§ 97-19. Liability of principal contractors; certificate that subcontractor has complied with law; right to recover compensation of those who would have been liable; order of liability.
§ 97‑19. Liability ofprincipal contractors; certificate that subcontractor has complied with law;right to recover compensation of those who would have been liable; order ofliability.
Any principal contractor,intermediate contractor, or subcontractor who shall sublet any contract for theperformance of any work without requiring from such subcontractor or obtainingfrom the Industrial Commission a certificate, issued by a workers' compensationinsurance carrier, or a certificate of compliance issued by the Department ofInsurance to a self‑insured subcontractor, stating that suchsubcontractor has complied with G.S. 97‑93 hereof, shall be liable,irrespective of whether such subcontractor has regularly in service fewer thanthree employees in the same business within this State, to the same extent assuch subcontractor would be if he were subject to the provisions of thisArticle for the payment of compensation and other benefits under this Articleon account of the injury or death of any employee of such subcontractor due toan accident arising out of and in the course of the performance of the workcovered by such subcontract. If the principal contractor, intermediatecontractor or subcontractor shall obtain such certificate at the time ofsubletting such contract to subcontractor, he shall not thereafter be heldliable to any employee of such subcontractor for compensation or other benefitsunder this Article.
Any principal contractor,intermediate contractor, or subcontractor paying compensation or other benefitsunder this Article, under the foregoing provisions of this section, may recoverthe amount so paid from any person, persons, or corporation who independentlyof such provision, would have been liable for the payment thereof.
Every claim filed with theIndustrial Commission under this section shall be instituted against allparties liable for payment, and said Commission, in its award, shall fix theorder in which said parties shall be exhausted, beginning with the immediateemployer.
The principal or owner mayinsure any or all of his contractors and their employees in a blanket policy,and when so insured such contractor's employees will be entitled tocompensation benefits regardless of whether the relationship of employer andemployee exists between the principal and the contractor. (1929,c. 120, s. 19; 1941, c. 358, s. 1; 1945, c. 766; 1973, c. 1291, s. 10; 1979, c.247, s. 2; 1987, c. 729, s. 4; 1989, c. 637; 1991, c. 703, s. 7; 1993 (Reg.Sess., 1994), c. 679, s. 10.6; 1995, c. 517, s. 36; 1995 (Reg. Sess., 1996), c.555, s. 1.)