California Employment Stabilization Commission v. Norins Realty Co.

Substantially the same question as was decided in California Employment Stabilisation Commission v. Morris, 28 Cal.2d 812 [ 172 P.2d 497 ], is again presented for determination. In considering the status of certain salesmen and brokers associated with Norms Realty Company, Inc., in the sale of real estate, contrary to the contentions of the commission, the superior court held that these persons were independent contractors and not employees. The commission’s appeal is from the judgment entered accordingly.

The action was brought under the Unemployment Insurance Act (Stats. 1935, p. 1226, as amended; 3 Deering’s Gen. Laws, Act 8780d) for the collection of contributions and interest alleged to be due from the realty company for the calendar years 1936 and 1937. It appears without question that the corporation engaged the services of 67 persons, all of whom were either salesmen or brokers licensed by the California Real Estate Commission, to sell real property owned by it. This property consisted principally of lots in subdivisions which the company had placed on the market.

The president of the corporation, who had been connected with it since 1925 and, during the taxable period…