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Ulstad v. Brenny6/25/2002
Appellant Holly Ulstad was employed by a temporary agency to work at respondent Charles Brenny's insurance office, where she was injured in a fall. Although she received workers' compensation through the temporary agency, she brought this negligence action against Brenny. Applying the loaned servant doctrine, the district court determined that the temporary agency was Ulstad's general employer, that Brenny was her special employer, and that her exclusive remedy was under workers' compensation law. Ulstad contends that the loaned servant doctrine does not preclude a negligence action against Brenny. We disagree and affirm.
FACTS
On March 4, 1998, Ulstad slipped and fell on some steps, injuring her neck, at Brenny's Allstate Insurance Agency in Brainerd, Minnesota. Brenny owns the building, and respondent Andy Peterson constructed and installed the steps on which appellant fell.
At the time of her accident, Ulstad was an employee of Checks and Balances, Inc. (C & B). Her actual job duties, as office manager and insurance producer selling various Allstate products, were performed at Brenny's agency.
Beginning in 1994, Brenny contracted with C & B to provide him with his agency staff, and since that time only employees hired by C & B were placed at his agency. Brenny's contract with C & B provided that C & B would, as an independent contractor, "employ, manage, and supervise all employees assigned to [respondent's] location" and would be responsible for (i) recruiting, hiring, evaluating, supervising, firing and disciplining its employees, (ii) maintaining all necessary personnel and payroll records for its employees, (iii) computing the wages payable to its employees and withholding applicable * * * taxes.
Brenny's use of C & B as a third-party employer, to hire, supervise, and pay his staff, was consistent with Allstate policy.
Ulstad began working at Brenny's agency in October 1996. Although she sought the job through Michael Miller, an Allstate district manager, she was hired by C & B. At the time of her hiring, Ulstad, Brenny, and C & B signed a non-compete agreement that referred to Ulstad as a "service provider (employee)" and Brenny as "Allstate Insurance Co. (supervisor)." Also at the time of Ulstad's hiring, Miller identified several problems with Brenny's agency that he wanted Ulstad to address in her role as office manager and insurance producer. Brenny had the authority to determine the number of hours Ulstad worked, but Ulstad determined her own work schedule. Brenny and Ulstad also staggered their annual vacations to insure that the office was staffed. Ulstad was covered under C & B's workers' compensation insurance policy, and Brenny held this type of insurance only for himself.
After her injury, Ulstad received workers' compensation benefits from C & B. C & B refused to fill Ulstad's position at the agency until a doctor determined whether she could return to work.
In November 1998, Ulstad initiated this negligence action against Brenny and Peterson, claiming that Peterson negligently constructed and installed the steps and that Brenny negligently maintained the premises. Brenny moved for partial summary judgment, arguing that Ulstad's exclusive remedy was under workers' compensation law. The district court agreed, granted Brenny's motion for summary judgment, and dismissed Ulstad's negligence action against Brenny. Thereafter, in accordance with a settlement between Peterson and Brenny on Peterson's cross-claim against Brenny, the district court dismissed the cross-claim and entered final judgment in favor of Brenny.
ISSUE
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