Board of County Com'rs of Payne County v. Standard Accident Ins.

1935 OK 552, 45 P.2d 459, 172 Okla. 355, 1935 Okla. LEXIS 258
CourtSupreme Court of Oklahoma
DecidedMay 21, 1935
DocketNo. 25937.
StatusPublished
Cited by3 cases

This text of 1935 OK 552 (Board of County Com'rs of Payne County v. Standard Accident Ins.) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Board of County Com'rs of Payne County v. Standard Accident Ins., 1935 OK 552, 45 P.2d 459, 172 Okla. 355, 1935 Okla. LEXIS 258 (Okla. 1935).

Opinion

PER CURIAM.

This was an action on contract, instituted by an insurance company seeking judgment for the unpaid balance of premium on a workmen’s compensation insurance policy written at the request of the board of county commissioners. Plaintiff’s amended petition did not allege that there was a fund appropriated by the board of county commissioners and approved by the excise board for the purpose of paying for workmen’s compensation insurance, nor that there was at the time the contract was made an unincumhered balance in said fund equal to, or greater than, the amount of the contract, nor that said contract or a purchase order for said insurance was signed and certified by the county clerk, certifying that theye was an unincumbered balance equal to or greater than the amount of the contract. Defendant demurred. The demurrer was overruled and an exception was saved. Defendant then answered: First, by general denial; second, that said contract was void for the reason that no appropriation had been made and approved for th£ purpose of purchasing compensation insurance for said county; third, that said contract was void for the reason that there was no unincumbered balance in any appropriation made and approved by the excise board of Payne county for the purchase of compensation insurance; and, fourth, that the plaintiff did not procure from the proper officials a purchase order for the purchase of said insurance, nor submit the same to the official charged with keeping the appropriations and expenditure records of Payne county. No reply, was filed. The trial court made a general finding for the plaintiff, and in addition found at the time the contract was entered into there were ample' funds available for the payment of said premium in “county highway fund 12, same being maintenance, road and bridge account,” and that said fund was the proper fund out of which said insurance premium should be paid, and rendered judgment for the plaintiff for $387.G3, the amount sued for. Defendant appeals to reverse said judgment.

The question presented here is whether or not workmen’s compensation insurance is such an item that requires a specific appropriation to be made by the board of county commissioners and approved by the excise board, and whether or not it is mandatory that the contract or purchase order for such insurance be presented to the keeper of the appropriation and expenditure records of the county and signed and certified by him, showing a balance on hand in the proper fund equal to or greater than the amount of the contract.

The plaintiff in error, defendant below, will be referred to hereafter as the “county”, and the defendant in error, plaintiff below, will be referred to as “the insurance company.”

It was stipulated that the insurance policy was issued at the request of the board of county commissioners. An excerpt from the policy was exhibited which shows the following employees of the county were covered by the policy: Drivers, chauffeurs and their helpers working on paving or road surfacing; drivers, chauffeurs and their. helpers working on filling or grading in street or road construction; consulting mechanical, civil and mining engineers and architects not engaged in actual construe *356 tion. It was further stipulated that the initial premium payment on said policy in the sum of $300 was made the next day after the policy was written out of the ‘‘county highway fund 12, same 'being maintenance, road and bridge account; said fund being the fund out of which all payments for labor, material, etc., for the usual construction, repair and upkeep of the roads and bridges for said county were to be made, and said class of work being the one upon which laborers were employed and for whose protection and benefit the said policy of workmen’s compensation insurance was issued”, and that on the date the policy was written there was an unincumbered balance in said fund in the amount of $9,562.32. A copy of the records of the county clerk showing the items of appropriation for the • county highway construction and maintenance fund for that fiscal year was attached. This record shows the various items for which appropriations were made and approved and the amounts appropriated and approved for each item, and no appropriation for workmen’s compensation insurance is shown. It was stipulated that no specific item of appropriation for compensation and liability insurance appears in the exhibit, and that no such appropriation was ever' set up by the commissioners; that ño contract for the purchase of said insurance policy was ever certified by the county clerk as provided in section 5970, O. S. 1931; that in due time a correctly executed claim for the unpaid balance of the insurance premium, in the amount of $387.63, was filed by the insurance company and rejected by the county commissioners; that the premium was duly earned by the insurance company, in the event the court should adjudge the contract valid.

In Austin-Western Road Machinery Co. v. Board of County Com’rs of Carter County, 160 Okla. 232, 11 P. (2d) 117, this court said:

“The following requirements are necessary before a valid and binding contract can be made between any person and the board of county commissioners affecting any money under the control of the board of county commissioners in the county highway fund; First, an appropriation must have been made by the board of county commissioners, and approved by the excise board of said county making an appropriation for the kind of work or material sought to be covered in said contract; second, the records in the county clerk’s office must show an unex-pended balance in said appropriation equal to or more than the amount of the contract sought to be made; third, the contract or purchase order must be signed and certified to by the county clerk certifying that there is an unexpended balance in said appropriated fund to pay the amount of said contract.
“The failure of any one of the above requirements voids the contract.”

The insurance company contends that item No. 12, “maintenance of roads and bridges,” is broad enough to cover the purchase of workmen’s compensation insurance. Had the insurance policy covered only employees who worked in that particular group and received their pay from that specific fund, that contention would merit some consideration, but an examination of the excerpts from the insurance policy, together with the copy of the records of the county clerk showing the items of appropriation, discloses that the policy covered employees who were to be paid from three distinctly different funds, for which separate appropriations were made, namely: No. 12, maintenance of roads and bridges; No. 26, construction of said roads; No. 35, construction of bridge. Section 12678, O. S. 1931, specifically provides that when appropriations have been made and approved, the funds shall be used for the specific purpose named and for no other purpose whatsoever. The stipulation above referred to does not say that the insurance policy was issued for the employees who received their pay from fund 12 only, but that it was for the laborers employed in that class of work.

The insurance company takes the position that section 5970, O. S.

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Bluebook (online)
1935 OK 552, 45 P.2d 459, 172 Okla. 355, 1935 Okla. LEXIS 258, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-county-comrs-of-payne-county-v-standard-accident-ins-okla-1935.