American Radiator Co. v. Rogge

92 A. 85, 86 N.J.L. 436, 1914 N.J. Sup. Ct. LEXIS 26
Supreme Court of New Jersey·Decided November 5, 1914·Published·Cited by 24 cases

Opinions

The opinion of the court was delivered by

Swayze, J.

Tin's is a proceeding under the Workmen’s Compensation act and raises the very interesting question of the applicability of that act where the contract of hiring was originally made in another state. The original contract in this case was made in New York on April lltli, 1911, prior, that is, to the time when the Workmen’s Compensation act took effect. This fact is not important, for the reason that the decedent’s salaiy was raised several times, the last on August 1st, 1912. The change in salary necessarily made a new contract, which, if made in New Jersey, would certainly have been governed by the provisions of the act. This new contract also was in fact made in New York. The work the decedent was employed to do was partly in New'York and partly in Now Jersey; lie died in New Jersey as a result of injuries received while about the work he was employed to do in this state. The contention of the prosecutor is that as the relation is contractual, the contract must be governed by the law of New York, where it was made, and as that law at the time contained no provision for compensation, there can be no recovery. We think the answer to the prosecutor’s contention,' is that the right of recovery rests not upon the New York! contract but upon the New Jersey statute. The liability is indeed contractual in character by force of the very terms of the statute, but it is not the result of an express agreement between the parties; it is an agreement implied by th.e law, of a class now coming to be called in the more modern nomenclature of the books “lywasi-contraets.” We find no evidence [438] in this case of any term in the New York contract that prohibits the applicability of the New Jersey statute. If there Vere, the parties could not by their agreement prevent New ; Jersey from regulating the conduct of its own industries and ¡ ■from prescribing as one of the terms upon which the perform- Í anee of a foreign contract of hiring shall be permitted in this 1 ¡state, the implication by law of a contract for compensation ■to the workman. It is open to the employer under a New'1 York contract to prevent the operation of section 2 if he wishes by notice.; if he fails to give the notice, and undertakes to perform the contract in New Jersey, he voluntarily subjects himself to our law and is governed thereby. The statute states the obligation in terms of the law of evidence; the contract of hiring is presumed to have been made with reference to section 2, and in the absence of express statement or written notice, the parties are presumed to have accepted the provisions of section 2. Rules of evidence are rules of procedure, and procedure by well-settled principles is governed bjr the law of the forum. This view, it must be confessed, is somewhat technical, and we do not rest on it alone. The real object of the statute was to create an irrebuttable presumption in the absence of express statement or notice, and the creation of a presumption irrebuttable, except in these ways, although it may be in form a mere rule of evidence, is, in effect, a rule of ¡ substantive law. As such we deal with it. As we have already Á said, we find nothing in the New York contract inconsistent with the contract implied by the New Jersey statute. In legal principle the case does not differ from the contract to assume the risks ordinarily incident to the employment that was formerly implied from the contract of hiring. In that case the contract to assume the risk was implied from the employe entering upon the work; in this case it is implied from the employer setting the employe to work in this state. The contract of hiring itself need not in the one case contain any provision upon the assumption of risk, nor in the other any provision upon the assumption of the statutory obligation. We do not believe it has ever been suggested that an employe working in New Jersey under the old law was relieved of the [439] implied assumption of risk because his contract of hiring might have been made in a jurisdiction where that rule did not prevail. U is true the rule of assumption of risk probably prevailed where the English law was in force, but it prevailed in any case only as long as that rule was recognized by ihc state where the injury happened. The contract of hiring was merely the condition on which a rule, which may perhaps he called a regulation of industry, came into effect in the individual case. So, in the present case, the liability of the employer to make compensation is an obligation superimposed upon the original contract as a condition of its performance in New Jersey, and it is contractual in character because either party may escape the obligation by giving notice that he will not be bound thereby, and because it does not arise out of any wrong-doing. But the addition of this contractual obligation by statute does not affect the contract of hiring; that is still enforced as far as it goes by its terms.

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American Radiator Co. v. Rogge, 92 A. 85, 86 N.J.L. 436, 1914 N.J. Sup. Ct. LEXIS 26 (N.J. 1914).

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