Associated Industrial Ins. v. Ellis

16 F.2d 464, 1926 U.S. Dist. LEXIS 1598
CourtDistrict Court, N.D. Texas
DecidedNovember 30, 1926
DocketNo. 376
StatusPublished

This text of 16 F.2d 464 (Associated Industrial Ins. v. Ellis) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Associated Industrial Ins. v. Ellis, 16 F.2d 464, 1926 U.S. Dist. LEXIS 1598 (N.D. Tex. 1926).

Opinion

ATWELL, District Judge.

The plaintiff, a California corporation, complains of Mrs. J. B. Ellis, widow of J. B. Ellis, Mary E. Ellis, Gladys Ellis, and Jess Ellis, minors and children, of the widow and of the deceased. It also joins Carrigan, Britain, Morgan & King, attorneys at law, who represent the widow and children. It represents that the Industrial Accident Board of Texas ordered it to pay to the defendants, widow and children, the sum of $13.29 per week for 360 weeks, and that a certain percentage of said sum was ordered paid to the attorneys mentioned.

The defendants challenge the jurisdiction of the court in the following words: “The action stated herein is one that is peculiarly within the jurisdiction of the state courts, for the reason that it has been held that it is absolutely essential to the validity of the cause of action to bring it in the county where the injury occurred, and for the further reason that a law applicable to foreign corporations generally with reference to federal jurisdiction is not applicable to insurance companies doing business under the . Workmen’s Compensation Act of the state of Texas.”

The ground of objection is not quite clear. The Texas statute (Vernon’s Ann. Civ. St. 1925, arts. 8306-8309) • prescribes a method of procedure before the Industrial Accident Board and fop appeals from its awards and decisions. When the board makes a decision, if either party is dissatisfied, such party may, within 20 days, give notice that it does not consent to abide thereby, and bring suit “in some court of competent jurisdiction in the county where the injury occurred to set aside said final ruling and decision, and said board shall proceed no further toward the adjustment of such claim. * * * ” It is further provided that the trial in such court shall be de novo. It will be observed that, before a compensation claim becomes a case in court, or before the issues connected therewith become justiciable, the claim must first be submitted to the administrative body known as the board.

At argument counsel advised me that this question had been passed upon in Texas Pipe Line Co. v. Ware, by the Fifth circuit,1 but were unable to tell me where the ease could be found, and I have not, therefore, had the benefit of it. In the following cases suits grew out of decisions by state administrative bodies, created by state statutes, and the review of decisions by such bodies may be termed an appeal from such decision and the courts have held that where a diversity of citizenship existed, .and where there was involved the requisite jurisdictional amount the national courts would take jurisdiction: Myers v. Chicago & Northwestern Railway Co., 118 Iowa, 312, 91 N. W. 1076; Kirby et al. v. Chicago & Northwestern Railway Co. (C. C.) 106 F. 551; In re Mississippi River Power Co. (D. C.) 241 F. 194; Chicago & Northwestern Railway Co. v. Whitton, 80 U. S. (13 Wall.) 270, 20 L. Ed. 571; Hess v. Reynolds, 113 U. S. 73, 5 S. Ct. 377, 28 L. Ed. 927; Clark v. Bever, 139 U. S. 96, 11 S. Ct. 468, 35 L. Ed. 88; Upshur County v. Rich, 135 U. S. 467, 10 S. Ct. 651, 34 L. Ed. 196; In re Silvies (D. C.) 199 F. 495.

It seems to me that there is no good reason to deny a nonresident the privilege of entering any tribunal that it may select. This is clearly a controversy between citizens of different states. The plea to the jurisdiction is overruled.

The case is tried under the following agreed stipulation:

“It is stipulated and agreed between counsel for plaintiff and defendant in the above entitled and numbered cause that this case will be submitted to the court upon the following agreed statement of evidence, and that a jury will be waived in the trial of this cause:
“It is agreed: That the American Refining Company, Inc., is a corporation duly incorporated under and by virtue of the laws of the state of Delaware, with its principal office and place of business in Wichita Falls, Tex. That said corporation was doing business as such refining company during the entire year of 1926, and for more than a year prior to the time of the accident that brought about the death of J. B. Ellis. That said corporation had many persons in its employ, and was entitled to carry compensation insurance under the laws of the state of Texas in such eases made and provided, and that it did [466]*466carry a policy of insurance that covered its employees that were injured or killed in the course of their employment with said company, the company carrying such policy being the Associated Industries Insurance Corporation, a California corporation, having an office in the Praetorian Building, Dallas, Tex. That said policy was issued in favor of the American Refining Company, and that the Associated Industries Insurance Corporation had authority to do business in the state of Texas and to write such compensation insurance, and such policy covered the liability of said American Refining Company as a subscriber to and under said act.
“That on the 1st day of February, 1926, said American Refining Company, Inc., entered into a contract with J. C. Warren, of Burkbumett, Tex., a copy of which is attached hereto, marked Exhibit A for identification, and made a part of this agreement. That the American Refining Company is a refiner of and disposes of gasoline in part through wholesale stations. The manner in which it is done is as follows: -Contracts identical with the one attached hereto are made with parties at various points over Texas. The American Refining Company erects tanks, houses, and physically equips same for the purpose of storing gasoline. It has such property at Burkbumett, Wichita county, Tex. It contracts with parties, such as J. C. Warren, whom it contracted with at Burkbumett, to act as provided in the contract hereto attached and marked Exhibit A. These parties (designated as agent in the contract) usually find it necessary to employ one or more men to assist them in carrying put the provisions of the contract. These parties furnish their own trueks and employ and discharge their assistants, fixing their pay, paying them, and defining their duties and directing their work. The contract in question speaks of the American Refining Company delivering gas f. o. b. Burkbumett. However, Warren and the American Refining Company subsequently had an agreement that, if Warren desired, the gasoline would be delivered to him at the refinery in Wichita Falls, in which event the gas was to he invoiced to Warren at one cent per gallon less than if delivered to him f. o. b. Burkbumett. Warren actually proceeded under his contract, hut found it proper or necessary to employ J. B. Ellis. Warren employed Ellis,, fixing his duties and pay. Warren paid him and directed his work. One of the things Warren directed him to do regularly was to come to Wichita Falls and secure gasoline. Other duties consisted in pumping gasoline from the storage at Burkbumett into motor tracks and delivering the gasoline to such customers to whom Warren was able to make sales. While priming the pump (the pump as aforesaid, belonging to the American Refining Company) the gasoline ignited in some manner and burned Ellis. Shortly thereafter he died.
“That said J. C. Warren, in conducting his business,1

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

Related

Railway Co. v. Whitton's Administrator
80 U.S. 270 (Supreme Court, 1872)
Hess v. Reynolds
113 U.S. 73 (Supreme Court, 1885)
Upshur County v. Rich
135 U.S. 467 (Supreme Court, 1890)
Clark v. Bever
139 U.S. 96 (Supreme Court, 1891)
Texas Pipe Line Co. v. Ware
15 F.2d 171 (Eighth Circuit, 1926)
Kronick v. McLean County
204 N.W. 839 (North Dakota Supreme Court, 1925)
Moore & Gleason v. Taylor
1924 OK 180 (Supreme Court of Oklahoma, 1924)
Hogan v. State Industrial Commission
1922 OK 177 (Supreme Court of Oklahoma, 1922)
United States Fidelity & Guaranty Co. of Baltimore v. Lowry
231 S.W. 818 (Court of Appeals of Texas, 1921)
Maryland Casualty Co. v. Scruggs
277 S.W. 768 (Court of Appeals of Texas, 1925)
Maryland Casualty Co. v. Kent
271 S.W. 929 (Court of Appeals of Texas, 1925)
Angel v. Industrial Commission
228 P. 509 (Utah Supreme Court, 1924)
Shannon v. Western Indemnity Co.
257 S.W. 522 (Texas Commission of Appeals, 1924)
Myers v. Chicago & Northwestern Railway Co.
91 N.W. 1076 (Supreme Court of Iowa, 1902)
Arterburn v. County of Redwood
191 N.W. 924 (Supreme Court of Minnesota, 1923)
In re Silvies River
199 F. 495 (D. Oregon, 1912)
In re Mississippi River Power Co.
241 F. 194 (S.D. Iowa, 1917)

Cite This Page — Counsel Stack

Bluebook (online)
16 F.2d 464, 1926 U.S. Dist. LEXIS 1598, Counsel Stack Legal Research, https://law.counselstack.com/opinion/associated-industrial-ins-v-ellis-txnd-1926.