*1
2001,
Appeals
of Court of
Argued
decision
and submitted November
9, 2002
May
judgment
court affirmed
of circuit
SCHAFF,
Cindy
Representative
Personal
Schaff, deceased,
of Kevin
the Estate
Review,
Petitioner
INC.,
CO.,
FOOD
LAND & SEA
RAY’S
an Oregon corporation,
on Review.
Respondent
S48360)
A110162; SC
(99CV0025; CA
95-a Lynch Hurley, Bend, P.C.,
Christopher Re,& Hatfield, of respondent on argued filed the briefs cause and review.
BALMER,J. opinion in which filed an Muniz, J., dissented
De joined. Riggs, JJ., Durham
95-b *4 96 J.
BALMER, case us requires to determine personal injury This in granting summary whether the trial court erred judgment for Plaintiff is the personal representative defendant. died in a Schaff, of Kevin who collision Adam estate Plaintiff claims that Stockert was Stockert caused. allegedly vicariously that defendant liable defendant’s employee by for caused Stockert’s damages negligence. to plaintiff defendant, summary court hold granted judgment trial law, that Stockert was an independent as matter of ing, defendant, rather than an and that contractor, therefore could not be liable caused injuries defendant The Court of affirmed without Appeals Stockert’s negligence. Co., Inc., Or Land & Sea Food Ray’s opinion. Schaff v. (2001). 170, follow, For the reasons that we P3d App the judgment the decision of the Court of Appeals affirm of the trial court.
I. FACTS deci- facts relevant to the trial court’s The historical 2,1998, driving On June Stockert was sion are not disputed. truck that truck that collided with Schaff pickup pickup died as a result of from injuries Both men driving. action noted, As filed this negligence collision. plaintiff collision, that, at the time arguing against Stockert was defendant’s employee. with corporation held closely Oregon
Defendant Frank and his wife. shareholders, Raymond pur- two Frank franchise a “Land & Sea Food Company” chased “Land & Sea Food registered him to use the which allowed thereafter, Shortly trademark in Oregon. Company’ out of the The business operates defendant. incorporated fish meat and prod- Frank residence. Defendant purchases Defendant sells and resells those products. ucts brokers to written “dealer- and, some customers directly pursuant to “dealers” who sells at wholesale agreements, also ship” one such “dealer.” Stockert was resell ultimate customers. a “dealership agree- and defendant signed agreement other things, 1994. January Among ment” *5 required purchase products Stockert to all his meat fish and promote products defendant, from to the sale of defendant’s to “at Stockert’s customers times and a manner within carry [Stockert’s] discretion,” and certain automobile agreement insurance. The also recited certain “understand- ings,” including authority that Stockert had no to bind defen- obligations; dant expenses, obligations, all costs, contracts or Stockert’s solely
and liabilities were “to be borne by “self-employed himself’; Stockert, and that as a individ- security subject to ual,” was federal social taxes and not was by unemployment compensation covered state or federal or compensation. agreement state workers’ The also contained following provision: “It is understood that [Stockert] is not an [defendant], but independent is an contractor in business for himself. [Defendant] shall have no control over doing [Stockert’s] mode of business.” agreement by party. was at will terminable either supplied refrigeration Defendant Stockert with a bearing unit the “Land and Sea Co.” name, Food which placed pickup Stockert in the back of truck that he leased daughter. refrigeration from his He used the truck and unit products supplied to deliver to his customers. Defendant also describing products, Stockert with brochures which products expressly packaged stated that the “are for dis- and by tributed contracted & ‘LAND SEA’dealers.” Defendant’s
president, by taking Frank, “trained” new dealers them on during training, generally sales calls and, with him selling techniques suggested advised new dealers on and prices. responsible determining
Stockert, however, many products purchase, work, and when how how and prices charge what to his His customers. income was based charged on the difference between he and what his customers expenses, paid his which included the amounts that he defen- products. dant for Dealers own selected and established their generally agreement, and, routes oral did sell informal not initially Eugene territory. in each other’s in the Stockert sold Oregon. area, but then decided to start a route central provide Defendant list, did not a customer and Stockert with never asked have, for, and not copy defendant did out Stockert worked list. of Ids home. He Stockert’s customer business in the yellow had as listing had no did no and workers’ advertising, compensation pages, or insurance employees. would from pick up
Stockert typically products needed, and Stockert had little con- defendant weekly he other than when purchased tact with defendant products. not, to, and were dealers did not expected other on a basis other regular they than when report most of Stockert’s income products. Although purchased also purchased came defendant’s selling products, elsewhere at wholesale resale to his vitamins spices *6 customers. BELOW
II. PROCEEDINGS As that noted, alleged defendant plaintiff that Stockert was in the course acting Stockert’s employer, collided scope employment negligently and his when lia- Schaff, vicariously that defendant therefore was with that Stockert had caused. Defendant injuries ble Schaffs it had no summary filed a motion for that judgment, arguing a matter an inde- because, law, as Stockert was liability a rather Plaintiff filed contractor than an employee. pendent a mat- that, as summary judgment asserting cross-motion for an sum- law, ter of Stockert was that employee partial favor. In plaintiff’s should be entered mary judgment alternative, motion, arguing plaintiff opposed defendant’s law, an as a that, if Stockert was not matter employee conflicting from the facts nevertheless could draw therefore, as to status and, reasonable inferences Stockert’s that sum- there were issues of fact disputed precluded that trial defen- for defendant. The court mary judgment granted motion the ground motion and denied on plaintiffs dant’s con- law, an that, as a matter of Stockert was without As the Court of affirmed noted, Appeals tractor. opinion.
III. ANALYSIS is no there when Summary judgment is appropriate moving party issue as to material fact and any genuine matter of law. ORCP C. judgment entitled to as There is fact if, no issue material upon as to “based genuine in a manner record before court viewed most favorable to objectively no reasonable party, juror adverse return a for the adverse that party verdict matter Id.1 summary motion On subject judgment.” summary judgment, review of a motion for we view evi- all inferences that dence and reasonable be drawn from may the evidence favor of the adverse party. Robinson Thriftway, 453, 461, Lamb’s Wilsonville P3d 421 (2001). below, we detail explain may
As be held liable for vicariously Stockert’s if defendant had negligence control the manner in which Stockert right performed services for defendant. Plaintiff that, although the argues historical facts are undisputed, jury could draw inferences facts those that would it to conclude permit to control sufficient to establish existed in status Therefore, this case. plaintiff argues, trial court erred in defendant’s granting summary motion, judgment because there was a genuine issue material fact for the Defen- jury. dant trial argues court correctly concluded that anwas independent contractor a matter of law. follow,
For reasons that we defen- agree with dant. Based upon summary us, record before judgment viewed in a manner most favorable to hold plaintiff, we reasonable could conclude that defendant had a suf- ficient control Stockert’s him performance for to be considered employee. We, therefore, conclude *7 anwas as of independent contractor a matter law. A. “Right to Control” Test
Whether an individual
is an
or an inde
pendent contractor
is a
conclusion.
legal
conclusion,
That
however,
depends
a factual determination of
extent
the
1
pending
This
case
in the trial court
a 1999
when
amendment
ORCP
effective; therefore,
applies.
47 C became
of
C
amended version ORCP 47
See
(2001)
453,
Thriftway,
457-58,
Robinson v. Lamb’s Wilsonville
332 Or
“While
of his
performance
in the
may control a worker
employer
relationship, con-
master-servant
creating a
task without
defi-
test. The
principal
remains
performance
trol over
(Second), Agency,
the Restatement
§
of a servant in
nition
220(1)
courts. It reads:
(1958),
accepted by most
generally
“
employed
perform
services
person
‘A
is a
servant
phys-
respect
who with
of another and
the affairs
subject
of
services
performance
conduct in the
ical
”
right to control.’
the other’s control or
added).
Larry Angell
Meskimen v.
See also
(emphasis
Id.
(1979)
P2d 1014
87, 91-92,
(quoting
Co., 286 Or
Salvage
Richard,
v.
266 Or
test); Jorgensen
Restatement
Jenkins and
(1973)
test);
Restatement
265,
(quoting
B.
of
to control
do not dispute
The parties
as to whether
However, they disagree
here.2
test is applicable
merits,
whether
plaintiff
this court to reconsider
invites
In her brief on the
liability context should
“right
control” test used in the vicarious
the traditional
in cases aris
that which is used
of work” test similar to
a broader “nature
include
Farms, Inc.,
Nagaki
compensation
Compare Rubalcaba
ing
laws.
under workers’
(2002) (workers’
require
compensation
court to
614, 627,
laws
101 a court a to draw inferences from undis- may permit jury facts control, historical when the puted regarding inferences that are drawn for all practical purposes will decide the whether an individual is an legal question or contractor. In defendant’s independent view, employee jury draw such inferences would allowing improperly to decide a matter of jury allow law.
Defendant out that an individual’s correctly points an an status as contractor is a con and, such, clusion of as not law would be matter typically However, situations, for a to decide. in some jury legal conclusion on the jury’s will determination depend facts to control the manner and regarding employer’s right work. In cases in which the facts or performance inferences reasonable a conclusion that there is an support employer-employee court allows the relationship, jury render a verdict as to the individual’s status— employment a conclusion of although by way of con resolving any law — facts or flicting inferences on the basis of instruc proper 3 tions. This court has that “this acknowledged may practice always not lend itself to a fastidious of the rule application that the decides fact and the court decides law.” Wallowa 235 Or at Valley Stages, 600.4 petitioner proposes established, allowed); review and rule of law if to be review Chevrolet, (2001) Inc., 537, 3, 17 (decliningto
Parrott v. Carr
331 Or
541 n
P3d 473
review).
presented
petition
consider issue not
3
argues
contrary
Woody
Defendant
that this court announced a
rule in
(1976).
Waibel,
case,
Id. at 600. reached the the same rule but court applied
This
a directed
Jenkins, when it affirmed
in
conclusion
opposite
that an
holding
employer,
favor of the putative
verdict
as a matter
law.
contractor
independent
was an
individual
fur-
for the defendant’s
case,
that
a salesman
Id. at
foregoing
discussion of this
summary,
court’s
case law establishes
whether
an individual
is an
liability
or an
contractor for vicarious
of law. However,
legal
conclusion
purposes
question
a constellation of facts
ultimately
depends
relating
to control. A
or other
must
factfinder
render a ver
right
jury
dict on an individual’s
if the facts
employment
any
status
reasonable inferences
could draw from
those
facts
a conclusion that the
support
putative employer had the
to control the
work
employee’s
putative
performance.
Wallowa
See
C. Application “Right to Control” Test of legal mind,
With those
in
we turn
principles
once
to the
facts that
again
undisputed
were before
trial court
on
motion
summary
this case. The
judgment
deal
ership
agreement
described
relationship
between
above,
Stockert and defendant. As noted
the agreement
recited that Stockert
contractor,
not an
defendant;
of
had no
control over
Stockert’s “mode of
that Stockert
doing business”; and
contractually.
defendant had no
other
authority
bind each
misleading
potentially
Valley Stages
We note that
are
Jenkins and Wallowa
Jenkins,
stating
ordinarily
question
employment
is one of law.
of
status
386;
question
always
Valley Stages,
one
Wallowa
Further, think, do not the other facts in we record, could infer that reasonably that a Stockert in a manner inconsistent with the and defendant operated their terms of Frank testified that defendant agreement. the manner in exercised control over which Stockert con- his other than the business, ducted requirement not Stockert sell Stockert was free to competing products. he his saw fit. There is no evidence that conduct business defendant visited Stockert or his customers or decided how Stockert Defendant did not control the prices often worked. sold, he quantity products that Stockert charged, sold. Stockert sales, manner of or the customers whom he did, to, and sell noncompeting products was permitted he from wholesalers other than defendant. purchased draw inferences in favor of
Neither could from means which Stockert earned plaintiffs position Stockert received no the sale money products. reimbursements, commissions, guarantees, pay- wages, His dif- solely ments from defendant. income consisted from his ference between the amounts that collected cus- and his which included the cost of products tomers expenses, from defendant and other wholesalers. purchased that he insurance, expenses, including all his own took paid Stockert sales, loss his and received all benefit all risk of gain. to other facts. She notes that defen-
Plaintiff points of meat and fish supplier products dant was exclusive him unit and with a refrigeration pro- supplied not himself literature; *11 that Stockert did hold out as motional that did special not possess a separate enterprise; for over worked for defendant four skills; and that Stockert those facts and the reasonable infer- years. argues She them, in the light draw from viewed ences that a jury would allow plaintiff, most favorable reasonable jury had a conclude that defendant sufficient control the Stockert conducted his manner which sales to rise to give liability. vicarious
We Those facts an disagree. provide insufficient basis to conclude “with that, respect conduct physical services!,] performance [Stockert was] subject control to control.” [defendant’s] Restatement (Second) 220(1) (1958). Agency Given the undisputed § facts the financial regarding arrangement between Stockert defendant, and and the level of control that Stockert exer- he cised over the manner in which undertook to sell the prod- ucts, we conclude that the facts and inferences support only the conclusion that defendant did not have a sufficient right to control Stockert such that he could be considered an employee.
The dissent
contends
could find
of the 10
some
nonexclusive factors identified in the
(Second)
Restatement
220,
section
Agency,
present
are
provide sufficient evidence to
allow the
conclude
(see
Stockert was an
of defendant
Kowaleski, 235
Or at
(discussing
460-61
relevance
Restatement
factors
control)).
(De
determining
Muniz, J.,
The dissent’s conclusion
is inconsistent with
also
this court’s decision in
the facts of which are strik-
similar to this
ingly
case. As
a trav-
noted, Jenkins involved
salesman for
eling
Indeed, to the extent even less that defendant had able, the facts in this case show than did the defendant to control its salesmen First, defendant in Jenkins reserved Jenkins. reason, negotiated its had any order salesmen
reject, at orders. 245 Or commissions on those and to refuse pay relationship— of the case, 384. In this namely, because nature purchased products Stockert that he sold— lacked similar control over the transactions Second, between Stockert and his customers. the defendant they expected in Jenkins informed its salesmen that were expec- make 10 to 12 at sales month. Id. 385-86. No similar placed undisputed tations were on Stockert. It that defen- requirement dant had no that dealers devote even a mini- selling products purchased mum number of hours to Finally, paid defendant. the defendant in Jenkins its sales- piece-work practice men basis, on commission and on a employer/employee least consistent with an relation- ship. pay Here, Id. at 384. defendant did not com- *13 simply products otherwise, mission or but sold to him for compensation arrangements resale. The difference in further demonstrates that defendant had less of to control performance Stockert’s than the defendant in Jenkins had performance over the of its salesmen.6 plaintiff suggests
Neither nor the dissent that incorrectly. plaintiff Jenkins was decided Indeed, does not briefing cite attempt in court, Jenkins her to this less much distinguish light it. In of both the factual similar- ities between Jenkins and and, above, this case as noted disposition differences, relevant we conclude same properly warranted here. concluded, The trial court a as mat- law, ter of that Stockert was not an of defendant. Accordingly, correctly granted the trial court defendant’s summary judgment. motion for Appeals judg-
The decision of the Court of and the ment of the circuit court are affirmed. dissenting, MUNIZ,
DE J., Nagaki Farms, In Inc., Rubalcaba v. (2002), that,
P3d 1106
this court
of law,
held
a matter
an
individual
truck,
who owned and maintained his own
along
occasionally
who,
with
owner-drivers,
other
hauled
light
here,
comparison
of our
in Jenkins with those
we fail to
facts
comprehend
that,
how the
dissent nonetheless concludes
“there was a
complete
salesmen,
absence of control”
over its
without
exercised
the defendant
reaching the same
respect
conclusion with
this case.
onions for the workers’ compensation under employer farmer a subject on this court’s was based applica- That conclusion statutes. control” and “nature of “right created judicially tion I Rubalcaba, because opinion I joined the work” tests. to con- “right cases applying concluded that this court’s result. I of the work” tests compelled and “nature trol” “about face” however, to do conceptual am not willing, is not here, to conclude plaintiff does majority the same considera- essentially jury apply entitled to have a of vicarious whether, liability, deciding purposes tions defendant relationship a master-servant between there was and Stockert. stage. only summary judgment case is at the
This there to decide whether Thus, permitted must be relationship a master-servant between unless we liability, Stockert, sufficient vicarious impose in a manner most record, declare on this “viewed that, can objectively juror reasonable [plaintiff], favorable * * ORCP 47 C return a verdict [plaintiff] added). (emphasis following: acknowledges The majority inferences facts or reasonable “In cases in which the employer-employee conclusion that there support a a verdict as render relationship, this court allows although a conclu- employment to the individual’s status — conflicting facts or by way resolving those sion of law — *14 of proper inferences on the basis instructions.” 101. at the role in jury’s However, having acknowledged the imposed, should be liability whether vicarious deciding follow, I that to it. For the reasons majority proceeds ignore dissent. respectfully that the or assumed
This court said “frequently [has] is to be deter relationship of a master-servant existence to con had the right master mined to whether the according v. Kawasaki Peeples the servant.” trol the conduct of alleged (1979). 765 Indust., P2d 143, 146, 603 Heavy Ltd., 288 Or that, for purposes concluding follows that majority approach,
109 to control” test is “right only of the the test liability, vicarious Or at 100-01. As I point below, that should be 334 out applied. because, cases, earlier tort that conclusion is dubious this consider court has indicated that a factors to jury may similar in the “nature of the work” test those identified in deciding liability. whether vicarious Nevertheless, even impose only that the court should use the assuming “right to control” test the presents to determine whether record as to dispute the fact, material errs its majority application record, the below, test. There is evidence in which I list would to infer permit juror reasonably that defendant had to control” the “right Stockert’s work. performance
First, defendant had the
right
to terminate
employment
time
lia
relationship
without contractual
bility.
Rubalcaba,
court
emphasized
to terminate
“employer’s power
particularly
evi
strong
[is]
dence
to control,
power
[the
because
‘effect
to terminate]
possessed by
company required respondent
operation
conduct this
at all
might
times as it
please
”
logging company
Rubalcaba,
its
Or at
manager.’
(citing Bowser
State Indus.
Or
Comm.,
Accident
(1947))
added).
42, 56,
Second, defendant had economic control over by Stockert requiring Stockert his entire meat purchase and fish requirements from defendant. Defendant supplied credit, to Stockert on which products Stockert settled with defendant a 30-day basis. As finan- security cial arrangement, contract Stockert required prepay $1,000 to defendant.
Third, defendant provided most important necessary to equipment perform Stockert’s work fiirnish- ing $5,000 with unit with the name refrigeration “Land and Sea Food Co.” on its side.
Finally, defendant Stockert with brochures supplied describing salesmen, and defendant “trained” products, like them Stockert, on sales calls and by taking advising them of effective selling techniques suggested prices.
110 factors, reasonably
A
those
jury, considering
of control
exercised a
over the
degree
conclude that defendant
work,
his
sufficient
performed
manner
which Stockert
That is all that
liability.1
the
of vicarious
imposition
justify
at
The
stage
47
of the
requires
proceedings.
ORCP
and
plain-
concludes otherwise
majority incorrectly
deprives
is
of the
trial which she
entitled.
tiff
is, however,
major-
to this
than the
There
more
issue
that,
In the
this court has commented
acknowledges.
past,
ity
the existence of a master-servant
determining
relationship
the
liability,
jury may
of vicarious
consider
purposes
(Second) Agency,
factors outlined in Restatement
various
of
(1958).
220
See
v.
Valley Stages Oregonian,
section
Wallowa
(1963) (so
Section 220
stating).
“(1) perform serv- person employed A servant is a respect and to the in the affairs another who with ices of the services is sub- physical performance conduct ject or to control. to the other’s control
“(2)
acting for another is a
determining
whether one
contractor,
following matters
servant or
others,
fact, among
are considered:
“(a)
which, by
agreement,
the extent of control
work;
of the
may exercise over the details
master
“(b)
in a
engaged
employed
or not the one
whether
business;
occupation or
distinct
“(c)
whether,
occupation,
with reference
the kind
usually
done under the direction
locality,
in the
the work
by specialist
supervision;
employer
without
“(d)
occupation;
particular
skill
in the
required
extensively
majority
in Jenkins AAA
on this court’s decision
relies
(1966).
majority
382, 421
According
ofthis
“the facts
Heating, P2d 971
Or
* *
materially
“(e) or the employer whether the workman supplies tools, place instrumentalities, of work for the work; person doing
“(f) time for length which the person is *16 employed;
“(g) payment, by the method of whether by time or the job;
“(h) a part regular whether or not of work is of the employer; business
“(i) they whether or not the believe parties are creat- ing servant; the relation of master and and
“(j) whether is principal or is not in business.” (Footnote omitted.) Valley Wallowa Stages, court, referring in
factors identified
section
220
the Restatement, stated:
“If the foregoing considerations
in
are used
the trial of
cases,
jury
ultimately
the trial court
jurors,
has to tell the
general
least in a
way,
apply
how to
to the case at hand
their
or negative
affirmative
answers
the Restatement
They
tests.
general
must arrive at a
upon
verdict based
their decision that
actor
a given
was,
not,
in
case
or was
Thus,
a servant.
the trial courts understandably rely
control,
strongly upon
control,
the element
or the
and in their instructions
general
relate
con-
concept of
suggestions,
trol such other
like those
§in 220
found
Restatement,
they may
as
see
to use.”
fit
added).
Or
at 599 (emphasis
As applicable
case,
to this
Wallowa Valley Stages
clearly
that,
established
in
determining whether
rela-
between
Stockert is
tionship
defendant and
of nature suffi-
cient to justify vicarious
is
imposition
liability,
consider,
entitled
to,
some
the factors
may
weight
give
outlined in section 220 of the
The factors out-
Restatement.
in
lined
section 220
closely parallel
of the Restatement
“nature of work” test
that this court
Rubalcaba
applied
hold as a matter of
a worker and
law that the claimant was
farmer
also
Woody
was a
See
subject employer.
(1976)
Or
Waibel, factors). test the “nature of the work” applying find that a number of the Here, factors and, are Restatement when consid- present identified to control are factors, with the suf- primary ered along liability. ficient to vicarious impose conforming to Restatement factors Evidence is a following: corporation include the Defendant sells sale of defendant’s products. products meat and fish salesmen, Stockert, is like who public accomplished to customers in certain areas. geographic sell
Stockert was not in a distinct engaged occupation, is the case with contractors. The skill usually independent fish of a route selling products typical used meat and one of master- salesman, relationship usually and that no business in the listing servant. Stockert had directory, advertising, did telephone yellow pages “Adam business cards himself as identifying and used *17 (Empha- Land & Sea Food Co” Stockert, representative added.) had own. At the time employees his sis for four death, Stockert’s had existed relationship auto insurance in the carried commercial years. Stockert $300,000, to show defendant as an addi- amount of endorsed insured. tional had determined Stages,
In Wallowa Valley jury east- Oregonian newspapers who distributed Badgett, Oregonian an purposes ern was Oregon, court, this the Oregonian On liability. appeal of vicarious an that, independ- a matter of was law, Badgett contended permitted and the should not have been jury ent contractor against affirming judgment the issue. decide the court stated: Oregonian, exercised supervision
“We do not hold that the amount of an Badgett to constitute the case bar was sufficient can we hold employee as a matter of law. Neither as matter of law. contractor Badgett which the We hold that there was evidence from own on the matter” draw its inferences added). Or at 602 (emphasis Conceptually, case is indistinguishable cases like Wallowa Valley Stages. evidence of control and the evidence consistent with the factors identified in the not, Restatement are as a matter of law, sufficient one way the other to define the between relationship defendant and However, Stockert. the record does contain evidence that sufficient for a decide whether is of relationship type justifies the imposition of vicarious liability. That is all that is under this required court’s cases.
Durham and Riggs, JJ., join this dissenting opinion.
