FOR PUBLICATION
ATTORNEY FOR APPELLANT: ATTORNEY FOR APPELLEE:
TIMOTHY M. SWAN PATRICK D. DUFFY
Bruce P. Clark & Associates Stone & Moore, Chartered
Munster, Indiana Chicago, Illinois
IN THE
COURT OF APPEALS OF INDIANA
MADAN VERMA d/b/a MADAN )
CONSTRUCTION CO., INC., )
SHREEJI HOSPITALITY, INC., )
GATWOOD CRANE SERVICE, INC., )
)
Third Party Plaintiff, ) No. 45A03-0309-CV-344
)
vs. )
)
D.T. CARPENTRY, LLC, )
)
Appellant-Third Party Defendant. )
APPEAL
FROM THE LAKE SUPERIOR COURT
The Honorable William Davis, Judge
Cause No. 45D02-9906-CT-303
March 25, 2004
OPINION - FOR PUBLICATION
BAKER, Judge
Appellant-third party defendant D.T. Carpentry (D.T.) appeals the trial courts grant of appellee-defendant
Gatwood Crane Services (Gatwood) motion to dismiss. D.T. raises two issues which
we reorder as: whether the trial court erred when it allowed the introduction
of the Standard Short Term Crane Rental Agreement (Agreement) into evidence and whether
the trial court erred when it found that Gatwoods crane operator was a
borrowed employee of D.T. Concluding that D.T. waived its argument regarding the
admissibility of the Agreement and that the crane operator was a borrowed employee,
we affirm.
FACTS
On April 5, 1997, Gary Schmid,
See footnote an employee of D.T., was assisting in
the process of hoisting trusses from the ground and placing them on the
second floor of a hotel-in-construction. Shreeji Hospitality (Shreeji) owned the hotel project.
The hotel was being constructed by general contractor Madan Construction Co. (Madan).
D.T. was a subcontractor hired by Madan, and Gatwood supplied the crane
that lifted the trusses. The crane was operated by Verne Paddock, who
had worked for Gatwood since 1996.
Paddock was the only Gatwood employee on the site on April 5, 1997.
He worked with D.T. employees, some of whom were on the ground
rigging, or connecting the load to the crane, and one who was standing
in the window that had a clear view to the crane operator.
That D.T. employee was directing Paddock through hand signals and watching the load
as it was being moved across the building and landing. As Paddock
was lowering a bundle of trusses onto the roof, Schmid, who was on
the second floor unloading and bracing trusses, was struck by a truss that
began to fall, knocking him through a hole in the second floor.
As a result of his injuries, Schmid filed a negligence complaint against Shreeji,
Madan, and Gatwood. Madan filed a Third Party Complaint against D.T. seeking
indemnity for the negligence of D.T. On March 5, 2003, Gatwood filed
a Motion to Dismiss for Lack of Subject Matter Jurisdiction pursuant to Trial
Rule 12(B)(1), alleging that Paddock was under the direction, supervision and control of
D.T., and was therefore a co-employee of Schmid. Gatwood argued that this
entitled it to the exclusivity provision of the Indiana Workers Compensation Act with
regard to Schmids claims.
The materials that Gatwood designated to the court in support of its motion
included the Agreement. At the top of the Agreement, the customers name
is listed as Lena Truss, the manufacturer of the trusses used to construct
the hotel. However, it was signed by D.T. employee Don Wilkes.
There are two places for a signature on the Agreement. The first,
which is signed at the start of the job, is directly beneath the
following language, The terms and conditions governing this rental as described on the
reverse side are understood and agreed to. Appellants App. p. 101.
The second, which is signed at the end of the job, is directly
beneath the following language, The above hours are verified to be correct.
Appellants App. p. 101. Wilkes provided both of these signatures. The
terms and conditions state in relevant part:
2.
INDEMNIFICATION: Lessee agrees that the equipment and all persons operating such equipment,
including Lessors employees, are under Lessees exclusive jurisdiction, supervision and control and agrees
to indemnify and save Lessor, its employees and agent harmless from all claims
for death or injury to persons, including Lessors employees, and from all loss,
damages or injury to property, including the equipment, arising in any manner out
of Lessees operation. Lessees duty to indemnify hereunder shall include all costs
or expenses arising out of all claims specified herein, including all court and/or
arbitration costs, filing fees, attorneys fees and costs of settlement. Lessee shall
not be required to indemnify Lessor for Lesors sole negligence, but Lessors liability
for damage caused by the sole negligence of Lessor, its agents and employees
shall be limited to the amount of Lessors liaiblity insurance.
3. COMPETENT OPERATION BY LESSEE: Lessee agrees to provide competent and experienced personnel
to direct the operation of the equipment and further agrees that the Standard
Crane and Derrick Signals in accordance with American Standard B 30.2-1943 shall be
used to direct the equipment at all times when applicable.
. . .
11. AUTHORIZED SIGNATURE: In the event this agreement has been executed on the
reverse side by an individual on behalf of a corporation or other business
entity, the person whose signature is affixed hereto and the company for which
the individual has signed this agreement represent to Lessor that the individual signing
has full authority to execute this agreement on behalf of said corporation or
other business entity.
Appellants App. p. 102. The trial court held a hearing on the
motion to dismiss on April 17, 2003, and entered an order granting the
motion to dismiss on April 23, 2003, finding that the cause of action
should be before the Workers Compensation Board because Paddock was a borrowed employee
of D.T. D.T. now appeals.
DISCUSSION AND DECISION
Initially, we note that the standard of appellate review for Trial Rule 12(B)(1)
motions to dismiss is a function of what occurred in the trial court.
GKN Co. v. Magness, 744 N.E.2d 397, 401 (Ind. 2001). The
standard of review depends upon whether the trial court resolved disputed facts, and,
if so, whether it conducted an evidentiary hearing or ruled on a paper
record. Id. Where, as here, the facts are in dispute and
the trial court conducts an evidentiary hearing, then we will reverse only if
the trial courts factual findings and judgment, are clearly erroneous. Id.
Factual findings are clearly erroneous if the evidence does not support them, and
a judgment is clearly erroneous if it is unsupported by the factual findings
or conclusions of law. Id.
I. Introduction of the Agreement Into Evidence
D.T. first argues that the Agreement should not have been considered by the
trial court. Specifically, D.T. contends that the Agreement should not have been
entered into evidence because the signature was not authenticated.
The appropriate method for a defendant to contest subject matter jurisdiction is a
motion pursuant to Trial Rule 12(B)(1). Like ruling on a motion for
summary judgment, the trial court may consider not only the complaint and motion
but affidavits and evidence submitted in support of the motion. GKN, 744
N.E.2d at 400. The Indiana Rules of Evidence require the authentication of
documents before they can be considered as evidence. Evid. R. 901. Moreover,
if a party fails to make an objection to the trial court, the
objection is waived. Bankmark of Florida, Inc. v. Star Fin. Card Servs.,
Inc., 679 N.E.2d 973, 980 (Ind. Ct. App. 1997).
At the hearing on the motion to dismiss, D.T., did not raise an
objection to the authenticity of the Agreement. D.T. did object to the
introduction of the agreement as evidence, but the objection was limited to whether
the Agreement had been designated as evidence to his motion. Appellants App.
p. 22. When D.T.s attorney learned that the Agreement had indeed been
designated, he withdrew the objection saying, Thats my mistake then, your Honor.
Appellants App. p. 22. Thus, D.T. has waived the issue of the
authenticity of the Agreement for appellate review.
II. Borrowed Employee
D.T. next contends that Paddock was not a borrowed employee for purposes of
the Workers Compensation Act. Specifically, D.T. argues that because it does not
meet any of the seven factors, that they may not be considered the
special employer of Paddock.
The Indiana Workers Compensation Act provides the exclusive remedy of an injured worker
against his employer or co-employee. Ind. Code § 22-3-2-6. A person
may have more than one employer at any given time for purposes of
the Workers Compensation Act when one employer has loaned his employee to another
employer. U.S. Metalsource Corp. v. Simpson, 649 N.E.2d 682, 685 (Ind. Ct.
App. 1995). If a borrowed employees injury occurred by accident and arose
out of and in the course of employment with either the general or
special employer, he is entitled to workers compensation benefits, and Indiana Code section
22-3-2-5 operates to bar a court from hearing any common law action brought
by the employee for the same injuries. Williams v. R.H. Marlin, Inc.,
656 N.E.2d 1145 (Ind. Ct. App. 1995). The party opposing jurisdiction has
the burden to prove that the trial court does not have jurisdiction.
GKN, 744 N.E.2d at 404.
To determine if an employer-employee relationship exists which may subject an employee to
the Workers Compensation Act so as to bar his common law claims against
the special employer to whom he was loaned, the following factors have been
enumerated: (1) the right to discharge; (2) the mode of payment; (3) supplying
tools or equipment; (4) belief of the parties in the existence of an
employer-employee relationship; (5) control over the means used in the results reached; (6)
length of employment; and (7) establishment of the work boundaries.
Hale v. Kemp, 579 N.E.2d 63, 67 (Ind. 1991). The Hale factors
are balanced, with the right of the employer to exercise control over the
employee given the most weight, although it is not dispositive. GKN, 744
N.E.2d at 402. We will address each factor in turn.
In U.S. Metalsource, we held that the right to discharge factor was established
where the special employer did not have the power to terminate the borrowed
employees employment with the general employer, but could terminate his employment with the
special employer by calling a supervisor of the general employer and instructing him
that it no longer wanted the borrowed employee to deliver its steel.
U.S. Metalsource, 649 N.E.2d at 686. The parties here disagree as to
whether D.R. had the authority to direct Paddock off the job site.
In Paddocks affidavit, he knew, based on his twelve years of experience, that
the D.T. carpenters had the right to discharge him if they were not
satisfied with his work. Appellants App. p. 100. On the contrary,
the affidavit of Davis, the owner of D.T., stated, No one from D.T.
Carpentry had the authority to direct the crane operator off the job site
or terminate the crane operators employment. Appellants App. p. 151. Taken
to its logical extreme, Daviss statement would mean that Paddock could not be
removed even if he were operating the crane in a patently unsafe manner.
The trial court undoubtedly found this difficult to believe. We find
that D.T. had the right to indirectly discharge Paddock from his employment with
D.T. This is sufficient to establish the first factor.
It is undisputed in this case that Gatwood paid Paddock. Inasmuch as
D.T. did not pay Paddock, directly or indirectly, the mode of payment factor
weighs in favor of Paddock not being a borrowed employee of D.T.
In Davis v. Central Rent-A-Crane, 663 N.E.2d 1177, 1180 (Ind. Ct. App. 1996),
we found the supplied tools or equipment factor to be satisfied where the
plaintiffs employers supplied the hooks and chains used by the crane operator.
Here, [t]he straps, hooks, and chains used to enable the crane to lift
the trusses off of the ground and onto the roof were supplied by
Gatwood Crane. Appellants App. p. 151. Gatwood contends that this factor
weighs in their favor because [D.T. Carpentry] supplied the tools used by [Schmid]
and the D.T. carpenters to brace the trusses after they were lifted to
the second floor. Appellees Br. p. 15. However, the tools supplied
by D.T. were not used by Paddock. Only D.T. employees used the
equipment that Gatwood refers to, and thus this factor does not support a
finding that Paddock was a borrowed employee.
The president of D.T. stated in his affidavit that he did not believe
that an employer-employee relationship existed between D.T. and Paddock. Appellants App. p.
151. There is no direct evidence as to whether Paddock believed an
employer-employee relationship existed between them, but the fact that he only worked for
D.T. for one day leads to the inference that he would not have
believed such a relationship existed.
That brings us to the factor that is to be given the most
weight: control over the means used in the results reached. Here, D.T.
employees told Paddock what work needed to be done and how they wanted
the job to proceed. Appellants App. p. 149. A D.T. employee
hooked the trusses to the crane, and another D.T. employee used hand signals
to direct the necessary and safe movement of the crane. Appellees App.
p. 26, 27. Other D.T. employees landed and unloaded the trusses from
the crane onto the second floor and braced the trusses to prevent them
from falling. Appellees App. p. 27. Moreover, Paddock worked the schedule
mandated by D.T. that day. Appellants App. p. 101. In short,
D.T. controlled Paddock completely throughout the day that he worked at the construction
site. This factor clearly falls in favor of finding that Paddock was
a borrowed employee.
In GKN, our supreme court stated, [T]he longer the length of employment, the
more indicative it is of an employer/employee relationship. GKN, 744 N.E.2d at
406. The GKN court went on to find that a three-month period
could not be said to weigh in favor of finding an employment relationship
between Magness and GKN. Here, Paddock only worked with D.T. for one
day. This is insufficient to establish the length of employment factor in
favor of finding the Paddock was a borrowed employee.
Finally, D.T. asserts that it did not establish work boundaries, essentially because Shreeji
Hospitality owned the worksite. Although Shreeji provided the work site, D.T. set
the boundaries within which Paddock worked. Paddock received instructions from only D.T.
employees, and picked up the trusses that D.T. employees told him to lift
and put them where D.T. employees told him to put them. Although
Paddock was able to choose the precise location of the crane, he had
to do so within the boundaries of what load D.T. employees had told
him to pick up and where and when to move them. This
evidence tends to support a finding that Paddock was a borrowed employee.
Balancing the Hale factors and giving considerable weight to the element of control,
we conclude there was sufficient evidence before the trial court to conclude that
Paddock was a borrowed employee. Accordingly, the Workers Compensation Board has jurisdiction
over this cause. Thus, the trial court properly granted the motion to
dismiss for lack of subject matter jurisdiction.
The judgment of the trial court is affirmed.
NAJAM, J., and MAY, J., concur.
Footnote:
Although he is the plaintiff in this case, Gary Schmid is not
a party to this appeal.