Flora v. Home Federal Savings & Loan Ass'n
Flora v. Home Federal Savings & Loan Ass'n
Opinion of the Court
In this case we are asked to decide whether Howard Flora, a sole proprietor who (1) contracted with Home Federal Savings and Loan Association to work on a building it owned and (2) was injured while doing the work, could continue to maintain an Illinois Structural Work Act action against Home Federal, after Flora’s sole proprietorship, Flora Construction Company, was found to have been the active tortfeasor and thus responsible for indemnifying Home Federal for any liability under the Act. We conclude that, because Flora and his sole proprietorship are a single legal entity for purposes of the Structural Work Act, it was in fact Flora who was charged with liability, and thus he could not continue to maintain the action.
The events giving rise to this appeal are as follows. The plaintiff, Howard Flora, doing business as the Flora Construction Company, was engaged as a contractor in a project at the offices of the defendant, Home Federal Savings and Loan Association. During the course of the project, Flora directed several of his employees to erect scaffolding at the job site. Subsequently, while working on the scaffolding his men had erected, Flora fell and sustained injuries. As a result, the plaintiffs (Flora and his wife) brought this diversity action against the owner of the building and the architects of the project, charging them with wilful violations of the Structural Work Act, Ill.Rev.Stat. ch. 48, par. 60 et seq.
In this appeal the plaintiffs do not contest the district court’s grant of summary judgment on the indemnification counterclaims.
A
The plaintiffs’ initial challenge to the court’s dismissal is based on the premise that Flora has a “dual capacity” for purposes of the Act; that even though he is responsible, doing business as Flora Construction Company, for indemnification as an “employer,” he cannot be barred from bringing an action as an “employee,” see Palier v. Dreis & Krump Mfg. Co., 81 Ill.App.2d 1, 225 N.E.2d 67 (1st Dist. 1967) (an indemnification action under the Act may not run against an “employee”). This argument is an extrapolation from the district court’s suggestion, in its order permitting the owner’s counterclaim, that Howard Flora (the sole proprietor) and Flora Construc
In Brown v. Shipman, 89 Ill.App.3d 162, 44 Ill.Dec. 447, 411 N.E.2d 569 (4th Dist. 1980), the Appellate Court of Illinois rejected an individual contractor’s assertion that he was making his claim under the Act as an “employee,” but defending against the owner’s counterclaim in his capacity as an “employer.” Rather, the court viewed the contractor as a single legal entity, and, from that perspective, found that “his status as a contractor placed upon him special obligations” to which a normal employee (such as the plaintiff in Palier) is not subject, and thus that he was not “ ‘a protected person within the meaning of the Act.’ ” 89 Ill.App.3d at 166, 44 Ill.Dec. at 450-451, 411 N.E.2d at 572-73. Such treatment is equally applicable to Flora. Although he employs other individuals through the Flora Construction Company, nevertheless as a sole proprietor he is personally responsible for both the profits and liabilities of that business. See, e.g., Glassmeyer v. Glassmeyer, 131 Ill.App.2d 419, 268 N.E.2d 251 (1st Dist. 1971) (profits); Miller v. Simon, 100 Ill.App.2d 6, 241 N.E.2d 697 (1st Dist. 1968) (liability for trespass). He is not his own employee. Brown v. Shipman, 89 Ill.App.3d at 165, 44 Ill.Dec. at 450, 411 N.E.2d at 572. Rather, he and his business are a single legal entity for purposes of the Structural Work Act; and, as such, it was Flora himself who was in charge of the work and the active tortfeasor in this incident. Thus he was not “a protected person within the meaning of the Act” at the time of his injury.
This conclusion provided a clear substantive basis for the district court’s dismissal of Flora’s claim of entitlement under the statute.
B
The plaintiffs’ second challenge is to the means by which the district court applied its substantive conclusion; that is, by dismissing the action sua sponte. We find no infirmity in the court’s response.
Although not designated as such, the court’s order in effect was a judgment on the pleadings. Fed.R.Civ.P. 12(c). Such a disposition is appropriate when, “after the pleadings are closed,”
In this case the pleadings revealed: (1) that at the time of his accident Flora was working as a contractor; and (2) that the scaffolding involved in the occurrence
Accordingly, the judgment of the district court is affirmed.
. The plaintiffs also alleged counts of negligence and loss of consortium. In this appeal, however, they do not contest the district court’s disposition as it relates to those claims.
. The plaintiffs concede: (1) that employees of Flora Construction Company erected the scaffolding at issue; (2) that under the Structural Work Act “one who builds and erects [a] scaffold which causes injury ... is the active tortfeasor” as compared to one who simply fails to inspect it, Nogacz v. Proctor & Gamble Manufacturing Co., 37 Ill.App.3d 636, 647, 347 N.E.2d 112, 120 (1st Dist. 1975); and (3) that an owner has a right for indemnity under the Act against a contractor if that contractor’s fault is the active proximate cause of his injury and the owner’s fault is only a passive one, Brown v. Shipman, 89 Ill.App.3d 162, 44 Ill. Dec. 447, 411 N.E.2d 569 (4th Dist. 1980).
. Although the court in Brown was reviewing only an order dismissing a counterclaim, and thus i(;s specific holding only “indirectly” nullified Brown’s cause of action, the court’s rationale clearly can be transposed to a case such as this when the original cause of action is “directly” at issue.
. Fed.R.Civ.P. 7(a) prescribes when the pleadings are closed. In a case such as this when, in addition to an answer, a counterclaim is pleaded, the pleadings are closed when the plaintiff serves his reply. 2A Moore’s Federal Practice K 12.15 (2d ed. 1982).
Reference
- Full Case Name
- Howard M. FLORA and Virginia Flora v. HOME FEDERAL SAVINGS AND LOAN ASSOCIATION, Defendants-Appellees HOME FEDERAL SAVINGS AND LOAN ASSOCIATION, Counter-Plaintiff-Appellee v. Howard M. FLORA, doing business as Flora Construction Company, Counter-Defendant
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- 56 cases
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- Published