Paul Guinnip v. Bannister Electrical and HVAC, LLC

On January 27, 2012, employee filed a Petition for Writ of Prohibition with the Missouri Court of Appeals for the Western District (Court) in connection with our order dated January 11, 2012. On January 30, 2012, the Court issued its Order denying employee's Petition for Writ of Prohibition.

On February 3, 2012, employee filed a Motion to Dismiss Petitioner Steve Liles's and Petitioner Melissa Liles's Applications for Review. On February 24, 2012, we issued an order denying employee's motion to dismiss the Application for Review filed by Steve Liles. Also on that date, we dismissed Melissa Liles's Application for Review, as the fax filing dated January 18, 2012, was untimely and thus could not confer jurisdiction upon this Commission pursuant to § 287.480.1 RSMo.

Steve Liles's brief was due June 4, 2012. We did not receive a brief from Steve Liles, or a timely request for an extension, on or before that date. We proceed now to review the case on the merits as to the sole issue before us.

In our order dated January 11, 2012, we accepted the Application for Review filed by Steve Liles on his own behalf as an interested party. The sole issue raised in Steve Liles's Application for Review is the question whether the evidence before the administrative law judge supported piercing the corporate veil as to Steve Liles. Consequently, this is the sole issue before us for determination.

Although petitioner declined to favor us with a brief which might have aided our analysis, we have reviewed all of the evidence in the transcript, along with the administrative law judge's findings and conclusions pertinent to this issue, as well as the relevant Missouri case law on the topic. We note that the administrative law judge properly held employee to the three-prong test identified in Collet v. American Nat'l Stores, Inc., 708 S.W.2d 273, 284 (Mo. App. 1986) and thereafter applied by the courts in the context of workers' compensation proceedings in Walls v. Allen Cab Co., 903 S.W.2d 937 (Mo. App. 1995) and Wilmot v. Bulman, 908 S.W.2d 139 (Mo. App. 1995). We are convinced that the administrative law judge appropriately analyzed this issue and we agree with the result. In our view, there was ample evidence to support the administrative law judge's findings as to the extent of Steve Liles's domination and control of Bannister Electrical and HVAC, LLC, his use of that control to avoid his statutory duty to provide workers' compensation insurance, and that his breach of that statutory duty proximately caused employee to suffer an unjust loss.

Accordingly, we affirm the conclusion of the administrative law judge that the corporate veil should be pierced with the effect that Steve Liles is personally liable to employee for payment of the workers' compensation benefits awarded herein.

Multiple names for the heating and air conditioning business operated by Steve and Melissa Liles appear in the transcript and in the caption of this case. We wish to provide some additional comments to clear up any potential confusion as to the identity of the employer.

The administrative law judge determined that employee met his burden of proving an employee-employer relationship with respect to Bannister Electrical and HVAC, LLC. See Award, page 11. That is the name of the LLC listed upon the Articles of Organization that were filed with the Secretary of State in connection with the heating and air conditioning business owned and operated by Steve and Melissa Liles; that is the name of the employer in this matter; and that is the name of the LLC that the administrative law judge disregarded when he pierced the corporate veil to hold Steve and Melissa Liles personally liable for payment of employee's workers' compensation award.

In his testimony, Steve Liles explained that he occasionally operated the heating and air conditioning business under two similar fictitious business names: "Bannister Heating and Cooling, LLC," and "Bannister Electrical." Transcript, pages 140-41. We wish to make clear that neither of these names identify any distinct corporate entity or additional party to this matter. Rather, both "Bannister Heating and Cooling, LLC" and "Bannister Electrical" refer merely to the fictitious names that Steve Liles used in the operation of the heating and air conditioning business.

The Commission supplements the award and decision of the administrative law judge with our additional findings and comments as set forth herein.

The award and decision of Administrative Law Judge Kenneth J. Cain is attached hereto and incorporated herein to the extent not inconsistent with this decision and award.

We approve and affirm the administrative law judge's allowance of attorney's fee herein as being fair and reasonable.

Any past due compensation shall bear interest as provided by law.

Given at Jefferson City, State of Missouri, this $27^{\text {th }}$ day of July 2012.

LABOR AND INDUSTRIAL RELATIONS COMMISSION

Chairman

James Avery, Member

Curtis E. Chick, Jr., Member

Attest:

Employee: Paul Guinnip

Injury No. 05-032672

Dependents: $\quad \mathrm{N} / \mathrm{A}$

Employer: Bannister Electrical and HVAC, LLC,

Steve Liles d/b/a Bannister Heating and Cooling, LLC and Bannister Electrical,

Melissa Liles d/b/a Bannister Heating and Cooling, LLC and Bannister Electrical,

Rocky Queen d/b/a Rocky's Concrete Service,

Lagena Queen d/b/a Rocky's Concrete Service

Additional Party: Missouri Treasurer as Custodian of the Second Injury Fund

Insurer: N/A

Hearing Date: October 6, 2011 Checked by: KJC/cy

Final brief filed: November 4, $2011^{1}$

1. Are any benefits awarded herein? Yes.
2. Was the injury or occupational disease compensable under Chapter 287? Yes.
3. Was there an accident or incident of occupational disease under the Law? Yes.
4. Date of accident or onset of occupational disease: March 1, 2005.
5. State location where accident occurred or occupational disease was contracted: Grandview, Jackson County, Missouri.
6. Was above employee in employ of above employer at time of alleged accident or occupational disease? Yes. (See additional findings of fact and rulings of law).
7. Did employer receive proper notice? Yes.
8. Did accident or occupational disease arise out of and in the course of the employment? Yes.
9. Was Claim for Compensation filed within time required by Law? Yes.

[^0]

[^0]: ${ }^{1}$ The State Treasurer as Custodian of the Second Injury Fund chose not to file a brief.

1. Was employer insured by above insurer? Uninsured.
2. Describe work employee was doing and how accident occurred or occupational disease contracted: Employee, while in the course and scope of his employment as an HVAC worker for Bannister Electrical and HVAC, LLC, was standing on a ladder installing the duct work in a building under construction when he fell from the ladder and landed on the concrete floor below. Employee sustained a comminuted fracture of his left elbow in the fall.
3. Did accident or occupational disease cause death? No. Date of death? N/A
4. Part(s) of body injured by accident or occupational disease: left elbow.
5. Nature and extent of any permanent disability: 35 percent of left upper extremity at 210 week level.
6. Compensation paid to-date for temporary disability: None.
7. Value necessary medical aid paid to date by employer/insurer? None.
8. Value necessary medical aid not furnished by employer/insurer? \$43,044.52 for past medical aid; undetermined for future medical aid.
9. Employee's average weekly wages: $\ 480
10. Weekly compensation rate: $\$ 320 / \ 320.
11. Method wages computation: § 287.250 RSMo. 1994.

1. Amount of compensation payable:

Unpaid medical expenses: $\ 43,044.52 in past medical aid; undetermined for future medical aid.

73.5 weeks for permanent partial disability @ $\ 320 per week $=\ 23,520.

12 6/7 weeks for temporary total disability @ $\ 320 per week $=\ 4,114.28

6 weeks for disfigurement @ $\ 320 per week $=\ 1,920.

1. Second Injury Fund liability: Yes

$\ 43,044.52 for past medical aid plus undetermined amount for future medical aid due to employer's failure to insure or self-insure its liability for workers' compensation benefits.

TOTAL: $\ 72,598.80 plus undetermined amount for future medical aid.

1. Future requirements awarded: Undetermined

Said payments to begin as of the date of the award and to be payable and be subject to modification and review as provided by law.

Issued By DIVISION OF WORKER'S COMPENSATION

Employee: Paul Guinnip

Injury No. 05-032672

The compensation awarded to the claimant shall be subject to a lien in the amount of 25 percent of all payments hereunder in favor of the following attorney for necessary legal services rendered to the claimant: Mr. Ryan Linville.

Employee: Paul Guinnip

Injury No. 05-032672

Dependents: $\quad \mathrm{N} / \mathrm{A}$

Employer: Bannister Electrical and HVAC, LLC,

Steve Liles d/b/a Bannister Heating and Cooling, LLC and Bannister Electrical,

Melissa Liles d/b/a Bannister Heating and Cooling, LLC and Bannister Electrical,

Rocky Queen d/b/a Rocky's Concrete Service, Lagena Queen d/b/a Rocky's Concrete Service

Additional Party: Missouri Treasurer as Custodian of the Second Injury Fund

Insurer: N/A

Hearing Date: October 6, 2011 Checked by: KJC/cy

Final brief filed: November 4,