Department of Employment v. Diamond International Corp.

SHEPARD, Chief Justice.

This is an appeal by appellant Department of Employment from a determination by the Industrial Commission holding respondent Diamond International Corporation not liable for the payment of unemployment insurance tax. We affirm.

Kraling and Nelson Construction Company (not a party hereto) had agreed to construct a timber access road in Idaho under a contract with Diamond. The Department of Employment attempted to collect unemployment insurance tax from Kraling and Nelson who were insolvent and unable to pay the tax. Thereupon the Department made demand upon Diamond for…