Barber Asphalt Corporation v. Industrial Comm.

135 P.2d 266, 103 Utah 371, 1943 Utah LEXIS 114
CourtUtah Supreme Court
DecidedMarch 18, 1943
DocketNo. 6453.
StatusPublished
Cited by14 cases

This text of 135 P.2d 266 (Barber Asphalt Corporation v. Industrial Comm.) is published on Counsel Stack Legal Research, covering Utah Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barber Asphalt Corporation v. Industrial Comm., 135 P.2d 266, 103 Utah 371, 1943 Utah LEXIS 114 (Utah 1943).

Opinions

*374 HOYT, District Judge.

Certiorari to review award of additional compensation to Leonard Cook under Workmen’s Compensation Act, after payment made under agreement of final settlement previously approved by the Industrial Commission.

Leonard Cook was injured during the course of his employment for plaintiff, Barber Asphalt Corporation. Medical examination resulted in an opinion by the medical advisory committee for the Commission that Cook’s condition showed permanent partial disability of about five per cent. Cook being dissatisfied with the rating applied for hearing. Before the hearing was had, Cook entered into an agreement of settlement with the employer and the insurance carrier, plaintiffs herein, which by its terms was for payment upon the basis of fifteen per cent permanent disability as final settlement of all claims growing out of the injury, and was subject to approval by the commission. The agreement was approved by the Commission November 7, 1939 —being approximately eleven months after the date of injury and some five and one half months after the examination by the medical advisory committee. Payment was made in accordance with the agreement. Before the agreement was- signed Cook had had the benefit of advice from his own physician and attorney.

Thereafter on November 22, 1940, a claim for additional compensation was filed and was set for hearing January 7, 1941. In this claim it was alleged that the applicant was totally disabled. The plaintiffs herein filed an answer and set up the agreement of final settlement and its approval by the Commission. It was stipulated between the parties that a further examination should be made by the medical advisory committee, but that this should not be considered a waiver of the right of the employer and insurer to set up the final settlement in bar of the employee’s claim. The examination was made and certified to the Commission. It indicated total disability with the opinion expressed that surgical treatment would probably remove the cause. *375 The matter was submitted upon this medical opinion, without further evidence, and without waiver of plaintiffs’ right to plead the former settlement in bar. The Commission held that under the provisions of § 42-1-72, R. S. U. 1933, an agreement of final settlement, though approved at the time by the Commission, could not operate to divest it of continuing jurisdiction nor prevent an award of additional compensation if the injury proved more serious than was contemplated at the time of the approval of the settlement. It was also found that the applicant was totally disabled and was entitled to additional compensation and to a proffer of surgical treatment. An order was made accordingly.

There was competent evidence to sustain the finding of total disability and the order should stand unless the claim is barred by the former agreement of settlement.

The court heretofore (1929) held in the case of Brigham Young University v. Industrial Commission, 74 Utah 349, 279 P. 889, 65 A. L. R. 152, that the terms of the Workmen’s Compensation Act did not prevent an employer and the dependents of á deceased employee from entering into a settlement agreement for compensation which would be binding and operate to bar a claim for payment of - a larger amount theretofore awarded by the Commission. The settlement agreement in that case had been entered into after the award was made and pending proceedings for review before this court. The petition for review by the employer and insurer alleged that there was no competent evidence to sustain the findings of the Commission. Before hearing was had on the petition for review, the employer and insurer made an agreement of final settlement with the dependents of the employee, and all these parties moved, the court to set aside the award. The attorney general, representing the Commission, objected to the motion upon the ground that the settlement agreement was ineffectual and void. The court in its opinion in that case reviewed the decisions of various courts upon the question and held that *376 the provisions of the Utah compensation act did not prohibit the making of a binding agreement which would bar a further claim.

The Commission, in its decision of the case now before this court took cognizance of the case above referred to, but held that under the provisions of § 42-1-72, the Legislature had given the Commission continuing jurisdiction of which it cannot be divested by agreement of the parties nor by act of the Commission itself in approving an agreement purporting to be a final settlement and release.

Sections of the Workmen’s Compensation act which may be considered material for determination of the case are as follows :

42-1-43: “Every employee mentioned in section 42-1-41 who is injured, and the dependents of every such employee who is killed, by accident' arising out of or in the course of his employment * * * shall he entitled to receive, and shall be paid, such compensation for loss sustained on account of such injury or death, and such amount for medical, nurse and hospital services and medicines, and, in case of death, such amount of funeral expenses, as is herein provided.” (Italics added.)
42-1-72: “The powers and jurisdiction of the commission over each case shall be continuing, and it may from time to time make such modification or change with respect to former findings, or orders with respect thereto, as in its opinion may be justified.”
42-1-50: “Subject to the approval of the commission, any employer may enter into or continue any agreement with his employees to provide a system of compensation or other benefits in lieu of the compensation and other benefits provided by this title. No such substitute system shall be approved unless it confers benefits upon injured employees and their dependents at least equivalent to the compensation provided by this title, nor if it requires contributions from the employees, unless it confers benefits in addition to those provided under this title at least commensurate with such contributions.”
42-1-84: “No agreement by an employee to waive his rights to compensation under this title shall be valid.”

These statutes were in effect at the time of the decision in the Brigham Young University case, supra. In that case, as hereinabove stated, the compromise settlement which was held to be a bar was in connection with a claim by de *377 pendents of an employee on account of his death. The court, in deciding as to whether the settlement agreement was binding upon the parties and the Commission, examined the evidence in support of the award which had been made and stated that it found the right of the applicant to recover was “quite doubtful,” and that there were good grounds to justify the claimants in entering into a compromise settlement. The court then said [74 Utah 349, 279 P. 893, 65 A. L. R. 152]:

“The making of a settlement under such circumstances is not detrimental to the interest of the state or of the public. It rather subserves such interest.

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Bluebook (online)
135 P.2d 266, 103 Utah 371, 1943 Utah LEXIS 114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barber-asphalt-corporation-v-industrial-comm-utah-1943.