Bronder v. Otis Elevator Co.

237 N.W. 671, 121 Neb. 581, 1931 Neb. LEXIS 200
CourtNebraska Supreme Court
DecidedJuly 17, 1931
DocketNo. 27776
StatusPublished
Cited by9 cases

This text of 237 N.W. 671 (Bronder v. Otis Elevator Co.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bronder v. Otis Elevator Co., 237 N.W. 671, 121 Neb. 581, 1931 Neb. LEXIS 200 (Neb. 1931).

Opinion

Rose, J.

This is an action under Lord Campbell’s Act. to recover damages for negligence resulting in the death of Frank A. Bronder May 13, 1929. Comp. St. 1929, secs. 30-809, 30-810.

[582]*582Decedent left surviving him as his only heirs at law his widow, Dorothy C. Bronder, age 80, and Delmar Dean Bronder, age 14, a son by a former wife. Frank A. Bronder was an employee of H. A. Wolf Company, and plaintiff alleged that, while he was performing duties of his employment,’ he was fatally injured in an elevator shaft in the Paxton Building, Omaha, through negligence of Abel Hamilton who was at the time an employee of Otis Elevator Company. Under the workmen’s compensation law the H. A. Wolf Company, a corporation in control of the Paxton Building, but innocent of wrongdoing in connection with its employee’s death, paid employer’s liability, but declined to sue the wrongdoers, Otis Elevator Company and Abel Hamilton, for negligence. To recover damages therefor in the alleged sum of $40,000, Dorothy C. Bronder, executrix of the, estate of her deceased husband, brought this action at law, naming Otis Elevator Company, Abel Hamilton, and H. A. Wolf Company, defendants. In addition to the demand for damages, plaintiff prayed for an order directing payment, out of any judgment recovered by her, of the amount due H. A. Wolf Company for payments made by it under the workmen’s compensation law.

The Otis Elevator Company and Hamilton denied the negligence charged by plaintiff. H. A. Wolf Company admitted generally the allegations of plaintiff’s petition, pleaded payment of workmen’s compensation, and prayed for reimbursement therefor, by right of subrogation, out of any judgment rendered in favor of plaintiff.

Upon a trial to the district court, a jury having been waived, judgment was rendered in favor of plaintiff for $7,500 against the Otis Elevator Company and Hamilton. The Otis Elevator Company complied with a judicial order to pay the amount of the judgment and costs to the clerk of the district court to await distribution and consequently was discharged from further liability.

Delmar Dean Bronder, by Lizzie Randall, his guardian, [583]*583intervened and demanded distribution to plaintiff and himself in the same proportions as personal property of an intestate is distributed under the inheritance laws, or one-fourth to plaintiff and three-fourths to intervener. Comp. St. 1929, sec. 30-810.

From the fund of $7,500 for distribution, the district court directed the clerk to pay the attorneys for plaintiff and H. A. Wolf Company $2,500, fees in that sum having been approved by the county court with the consent of all parties to the action. In distributing the remainder, or $5,000, the district court found that H. A. Wolf Company was subrogated to the rights of decedent’s widow to the extent of one-fourth of $5,000, or $1,250, on account of payments to her under the workmen’s compensation law, and that the minor son of decedent was entitled to three-fourths of $5,000 under the provisions of Lord Campbell’s Act, or $3,750. From a judgment ordering distribution according to these findings, plaintiff and H. A. Wolf Company appealed.

The employer, H. A. Wolf Company, contends that it is entitled to reimbursement by right of subrogation for the full amount of compensation paid to the dependent widow under the workmen’s compensation law, before any part of the fund recovered from the wrongdoer under Lord Campbell’s Act is distributable to heirs of the deceased employee, and that the judgment of the district court to the contrary is erroneous. The following are stipulated facts:

“H. A. Wolf Company has paid in compensation and funeral benefits under said employers’ liability law the total sum of $4,791.99 and has likewise expended the sum of $323.20 in expenses in the making of the recovery of said judgment of $7,500 in the above-entitled action, making a total of $5,115.19 thus expended by said H. A. Wolf Company.”

The compensation commissioner rendered judgment in favor of the widow, as the only dependent of the deceased employee, against his employer, H. A. Wolf Company, for [584]*584the compensation authorized by law. Afterward the district court approved a lump-sum settlement for compensation which the employer paid. The record does not show an appeal from the judgment of the compensation commissioner or from the order approving the settlement. The payments made by the employer for compensation, therefore, were adjudicated claims authorized by the workmen’s compensation law. The evidence conclusively shows further that the intervener, Delmar Dean Bronder, is a son of the deceased employee by a former wife, who, after the birth of the son, procured a divorce; that the son was living with his mother at the time of his father’s death and-was not then a dependent of his father; that the widow of the deceased employee was the only dependent entitled to compensation from the employer. The Otis Elevator Company, defendant, was a “third person” within the meaning of the workmen’s compensation law, which provides: “Any recovery by the employer against such third person, in excess of the compensation paid by the employer after deducting the expenses of making such recovery, shall be paid forthwith to the employee “or to the dependents.” Comp. St. 1929, sec. 48-118. In the present instance, the amount of the employer’s claim for “the expenses of making such recovery” is stipulated to be $323.20. As already shown, H. A. Wolf Company paid employer’s liability in the sum of $4,791.99 and expenses of $323.20 in making recovery of $7,500 from a third person, or a total of $5,115.19. Is the employer, by statutory right of subrogation, entitled to reimbursement for these payments and expenses in full before any part of the money collected under Lord Campbell’s Act can properly be distributed to the heirs of the deceased employee? The right of subrogation is created by the workmen’s compensation law which provides:

“Where a third person is liable to the employee or to the dependents, for the injury or death, the employer shall be subrogated to the right of the employee or to the de[585]*585pendents against such third person, and the recovery by such employer shall not be limited to the amount payable as compensation to such employee or dependents, but such employer may recover any amount which such employee or his dependents should have been entitled to recover. Any recovery by the employer against such third person, in excess of the compensation paid by the employer after deducting the expenses of making such recovery, shall be paid forthwith to the employee or to the dependents, and shall be treated as an advance payment by the employer, on account of any future instalments of compensation: Provided, however, that nothing in this section or act shall be construed to deny the right of an injured employee or of his personal representative to bring suit against said third person in his own name or in the name of the personal representative based upon said liability, but in such an event an employer having paid or paying compensation to the said employee or his dependents shall be made a party to the suit for the purpose of reimbursement, under the above provided right of subrogation, of any compensation paid.” Comp. St. 1929, sec. 48-118.

This section is part of an act imposing upon employers of labor a liability which did not previously exist. It was competent for the legislature to prescribe the terms and conditions under which the new burdens were imposed.

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Cite This Page — Counsel Stack

Bluebook (online)
237 N.W. 671, 121 Neb. 581, 1931 Neb. LEXIS 200, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bronder-v-otis-elevator-co-neb-1931.