Costley v. Nevada Industrial Insurance Commission

296 P. 1011, 53 Nev. 219, 1931 Nev. LEXIS 18
CourtNevada Supreme Court
DecidedMarch 23, 1931
Docket2911
StatusPublished
Cited by7 cases

This text of 296 P. 1011 (Costley v. Nevada Industrial Insurance Commission) is published on Counsel Stack Legal Research, covering Nevada Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Costley v. Nevada Industrial Insurance Commission, 296 P. 1011, 53 Nev. 219, 1931 Nev. LEXIS 18 (Neb. 1931).

Opinions

The Nevada industrial insurance act defines an employee to be a "person in the service of an employer." The existence of a contract for hire in itself is not sufficient to establish this relationship, but in addition to the contract there must be the actual service. In the instant case the contract was entered into on November 2. By the very terms of the contract Costley was not to go to work until the morning of November 3. Therefore, when the alleged accident occurred on November 2, he was not in the service, as defined by the act, and would not be in the service of the company until the next day. It is necessary that one shall have actually begun to earn his wage or he cannot be said to be in the service of the employer as the statute requires. Bloomington D. C.R. Co. v. Industrial *Page 220 Board, 114 N.E. 517. Snyder on Workmen's Compensation, vol. I, sec. 281, in dealing with this question, refers to certain cases cited in vol. XIII American and English Negligence Cases, p. 491. The two cases referred to in this authority are the cases of Luxenile, decided by the industrial commission of Ohio, No. 65516, and the case of Tucker, No. 36145. We desire also to call the court's attention to the following cases: Susnik v. Alger Logging Co., 147 P. 922; Bargey v. Massan Macaroni Co., 112 N.E. 406; Hogan v. The State Industrial Commission, 207 P. 303.

In putting up the tent Costley was doing a gratuitous act, one that he himself suggested, and it was agreed that so far as the company was concerned Costley was not to begin his services until the next day. It was expressly agreed between the parties that the service of constructing living quarters for respondent on the afternoon of November 2 be performed by the employee as a part of his contract of employment and as a condition to be fulfilled by the employee under the directions of and upon the premises of the employer before the commencement of his general duties as a laborer and miner. The understanding and intent of the parties are plain and clear, and the conduct of the parties after entering into the contract show that both the employer and employee understood the contract and that the services agreed upon were being rendered in accordance with its terms.

We submit that when any question arises at all as to the right of an employee to compensation, the courts almost unanimously hold that both the law and the facts must be liberally construed in favor of the payment of the compensation. Technical constructions must be avoided where possible, in order that the benefits of this humane legislation may be accorded to the unfortunate workman. Chandler v. Industrial Commission (Utah),184 P. 1020; Frandsen v. Industrial Com. (Utah), 213 P. 197. *Page 221

OPINION
This action was brought by W.E. Costley against the Nevada Industrial Insurance Commission to recover compensation in the sum of $792 for an injury by accident alleged to have arisen out of and in the course of his employment as a miner by the C.G. Dennis Leasing Company, a company subject to the provisions of an act known as the "Nevada Industrial Insurance Act." 3 Rev. Laws of Nevada, p. 3123. The case was tried to the court without a jury. Judgment went for Costley for the full sum of $792. The commission appealed.

There is no dispute as to the facts, and there is no controversy as to the procedure. The facts, omitting details, are substantially as follows:

Prior to November 2, 1928, the C.G. Dennis Leasing Company was engaged in developing and operating a mine prospect located on Canyon creek in Humboldt County, Nevada. Prior to said date W.E. Costley had been engaged in prospecting a mining claim of his own located on said creek some distance below the property of the C.G. Dennis Leasing Company. Oscar L. Cash was superintendent of the company and H.J. Coss was foreman of its operations, with authority to hire and discharge men. On and prior to said date the company furnished sleeping quarters to its employees. On said date Costley applied to Coss for a job, representing that Mr. Cash had told him that he thought that Coss could furnish him with work for a few days. Coss said to Costley that "he had a little work, but that he had no sleeping quarters for him." Costley said: "I will furnish my own tent." Coss said: "That is all right, if you want to bring your own tent up here and set it up, you can go to work tomorrow morning." Costley said: "Alright, I will do it."

Thereupon, Costley left the premises and within a short time returned with his tent and outfit on his automobile. He asked Coss where he should set up the tent. Coss pointed out the place, and Costley went about the *Page 222 work of setting up his tent, preparatory to going to work the next morning pursuant to his employment. While Costley was cutting lumber to fasten the tent down, he accidently cut his foot, which resulted in the loss of a greater part of the second toe, and the greater toe was left stiff, which, according to the testimony of Dr. Hough, his attending physician, permanently disabled him from engaging in his occupation as a miner or any employment that required him to be on his feet much and to that extent his injury, in the opinion of Dr. Hough, was permanent.

The superintendent testified that Costley's name did not appear on the payroll of the company for the reason that "he was hired to go to work the next day and that, at the time of the accident, he felt that Costley hadn't commenced any employment for the company at that time." The superintendent, however, reported the accident to the Nevada industrial insurance commission. It appears that Dr. Hough made reports to the commission of his treatment of Costley from time to time from November 2, 1928, up to the forepart of June, 1929. Costley made application to the Nevada industrial insurance commission for compensation for his injury, which was refused. Thereupon, he commenced this action in the court below against the commission to recover the sum of $792 as compensation for his injury.

Upon the trial Costley did not take the stand as a witness, but made and rested his case upon the testimony of his witness Coss and that of his physician, Dr. Hough. The commission made and rested its case upon the testimony of said witnesses and that of its witness, Mr. Cash, the superintendent of the leasing company.

The record discloses that upon the conclusion of the testimony, it was stipulated in open court that, if the court should find and hold that Costley was accidently injured while in the employ of the leasing company, and that the injury arose out of and in the course of his employment, then and in that event Costley should have judgment against the commission for the sum of *Page 223 $792 together with costs. Judgment followed in favor of Costley.

By appropriate assignments of error the attorney-general, who ex officio is attorney for the commission, presents the following propositions: (1) That Costley was not an employee of the leasing company as the term "employee" is defined by the Nevada industrial insurance act; (2) that the accident in question did not arise out of and in the course of the employment as provided in the act.

Upon consideration of the argument advanced in support of these propositions, we think they are resolvable into the single question: "Had the relation of employer and employee begun before the occurrence of the accident?" In other words, "Did the accident arise out of and in the course of the employment?" The learned attorney-general says that it did not.

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Bluebook (online)
296 P. 1011, 53 Nev. 219, 1931 Nev. LEXIS 18, Counsel Stack Legal Research, https://law.counselstack.com/opinion/costley-v-nevada-industrial-insurance-commission-nev-1931.