[Plaintiff, Appellant]
[Defendant, Appellee] Korea Workers' Compensation & Welfare Service (근로복지공단)
[Judgment Below]
Seoul High Court Judgment 96Gu31491, rendered August 28, 1997
[Order]
The appeal is dismissed. The costs of the appeal shall be borne by the Plaintiff.
[Reasoning]
The grounds of appeal are examined.
According to the reasoning of the judgment below, the court below found the following facts based on the evidence indicated: On April 13, 1990, the Plaintiff purchased the forklift at issue in this case under the name of non-party Daewoo Heavy Industries Co., Ltd. (hereinafter "Daewoo Heavy Industries"), registered it under that company through a title-lending (jiip) arrangement, and thereafter, without hiring a separate heavy equipment operator, personally operated the forklift himself, performing work at locations arranged by Daewoo Heavy Industries. The Plaintiff retained all income generated therefrom as his own income, while paying only a fixed monthly title-lending fee and various taxes and public charges to Daewoo Heavy Industries. On June 13, 1994, the registration of the forklift was converted to the Plaintiff's own name under the real-name conversion system, but the manner in which it was managed remained the same as before. On July 8, 1995, Daewoo Heavy Industries entered into a heavy equipment lease contract, in the Plaintiff's name, with non-party Daewon Construction Co., Ltd. (a subcontractor of non-party Hyundai Construction Co., Ltd.), under which the monthly rental fee was set at KRW 3,400,000 and the place of use was designated as the Hyundai Oil Refining Company expansion construction site being built by Hyundai Construction Co., Ltd. Pursuant to this contract, the Plaintiff went to the construction site and, while operating the forklift under the direction of Daewon Construction Co., Ltd., suffered an accident on the 18th of the same month at approximately 13:40, when steel frames that had been placed in preparation for installation toppled over, trapping the Plaintiff's right ankle between the steel frame and the ground, resulting in the amputation of his right ankle.
Based on these findings, the court below determined that the Plaintiff could not be considered a person who provided labor for the purpose of receiving wages from Hyundai Construction Co., Ltd. (the contractor constructing the project), from Daewon Construction Co., Ltd. (its subcontractor), or from Daewoo Heavy Industries Co., Ltd. (the company under which the Plaintiff had effectively registered the forklift through the title-lending arrangement). Accordingly, the court below found that the Plaintiff did not fall under the category of "worker" (근로자) as defined by the Labor Standards Act (근로기준법) or the category of worker entitled to benefits under the Industrial Accident Compensation Insurance Act (산업재해보상보험법), and on this basis dismissed the Plaintiff's claim seeking revocation of the Defendant's disposition denying the Plaintiff's application for medical care benefits on the ground that such disposition was unlawful.
Pursuant to Article 49(1), Articles 40 through 44, and Article 4, Item 2 of the Industrial Accident Compensation Insurance Act, in order to be eligible for insurance benefits under the Industrial Accident Compensation Insurance Act, one must have been a "worker" as defined under the Labor Standards Act at the time of the accident. In determining whether a person falls under the category of "worker" under the Labor Standards Act, as the Plaintiff argues, the determination should be made not based on whether the form of the contract is an employment contract or a contract for work under the Civil Act (민법), but based on the substance of the relationship—namely, whether the worker provided labor to the employer in a subordinate relationship for the purpose of earning wages within a business or workplace (see Supreme Court Decision 94Da22859, rendered December 9, 1994). However, according to the record,
the Plaintiff, as the title-lending vehicle owner (지입차주), was not dispatched to the accident site as an employee of Daewoo Heavy Industries, the title-lending company. Furthermore, with respect to the heavy equipment lease contract concluded with Daewon Construction Co., Ltd., the subcontractor, the terms of that contract provided that a fixed monthly amount, including room and board expenses, would be paid without separately compensating for the labor cost of the equipment operator. In addition, while the Plaintiff was to follow the instructions of Daewon Construction Co., Ltd. in performing the work, he was also permitted, even during the contract period, to voluntarily withdraw the equipment if unavoidable circumstances arose regarding working conditions, and it was agreed that if the equipment was unable to operate due to repairs for five or more days in a month, the parties could, by mutual agreement, either extend the period of use or deduct the corresponding amount from the rental fee. In light of these circumstances, it cannot be found that the Plaintiff was in a position of providing labor in a subordinate relationship for the purpose of earning wages, either with respect to Daewon Construction Co., Ltd. or with respect to Hyundai Construction Co., Ltd., the contractor of the construction project at issue. Accordingly, the Plaintiff does not fall under the category of "worker" under the Labor Standards Act. While the reasoning of the court below to the same effect is somewhat insufficient in its explanation, its conclusion is justified, and it cannot be said that the court below erred in its legal interpretation regarding the status of "worker" in relation to the contractor company (as opposed to the title-lending company), or that it failed to render judgment on that issue, as argued by the Plaintiff. This ground of appeal is without merit.
Therefore, the appeal is dismissed, and the costs of the appeal are to be borne by the losing party. This judgment is rendered as stated in the Order by the unanimous opinion of the participating Justices.
Presiding Justice Lee Yong-hoon, Justice Jeong Gwi-ho, Justice Park Jun-seo (Justice in charge), Justice Kim Hyeong-seon