Central Surety & Ins. Corp. v. McCowan

93 S.W.2d 472, 1936 Tex. App. LEXIS 319
CourtCourt of Appeals of Texas
DecidedMarch 18, 1936
DocketNo. 4947.
StatusPublished
Cited by4 cases

This text of 93 S.W.2d 472 (Central Surety & Ins. Corp. v. McCowan) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Central Surety & Ins. Corp. v. McCowan, 93 S.W.2d 472, 1936 Tex. App. LEXIS 319 (Tex. Ct. App. 1936).

Opinion

HALL, Justice.

Appellee filed this suit in the district court of Bowie county October 29, 1934, to set aside a compromise settlement agreement .made on April 21, 1934, between him and the agent of appellant. Appellee alleged that he was injured on January 26, 1934, while employed by W. D. Smith & Sons who carried a policy of compensation insurance, with appellant; that his injuries consisted of burns to his hands, arms, and body caused by exploding gasoline which totally and permanently incapacitated him. He alleged, further, that appellant paid him compensation insurance for a period of time after his injury and on April 21, 1934, a compromise settlement was entered into between appellee and agent of appellant whereby appellant agreed to pay him the sum of $75 in full settlement of his claim. This settlement agreement, appellee alleged, was procured by fraud on the part of the adjuster of appellant; that he did not know he was signing a settlement agreement and was not advised by the adjuster, or anybody else of that fact; that he thought he was signing a receipt for $75 which he understood and believed was back compensation owing to him by appellant to be used by him until he got well. This compromise settlement agreement, sought to be set aside by appellee, was submitted to the Industrial Accident Board of Texas and was by said board approved on May 14, 1934. The appellant answered by general demurrer, general denial, and also set up the compromise settlement agreement which had been executed by appellee on April 21, 1934, and the approval of the same by the Industrial Accident Board.

The case was tried to a jury on special issues which were answered favorably to appellee, and judgment was by the trial court entered accordingly. From this judgment the appellant prosecutes its appeal to this court.

By appellant’s first proposition under assignment of error No. 4, the contention is made that, “Where, at the time a compensation settlement agreement is made it is represented and intended for the claimant to understand that if the amount then paid did not cover his disability the case will be reopened and he will be paid further compensation in the event he should not improve or become worse, then the execution of the contract was not induced by fraud.” At the instance of appellant, the court submitted to the jury the following special issue: “Do you find that at the time the compromise settlement was made, the Agent and Attorney of defendant, James D. Head, intended and led the said Charlie McCowan to understand that if the amount then paid did not cover his disability, he would re-open said matter and pay the said Charlie McCowan further compensation if the said McCowan did not improve or should become worse?” To this special issue the jury answered, “Yes,” and upon the answer to same appellant requested a judgment in the lower court, which was refused, and a reversal here of the judgment of the lower court. In the light of the evidence and pleadings, we cannot agree with this contention advanced by the appellant. There are no pleadings upon which this special issue could be based, and the evidence is lacking entirely in this respect. The testimony of the adjuster, Head, with regard to the compensation settlement agreement, is:

*474 "Q. I will ask you now to tell the jury the history of your negotiations in entering into that settlement with him and what took place at the time. A. Well, the negro was brought into my office at my request for the pui'pose of making a final settlement and adjustment of any claim he might have. He was brought in there by Mr. W. D. Smith and his son, and I questioned the negro very carefully and advised him that I wanted to know his present status, and the negro gave the statement and I took it down, and put them into the affidavit that was made on that day by Charles McCawnd, Perry Smith and W. D. Smith. Up to that time I had very little knowledge of the nature of the case. I had just been requested to get up the necessary papers, so all this information contained in the attached affidavit and a good deal of that contained in the compromise settlement agreement was obtained by questioning Charles McCawnd, and also by conferring with W. D., and Perry Smith, the son of W. D. Smith, and injured in the same accident. I explained to him fully what we were there for, — that the company wanted to settle up now, that we had a report to the effect the negro would be able to go back to work fully within two or three weeks. That was April 21, and he would be able to go back to work on May 15, from the doctors. I asked him at the time was he able to work temporarily, and he said he was, that he would not be able to work steady but could work part time, and I also questioned Mr. Smith with reference to that. And those statements contained in the compromise settlement and agreement were obtained there in that manner. Of course, I only knew with reference to the negro’s ability to work what he told me and what the doctors said about it, and they all thought, the negro and Mr. Smith and his boy and his doctors, that he would be fully able to go back on his job on the 15th of May. I explained to him fully if he made this compromise settlement that was the end of the money he would get from this insurance corporation; and, in that connection, when he first came in there I suggested to him, after we had gone over the situation, that he probably might be. able to go to work earlier and he might not be able to go to work until May 15, and I suggested at first that we pay him $50.00 in addition. to what had already been paid him. I asked him how that would suit him, and he said he didn’t know, and I told him I wanted to make it satisfactory because I wanted a final settlement, and if that wasn’t satisfactory, how about $75.00, and he spoke up immediately and said that would be satisfactory. Then I proceeded to draw up these papers in accordance with the agreement made. At that time the negro had thick scar tissue on his face, but if anything was wrong with his mouth it wasn’t noticeable to a layman or to me at that time. I would not have known the negro when I saw him in the court room this morning unless I had known he was the plaintiff in this suit. I only recognized him because of that fact. It is swollen very much as compared with what it was then. He did have scar tissue and he complained that on one side he did have some itching, but I attributed that to his burns. He said something, — had something on his wrist that looked like cotton seed oil at the time, and he was complaining of the itching in his wrist as the place where the itching was. I think that is about all that occurred at that time in the office. I read over all these papers to him, the affidavit and compromise settlement, and he swore to the compromise settlement before Mr. Ben Carter, a lawyer in Texarkana, whose offices adjoin mine, swore to the affidavit I mean. They were all read to him and he understood fully what he was doing at the time.
“Q. Now, Mr. Head, you didn’t at that time pay him the $75.00? A. No, sir. I explained to him before he could get any money this had to go to Austin to the Industrial Accident Board and they would pass on it, and if they approved the settlement we would pay it as soon as the approval was had. Now, it went back to the Industrial Accident Board, — I was advised by them that they wanted, when they learned Dr. S. A. Collum, Sr., who gave the original statement, was dead, then they wanted an examination by another physician of their own choice, and they named Dr. Good, and I notified Mr. Smith to bring the negro in to see Dr. Good.”

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Bluebook (online)
93 S.W.2d 472, 1936 Tex. App. LEXIS 319, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-surety-ins-corp-v-mccowan-texapp-1936.