Associated Employers Lloyds v. Howard

288 S.W.2d 861, 1956 Tex. App. LEXIS 2163
CourtCourt of Appeals of Texas
DecidedMarch 22, 1956
DocketNo. 3343
StatusPublished
Cited by2 cases

This text of 288 S.W.2d 861 (Associated Employers Lloyds v. Howard) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Associated Employers Lloyds v. Howard, 288 S.W.2d 861, 1956 Tex. App. LEXIS 2163 (Tex. Ct. App. 1956).

Opinion

HALE, Justice.

This suit was brought by Joe B. Howard, ■appellee, against Associated Employers Lloyds, appellant, to set aside a compromise ■settlement agreement of a claim for workmen’s compensation on the grounds of fraud and mistake. The case was tried 'before the court below without a jury and resulted in judgment for appellee. No request was made for findings of fact and •conclusions of law and none were filed.

Under appropriate points in its brief, appellant says in effect that the trial court erred in setting aside the compromise settlement because there was no evidence, or, in the alternative, not sufficient evidence, of actionable fraud on its part in procuring the compromise settlement; because appellee was estopped from denying the validity of the compromise settlement; and because there was no evidence, or, in the alternative, insufficient evidence, that ap-pellee had a meritorious claim for compensation beyond that for which he had been paid by appellant.

The evidence shows that appellant was the insurance carrier for Kimbell-Diamond Milling Company under the Texas Workmen’s Compensation Act on and prior to January 5, 1952; that on the latter date, appellee was an employee of the milling company and, while acting in the course of his employment at Denton, he was handling a 100 pound bag of feed when he felt a stinging sensation in his stomach; that a short time thereafter he was taken by his employer to the Denton County Hospital and Clinic, where he underwent radical surgery performed by Dr. Holland for a perforation of his stomach; that appellant began the payment of workmen’s compensation benefits to appellée shortly after the operation, at the rate of $24.75 per week; that appellee returned to work on or about April 18, 1952; that on April 22, 1952, ap-pellee signed an instrument reciting, among other things, that he had been paid compensation to that date in the sum of $321.75, that accrued medical and hospital expense had been or would be paid by appellant and that he agreed to compromise and settle his claim for workmen’s compensation insurance for the sum of $35 to be paid in addition to the amount theretofore paid to him, such compromise settlement being made subject to the approval of the Industrial Accident Board; that on April 25, 1952, the Industrial Accident Board approved the purported compromise agreement; that on April 30, 1952, appellee signed an instrument acknowledging receipt from appellant of $35 in full compromise, settlement, accord and satisfaction [863]*863of all compensation and claims for compensation which he had by reason of the injuries received by him in the employ, of Kimbell-Diamond Milling Company; and that at the same time when he signed the receipt for $35, appellee endorsed a check from appellant payable to his order in the sum of $35 and collected the proceeds therefrom.

The evidence in the case indicates that appellee had not been released from the care and treatment being given him by Dr. Holland when he signed the compromise settlement agreement and receipt herein-before referred to. J. R. Coleman, Jr., an adjuster for appellant, called at the office of the Kimbell-Diamond Milling Company on April 22, 1952 and requested an interview with appellee. According to the testimony of appellee, Coleman asked him to sign some instruments which Coleman said was a “release to go back to work.” Ap-pellee testified that he signed these instruments without knowing the contents of the same and that he did not know he was signing a compromise settlement agreement. He testified that he could neither read nor write, other than to write his own name. Appellee’s testimony is to the effect that he did not ask any questions as to why it was necessary for him to sign a “release to go back to work.” On cross examination by counsel for appellant, he testified in part as follows:

“Q. You knew you didn’t have to have any release to go to work, didn’t you? A. Well, he said it was a release to go to work, that’s all I know.
"Q. Well, you had been working for four days? A. Yes, sir.
“Q. What made you think that you had to have a release to go to work after you had been working? A. Well, I didn’t know.
“Q. Huh? A. I didn’t ask him no questions about it. That is what he said, and so I thought he knowed what he was talking about.”

Appellant introduced in evidence a letter from Dr. Holland addressed to adjuster Coleman under date of April 16, 1952, in which he stated, among other things, that appellee . was “discharged to resume his usual activities.” ■ This letter was filed with the Accident Board on April 25, 1952. However, on the trial of the case, Dr. Holland testified in substance that while he thought appellee was sufficiently recovered by the middle part of April from the cause and effect of his operation to do some light work, he did not think appellee was ever able to resume the heavy lifting he had been doing before the operation. Appel-lee testified that when he went back to work in April, the milling company put him back on the same job of heavy lifting which he had been doing before the operation. He continued to report from time to time to Dr. Holland for observation and treatment, and, after working intermittently over a period of less than one month, he was unable to continue in the discharge of the duties of his employment. Appellant resumed the payment of compensation benefits and continued to make weekly payments for four or five weeks. Appellee continued under the care and treatment of Dr. Holland until a second operation was performed in July of 1954, at which tin» Dr. Holland removed about three-fourthsi of appellee’s stomach. This case was tried on March 28, 1955. Appellee testified that he had not been able to do any work sines April of 1952, and Dr. Holland testified that in his opinion appellee would never be able to resume the character of work he was doing prior to the time of his first operation.

In the case of Brannon v. Pacific Employers Ins. Co., 148 Tex. 289, 224 S.W. 2d 466, 468, the Supreme Court of Texas-said:

“In a suit to set aside a compromise settlement on the grounds of fraud, the rules of common law applicable to suits for rescission and cancellation are applicable; Texas Employers Ins. Ass’n v. Kennedy, 135 Tex. 486, 143 S.W.2d 583; Traders & General Ins. Co. v. Bailey, 127 Tex. 322, 94 S.W.2d 134; Wood v. Traders & General [864]*864Ins. Co., Tex.Civ.App., 82 S.W.2d 421, writ ref; Gibson v. Employers’ Liability Assurance Corp., Tex.Civ.App., 131 S.W.2d 327, writ ref.
“In order for a plaintiff to have the release cancelled he must show, among other things, the false representations and that they were made by the defendant or his duly authorized agents; that plaintiff relied upon such representations; that he has been injured, that is, that he has a meritorious claim for compensation, and he must make a tender or show that his injury is greater than the amount paid or other facts-which excuse a return of the amount plaintiff received when he executed the release sought to be set aside.”

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Associated Employers Lloyds v. Howard
294 S.W.2d 706 (Texas Supreme Court, 1956)
Lloyds v. Howard
294 S.W.2d 706 (Texas Supreme Court, 1956)

Cite This Page — Counsel Stack

Bluebook (online)
288 S.W.2d 861, 1956 Tex. App. LEXIS 2163, Counsel Stack Legal Research, https://law.counselstack.com/opinion/associated-employers-lloyds-v-howard-texapp-1956.