Corcoran v. PG Corcoran Co. Inc.

71 N.W.2d 787, 245 Minn. 258, 1955 Minn. LEXIS 645
CourtSupreme Court of Minnesota
DecidedJuly 15, 1955
Docket36,462
StatusPublished
Cited by20 cases

This text of 71 N.W.2d 787 (Corcoran v. PG Corcoran Co. Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Corcoran v. PG Corcoran Co. Inc., 71 N.W.2d 787, 245 Minn. 258, 1955 Minn. LEXIS 645 (Mich. 1955).

Opinion

Nelson, Justice.

This matter comes before the court on certiorari upon the relation of employer and its insurer to review a compensation award for accidental injury sustained by employee. The employer, P. G. Corcoran Company, Inc., is a corporation engaged in the manufacture and repair of neon signs. The employee, Paul G. Corcoran, was at the times material here the sole owner of the corporate stock. The corporate officers other than Corcoran were his wife and two other employees.

There is no dispute that the insurer, Iowa Mutual Liability Insurance Company, was the compensation insurer and was the insurer of Corcoran as employee of the corporation for compensation liability. The insurer had insured Corcoran as an individual against compensation liability from January 1, 1946, to April 16, 1949. On the latter date the name of the assured was changed to the corporation. Subsequent to the commencement of this proceeding, the corporation brought an action against the insurer in district court for reformation of the policy, and judgment was entered reforming the policies naming the corporation as the assured for the years 1948 and 1949. No appeal was taken from this judgment. It is therefore clear that for the purposes of this record the insurer insured the corporation on and after January 1,1948.

The business and related assets of the business Corcoran previously conducted as an individual were duly transferred to the corporation and it began functioning as such as of January 1, 1948. An added side line of electric fixtures also became a part of the corporate business. From the beginning of the corporation Corcoran was its president and manager; his wife was vice president and a director ; an employee, F. A. Eossel, was secretary; and another employee, W. J. Deglman, was treasurer. Mr. Deglman was later dropped as *261 an officer of the corporation, and F. A, Eossel was. then made secretary-treasurer. Two hundred shares of stock were issued, all of it held by Corcoran. With the exception of Deglman, the same officers continued on through the years 1948 and 1949.

Prior to the incorporation, Corcoran had operated the neon sign business as an individual. His individual operations began in 1939 and continued through 1941, after which time he engaged in war work at Eosemount, Minnesota, and in Alaska. He reopened his business establishment upon his return, January 1, 1946, and continued to operate as an individual until incorporation in December 1947.

Corcoran was a skilled workman in his own right and prior to the incorporation devoted most of his time outside of managing the business to glass blowing and glass tube bending as a neon sign manufacturer applying his skill to both manufacturing and repair work. After incorporation he devoted about 50 percent of his time to work on neon tubes and repair and the balance to management of the business of the corporation. One of the other employees, who was trained as an electrician, handled the electrical supply side line. Corcoran received a salary of $400 per month from the corporation after January 1, 1948, in return for which he divided his time between repairs and work on neon tubes and signs and corporate business management. This monthly salary amounted to a weekly wage of $92.31.

During the times that he was engaged in the manufacture and repair of neon tubes and signs, both as an individual and as a corporate employee, a substance known as beryllium was used in manufacturing the tubes as a binder for phosphorus necessary to produce fluorescent powder. In the tube bending and glass blowing, a necessary procedure in the manufacture and repair of neon signs, broken tubes at times permitted metallic beryllium in powder form to be scattered about the air and become subject to inhalation. If inhaled in sufficient quantities, it is now known to produce a disease diagnosed as pulmonary berylliosis peculiar to the occupation in which Corcoran was engaged. When contracted, it qualifies in classification as an occupational disease. That the pulmonary berylliosis con *262 tracted by employee here was ah occupational disease arising out of and in the course of the employment is amply sustained by the record.

This court has held that, where an employee suffers chemical poisoning and the industrial commission finds that there was an “accidental injury,” the supreme court will assume that there was injury to the physical structure of the body at the time of the injury, for otherwise there could have been no accidental injury within the meaning of the act. Krause v. Swartwood, 174 Minn. 147, 218 N. W. 555, 57 A. L. R. 611.

We now come to what appears to be the important disputed question — and- it is one of fact — when did respondent contract this occupational disease? Was it prior to January 1, 1948, the effective date of the incorporation of the Corcoran neon sign business, or did it occur in 1948 or 1949 or during both of those years ? The employee testified that he became exposed to beryllium poisoning at times, from what he learned later, when it became subject to inhalation; that he worked where the dust of that particular metallic substance escaped into the air; and that he was exposed during the years 1989 and 1941 and again in the years 1946, 1947, 1948, and the spring of 1949. For a period of about four years between 1941 and 1946 he was not thus exposed.

His testimony was to the effect that his first notice of any physical disability was while hunting in the fall of 1948. His health had been good, to his knowledge, up to that time. He had no marked difficulty, however, until about March 29, 1949, when he decided to seek medical aid by going to Dr. Henry Bradley Troost of the Mankato Clinic. He was prompted to see the doctor because he had become afflicted with shortness of breath; it was growing worse, a cough had begun to develop, and he decided to go to the clinic for a checkup. He was X-rayed and the film showed a congested lung condition. Dr. Troost put him in the hospital for a short period.

He then went to the Mayo Clinic and was examined by Dr. Corrin Hodgson, whose testimony constitutes a part of the record in this case, and a Dr. Robert Nachtwey of the clinic, on April 11, 1949. He says he was examined thoroughly, X-rayed, and the trouble diag *263 nosed as pulmonary berylliosis. On April 23, 1949, a biopsy was done by Dr. Priestly of the Mayo Clinic which consisted of the removal of a lymph node from the left axilla for diagnostic reasons. There was beryllium present in the node which came from a small scar on the fourth finger of his left hand. It was the opinion testimony of Dr. Hodgson, as a medical expert, that neither the scar nor the lymph node came from inhalation of the substance and that neither had any connection with the pulmonary berylliosis as a cause.

While, in war work Corcoran had weighed 170 pounds and he says through being furnished good food during the period it was increased to 205 pounds, which was his weight in the early part of the year 1949. When examined at the Mayo Clinic, April 7, 1949, he weighed 189 pounds. He gradually lost weight from that time on and at the time of the hearing was down to 127 pounds. Dr. Hodgson testified that he had been permanently disabled since April 1949. The record shows that he stopped all work March 29, 1949, and later only did what he could in assisting in the management of the corporate business.

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Bluebook (online)
71 N.W.2d 787, 245 Minn. 258, 1955 Minn. LEXIS 645, Counsel Stack Legal Research, https://law.counselstack.com/opinion/corcoran-v-pg-corcoran-co-inc-minn-1955.