Aetna Casualty & Surety Co. v. Boiler Brick & Refractory Co.

48 Va. Cir. 572, 1960 Va. Cir. LEXIS 11
CourtSpotsylvania County Circuit Court
DecidedMarch 23, 1960
StatusPublished
Cited by2 cases

This text of 48 Va. Cir. 572 (Aetna Casualty & Surety Co. v. Boiler Brick & Refractory Co.) is published on Counsel Stack Legal Research, covering Spotsylvania County Circuit Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aetna Casualty & Surety Co. v. Boiler Brick & Refractory Co., 48 Va. Cir. 572, 1960 Va. Cir. LEXIS 11 (Va. Super. Ct. 1960).

Opinion

BY JUDGE JOHN J. BUTZNER, JR.

The Aetna Casualty and Surety Company instituted this attachment to recover compensation and medical expenses paid to James J. Druitt or on his behalf under the Workmen’s Compensation Act. hi order to understand the issues involved, it is necessary to refer briefly to a case which preceded.

James J. Druitt, an employee of the Wiegel Engineering Company (hereinafter called Wiegel) received personal injuries arising out of and in the course of his employment. He received workmen’s compensation and medical payments in the amount of $4,273.65, which were paid by Aetna as the compensation carrier for Wiegel.

Druitt also instituted suit in the Circuit Court of Spotsylvania County against Boiler Brick & Refractory Company, Inc. (hereafter called Boiler Brick), which he charged was a negligent third party. In this case, he was awarded damages in the amount of $6,500.00 by a jury, and final judgment was entered on the verdict on May 8,1959. Druitt, however, declined to accept payment of the $6,500.00 and interest when it was tendered to him by Ohio Casualty Insurance Company (hereinafter called Ohio), the liability carrier for Boiler Brick.

In die meantime, a controversy arose between Aetna and Druitt concerning Aetna’s right of subrogation to recover the workmen’s compensation and [573]*573medical expenses that it had paid to Druitt or on his behalf. Boiler Brick, Ohio, and Aetna sought to have the controversy resolved by reopening the common law proceeding. Druitt resisted on the ground that fire judgment in his case against Boiler Brick had become final and that the jurisdiction of die Court had been terminated by the lapse of twenty-one days from the date of the entry of the judgment. The Court sustained Druitt and held that no further proceedings could be heard in the common law action, but that the parties could pursue without prejudice such other actions or suits as they deemed advisable.

Aetna had simultaneously instituted attachment proceedings against Boiler Brick, Ohio, and Druitt. Aetna accordingly proceeded with its attachment, and in due time, the case came on to be heard.

When Aetna filed its attachment, it was still making compensation payments to Druitt. Subsequently, the payments were terminated by order of the Industrial Commission. When the case came on to be heard, Aetna's claim exceeded the amount set forth in its attachment petition. Upon motion of Aetna, the Court granted leave to amend the petition to include the full amount of Aetna’s payments.

The following facts are not in dispute.

Boiler Brick and Ohio are indebted to Druitt in the amount of $6,560.58 (which includes interest) as a result of the judgment which Dratt recovered in his action against Boiler Brick.

For the same accident for which Druitt sued Boiler Brick, Aetna paid compensation to Druitt in the amount of $3,600.00 and medical expenses in the amount of $673.65, for a total of $4,273.65. These payments have now been terminated. Aetna has not been reimbursed.

Aetna bases its claim upon §§ 65-108 and 65-38 of the Code of Virginia 1950. Section 65-108 provides for the subrogation of the insurance carrier to fire employer’s rights. Section 65-38 creates a statutory assignment to the employer of any right to recover damages which the injured employee may have against any other person for such injury and further provides that the employer shall be subrogated to such right. This section also authorizes the employer to institute suit against the “other party.” Aetna, however, did not institute suit, nor did it petition for reimbursement pursuant to § 65-39 of the Code of Virginia, 1950, as amended.

Aetna contends that § 65-39 is not the exclusive means for the enforcement of its assignment and right of subrogation after the employee has brought suit against the negligent third party. Aetna insists that attachment is also a proper remedy. Aetna further contends that even if § 65-39 is the [574]*574exclusive remedy, Druitt is estopped from relying upon Aetna’s Mure to exercise its right under this section.

In this connection, Aetna urges that it was led to believe by correspondence and statements made to it by counsel for Druitt that its right of subrogation and reimbursement for compensation paid would be protected and that consequently there was no need for it to proceed under § 65-39.

On the other hand, Druitt contends that § 65-39 is exclusive after the employee brings suit and that since Aetna did not proceed under this section, Aetna has lost its right to subrogation. Druitt also contends that die doctrine of estoppel is inapplicable under the facts and the law.

The first question to consider is whether Druitt is estopped. Aetna introduced three witnesses who testified on the issue of estoppel. The first was Ernest C. Fisher, Claims Manager for Aetna. Mr. Fisher testified to the effect that in August 1958, Mr. H. E. Crockett, an attorney for Druitt, telephoned him and, in the course of the conversation, assured him that Aetna’s interest would be protected in the event that Druitt was successful in obtaining a judgment. Aetna then called Mr. H. E. Crockett who testified that he did not make the assurances about which Mr. Fisher had previously testified and that he had no authority to represent Druitt in regard to compensation. The next witness called by Aetna was Charles H. Querin, branch manager for Ohio. Mr. Querin testified that at the conclusion of the trial of Druitt against Boiler Brick, Mr. Denis R. Ayers, an attorney for Druitt, stated that he had agreed with Aetna that he would protect their interest and it was not necessary for Querin to be concerned about Aetna’s name being on the draft. The defendant, Druitt, offered no testimony.

“The authorities uniformly hold that estoppels in pais are not to be taken by argument or inference but must be certain to every intent The burden of proof rests on the party relying upon an estoppel, and it must be made to appear affirmatively by clear, precise, and unequivocal evidence.” Newport News, etc. v. Lake, 101 Va. 334, 343, 43 S.E. 566, 569 (1903); Fitzgerald v. Fitzgerald, 194 Va. 925, 930, 76 S.E.2d 204, 207 (1953); 7 Michie’s Jurisprudence, Estoppel, § 3.

The plaintiffs evidence does not satisfy the strict requirements for the establishment of estoppel. The Court is, therefore, of the opinion that the defendant, Druitt, is not estopped.

The controlling question, therefore, is whether § 65-39 provides the exclusive remedy for the employer, or the insurance carrier, to enforce the assignment and right of subrogation after the employee sues the negligent third party.

[575]*575Sections 65-38 and 65-108 of the Code of Virginia, 1950, create a statutory assignment and right of subrogation in order that the employer, or the compensation insurance carrier, may collect from the negligent third party the amount that has been paid to the employee pursuant to the Workmen’s Compensation Act. While §§ 65-38 and 65-39 set forth procedures by which this right of subrogation and assignment may be asserted, nothing in the statutes expressly states that these procedures are exclusive. The right of subrogation and the benefits of the assignment are not qualified by any statutory provision limiting their enforcement.

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Bluebook (online)
48 Va. Cir. 572, 1960 Va. Cir. LEXIS 11, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aetna-casualty-surety-co-v-boiler-brick-refractory-co-vaccspotsylvani-1960.