Blew
v. Horner (1986) 187 Cal.App.3d 1380, 232 Cal.Rptr.
660
[No.
A028549. Court of Appeals of California, First Appellate District, Division Three. December 17, 1986.]
MONTE
BLEW, Plaintiff and Appellant, v. EARL HORNER, Defendant and
Respondent.
(Opinion
by Scott, J., with White, P. J., and Merrill, J., concurring.)
COUNSEL
J.
Robert Dempster, William R. Seligmann and Dempster, McDonald & Seligmann for Plaintiff and Appellant.
Robert
S. Boyd, Boyd & Murray and Boyd, Murray & Rudnansky for Defendant and Respondent.
Richard
A. Krimen, Michael J. Brodie, Arthur Hershenson, Fernando Da Silva and Robert A. La Porta as Amici Curiae, upon
the request of the Court of Appeal.
OPINION
SCOTT,
J.
Plaintiff
Monte Blew brought a personal injury action against defendant Earl Horner, individually and doing business as Horner's Construction Company. The trial court granted defendant's motion
for summary [187 Cal.App.3d 1383] judgment, on the grounds that
when plaintiff was injured, he was defendant's employee as a matter of law pursuant to Labor Code section 2750.5
fn.
1 and that the dual capacity doctrine was inapplicable; thus workers' compensation was
plaintiff's exclusive remedy against defendant. We affirm. fn.
2
I
Plaintiff's
complaint alleged that in 1981, he was employed as a roofer by Daniel Symons and that Symons was employed by
defendant Earl Horner, individually and doing business as
Horner's Construction Company, as an independent contractor to
do roofing on a construction project in Santa Rosa. Plaintiff alleged that as a result of Horner's negligent supervision and maintenance of the construction site,
plaintiff fell from a roof and was injured. In addition, plaintiff alleged that his injury resulted from a
defective wooden beam manufactured, assembled, and placed into the stream of commerce by defendant.
Defendant
moved for summary judgment on the ground that pursuant to section 2750.5, plaintiff was defendant's employee and
workers' compensation his sole remedy. In support of defendant's motion, he submitted the findings and award of
the Workers' Compensation Appeals Board in case No. 81 SRO 32570 (Monte Blew v. Daniel Symons and Director of
Industrial Relations, as Administrator of the Uninsured Employers Fund). The Board found, inter alia, that
plaintiff was injured while employed as a roofer by Symons and that Symons was unlawfully uninsured for workers'
compensation at the time of the injury. fn.
3 Defendant also submitted deposition testimony from Symons which established that he had no
roofing contractor's license at the time of the accident. Relying on section 2750.5, the trial court concluded
that because Symons was illegally unlicensed, defendant Horner
must be deemed the employer of both Symons and plaintiff. The court also concluded that the dual capacity
theories of liability advanced by plaintiff in opposition to the summary judgment motion were inapplicable.
II
The
statutes regulating workers' compensation appear in divisions 4 and 4.5 of the Labor Code, commencing with
section 3200. Although there are [187 Cal.App.3d 1384]
exceptions to the rule, ordinarily workers' compensation is an employee's exclusive remedy against an employer
for injuries arising out of and in the course of employment. (§§ 3600, 3601.) In general, a person rendering
service for another, other than as an independent contractor, is presumed to be an employee. (§ 3357.) An
independent contractor is defined as a "person who renders service for a specified recompense for a specified
result, under the control of his principal as to the result of his work only and not as to the means by which
such result is accomplished." (§ 3353.)
[1]
At issue in this case is section 2750.5, which appears in division 3, titled "Employment Relations." Section
2750.5 provides in part: "There is a rebuttable presumption affecting the burden of proof that a worker
performing services for which a license is required pursuant to Chapter 9 (commencing with Section 7000) of
Division 3 of the Business and Professions Code, or who is performing such services for a person who is required
to obtain such a license is an employee rather than an independent contractor. Proof of independent contractor
status includes satisfactory proof of these factors: ...." In subdivisions (a), (b), and (c), the statute then
enumerates several factors which may prove independent contractor status. The penultimate paragraph of section
2750.5 states: "In addition to the factors contained in subdivisions (a), (b), and (c), any person performing
any function or activity for which a license is required pursuant to Chapter 9 (commencing with Section 7000) of
Division 3 of the Business and Professions Code shall hold a valid contractors' license as a condition of having
independent contractor status."
Plaintiff
does not dispute that both he and Symons were hired to perform a kind of work for which a contractor's license
is required, i.e., roofing. (Bus. & Prof. Code, §§ 7058, 7059; Cal. Admin. Code, tit. 16, § 832.39.)
Instead, plaintiff argues that section 2750.5 does not create a conclusive presumption; he urges that the
presumption that an unlicensed person performing contracting services is an employee should be rebuttable by the
criteria set forth in subdivisions (a), (b), and (c).
Plaintiff's
argument is unavailing. In State Compensation Ins. Fund v. Workers' Comp. Appeals Bd. (1985)
40 Cal.3d 5 [219
Cal.Rptr. 13, 706 P.2d 1146], in which the Supreme Court held that section 2750.5 applies to workers' compensation
cases, it also flatly stated that the section makes a required license a condition of having independent contractor
status. (40 Cal.3d at p. 12.) "[B]y stating that a license is a condition of [independent contractor]status, the
Legislature has unequivocally stated that the person lacking the requisite license may not be an independent
contractor." (Id, at p. 15.) [187 Cal.App.3d 1385]
The
court rejected the State Compensation Insurance Fund's argument that allowing workers' compensation to the
unlicensed contractor gives him a windfall for unlawful conduct. The court reasoned, "At the outset, it seems
questionable to categorize compensation for an injury as a windfall. In addition, denial of compensation
benefits for injuries is not one of the penalties specified by the Legislature for violation of the licensing
statutes.
"The
fundamental policy underlying the workers' compensation laws is that those hiring others to perform services
should bear the risk of injuries incurred in the undertakings. When the person seeks to hire the services
through a licensed independent contractor, it is reasonable to anticipate that the independent contractor will
insure against the risk and that the cost of the insurance will be passed on as part of the price of the
contract. Thus it is reasonable to exonerate the hirer of the independent contractor. However, when the person
performing services for which a license is required is unlicensed, the likelihood that he will insure against
the risk of injury and has included the insurance cost in the price of his contract is greatly reduced.
"It
is not unreasonable for the Legislature to conclude that effective implementation of a system of providing for
workers' injuries requires liability on the part of the ultimate hirer and that he should not be able to avoid
liability on the ground that he dealt with a contractor when the contractor lacked a required license. Whether
or not the hirer of the unlicensed contractor must be viewed as negligent in engaging in the hiring, it is
apparent that the hirer has little expectation that the contractor will have compensation and liability
insurance. While it may seem anomalous to hold that the hirer is liable for compensation only if the contractor
lacks the required license, and that he would not be liable if the contractor were licensed, the justification
is apparent in that the Legislature has sought to assure that both licensed and unlicensed contractors and their
employees will have compensation should they be injured on the job." (Id, at pp. 12-13; accord Travelers Ins.
Co. v. Workers' Comp. Appeals Bd. (1983)
147 Cal.App.3d 1033 ,
1037 [195 Cal.Rptr. 564]; see also Foss v. Anthony Industries (1983)
139 Cal.App.3d 794 ,
797-798 [189 Cal.Rptr. 31] [holding that section 2750.5 applies in tort cases as well as in workers' compensation,
and describing the paragraph at issue as "absolutely den[ying] independent contractor status to a person required
to have such a license who is not licensed].)
III
[2a]
Plaintiff's next argument presents a more difficult question, which was not directly addressed by the Supreme
Court in State Compensation Ins. Fund v. Workers Comp. Appeals Bd., supra,
40 Cal.3d 5 .
Plaintiff and [187 Cal.App.3d 1386] amicus curiae the State
Compensation Insurance Fund fn.
4 contend that even if section 2750.5 made Symons defendant's employee as a matter of law, it
does not necessarily follow that plaintiff was also defendant's employee. Instead, they argue, regardless of the
relationship between Symons and defendant, the relationship between plaintiff and defendant should be a question of
fact. In response, defendant argues that if Symons was his employee as a matter of law, so too was plaintiff.
Initially,
it must be emphasized that although the only question in this case is defendant's tort liability, a
determination that plaintiff is his employee as a matter of law will necessarily impose workers' compensation
liability on defendant for plaintiff's injuries. As has already been stated, plaintiff's immediate employer,
Symons, was both unlicensed and unlawfully uninsured for workers' compensation. Therefore, before we consider
the effect of section 2750.5 on the relationship between plaintiff and defendant, some discussion of the
workers' compensation liability of general contractors and other hirers to the employees of subcontractors who
are uninsured for workers' compensation may be useful.
At
least 40 states have adopted legislation imposing on a general contractor workers' compensation liability to the
employees of uninsured contractors under him. (1 Larson's Workmen's Compensation (Desk ed. 1986) § 49.11, p.
9-1.) According to Larson, it has become common to speak of the liability thereby created as that of the
"statutory employer" to the "statutory employee." The purpose of this legislation is "to protect employees of
irresponsible and uninsured subcontractors by imposing ultimate liability on the presumably responsible
principal contractor, who has it within his power, in choosing subcontractors, to pass upon their responsibility
and insist upon appropriate compensation protection for their workers." California is among the few states which
have not enacted such legislation. (Id, at p. 9-2.)
As
explained in Coleman v. Silverberg Plumbing Co. (1968)
263 Cal.App.2d 74 [69
Cal.Rptr. 158], the California Legislature did impose compensation liability on persons other than the immediate
employer of the injured employee in both the 1913 and the 1917 Workmen's Compensation Acts (Stats. 1917, ch. 586, §
25; Stats. 1913, ch. 176, § 30.) However, each of these statutes was held to be unconstitutional, on the ground
that the Legislature had no authority under the California Constitution to compel a person to compensate the
employees of another. (Carstens v. Pillsbury [187 Cal.App.3d 1387]
(1916) 172 Cal. 572, 578-580 [158 P. 218]; Pacific G. & E. Co. v. Industrial Acc. Com. (1919) 180 Cal. 497,
499-503 [181 P. 788]; Worswick Co. v. Industrial Acc. Com. (1919) 181 Cal. 550, 560-561 [185 P. 953].) This theory
has been criticized (see Coleman, supra, 263 Cal.App.2d at p. 84) and may be of questionable validity today. (See,
e.g., City and County of San Francisco v. Workers' Comp. Appeals Bd. (1978)
22 Cal.3d 103 [148
Cal.Rptr. 626, 583 P.2d 151], in which Supreme Court rejected claim that Legislature's authority to enact workers'
compensation legislation derived solely from and is limited by art. XIV, § 4 of Cal. Const.)
Nevertheless,
absent any statute imposing liability, California courts have consistently held that an owner or general
contractor is not liable under workers' compensation for injury to the employee of an independent contractor
hired by the general contractor. (State Comp. Ins. F. v. Ind. Acc. Com. (1941)
46 Cal.App.2d 526 ,
528-530 [116 Cal.Rptr. 173]; Coleman v. Silverberg Plumbing Co., supra, 263 Cal.App.2d at p. 81.) On the other
hand, if the person hired by an owner or general contractor is an employee rather than an independent contractor,
the general contractor may be liable under workers' compensation for injuries to persons hired by the employee, on
the theory that such persons are also the general contractor's employees.
For
example, in S. A. Gerrard Co. v. Industrial Acc. Com. (1941)
17 Cal.2d 411 [110
P.2d 377], Hanaoka, a melon grower, leased land from Gerrard company. In addition, Gerrard contracted with Hanaoka
to supervise the picking and to market the melons, among other tasks. Hanaoka hired Valdez as a picker, and Valdez
was injured. The Industrial Accident Commission found that Valdez was Gerrard's employee, and the Supreme Court
affirmed. The decisive question, the court explained, was the relationship between Gerrard and Hanaoka. If Hanaoka
was an employee of Gerrard, then Valdez was also (id, at p. 413); if Hanaoka was an independent contractor, then
valdez as his employee had no rights against Gerrard. Substantial evidence supported the commission's finding.
Although in form Hanaoka was an independent contractor, in effect he was Gerrard's employee, and its right to
control his operations extended to all who worked for him in picking the crop, including Valdez. (Id, at p. 414.)
In
Brietigam v. Industrial Acc. Com. (1951)
37 Cal.2d 849 [236
P.2d 582], the injured party was a "swamper" hired to load trucks by a trucker who was transporting barley for
Brietigam. The Industrial Accident Commission found that Brietigam was the swamper's employer, and the Supreme
Court affirmed. Relying on S. A. Gerrard Co. v. Industrial Acc. Com., supra,
17 Cal.2d 411 ,
the court declared that the decisive question was the relationship between the truckers and Brietigam. If the
truckers were Brietigam's employees, then the swamper was as well. Although the evidence was in conflict, it was
sufficient to support a finding that Brietigam had the [187 Cal.App.3d
1388] right to control the truckers and the authority to discharge them and their helpers at will.
(Brietigam, supra, 37 Cal.2d at p. 855.)
With
that background, we turn to the question in this case. Defendant relies on the foregoing cases to argue that
since section 2750.5 requires that Symons must be considered an employee of defendant, it necessarily follows
that plaintiff, as Symons' employee, must also be considered defendant's employee. Plaintiff contends that
whether he is defendant's employee should be a question of fact. Plaintiff points out that both Brietigam and S.
A. Gerrard Co. were decided prior to the enactment of section 2750.5. He argues that in each case, the court's
conclusion was based on evidence that the employer had the right to control the person who hired the injured
individual, and that it logically followed from that evidence that the employer had the right to control the
latter individual as well. A similar conclusion is not logical or reasonable in this case, plaintiff argues,
because Symons' status as an employee of defendant is based solely on his lack of a license, and not on a
factual finding of defendant's right to control and direct the activities of Symons and his helpers. Amicus the
State Compensation Insurance Fund urges that the Legislature did not intend to extend the "fiction" of the
employment relationship established by section 2750.5 to create an employment relationship between the general
contractor and the employees of the unlicensed subcontractor.
[3]
the fundamental rule of statutory construction is that a court must ascertain the intent of the Legislature in
order to effectuate the purpose of the law. In determining that intent, the court must begin with the statutory
language. (Palos Verdes Faculty Assn. v. Palos Verdes Peninsula Unified Sch. Dist. (1978)
21 Cal.3d 650 ,
658 [147 Cal.Rptr. 359, 580 P.2d 1155].) Here, however, that language provides no insight into the Legislature's
views with respect to the relationship between the employees of the unlicensed contractors and the hirers of those
contractors. Nevertheless, we must also presume that the Legislature is familiar with its own previous enactments
when legislating on a particular subject, with judicial decisions construing its previous acts, and with common law
rules. (Bailey v. Superior Court (1977)
19 Cal.3d 970 ,
977-978, fn. 10 [140 Cal.Rptr. 669, 568 P.2d 394]; Rosenthal v. Cory (1977)
69 Cal.App.3d 950 ,
953 [138 Cal.Rptr. 442]; People v. Welch (1971)
20 Cal.App.3d 997 ,
1002 [98 Cal.Rptr. 113].) We must also assume that in enacting legislation, the Legislature knew what it was saying
and meant what it said. (Educational Recreational Services, Inc. v. Pasadena Unified Sch. Dist. (1977)
65 Cal.App.3d 775 ,
782 [135 Cal.Rptr. 594].) Furthermore, "whatever is necessarily implied in a statute is as much a part of it as
that which is expressed." (Sondeno v. Union Commerce Bank (1977)
71 Cal.App.3d 391 ,
395 [139 Cal.Rptr. 229].) [187 Cal.App.3d 1389]
[2b]
As has been discussed, among the consequences which flow from a determination that a person is an employee
rather than an independent contractor is that an employer-employee relationship exists between the hirer of the
employee and those whom the employee has hired to do the hirer's work. On that point, the law has long been
settled in this state. (See, e.g., S. A. Gerrard Co. v. Industrial Acc. Com., supra,
17 Cal.2d 411 ;
Brietigam v. Industrial Acc. Com., supra,
37 Cal.2d 849 .)
We must presume that the Legislature was aware of that law when it declared unequivocally that a person lacking the
requisite license cannot be an independent contractor; we must also presume, therefore, that it intended all the
consequences flowing from that declaration, including the creation of an employer-employee relationship between the
ultimate hirer and the employees of the unlicensed contractor. We can only assume that the Legislature concluded
that an effective workers' compensation system requires imposition of workers' compensation liability on the part
of the ultimate hirer not only for injuries to the unlicensed contractor, but for the employees of that contractor
as well.
Plaintiff
argues that in effect he is being punished for Symons' failure to obtain a license. He states that under the
facts of this case he gains no advantage from being defendant's employee, because despite Symons' failure to
carry workers' compensation insurance, plaintiff has already received compensation from the Uninsured Employers
Fund. (See generally, Flores v. Workmen's Comp. Appeals Bd. (1974)
11 Cal.3d 171 [113
Cal.Rptr. 217, 520 P.2d 1033].) According to plaintiff the sole result of a determination that he was also
defendant's employee is that he is unable to sue defendant for negligence.
Plaintiff's
argument ignores the purpose underlying workers' compensation. "[T]he whole theory of the Workmen's Compensation
Act is to put a burden in limited amounts upon employers for all industrially caused injuries and deaths
regardless of fault, and concomitantly to take from employees ... the right of recovering any greater amounts
even though the injury ... is tortiously caused by the employer. It is inherent in this system that the
statutory recovery, whatever it may be, shall be allowed in every case to which the statute makes it applicable,
and apparent hardship in individual cases to either employer, employee or dependents ... must be disregarded in
view of the social desirability of the system as a whole." (Pacific Gas & Elec. Co. v. Ind. Acc. Com.
(1961)
56 Cal.2d 219 ,
223 [14 Cal.Rptr. 548, 363 P.2d 596], italics added.) "'Though it may be more opportunistic for a particular
plaintiff to seek to circumscribe the purview of compensation coverage because of his immediate interest and
advantage, the courts must be vigilant to preserve the spirit of the act and to prevent a distortion of its
purposes ....'" (Eckis v. Sea World Corp. (1976)
64 Cal.App.3d 1 , 7
[134 Cal.Rptr. 183].) [187 Cal.App.3d 1390]
[4]
[2c] In sum, the trial court did not err when it concluded that because roofer Symons was defendant's employee
rather than an independent contractor, plaintiff, who was hired by Symons to do the roofing for defendant, was
defendant's employee as well. fn.
5
IV
[5]
Plaintiff then contends that even if he is defendant's employee, defendant is liable under the dual capacity
doctrine.
As
has been stated, ordinarily, when conditions of compensation exist, workers' compensation is an injured
employee's exclusive remedy against his employer. (§§ 3600, 3601; Royster v. Montanez (1982)
134 Cal.App.3d 362 ,
368 [184 Cal.Rptr. 560].) An injured employee may bring an action for damages, however, against "any person other
than the employer." (§ 3852.) Under the law as it existed at the time of plaintiff's injury, when an employer bore
toward his employee two separate relationships, each giving rise to separate legal obligations, the defendant
employer was subject to liability for damages arising from the relationship distinct from that of employer and
employee. (Bell v. Industrial Vangas, Inc. (1981)
30 Cal.3d 268 ,
278 [179 Cal.Rptr. 30, 637 P.2d 266]; D'Angona v. County of Los Angeles (1980)
27 Cal.3d 661 ,
666-667 [166 Cal.Rptr. 177, 613 P.2d 238].) The decisive test of this dual capacity doctrine was whether the
nonemployer aspect of the employer's activity generated a different set of obligations by the employer toward the
employee. (Id, at p. 667.) fn.
6
First,
plaintiff contends that defendant is amenable to suit in his dual capacity as manufacturer of a defective
product. [187 Cal.App.3d 1391] In Douglas v. E. & J. Gallo
Winery (1977)
69 Cal.App.3d 103 [137
Cal.Rptr. 797], the court held that an employee may state a cause of action based on manufacturer's liability even
though the defendant is also the plaintiff's employer and the injuries took place in the course of employment,
provided that the product involved is manufactured by the employer for sale to the public. (Id, at p. 107.) The
Supreme Court explained the rationale underlying this aspect of the dual capacity doctrine in Bell v. Industrial
Vangas, Inc., supra, 30 Cal.3d 268: "The public policy goals underlying product liability doctrine should not be
subverted by the mere fortuitous circumstance that the injured individual was an employee of the manufacturer whose
product caused the injury. If the injured individual had not been an employee, he would have had a cause of action
against the defendant. To deny [the plaintiff] such a cause of action because he is an employee, gives the employer
more protection than envisioned by the [Workers' Compensation Act]." (Id, at pp. 279-280.)
However,
this doctrine is applicable only if it can be demonstrated both that the defendant does manufacture the product
for sale to the public, and that the risk thereby created is the same as the one to which the plaintiff was
exposed. In other words, the injured employee must be using a product manufactured by the employer for sale to
the general public, in a manner in which the general public could be expected to use it. (Shields v. County of
San Diego (1984)
155 Cal.App.3d 103 ,
110 [202 Cal.Rptr. 30]; Nicewarner v. Kaiser Steel Corp. (1983)
143 Cal.App.3d 31 , 40
[191 Cal.Rptr. 522].) Furthermore, if the product in question is in an unfinished state or requires further
processing before becoming available for sale, the dual capacity doctrine is inapplicable. (Bibby v. Central
Industrial Engineering Co., Inc. (1984)
153 Cal.App.3d 871 ,
875-877 [200 Cal.Rptr. 412].)
Plaintiff
urges that defendant is liable as a manufacturer or builder of a defective condominium, but the argument is
unpersuasive. It is undisputed that when plaintiff was injured, the condominiums were under construction.
Plaintiff was not using the condominium as would an ultimate user of the product, and his risk was obviously not
the same as that to which the public would be exposed in the case of a completed product.
Next,
plaintiff argues that defendant was also the owner and developer of the condominium project, and as such owed a
duty to others to manage the property in a way to avoid harm to others. However, the dual capacity doctrine was
not applicable to a defendant employer's concurrent role as an owner or occupier of land. (Royster v. Montanez,
supra, 134 Cal.App.3d at p. 368.) Creating dual capacity liability based on an employer's ownership of the
premises would not impose any greater obligation to provide a safe place of work than already exists bgcause of
his or her role as employer. [187 Cal.App.3d 1392] (Id, at pp.
370-372; see also Johns-Manville Products Corp. v. Superior Court (1980)
27 Cal.3d 465 ,
474 [165 Cal.Rptr. 858, 612 P.2d 948, 9 A.L.R.4th 758] [workers' compensation is sole remedy against employee
injured as result of employer's deliberate failure to assure that physical environment of workplace is safe]; 2A
Larson, Workmen's Compensation Law (1983) § 72.82, p. 14-234 ["It is held with virtual unanimity that an employer
cannot be sued as the owner or occupier of land, whether the cause of action is based on common-law obligations of
landowners or on statutes such as safe place statutes or structural work acts."].)
[6]
In an effort to avoid the unambiguous holding of Royster, plaintiff points to deposition testimony by defendant
Horner stating that he owned the land and the condominium
project with another individual, T. A. Peroli, in a partnership, Crystal Investments, and that the deed to the
land was either in the name of the partnership or in both their names. Plaintiff reasons: (1) he was not an
employee of the partnership, and could have sued the partnership for negligence; (2) therefore he should also be
able to sue Horner in his "dual capacity" as a Crystal
Investments partner, because a partner can be sued individually for the partnership's actions.
Plaintiff
relies on Dorado v. Knudsen Corp. (1980)
103 Cal.App.3d 605 [163
Cal.Rptr. 477], in support of this theory, but his reliance is misplaced. In that case, the injured plaintiff was
an employee of Todds Food Company, a limited partnership, of which Knudsen Corporation was general and managing
partner. In plaintiff's personal injury action, summary judgment was granted for defendant Knudsen on the ground
that as a member of the partnership, Knudsen was plaintiff's employer and workers' compensation his sole remedy.
(Id, at pp. 607-609.) The reviewing court reversed, holding that there were triable issues of fact as to whether
plaintiff was injured by Knudsen's activities in its dual capacity as seller and supplier of dairy products in
defective crates to Todds. (Id, at pp. 610-614.)
Dorado
does support the general proposition that one partner can have dual capacities in relationship to partnership
employees, i.e., as employer and manufacturer or supplier. The case is of no help to plaintiff in the instant
case, however, as it does not alter the rule that the dual capacity doctrine is inapplicable to an employer's
concurrent role as owner or occupier of land. (see Royster v. Montanez, supra, 134 Cal.App.3d at p. 368.)
In
effect, plaintiff's argument is that Horner the partner is a
separate legal entity from Horner the employer. The imposition
of tort liability on an employer based on the dual capacity doctrine is to be distinguished from its imposition
on a legal entity separate and distinct from the employer. (See, e.g., Lyon v. Barrett (1982) 89 N.J. 294 [445
A.2d 1153, 30 A.L.R.4th [187 Cal.App.3d 1393] 940] [employee of
corporation may bring tort action against corporation's sole shareholder, who is also the corporation's
landlord]; see Annot. (1984) 30 A.L.R.4th 949, 952,§ 3[b] and cases cited therein; see also 2A Larson, Law of
Workmen's Compensation, supra, § 72.80, pp. 14-229--14-230 [suggesting replacement of dual capacity doctrine
with "dual persona doctrine"].) Whatever its applicability in other partnership situations may be, the separate
legal entity theory of liability is inapplicable to the facts of this case. It is true that the liability of
partners for torts is joint and several and that an action may be brought against one partner without joining
the others. (6 Witkin, Summary of Cal. Law (8th ed. 1974) Partnership, § 38, p. 4286.) In this case, however,
plaintiff's action has always been only against Horner as an
individual, for his own acts of negligence. Plaintiff has not argued that his theory of liability against
Horner is based on Horner's liability for the acts of anyone other than himself. There are no
such allegations in his complaint and nothing in the record to indicate he ever sought to amend with such
allegations. Under the circumstances, the fact that Horner may
have owned the land in a partnership was of no significance.
The
trial court correctly concluded that the dual capacity doctrine was inapplicable to the undisputed facts of this
case.
Judgment
is affirmed.
White,
P. J., and Merrill, J., concurred.
FN 1. Unless
otherwise indicated, statutory references are to the Labor Code.
FN 2. Plaintiff's
appeal is from the order on the motion, but an order granting a motion for summary judgment is nonappealable;
appeal should be from the judgment entered. (9 Witkin, Cal. Procedure (3d ed. 1985) Appeal, § 89, p. 110.) The
court's order granting summary judgment directs defendant's counsel to submit a proposed judgment, but there is no
judgment in the record before us. Nevertheless, we construe the order granting summary judgment as a final
judgment. (See Stork v. State of California (1976)
62 Cal.App.3d 465 ,
467-468 [133 Cal.Rptr. 207].)
FN 3. Plaintiff
was awarded compensation benefits; in the event Symons failed to pay the award or post bond within the time
allowed, the Uninsured Employers Fund was ordered to pay plaintiff.
FN 4. At
this court's invitation, the fund has filed an amicus curiae brief addressing this issue. The court also invited
the Uninsured Employers Fund to participate as amicus, but that fund declined.
FN 5. We
do note, however, the peculiar result of the Legislature's action and inaction. As we have discussed, unlike the
majority of states, California's Legislature has not recently enacted a statute imposing on a general contractor
workers' compensation liability for the employees of subcontractors who are unlawfully uninsured for workers'
compensation. However, by enacting section 2750.5, it has in effect imposed workers' compensation liability on
those who hire unlicensed contractors should either the unlicensed contractor or his employees be injured on the
job. Therefore if a subcontractor is licensed, but unlawfully uninsured for workers' compensation, the workers'
compensation liability of the general contractor for the subcontractor's employees is a question of fact; in
contrast, if the subcontractor is unlicensed, workers' compensation liability for his employees will be imposed on
the general contractor as a matter of law. If this anomalous result is not what the Legislature intended, it should
take appropriate steps to cure the problem. (See State Compensation Ins. Fund v. Workers' Comp. Appeals Bd., supra,
40 Cal.3d at pp. 16-18 (conc. opn. of Mosk, J.).)
FN 6. The
Legislature has drastically restricted the employee's right to pursue actions under the dual capacity doctrine by
amending Labor Code section 3602. (Stats. 1982, ch. 922, § 6, p. 3367.) The amendment is inapplicable to this case,
as plaintiff's injury occurred before its effective date. (See Perry v. Heavenly Valley (1985)
163 Cal.App.3d 495 ,
500 [209 Cal.Rptr. 771]; Horney v. Guy F. Atkinson Co. (1983)
140 Cal.App.3d 923 ,
930, fn. 4 [190 Cal.Rptr. 18].)
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