Idaho ex rel. Industrial Commission v. Sky Down Sky Diving
Annotate this CaseThe issue this appeal presented for the Idaho Supreme Court's review centered on whether Sky Down Skydiving, LLC, improperly designated its tandem skydiving instructors and parachute packers as independent contractors, rather than as employees, thereby eliminating the need for worker’s compensation insurance. After notifying the company that it was in violation of Idaho Code section 72-301, the Industrial Commission filed a civil law suit against Sky Down for penalties and injunctive relief. Following a bench trial, the magistrate court concluded that the instructors and parachute packers were independent contractors. The magistrate court then dismissed the Commission’s complaint with prejudice. After the case was dismissed, a witness contacted the Industrial Commission’s counsel to recant his earlier testimony. The Commission then filed a motion for a new trial, which was denied by the magistrate court. The Commission filed an intermediate appeal with the district court, which affirmed the magistrate court’s decision. The Commission then timely appealed to the Idaho Supreme Court, which reversed and remanded because both lower courts erred by failing to apply the proper test, and the district court erred in concluding there was substantial and competent evidence to support the magistrate court’s findings.
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