Baker & Conrad, Inc. ex rel. New Amsterdam Casualty Co. v. Chicago Heights Construction Co.

282 Ill. App. 459, 1935 Ill. App. LEXIS 669
CourtAppellate Court of Illinois
DecidedNovember 20, 1935
DocketGen. No. 37,906
StatusPublished
Cited by1 cases

This text of 282 Ill. App. 459 (Baker & Conrad, Inc. ex rel. New Amsterdam Casualty Co. v. Chicago Heights Construction Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baker & Conrad, Inc. ex rel. New Amsterdam Casualty Co. v. Chicago Heights Construction Co., 282 Ill. App. 459, 1935 Ill. App. LEXIS 669 (Ill. Ct. App. 1935).

Opinion

Mr. Justice Denis E. Sullivan

delivered the opinion of the court.

This is an appeal from an order of the superior court sustaining a demurrer of the defendant Chicago Heights Construction Company, a corporation, to a declaration filed by the plaintiff Baker & Conrad, Incorporated, a corporation, for use of New Amsterdam Casualty Company, a corporation, in an action to recover damages from the defendant because of its alleged negligence.

It appears from the record that after the jury had been impaneled to try the cause on the plea of not guilty, filed to the declaration, leave was granted to defendant to withdraw its plea and demur ore tenus. After argument the demurrer was sustained and an order of nil cepit was entered with costs versus plaintiff, from which this appeal has been taken.

The declaration consisted of three counts and from them we gather the following facts:

On March 12, 1929, Baker & Conrad, Incorporated, plaintiff, was engaged in the excavating business in Illinois and it came automatically under the provisions of section 3 of the Workmen’s Compensation Act, Ill. State Bar Stats. 1935, ch. 48, ¶ 202; that the defendant was engaged in the business of erecting and demolishing structures and as such was also automatically under the provisions of section 3 of the Workmen’s Compensation Act; that as part of its business the defendant, Chicago Heights Construction Co., by a contract with Montgomery Ward & Company, undertook to remodel and reconstruct a certain building’ erected in the City of Chicago Heights in Cook county, Illinois; that subsequent thereto the defendant entered into a verbal agreement with the plaintiff in regard to certain excavating work to be done by the plaintiff on such building premises and to pay the plaintiff the sum of $1,800 for such work. It was necessary to clear out certain excavated material from under the building and plaintiff sublet such work to one John Cor des who was the owner of certain teams and shovels and who employed men to do such excavating work» John Cordes entered into Ms work on the premises by virtue of his contract with the plaintiff, Baker & Conrad, Incorporated, and among the men employed was one Luther Storey. John Cordes was also operating under the provisions of the Workmen’s Compensation Act. That Chicago Heights Construction Company was at that time engaged in one of the businesses enumerated in section 3 of the Workmen’s Compensation Act and that the accidental death of said Luther Storey was caused under circumstances claimed to create legal liability for damages in said Chicago Heights Construction Company.

On February 27,1929, the New Amsterdam Casualty Company, one of the plaintiffs, had issued an insurance policy indemnifying and insuring Baker & Conrad, Incorporated, the plaintiff, against any loss which Baker & Conrad, Incorporated, might sustain under the Workmen’s Compensation Act. In said policy it was provided that the said New Amsterdam Casualty Company would be subrogated to any and all rights had by said Baker & Conrad, Incorporated, against any third party when any such third party caused losses by virtue of the Workmen’s Compensation Act, to fall on the New Amsterdam Casualty Company.

It is further alleged in the said counts of the declaration that while John Cordes was worMng on the premises with his men, including Luther Storey, the defendant negligently and carelessly engaged in the altering and removing of the said building and failed to use proper support beams, lumber and shoring to maintain and support the building, and as the result of such negligence of the defendant, the bmlding fell apart and toppled over, causing part of the building to fall into the excavation and kill Luther Storey, the employee of John Cordes; that such death of Luther Storey occurred without any negligence on his part or on the part of Baker & Conrad, Incorporated, or any of its employees, or on the part of John Cor des or any of his employees.

Luther Storey left a widow, who filed application for compensation under the Workmen’s Compensation Act, and after a hearing the arbitrator of the industrial commission found that the widow was entitled to compensation from Baker & Conrad, Incorporated, one of the plaintiffs, on the ground that on March 12, 1929, John Cordes was the direct employer of the deceased; that he was without insurance and that Baker & Conrad, Incorporated, plaintiff, was the contractor and was liable under section 31 of the Workmen’s Compensation Act.

The declaration further alleges that by virtue of the award the New Amsterdam Casualty Company, one of the plaintiffs, has made payment to the widow of the deceased and is further liable to the widow for a definite sum. It is further claimed by the plaintiff that the New Amsterdam Casualty Company by virtue of the provision of the policy of insurance, became the subrogee of the right of action which Baker & Conrad, Incorporated, has by virtue of section 29 of the Workmen’s Compensation Act of the State of Illinois.

It is further alleged in the declaration that by virtue of said policy it was agreed that the New Amsterdam Casualty Company, the plaintiff, should be subrogated to any and all rights that said Baker & Conrad, Incorporated, might have against any party by virtue of which the New Amsterdam Casualty Company, plaintiff, became liable for and did pay losses arising under the Workmen’s Compensation Act; that as a result of said policy the New Amsterdam Casualty Company became liable to pay, has paid and is continuing to pay the award described in the declaration and that by virtue of such the New Amsterdam Casualty Company is the subrogee of Baker & Conrad, Incorporated. We are asked to so construe the Workmen’s Compensation Law of Illinois as well as the common law so as to sustain the declarations under one theory or the other.

The demurrer ore tenus filed by the defendant was the equivalent of a general demurrer. People ex rel. McGraham v. Armstrong, 196 Ill. App. 199.

The two sections of the Workmen’s Compensation Act which counsel agree are pertinent to the controversy herein, are sections 29 and 31 of chapter 48, pars. 229 and 231, Cahill’s Ill. Rev. Statutes 1933, and read as follows:

“229. Rights of Employee and Employer Where Injury Occasioned by Third Person.] § 29. Where an injury or death for which compensation is payable by the employer under this Act was not proximately caused by the negligence of the employer or his employees, and was caused under circumstances creating a legal liability for damages in some person other than the. employer to pay damages, such other person having also elected to be bound by this Act, or being bound thereby under section three (3) of this Act, then the right of the employee or personal representative to recover against such other person shall be subrogated to his employer and such employer may bring legal proceedings against such other person to recover the damages sustained in an amount not exceeding the aggregate amount of compensation payable under this Act, by reason of the injury or death of such employee.

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Related

Baker & Conrad, Inc. v. Chicago Heights Construction Co.
4 N.E.2d 953 (Illinois Supreme Court, 1936)

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Bluebook (online)
282 Ill. App. 459, 1935 Ill. App. LEXIS 669, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baker-conrad-inc-ex-rel-new-amsterdam-casualty-co-v-chicago-heights-illappct-1935.