Lead Opinion
Plaintiff brought this action pursuant to section 45.10 of the California Unemployment Insurance Act (Stats. 1935, p. 1226, as amended; 3 Deering’s Gen. Laws, Act 8780d) to recover contributions paid under protest on the remuneration received by free-lance jockeys performing services for plaintiff during the period from April 1, 1944, to June 30, 1944. Defendant appeals from a judgment in favor of plaintiff.
During the period in question plaintiff owned a string of horses that he raced at Bay Meadows race track. He engaged free-lance jockeys to ride the horses in various races. They were not in his regular employment but were engaged separately for each race. In March, 1944, the California Employment Stabilization Commission ruled that the free-lance jockeys involved were in “employment” within the meaning of section 6.5 of the Unemployment Insurance Act and that any remuneration paid to the jockeys was subject to contributions as provided in the act.
There is no conflict in the evidence as to the facts outlined above, but plaintiff contends that defendant had the burden of showing the actual control exercised by plaintiff or his trainer over the jockeys in question, and since defendant failed to show that such control was actually exercised, the jockeys were properly held not to be employees. It is clear, however, that plaintiff made no showing that the owner or trainer did not exercise, or have the right to exercise, control except insofar as the right to exercise control was limited by the rules of the California Horse Racing Board or by the inaccessibility of the jockeys while actively engaged in the race. The only finding of fact made by the trial court on the question of employment was a general finding that during the period in question the free-lance jockeys engaged by plaintiff were not employees and the compensation paid them consisted of payments to independent contractors. The basis of this finding is clear from the memorandum opinion of the trial court. The trial court not only decided the case on the theory that the actual control exercised by the particular taxpayer over those performing services for him determines their relationship but placed the burden of proof on the defendant commission to show that control was actually exercised. It thus distinguished Drillon v. Industrial Acc. Com.,
The decision in the Drillon ease was based on the right of the owner to exercise control over the jockeys (supra, at 355), the principal test of employment under section 6.5 of the Unemployment Insurance Act (Empire Star Mines Co. v. California Emp. Com.,
It cannot seriously be contended that one who is an employee within the meaning of section 3351 of the Labor Code (Workmen’s Compensation Act) is not engaged in “employment” within the meaning of section 6.5 of the California Unemployment Insurance Act. Section 3351 of the Labor Code provides that “ ‘Employee’ means every person in the service of an employer under any appointment or contract of hire or apprenticeship, express or implied, oral or written. . . .” An employer is defined by section 3300 of the Labor Code to include “Every person including any public service corporation, which has any natural person in service.” Section 6.5 of the Unemployment Insurance Act defines employment as “service . . . performed for wages or under any contract of hire, written or oral, express or implied.”
It has been held that the word “employment” as defined in section 6.5 of the Unemployment Insurance Act does not include independent contractors. (Briggs v. California Emp. Com.,
It has already been observed with regard to the principal test, that the owner or trainer has the right of control except insofar as he is limited by the rules of the racing board. The right to discharge in this case is limited only by the rule that the owner may not discharge a jockey without cause unless he pays the contract price. There is no question that the owner may discharge a jockey up to the time he is out on the track and physically out of his control. As in any contract of employment for a fixed period, an employee prematurely discharged without cause may recover damages based on his wages. (W. F. Boardman Co. v. Petch,
Among the secondary elements of the employment relation, only three are clearly absent from this case: (c) Jockeys are not unskilled workmen; however, many skilled workmen are employees, (e) Free-lance jockeys are employed for a fixed period, the duration of one race, (f) The basis of payment is the race, not the time involved. The other elements are either present or inapplicable to this case: (a) The occupation is an integral part of the owner’s business, (b) The work is usually performed under the direction of the owner or trainer to the extent allowed by the rules of the California Horse Racing Board, (d) Although the jockey furnishes his
Plaintiff contends that the judgment cannot be reversed, since it is based on a conclusion drawn from the evidence as an inference of fact,' not as a conclusion of law. There was no evidence from which the trial court could reasonably have drawn any inference inconsistent with the conclusion that the plaintiff had the right to control the activities of the jockeys except where he was prevented from doing so by the rules of the Racing Board or by the inaccessibility of the jockeys while they were actively engaged in the race. The contention that the question whether a person is an employee under section 6.5 of the Unemployment Insurance Act is wholly one of fact, even when the evidence is not in conflict and not reasonably susceptible of conflicting inferences, is untenable. Under such a rule there would be nothing to prevent conflicting interpretations of identical facts by the various trial courts so that free-lance jockeys would sometimes be classified as employees and sometimes not. Such a rule would make effective enforcement of the Unemployment Insurance Act impossible.
In California Emp. Stab. Com. v. Morris,
The result of the application of the rules of law set forth in Empire Star Mines Co. v. California Emp. Com., supra, will depend in any particular case on the essential facts of that case. Thus, in California Emp. Com. v. Bates,
The judgment is reversed.
Gibson, C. J., Shenk, J., Carter, J., and Spence, J., concurred.
In my opinion, the decision in this case departs from the established rule that the judgment of the trial court will not be disturbed if there is substantial evidence to support its determination. Giving full effect to the evidence and the reasonable inferences to be drawn from it, the finding that an independent contractor relationship existed between the owner and the jockeys should be upheld. As stated by the trial judge in his memorandum of opinion, “there is sufficient evidence in the record to establish the fact that the jockeys in question were independent contractors although the evidence is in dispute.”
A jockey, called as a witness in behalf of Isenberg, testified, “I think the procedure is, that if an owner is willing to pay a rider his fee, that he can substitute a rider.” This was in answer to the question as to whether it was “possible for . . . [the jockey] ... to be removed from that mount without the horse being taken out of the race?” As indicated by other testimony of this witness, he was not necessarily referring to the rules of the Racing Board, and it reasonably may be inferred that in his statement as to “the procedure” he was referring to the agreement of the parties or the national custom.
There was also evidence from which it reasonably could be inferred that the jockeys were not required to follow instructions given them. One jockey testified that “His trainer sometimes gave . . . [him] . . . instructions how he thought a horse would run best.” But, he added: “They [owner and trainer] have suggested ways of riding them [horses]. I wouldn’t say they told me just how to ride them. That is impossible.” As to whether or not such instructions were followed, he testified, “Well, if I found out that the horse wasn’t running under those instructions, I would try some other means of getting him to run.” This witness also testified that the owner “may leave it up to your own judgment” as to manner in which the jockey should ride. When asked whether he used his own judgment when riding in a race, he replied: “Yes, you have to use your own judgment. Instructions are followed only when you don’t figure in your own judgment that they hinder the chances of winning.”
It is the well settled rule that when there is a conflict in the evidence, including not only objective facts but also the inferences which reasonably may be deduced therefrom, the determination of the trial court, in regard to the legal relationship of the parties to a controversy, will not be disturbed. (California Emp. Stab. Com. v. Norins Realty Co.,
The testimony quoted clearly warrants a conclusion of lack of control, and there is other evidence which supports the trial court’s determination. The jockey furnished most of his own equipment. The method of payment was by the race, not according to the time involved. Jockeys are skilled workers and are employed for a fixed period, the duration of the race. Giving no effect to the rules of the Racing Board, the trial court had ample ground for deciding that an independent contractor relationship existed between the owner and the jockeys. Evidence that, by custom, the owner or trainer had the right to give instructions to the jockey, merely raised a conflict in the evidence which was resolved by the trier of fact. Furthermore, the rules of the Racing Board limit the right of the owner and trainer to control the activities of the jockeys and, therefore, support the finding of an independent contractor relationship.
Neither California Emp. Stab. Com. v. Morris, supra, nor Drillon v. Industrial Acc. Com.,
These cases are clearly distinguishable from the situation presented in the record now under review. Here the trier of fact determined that the jockeys who rode Isenberg’s horses were independent contractors. The commission attacks the decision upon the ground that the only evidence in the record which supports the trial court’s finding of lack of control is the limitations found in the rules of the Racing Board. The issue in this regard, therefore, is whether the rules may be used to support a finding of the trial court. In the Morris and Drillon cases, the question was whether, when there is evidence to support the finding of the trial court or commission, may the rules of the Racing Board or the regulatory provisions of the Real Estate Act be invoked to compel a determination contrary to those findings. Both the Morris and the Drillon cases hold that the effect of such rules or regulations is, at most, to set up a conflict in the evidence; they may not be used to require findings contrary to those made by the trial court upon substantial evidence.
Also, I do not agree with the strong implication in the majority opinion that the determination of the legal relationship is primarily a question of law. This implication is found in the reference to the Workmen’s Compensation Act, the holding, in effect, that the Drillon case controls the disposition of the present controversy, and the direction that judgment be entered in favor of the commission. Moreover, the cases of California Emp. Com. v. Los Angeles Down Town Shopping News Corp.,
For these reasons, I would affirm the judgment of the trial court.
Dissenting Opinion
I agree with the views expressed by Mr. Justice Edmonds. I am thoroughly cognizant of the (at least to the involved agencies) administrative desirability of having a simple, absolute, and universal or rule of thumb method for classifying entire industrial or professional groups as employes or nonemployes. But that desirability certainly does not warrant this court in departing from constitutional standards. Is it the intention of the majority of this court to hold that as a matter of law all jockeys who ride horses for compensation, regardless of the more specific terms of their several contracts, are employes? If that is not the effect of the holding its avowed object is not attained. If that is the effect of the holding it means that stable owners and riders no longer are permitted the freedom of mutually contracting such reciprocal relationships as they may agree upon. No longer do they have the right or capacity to establish the character of their obligations to each other. No matter how specific may be the terms by which they agree that the rider is a skilled specialist, that he shall furnish his own equipment, that he shall undertake a single project to be performed in his own way without any supervision or direction of the owner, the result will be the same as though the converse of all those heretofore material elements were substituted.
It is difficult for me to believe that the majority actually subscribe to the doctrine above indicated. But if they do not subscribe to it then not only do they fail to achieve the assertedly desirable objective of administrative universality but the only other rational basis for their holding in this case is equally disturbing. It means not that there shall be uniformity in classifying all jockeys as employes but that the majority have weighed the evidence in this one case and have themselves elected to draw inferences contrary to those drawn by the trial court. The evidence related by Mr. Justice Edmonds is in the record. It admits of the inferences suggested by him. Those inferences support the trial court’s judgment. The functions of trial and appellate courts are
The principles involved in this case are markedly similar to those in Cardillo v. Liberty Mutual Ins. Co. (1947),--U.S.-- [
“It matters not that the basic facts from which the Deputy Commissioner draws this inference are undisputed rather than controverted. See Boehm v. Commissioner,
Again, in an action which originated in a state court under the Federal Employers Liability Act (35 Stats. 65, as amended, 45 U.S.C. § 51 et seq.) and which was before the United States Supreme Court on certiorari after the state Supreme Court had reversed a trial court “for insufficiency of evidence to show negligence,” the highest court said (Ellis v. Union Pacific Railroad Co. (1947),
For the reasons above set forth I would affirm the judgment of the trial court.
