Case Name: MURRAY MARCUS, PETITIONER-RESPONDENT, v. EASTERN AGRICULTURAL ASSOCIATION, INC., RESPONDENT-APPELLANT
Court: New Jersey Superior Court, Appellate Division
Jurisdiction: New Jersey
Decision Date: 1959-12-28
Citations: 58 N.J. Super. 584
Docket Number: 
Parties: MURRAY MARCUS, PETITIONER-RESPONDENT, v. EASTERN AGRICULTURAL ASSOCIATION, INC., RESPONDENT-APPELLANT.
Judges: 
Reporter: New Jersey Superior Court Reports
Volume: 58
Pages: 584–605

Head Matter:
MURRAY MARCUS, PETITIONER-RESPONDENT, v. EASTERN AGRICULTURAL ASSOCIATION, INC., RESPONDENT-APPELLANT.
Superior Court of New Jersey Appellate Division
Argued September 28, 1959
Decided December 28, 1959.
Before Judges Coufoed, Eoltcy and Mintz.
Mr. Brian D. Gonlan argued the cause for respondent-appellant (Messrs. Gurry and Gonlan, attorneys).
Mr. William, E. O’Connor, Jr., argued the cause for petitioner-respondent {Mr. Henry L. Gertner, of counsel).

Opinion:
Mintz, J. C. C.
(temporarily assigned). This is a workmen's compensation case. The Division of Workmen's Compensation awarded petitioner compensation. The County Court affirmed. The respondent appeals. The sole issue on appeal is whether the testimony discloses that petitioner was an employee within the purview of N. J. 8. A. 34:15-36.
It is the duty of this court to weigh the evidence adduced below and determine whether petitioner has sustained the burden of proving "employee" status by a preponderance of the evidence, giving full and respectful con sideration to the views expressed on both facts and law by the Division and County Court. Russo v. United States Trucking Corp., 26 N. J. 430 (1958).
Petitioner and his wife jointly own a chicken farm in Earmingdale, New Jersey. The respondent is engaged in the business of producing and selling eggs, and in raising laying chickens. Early in 1957 petitioner entered into an oral arrangement with respondent whereby he would raise chicks owned by respondent on his farm at a price of $10 a week per thousand chicks. Subsequently, the number of chicks on his premises averaged between 7,500 and 8,000, and a new arrangement was entered into orally whereby petitioner received a flat sum of $70, later increased to $75, a week for his services and facilities. Respondent made no deductions for social security, withholding, or any other tax.
On December 7, 1957 petitioner was working in the chicken building which consisted of "five big rooms and there were five stoves operating with chicks under the stoves." There was an explosion in one of the metal stoves, as a result of which he sustained multiple burns.
The feed for the chicks was supplied by the respondent. Its representative instructed petitioner how to feed the chicks, would advise medication, and call in a veterinarian when required. The advices were generally by telephone, although respondent's Mr. Boyarín came to the farm on an average of once a month. On one occasion respondent's representative instructed the petitioner to change the gas heating system, which he did at a cost of $12. Petitioner had no employees to assist him in his work, although he admitted that his wife helped him on occasion, working five hours for the entire week when required.
At the conclusion of the oral argument before us counsel, at the request of the court, stipulated certain facts not disclosed in the testimony, for inclusion in the record. The stipulation included the following: The petitioner purchased the farm on January 10, 1949 for $33,500, and that as of October 1, 1959 the mortgage balance amounted to $10,136.33. The operating expenditures amounted to approximately $100 yearly for replacements and costs of repairs to equipment. The equipment on the farm, dates of acquisition and cost thereof are as follows:
10 brooder stoves 3/15/49 .00 $350
100 8-ft. hoppers 9/2/49 5.00 500
100 2-ft. hoppers 3/15/49 .50 50
100 4-ft. hoppers 2/10/53 .70 70
600 holes — nests 1/5/54 1.00 600
600 holes — nests 5/10/49 1.00 600
30 feed buckets 3/15/49 .80 24
60 chick jars 3/22/49 1.50 90
25 rings for brooding 5/10/49)
2/8/51) 3.00 75
20 chicken crates 5/10/54 2.75
Erom the date petitioner made his arrangement with respondent until the date of the accident, the equipment above itemized was used exclusively for raising of chicks owned by respondent. A suit is presently pending against petitioner, instituted by a feed company, for $14,336.14, representing feed purchased by petitioner prior to his arrangement with respondent. The petitioner's farm contains 24 acres. Only approximately two acres were devoted to poultry-raising activities, and from January 1, 1956 to January 1, 1959 about ten acres were leased out for the raising of corn at an annual rental of $100. During said period no other kind of activity for profit was conducted on the farm. There were no other farm buildings or commercial equipment on the premises except that which the lessee brought on the farm in connection with his corn-raising activities. Petitioner and his wife occupied the residence. The balance of the land on the farm was not put to any use. Petitioner performed no work in connection with the raising of corn. Between January 1, 1956 and the spring of 1957 petitioner maintained poultry on the premises until one month before his arrangement with respondent, at which time he sold the remainder of his flock with the intention, of abandoning the poultry raising business.
The factual situation presents a case of novel impression in New Jersey.
In Hannigan v. Goldfarb, 53 N. J. Super. 190, 195 (App. Div. 1958), this court held that
"The term 'employee' in our Workmen's Compensation Act is not limited to narrow common-law concepts for, in addition to servants, it 'includes all natural persons who perform service for an employer for financial consideration.' N. J. S. A. 34:15-36. This is a broad definition which includes relationships not ordinarily considered to constitute employment. Our act is construed to bring as many cases as possible within its coverage. "
The rule applicable here, as in any case where the character of the relationship between the parties is in issue, is simply that it " must be resolved by a balancing of the various elements presented by the entire complex of facts with which the court is confronted. The element of control is one most stressed in the cases." Piantanida v. Bennett, 17 N. J. 291, 294 (1955). The element of control is the "determinative factor" and the criterion by which each case is determined. Wilson v. Kelleher Motor Freight Lines, Inc., 12 N. J. 361 (1953); De Monaco v. Renton, 18 N. J. 352 (1955). The status of the petitioner is to be resolved upon the totality of the facts surrounding the relationship, with due regard for the attendant circumstances, the object in view, and the course of practice in its execution. Hannigan v. Goldfarb, supra.
In Errickson v. F. W. Schwiers, Jr., Co., 108 N. J. L. 481, 483 (E. & A. 1931), it was held that
"An independent contractor is one who, carrying on an independent business, contracts to do a piece of work according to Ms own methods, and without being subject to the control of his employer as to the means by which the result is to be accomplished, but only as to the result of the work."
Generally it may be said that where the employer retains the right to direct the manner in which the business shall be done, as well as the result to be accomplished, or in other words, not only what shall be done,' but how it shall be done, the relationship of employer and employee exists. Hannigan v. Goldfarb, supra; Errickson v. F. W. Schwiers, Jr., Co., supra.
When the manner of performing the service is beyond another's control because of its nature, absence of direct control over such details becomes insignificant in the over-all view of the facts and circumstances to be taken into account in determining the relationship. Be Monaco v. Renton, supra. The control test is satisfied when the employer has the actual right of control, and it is not requisite to prove its actual exercise. Mahoney v. Nitroform Co., Inc., 20 N. J. 499 (1956).
Do the facts at bar demonstrate respondent's exercise or right of control over the petitioner in his work? We think not. Mr. Boyarin, the secretary of the respondent and a friend of petitioner, testified, "I'm in the business of selling chicks and in the course of selling chicks we give a farmer instructions as to how to raise the chicks even though farmers are in business for many years. Those same instructions were given to Mr. Marcus and then when Mr. Marcus was in trouble of any kind he would call me and I would take care of it." And he also testified that "when chicks had to be medicated I told Mr. Marcus that the chickens should be medicated. When chicks had to be vaccinated, I told Mr. Marcus that the chickens had to be vaccinated the same as I tell other farmers. That's a service that we give customers." In response to a query of the Deputy Director as to whether he gave petitioner any instructions as to the quantity of food to be fed the chicks, he said, "Yes. The same as we give other farmers. We recommend what we call a restricted diet." The reference was to farmers to whom chickens were sold by the respondent.
Ralph L. Colton, Jr., the president of the respondent-company, testified that he exercised no control over petitioner, and that it was not necessary to give him detailed instructions.
We conclude that the petitioner was a skilled poultry man. He described himself as a "chicken farmer." The Deputy Director noted that petitioner "probably knew more about raising chickens than those who were in the Eastern Agricultural Association." He did not require or receive the type of supervision or direction sufficient to spell out control. The instructions he received were the same as those furnished by respondent as a service to its customers to whom it actually sold chicks. It certainly cannot be urged that in rendering such service to its customers, respondent exercised control over them. We fail to see how this indisputable custom in the trade can be given any greater effect in the stated instance. In 1 Larson's Workmen's Compensation Law (1952), § 44.20, the author says that:
" an owner, who wants to get work done without becoming an employer, is entitled to as much control of the details of the work as is necessary to ensure that he gets the end result from the contractor that he bargained for. In other words, there may be a control of the quality or description of the work itself, as distinguished from control of the person doing it, without going beyond the independent contractor relation. "
The end result here desired was quality chicks. The instructions to petitioner as to feed and medication were to insure that result. Beyond that, petitioner was free to select his working hours. He had no fixed time in which to perform. He was not controlled in the day-by-day performance of his work. He utilized his land and extensive equipment in the manner he deemed expedient. The fact that on one occasion he changed a gas heating system on his plant at the direction of the respondent is not persuasive of the existence of the employer-employee relationship. Employees do not ordinarily defray the cost of such improvements. We think he made the change and paid for it, in order to keep the respondent's business.
Nor is the fact that respondent provided the feed upon petitioner's order of determinative significance. The pending litigation against petitioner for feed purchases may explain the necessity for this phase of their arrangement.
In the light of all the attendant circumstances, the totality of the proof seems to negate dominion by the respondent over the petitioner as an individual workman. Compare the situation here presented with one where the owner of a horse places it out for board and pasture. The party receiving the animal becomes a bailee. Fanshawe v. Rawlins, 87 N. J. L. 667 (E. & A. 1915). Agistment, which is the taking in and feeding or pasturing of horses, cattle or similar animals for reward, is a species of bailment. 3 O. J. S. Animals § 15 and 16.
In the absence of a showing of control, the weight accorded the various factors to be considered is dependent upon the facts in the particular case. Generally, payment of a fixed weekly sum to the worker is an indication of employee status. Here, however, the fixed weekly sum of $75 was predicated upon the boarding and raising of approximately 7,500 to 8,000 chicks. As a convenience to the parties, the initial agreement calling for a payment of $10 a week per thousand chicks was rounded out to a flat weekly figure of $75. The original arrangement between the parties was one of independent contractor, and plainly intended as such. No evidence was offered to indicate that the change in payment to the specific weekly sum was intended to convert the relationship between them to that of employer and employee. The amount of payment was predicated upon the quantity of chicks boarded, not upon the hours of work which were not in any way specified. He was free to select his time, subject only to the accomplishment of the end result. Furthermore, the weekly payment includes the use of petitioner's valuable facilities. Under the stated facts, the method of payment here practiced cannot be deemed significant indicia of employee status of the petitioner.
Larson (§ 44.35) states that "the power to fire is the power to control," and is not consistent with the concept of independent contract under which the contractor should have the legal right to complete the project contracted for and to treat any attempt to prevent completion as a breach of contract. We are, however, mindful of situations where the parties contract for a recurrent relationship terminable at the will of either party. Respondent was under no obligation to continue sending chicks to the petitioner to be raised. There is no testimony to indicate that petitioner was under any obligation to accept the chicks (he was notified before each shipment), or that respondent was not free at any time to demand the return of the chicks. In our view, the specific facts at bar impel a finding of a mutual right to terminate an independent contractor relationship in the nature of a bailment at will as distinguished from the unilateral right of an employer to discharge an employee.
Larson (§ 44.34) says that
"When the employer furnishes valuable equipment, the relationship is almost invariably that of employment. When the employee furnishes such equipment, this circumstance may, if coupled with other factors, indicate independent eontractorship, but in itself it is not necessarily fatal to a showing of employment based on other grounds."
Piantanida v. Bennett, supra. See also White v. Department of Labor and Industries, 48 Wash. 2d 470, 294 P. 2d 650, 654 (Sup. Ct. 1956).
In the case sub judice we regard the land and facilities of the petitioner used to feed and raise the chicks as a major factor in determining the relationship between the parties. The essence of the contract was not petitioner's personal labor, but rather his land and valuable equipment. The number of chicks delivered to petitioner to raise was dependent upon the quantity available and the extent of his facilities and equipment, not upon his labor.
Indisputably, the workers and employers under our system of free enterprise are permitted to make any arrangement they choose, and if a worker elects to be an independent contractor without workmen's compensation protection, rather than an employee with such protection, that is his privilege. The device will not be countenanced whereby compensation legislation is thwarted by classifying workers as contractors, when in substance they are employees. Larson, § 46.10. The intent of the parties is entitled to considerable respect if it can be accurately ascertained, Larson, § 46.30. The petitioner throughout his testimony refers to an "arrangement" between the parties. Mr. Boyarín, for the respondent, disavowed any contract of hire. Six checks were received in evidence for six weekly payments in varied amounts to the petitioner during May, June, and July 1957. Two of the checks bore the notation that they were in payment for "boarding and raising" a certain number of chicks. Two checks were similarly noted with the inscription "b. & r." The remaining two checks had no notation. As we have already observed, there were no withholding tax, social security, or unemployment compensation deductions from the payments made to petitioner during the entire period of his arrangement with respondent. The absence of such usual employee deductions achieves a degree of importance it might not have under other circumstances. Cappadonna v. Passaic Motors, Inc., 136 N. J. L. 299 (Sup. Ct. 1947), affirmed 137 N. J. L. 661 (E. & A. 1948); Wilson v. Kelleher Motor Freight Lines, Inc., supra; Condon v. Smith, 37 N. J. Super. 320 (App. Div. 1955), affirmed 20 N. J. 557 (1956). Cf. Congleton v. Pura-Tex Stone Corp., 53 N. J. Super. 282 (App. Div. 1958).
It is urged that petitioner's work should be considered in relation to the regular business of the respondent, and that under the "relative nature of the work test" advocated in Hannigan v. Goldfarb, supra, petitioner is deemed to be an employee. We think not. Under this test are considered whether the work performed is an integral part of the respondent's regular business and whether the petitioner in relation to the respondent's business is in a business of his own. Despondent maintained its own place to raise chicks and to produce and sell eggs. At the time of the hearing before the Division of Workmen's Compensation, petitioner was the only farmer to whom respondent sent chicks to be raised. Uo evidence was presented to establish the totality of respondent's operation and the relation of petitioner's work to respondent's total business. Furthermore, as already observed, petitioner was a chicken farmer engaged in his own business of maintaining poultry, producing and selling eggs, until one month before his arrangement with respondent. He had not been financially successful. We view the arrangement as a resumption of a phase of petitioner's own business, with the financial security, meager as it was, of an independent contract.
We recognize that we are called upon to liberally construe the Compensation Act because it is remedial in nature. We conclude, nevertheless, that the proofs and legitimate inferences to be drawn therefrom preponderantly establish the existence of an independent contractor relationship.
The judgment of the County Court is reversed.