Robinson v. MJK Farms LLC, 031616 IDWC, IC 2014-029512

• Case Date: March 16, 2016
• Court: Idaho

STERLING ROBINSON, Claimant, v. MJK FARMS LLC and RICHARD DAN DAVIES, Employer, Defendant. No. IC 2014-029512 Idaho Workers Compensation Before the Industrial Commission of the State of Idaho March 16, 2016           FINDINGS OF FACT, CONCLUSIONS OF LAW, AND RECOMMENDATION           R. D. Maynard, Chairman          INTRODUCTION          The Idaho Industrial Commission assigned this matter to Referee Douglas A. Donohue. Matthew Romrell represented Claimant. Employer ("MJK Farms") failed to answer Claimant's Complaint. Default was entered. At a hearing conducted on November 9, 2015 in Idaho Falls, Claimant presented testimony and documentation. Richard "Dan" Davies, principal owner of MJK Farms, appeared at hearing and was allowed to attempt to present good cause for Employer's failure to answer the complaint timely. Good cause was not shown. Claimant filed a post-hearing brief. The case came under advisement on January 21, 2016 and is ready for decision.          CLAIMANT'S CONTENTIONS          Claimant contends that, as a result of an industrial injury which he suffered on September 23, 2014, he is entitled to the following benefits:

1. Reimbursement for medical costs of $11,647.58;

2. Future medical care to ameliorate the scar on Claimant's neck;

3. Temporary total disability benefits from September 23, 2014 through his MMI date of April 1, 2015 in the amount of $9,601.20;

4. Open opportunity to establish partial permanent impairment and disability for loss of motion to the IP joint of Claimant's thumb;

5. Statutory penalty under Idaho Code § 72-210 for Employer's failure to secure workers' compensation insurance in the amount of $2,124.88 plus attorney fees in the amount of $7,012.10 plus $90.00 in costs; and

6. "Pierce the corporate veil" of MJK Farms, LLC, to establish liability personally upon Richard "Dan" Davies or alternatively, accept Claimant's proffered Amended Complaint which names Mr. Davies as a defendant for purposes of this default action.

         EVIDENCE CONSIDERED          The record in this matter consists of:

1. The testimony of Claimant presented at the hearing; and

2. Claimant's Exhibits 1 through 4 admitted at the hearing.

         After the hearing, Mr. Davies attempted ex parte conversation with the Referee apparently to allege that Claimant's testimony was not factual. Having terminated the conversation before Mr. Davies could allege anything specific, the Referee disregards any ex parte allegation. Had Mr. Davies wished to substantively testify, he should have filed a timely Answer to the Complaint and/or Amended Complaint.          Having fully considered all of the evidence of record, the Referee submits the following findings of fact and conclusions of law for review by the Commission and recommends it approve the same.          FINDINGS OF FACT          Default          1. Dan Davies and MJK Farms, LLC, were named as defendants and served Claimant's Complaint. After due time had passed, Claimant moved for Entry of Default. Upon investigation pursuant to Idaho Code § 72-714(3) the Referee denied this motion, in an abundance of caution, where service was performed on Dan Davies at 4490 W. 6000 N., Rexburg, Idaho. The Referee noted the official address of MJK Farms, LLC was 4440 W. 6000 N., Rexburg, Idaho and that an additional residential address for Mr. Davies was 3804 W. 2000 N., Rexburg, Idaho. Claimant filed an Amended Complaint and again served MJK Farms, LLC and Dan Davies at all three addresses. The Complaint and Amended Complaint named both MJK Farms and Dan Davies as Defendants. After this second round of service due time again passed without Answer. Claimant again moved for Entry of Default. Default was granted.          2. On the initiative of the Referee, Mr. Davies was allowed at hearing to offer testimony about why he failed to file an Answer and to determine whether good cause existed to set aside the default. Mr. Davies testified but gave no cognizable basis upon which good cause could be found. Mr. Davies did not deny that he had actually received both the Complaint and Amended Complaint. (Although the hearing transcript is unrevealing on the following point, at page 17, line 17, Mr. Davies paused for sufficient length and indicated by gesture that he had nothing more to add. Only thereafter did the Referee resume as indicated on line 18.)          3. Both the 4490 and 4440 addresses are for real property under the control of Mr. Davies. Mr. Davies is the registered agent and sole member of MJK Farms, LLC. The record shows that Richard Dan Davies and Dan Davies is the same person who received actual service. Service was proper upon both Defendants, MJK Farms, LLC and Richard Dan Davies. Both had actual knowledge of Claimant's claim and complaint.          4. Due to inadvertent error, at some point after service was completed, the identification of Mr. Davies as a defendant was dropped from the caption in this matter. Neither any motion by Claimant nor sua sponte action by the Commission removed Mr. Davies from being a defendant in this matter.          5. At hearing, Clamant produced evidence to "pierce the veil" to extend liability of MJK Farms, LLC to Mr. Davies personally. Alternatively, at hearing, Claimant offered a second amended complaint which named Mr. Davies as a Defendant along with MJK Farms, LLC in this matter. The proffered second amended complaint is not necessary. If shown to be Claimant's Employer, Mr. Davies has been named a Defendant and duly served. If MJK Farms and not Mr. Davies is Claimant's Employer, Mr. Davies' personal liability must be reached by piercing the veil equitably or by operation of Idaho Code §72-319(2).          The Accident          6. Claimant worked for MJK Farms beginning August 2014. He was hired as an employee by Mr. Davies of behalf of MJK Farms. At some point later, Mr. Davies discussed changing Claimant's status to independent contractor to avoid Employer's liability for Workers' compensation premium payments and other tax consequences. Claimant...