Gary Reatherford v. Lincoln Brass Works, Inc.

This workers' compensation appeal has been referred to the Special Workers' Compensation Appeals Panel of the Supreme Court in accordance with Tenn. Code Ann. _ 5-6-225(e)(3) for hearing and reporting to the Supreme Court of findings of fact and conclusions of law. Plaintiff was doing construction work at the Lincoln Brass Works facility, moving the employee break room from one side of the building to another, when a nail flew into his right eye, requiring several surgical procedures and resulting in total permanent loss of vision in the eye. The trial judge found that he was a statutory employee of Lincoln Brass Works and held the company liable for 1 percent permanent disability to plaintiff's right eye. We affirm the judgment of the trial court. The only issue before us is the status of the plaintiff for workers' compensation insurance purposes. The plaintiff contends, and the trial judge held, that he was a statutory employee and Lincoln Brass Works was a principal contractor (statutory employer) under TENN. CODE ANN. _ 5-6-113. Lincoln Brass Works contends plaintiff was either an independent contractor or a casual employee. Under TENN. CODE ANN. _ 5-6-113(a), "A principal, or intermediate contractor, or subcontractor shall be liable for compensation to any employee injured while in the employ of any of the subcontractors of the principal, intermediate contractor, or subcontractor and engaged upon the subject matter of the contract to the same extent as the immediate employer," (commonly referred to as a "statutory employer"). This court has consistently held that where a business enterprise undertakes to act as its own principal contractor and contracts directly with a subcontractor for various phases of construction on its own premises, the business enterprise is subject to liability imposed by the Workers' Compensation Act. Acklie v. Carrier, 785 S.W.2d 355 (Tenn. 199). Lincoln Brass asserts the construction workers were independent contractors rather than statutory employees under TENN. CODE ANN. _ 5-6-113(a). The factors to be considered in determining whether a relationship to the principal was that of employee or independent contractor include: (1) the right to control the conduct of 2