- and Grothe’s business. do in this case. as na- intermittent in that Olafson’s work was in I court erred ly, believe The of his work for ture. short duration finding employee that Olafson was an of “contracting that was Grothe indicates he Grothe’s, independent rather than an job.” of completion particular tractor. Ostrem, these 511 P.2d at 1063. Both of not Olafson’s claim This does effect suggest was an strongly facts that Olafson Grothe, the issue of against except an em- independent contractor rather than can be comparative negligence whether The ex- ployee. final consideration is “the a defense to the action. raised Grothe as regular work is tent to which claimant’s owner or repeatedly We have held that an part employer’s regular of the [purported] neg liable for his own general contractor is work.” Id. The court concluded injury indepen to his ligence that causes blasting regular that was a employees. and their dent contractors part of Grothe’s business because Grothe Co., Richfield Sloan v. Atlantic extracting previously had been involved 157, 160 (Alaska 1976). also Everette v. See in the of developing rock course subdivi- Co., 614 1347 Alyeska Pipeline P.2d sions. The therefore found that Olaf- 1980); (Alaska Hammond v. Bechtel regular part son’s work was a of Grothe’s 1980); (Alaska Hobbs v. 1274 misinterprets I believe this regular work. P.2d 934 Corp., Mobil Oil Ostrem, As it is the test. we indicated 1968). that the agree I with the conclusion type per- of general not whether the work did err in that superior court not is a regular part employer’s formed negligent toward Olafson and Grothe was work, or indi- contractor’s but whether the be negligence that this resulted Olafson question regularly vidual in works for Thus, I believe the court coming disabled. he “Does work for employer contractor. was enti that Olafson properly determined businesses, call’, people, ‘on a few many for damages tled to from Grothe. recover single Id. at n. 5. employer?” for did regularly not work for Grothe initially determined The regular part or function as a of Grothe’s should be reduced Instead, he business. worked reflects by twenty percent, which prior two only occasions. rest comparative negli- amount of Olafson’s time he worked for various other contrac- the court. It subse- gence determined tors. ruled, however, was quently not entitled to assert the defense com- case I believe that all of the facts in this negligence because Grothe had parative independent indicate that was an at the time of failed to insurance an employee contractor and not Grothe’s. appeal, Grothe ar- Olafson’s accident. On this “significant upon by factors” relied making this the court erred in gues that affirming court in court on my conclu- ruling. agree on the basis of I “extremely supposed are the question close” employee. not an sion that Olafson requiring unreasonableness of employer that an statutory provision general own insurance “the because of em- may escape liability not liberalizing scope trend towards employer failed to negligence if ployee’s coverage.” workers’ injury at the time of the carry insurance merely at 606 n. 10. These P.2d & are injured person if only applicable considerations, I policy believe 23.30.055, AS 23.30.080. employee. AS tilt scales in favor sufficient that Olafson was my view of conclusion indi- finding employee status if some facts employ- and not an independent contractor in- cated status while other facts ee, it is irrelevant I hold that independent I do would dicated contractor status. at the believe, however, carrying not insurance they suffi- Grothe was are time of the accident. I would accordingly

order Olafson’s reduced

the amount of his comparative negligence,

but would otherwise the judgment affirm

of the superior court. Alaska,

STATE of Petitioner and

Cross-Respondent,

Kenneth E. HUGGINS and Terrence

Connors, Respondents and

Cross-Petitioners.

Nos. 6595. of Appeals

Court of Alaska.

Sept.

Case Details

Case Name: Grothe v. Olafson
Court Name: Alaska Supreme Court
Date Published: Feb 18, 1983
Citation: 659 P.2d 602
Docket Number: 5766
Court Abbreviation: Alaska
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