Wilson v. Memphis Pub. Co.
Wilson v. Memphis Pub. Co.
Opinion of the Court
This is a suit. filed by plaintiff-in-error, hereinafter referred to as plaintiff, in the Circuit Court of Madison County,- Tennessee, against the defendant-in-error, herein after called defendant, in which the plaintiff sues the defendant for Fifty Thousand and 00/100 dollars ($50,000.00), claiming to have been damaged to that amount by reason of the publication of an article in the Memphis Commercial Appeal, insisting that said article inaccurately and wrongly reported the proceedings before a beer commission relative to the business of the plaintiff. Service of process was had on one Malcolm Law, who was named in the summons as “agent for service of process in Madison County.” This was the only service of process in the case. The defendant filed a plea in abatement to the jurisdiction, in which it challenged' the venue and the service of process upon the defendant, alleging that the defendant was a Delaware corporation and engaged in the publication of two newspapers and a radio station in Shelby County, Tennessee, and that it was not doing business in Madison County, Tennessee, so that service of process could be had upon it in Madison County, Tennessee, also alleging in said plea in abatement that said Malcolm Law was not, when said suit was filed, nor at anytime, an agent of the defendant or a person upon whom process for or against the defendant might be legally had, and that the said Law was an
Plaintiff filed a motion for a new trial, setting out three grounds thereof, first, that the Court was in error in granting the motion for a directed verdict made in behalf of the defendant, as there were questions of fact that should be determined by the jury; second, that the Court was in error in granting the motion for an instructed verdict of the defendant for the reason there was no material evidence justifying a verdict against Hugh W. Wilson; third, that the Court was in error in granting the directed verdict, because there was no material evidence justifying a verdict of judgment against Hugh W. Wilson. Motion for a new trial was overruled, and the plaintiff prayed and perfected an appeal in the nature of a writ of error to this Court and through assignments of error insists that the trial court was in error in sustaining the motion of defendant for a directed verdict, the assignments of error being the same as heretofore set out as insisted upon in the motion for a new trial.
As stated above, the only proof offered in the case was the testimony of Law and Rutland, this proof being offered by the defendant in support of its plea in abatement. It was the insistence of the defendant that Law was an independent contractor and was not such an agent or representative of the defendant as would make service of process on him service upon the defendant, the defendant insisting that he was not such an agent or representative of the Company as was contemplated in Section 8669 of the 1932 Code. On the other hand, it is
That Malcolm Law was a young man twenty-four years of age, lives in Jackson, Tennessee, is a student at Lambuth College and is a newspaper reporter, writing for the Commercial Appeal, and he states, in reply to a question:
‘ ‘ Q. 8. Are you employed in any way by the Memphis Publishing Company, or the Commercial Appeal? A. Yes; I supply the Commercial Appeal with news from Jackson and Madison County.”
He stated that he had worked for the Commercial Appeal for about seven months prior to the filing of the suit and that he had, prior to that time, worked for the Jackson Sun for six months and for the Nashville Tennessean for a little over a year. When asked to explain how he was employed by the defendant and how paid and how much time he spent on it, he replied as follows:
“A. It would vary on the job, according to the amount of news there is. Of course, generally speaking, I am in the office by noon each day, and I make a spin around Jackson; that is, looking for news; I write that news and send it in to the paper and I am out by seven o’clock,*269 I suppose, if nothing is happening at night; otherwise I might work at night some.. Now, what was the other part of your question?
“Q. 17. How are you paid for your work, — is it by salary or how? A. I am paid — I have a guarantee of a hundred dollars a month, plus a commission, you might say, for the total number of inches with a minimum, and I also get paid for each picture I send in that is published.
“Q. 18. Are you what they call ‘on the string’ in newspaper language? A. Yes, sir, that is the term.
“Q. 19. What does ‘on the string’ mean? A. It simply means you write — in my case once a month you take all the articles you write during the month and glue them together in a string; it is measured and you are paid according to how much there is in that string.
Q.. 20. In other words, you send in any article you want to and they publish whatever they want to out of the articles you send in? A. That is right.
“Q. 21. And you are paid so much an inch?' A. Yes sir.
“Q. 2. Paid in accordance with the space taken up by the article you send in? A. Yes, sir.
“Q. 23. You send them all the pictures you want to and if they use them they give you one dollar per picture ? A. That is right.
“Q. 24. And your compensation is, in fact, on that basis, with a guaranteed minimum of a hundred dollars a month ? A. That is right. ’ ’
It was the insistence of the plaintiff that the Commercial Appeal maintained an office in Jackson, Tennessee, and the proof shows that the Commercial Appeal paid rent for and had an office at 211 East Baltimore in Jackson, Tennessee, and that sign on said office was “The
“Q. 57. Do you have authority at all to sell advertisements for the paperf A. No; I am expressly forbidden to do so.
“ Q. 58. Do you have any authority whatever to sell newspapers?' A. No sir.
‘ ‘ Q. 59. Do you have any right or authority to make any sort of contract or agreement of any kind on behalf of the Memphis Publishing Company! A. No sir.
£ ‘ Q. 60. Do you have anything to do with the policy of the newspaper, — I mean. in the editorial or news policy! A. No, sir.
“Q. 61. Are you consulted about such matters? A. No, sir.”
Mr. Rutland, Tri-States Editor of the Commerical Appeal, stated that Law was under his department and that he was a correspondent at Jackson for the paper and that he was paid so much per inch at the rate of fourteen cents an inch and that he had a guarantee of one hundred dollars per month. That there was no obligation on the part of the paper to accept what he sent in and that he received one dollar for all pictures accepted. That he was prohibited from performing any other service for the paper, other than as local ccr-
It was the theory and insistence of plaintiff that Law was an agent and servant of the Memphis Publishing Company, and that he was such an agent at Jackson, Tennessee, and that he was such a representative or agent as would be included in Section 8669 of the 1932 Code as follows: “When a corporation, business trust, or any person has an office or agency, or resident director, in any county other than that in which the chief officer or principal resides, the service of process may be made on any agent or clerk employed therein in all actions brought in such county against same growing out of the business of , or connected with, said principal’s business; but this section shall apply only to cases where the suit is brought in such counties in which such agency, resident director, or office is located. ’ ’
And that the defendant was maintaining such an office in Jackson, Tennessee, as is provided by this section of the Code.
It is the insistence of the defendant that Law was an independent contractor and would not come within the provisions of said Section 8669 or any other provisions which would make him such a representative as service of process on him would be service upon the defendant.
As to the first assignment of error, namely, that “the Honorable Court erred in refusing to grant IT. W. Wilson
In plaintiff’s reply brief to defendant’s brief, considerable discussion is had as to the witnesses being partial and prejudiced witnesses and cites and relies on the case of Poole v. First National Bank of Smyrna, 29 Tenn. App. 327, 196 S. W. (2d) 563. It is the Court’s opinion that this case is different from the case at bar as the evidence there considered was officers of the bank and likewise stockholders who were directly and personally interested; whereas, in the case at bar the two testifying witnesses are merely employees. The credibility of the witnesses was not questioned.
In Grace v. Louisville & Nashville Railroad Company, 19 Tenn. App. 382, 89 S. W. (2d) 354, the Court says:
“ ‘Independent contractor’ is one who, exercising independent employment, contracts to do a piece of work according to his own methods without being subject to control by employer except as to result of work; and ultimate test is whether employer has right of control, irrespective of use of term ‘independent contractor’ in contract.
“Employer’s reservation of control of result of work does not make person hired mere servant, as distinguished from independent contractor, if person hired has control of details and methods of performance.”
The court, further speaking in this case and quoting from an opinion in Odom v. Sanford & Treadway, 156
In 63 App. D. C. 213, 71 F. (2d) 223, 224, is reported the case of Layne v. Tribune Company, in which a suit was brought against the Tribune Company for an article published in the Daily Tribune, which publication was made in Chicago, Illinois. The District of Columbia has the following section, being Title 24, Section 373, of the District Code 1929, which provides: “In actions
The evidence in this case discloses that the Tribune Company maintained an office in Washington in charge of a man by the name of Henning, upon whom service of process was made. That in the office were other reporters and telegraph operators, all employed by the defendant company. That the company maintained a leased wire from its Washington office to Chicago. The business of Henning and his associates was to collect news in Washington and send it to Chicago. The news articles were there examined and used or discarded by defendant company and supplied to other newspapers. The defendant company maintained the telephone in the Washington office, and Henning had authority to purchase supplies for the" office, employ additional help, all of which were put in an expense account and paid from the Chicago office. Henning and the other employees’ salaries were paid direct from the Chicago office; likewise, the rent and the furnishings were paid for from the Chicago office. It further appeared that the defendant company made no contracts of any nature in the District of Columbia; that no money was received of any of the employees for contracts entered into, either for the sale of papers or for advertisements, and no employee was authorized to enter into any contract with anv other
And in citing from the case of Neely v. Philadelphia Inquirer Company, 61 App. D. C. 334, 62 P. (2d) 873, the Court said: “ ‘But we think the mere collection of news material here for use in subsequent publication elsewhere, in the manner and extent shown in this case, is not a doing of business here, within the meaning of the statute.’ ”
It is true that this case is a foreign corporation with its principal place of business in a foreign State; whereas, in the instant case the defendant’s place of business was within the State, but the Court has held that the application of the statute above quoted applies to domestic as well as foreign corporations. Burnett v. Simmons, 175 Tenn. 422, 135 S. W. (2d) 452.
In the case of Howell v. Shepherd, 29 Tenn. App. 375, 196 S. W. (2d) 849, in discussing the question of master and servant and principal and agent, the Court said: “A principal factor in determining whether relationship between parties is that of principal and agent or master and servant, on the one hand, and employer and independent contractor, on the other, is the character of control reserved by the employer over the doing of the work, and if he reserves the right to control or direct the time,
In the case of Johnson Freight Lines v. Davis, 170 Tenn. 177, 93 S. W. (2d) 637, the Court applied Section 8669 of the Code to the facts in the case decided therein.
In the case of Sitz v. Bryant, 184 Tenn. 600, 201 S. W. (2d) 985, 987, Judge Gailor, speaking for the Court, says: “We think it clear from the record that the Company exercised no control or supervision over the details of Complainant’s operations and that the Company controlled only the result. This is the essential test: ‘The right to control the “result” is not determinative of the existence of the relation of master and servant, but the actual control of means and method is. ’ ”
Other cases bearing out this definition of independent contractor and master and servant are reported in Income Life Insurance v. Mitchell, 168 Tenn. 471, 79 S. W. (2d) 572; Copeland v. Cherry, 20 Tenn. App. 122, 127, 95 S. W. (2d) 1275; Powell v. Virginia Construction Company, 88 Tenn. 692, 13 S. W. 691, 17 Am. St. Rep. 925; Gulf Refining Company v. Huffman & Weakley, 155 Tenn. 580, 297 S. W. 199.
In 31 C. J. 473, it is said: “It is impossible to lay down a rule by which the status of men working and contracting together can be definitely defined in all cases. As employees are independent contractors, each case must depend on its own facts, and ordinarily no one feature of the relationship is determinative, but all must
No Social Security was paid, and in the case of Tennessee Valley Appliances v. Rowden, 24 Tenn. App. 487, 146 S. W. (2d) 845, the Court said: “Fact that employer paid social security tax on salary of one employed as general collector was a circumstance indicative of existence of master-servant relationship, because Social Security Act covers only employees, and the term ‘employee’ does not cover an independent contractor.” The fact that no Social Security or withholding tax was paid is a circumstance to be considered in this matter.
'“There is a distinction between the reservation of the right to control as to results and the right to control as to the means and methods by which the work shall be accomplished. The right to control the results does not establish the master and servant relationship.” Texas Co. v. Bryant, 178 Tenn. 1, 152 S. W. (2d) 627, 631, citing Phillips v. Tennessee Eastman Corporation, 160 Tenn. 538, 26 S. W. (2d) 1051.
Applying this rule to the case at bar, the proof shows that Law was a part-time student at Lambuth College, working in the afternoon as a reporter, occupying an office, on which the rent was paid by the defendant, and listing the telephone in defendant’s name. He was paid by the inch, or, as was expressed by the witnesses, “on the string” method, with a guarantee of one hundred dollars per month. No Social Security was paid on him nor any withholding tax. He was not supervised as to when he should write, where he should go to get his news, nor was there any supervision of the manner in which he acquired the news and no exercise of control as to the means and methods by which the work was to be ac
From all of this, considering the case on the proof, it is the opinion of the Court that Malcolm Law was an independent contractor, in view of the above decisions, with the rule applied that the defendant only controlled the results of his activity with no control whatever over the methods or means by which the results were produced. We think that the defendant has met the burden of proof imposed upon it, and we think the Court was correct in granting a directed verdict in favor of the Memphis Publishing Company, and assignments of error two and three are overruled, and the action of the Court in granting said directed verdict is by this Court sustained.
The result is that the suit is dismissed at the cost of the defendant.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.