Rust was hired by Hammermill to construct an extension to one of its buildings. During construction, a wall collapsed, causing $82,150.09 in damages. Hammermill's insurance company paid for the damages and sued Rust to recover the costs. The lower court ruled that Rust was an employee of Hammermill, but the Supreme Court analyzed factors like control over work, skills required, tools used, and determined that Rust was an independent contractor, not an employee, and was therefore liable for the damages from the collapsed wall.

1. Regular Employee or Independent Contractor ?

2. Regular Employee or Independent Contractor By Ahmed Yousif Alhadi (20042718) Othman Safdar (20050032)

3. Scenario To construct additional facilities at Hammermill Erie Pennsylvania Plant

4. Dispute Collapse of a wall, which was an extension of building No.75 14’8” high 165’ in length Wall Collapsed because of faulty construction by Rust It was an “Act of God!” “ Excessive Rains” Because of the collapse, Hammermill had a total loss of $82,150.09 This amount was paid to Hammermill by it’s insurance company.

5. Court of Common Pleas Hammermill’s insurance company filed a case against Rust at the Court of Common Pleas of Erie County to recover those $82,150.09. But the court passed judgment in favor of Rust. “ Rust was an employee agency under the direct control of Hammermill. ”

6. Was Rust a regular employee Or Independent Contractor ?

8. Comparison “ Hammermill approved The construction plans.” “ Hammermill approved the plans In sense of result not in sense Of method of construction.”

9. Comparison “ Hammermill had daily Inspections of the site.” “ Rust had the charge of method of construction.”

10. Comparison “ Hammermill was only Interested in results and costs.” “ Rust possessed the expertise In the construction field.”

11. Comparison “ Only Rust had the required Skills to perform the work.”

12. Comparison “ Rust was the supplier of tools, Labor and materials.”

13. Comparison “ Rust controlled his own workers.”

14. Supreme Court’s Decision According to Supreme Court decision: Rust was an independent contractor Hammermill was not responsible for the collapse Rust was liable to pay the damages

15. Thank you!