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Newsom v. Frank M. Hall & Company, 02CA1375 (February 26, 2004): In this case, the court of appeals has turned the principle of statutory employment on its ear. Hall, a general contractor, hired a subcontractor to perform work on a construction project. Plaintiff was a pipeline foreman working for the subcontractor. While working on the project, plaintiff was injured. The subcontractor's workers' compensation carrier paid plaintiff's medical bills. Plaintiff sued Hall and others for damages arising from their negligence. Hall moved for summary judgment, arguing that it was immune because it was plaintiff's statutory employer under the
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Workers' Compensation Act. The trial court denied Hall's motion, and a jury found in favor of plaintiff. The court of appeals affirmed. The court held that under C.R.S. § 8-41-401(1)(a)(I), a statutory employment relationship does not exist if the subcontractor is an independent contractor as to the general contractor within the meaning of C.R.S. § 8-40-202(2)(b). The court determined that the subcontractor was independent from Hall. The fact that the subcontractor was a company and not a natural person did not preclude the determination that it was an independent contractor. Thus, the court concluded that Hall could not be immune
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as a statutory employer. Hall is currently appealing the court of appeals' decision. It is anticipated that the court's holding will not stand because its illogical reasoning could result in no workers' compensation coverage for a claimant in a case where the employer/subcontractor is an uninsured independent contractor of a general contractor. Further, the court obviously overlooked C.R.S. § 8-41-401(2), which provides absolute immunity for a general contractor who hires a subcontractor who has workers' compensation insurance coverage for its employees.
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SOL runs only when OD is disabling
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