Federal Surety Co. v. Scott

22 S.W.2d 157
CourtCourt of Appeals of Texas
DecidedNovember 13, 1929
DocketNo. 10629
StatusPublished

This text of 22 S.W.2d 157 (Federal Surety Co. v. Scott) 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
Federal Surety Co. v. Scott, 22 S.W.2d 157 (Tex. Ct. App. 1929).

Opinion

LOONEY, J.

This suit involves the right of J. S. Scott, appellee, to recover compensation under the Workmen’s Compensation Law (Rev. St. 1925, arts. 8306-8309) for accidental injuries received in the course of an alleged employment by the Gulf Mortgage Company, a subscriber*, insured by Federal Surety Company, appellant.

The suit was by appellant to set aside an award for compensation, made by the Industrial Accident Board in favor of appellee at the rate of $20 per week for 200 weeks, less attorney’s fee in favor of White & Yarbor-ough, his attorneys.

Appellee answered, and in a cross-bill also sought to set aside the award, alleging, in' substance, that he sustained the accidental injuries in the course of employment as a carpenter by tlje Gulf Mortgage Company; that the company was an employer of labor within the meaning of the Compensation Act, and carried a policy of compensation insurance with appellant; that his injuries resulted in total permanent incapacity, and at the time he was earning an average of $44 per week; therefore was entitled to compensation at the rate of $20 per weék for the full period of 400 weeks, for which he prayed judgment.

In its replication, appellant denied that appellee received any injury while in the employ of Gulf Mortgage Company, but, if injured at all, was employed by and working for the Gulf Building Company; that G. A. Harding, president of the Gulf Mortgage Company, reported appellee’s injuries to the Industrial Accident Board, as having been received in the course of his employment by the Gulf Mortgage Company, and, relying upon the truth of this report, paid appellee 3 weeks’ compensation, but, upon ascertaining [158]*158that appellee was not in fact employed by or working for the Gulf Mortgage Company, but instead was in tbe service, of tbe Gulf Building Company, appellant notified tbe Industrial Accident Board that it would discontinue payments.

Tbe case went to a jury on special issues, and their answers .are to tbe effect that on June 18, 1928, while employed by tbe Gulf Mortgage Company, appellee sustained accidental injuries in tbe course of employment, resulting in bis being permanently incapacitated; that bis average daily wage during tbe year immediately preceding tbe 'date of bis injuries was $7.50 per day; and the jury also found facts fully justifying the rendition of a lump sum judgment in bis favor.

Upon these findings tbe court rendered judgment for appellee for $4,255.90, with interest, also in favor of White & Yarborough, bis attorneys, for $2,127.95, with interest, from which this appeal is prosecuted, and by appropriate assignments, based on tbe refusal of tbe court to instruct a verdict in its favor, the refusal of- tbe court to sustain objections urged to the submission of certain special issues, and tbe refusal of tbe court to set aside the verdict of the jury, appellant challenges the sufficiency of tbe evidence to sustain tbe verdict and judgment.

This contention presents tbe controlling question and challenges tbe sufficiency of the evidence to sustain tbe finding of tbe jury, to tbe effect, that appellee, when injured, was employed by and at work for tbe Gulf Mortgage Company.

Tbe rule universal, applicable here, is that jurors are tbe exclusive judges of facts, .the credibility of witnesses, and tbe weight to be given their testimony, and, in determining such a question, tbe evidence must be viewed in the light most favorable; to tbe verdict. We will therefore look no further than to see if tbe evidence, favorable to appellee, justified tbe submission, and warranted the findings of tbe jury; if so, tbe case must be affirmed. This inquiry will necessitate tbe marshaling of facts somewhat at length.

The Gulf Mortgage Company was chartered January 5, 1927, with authority to accumulate and loan money. Its charter was subscribed by G. A. Harding and M. I. Harris and their wives; tbe authorized capital stock being $10,000, which was subscribed by the husbands in tbe sum of $4,800 each, and by tbe wives in the sum of $200 each. Harding was president, Harris was secretary and treasurer, and tbe four constituted its board of directors. Tbe company, however, did not engage in tbe loan business at all, but contracted for and erected buildings and improvements, and in pursuit of this purpose employed appellee, a carpenter, who worked at intervals on jobs for which it bad contracts. On June 11, 1928 (Saturday), Mr. Harris, who employed labor and secured materials for tbe erection of buildings, called appellee over tbe telephone, stating in effect, that tbe Gulf Mortgage Company was speaking, that they bad subcontracted a job for the carpenter’s work on a bouse and wanted appellee to check tbe plans and figure tbe costs. Appellee figured on the job during Saturday and Sunday, and on Blonday following went to work as carpenter on a bouse 'being built for a Mr. Dean at 3410 Pondrom street, and also served as foreman and timekeeper on tbe job. At tbe time of this employment, appellee was ignorant of the existence of tbe Gulf Building Company, and did not ascertain this fact until after be was injured. On Monday, June 18, 1928, while at work, appellee fell from a defective scaffold, broke tbe bones at tbe elbow in bis left arm, injured bis bead, side, face, and bad several teeth knocked out.

At tbe time of this happening, tbe mortgage company held a compensation policy issued by appellant, effective for twelve months from October 11, 1927, tbe advanced premium, computed upon remuneration being paid employés by subscriber, was $33, and subject to adjustment monthly, the policy stipulating in this respect that, at all reasonable times during tbe policy period, appellant had the right to examine the books of tbe mortgage company to determine tbe amount of remuneration paid employés, and, if such examination revealed that tbe earned premium was greater than the advanced premium paid, tbe mortgage company was obligated to pay appellant the additional amount, but, if less, appellant was obligated to return to tbe mortgage company tbe unearned portion of tbe premium, but, in any event, it was entitled to retain the minimum premium of $33. There is evidence to the effect that appellant’s auditor visited tbe office and examined tbe books of tbe mortgage company for tbe purpose of adjusting tbe premium, as provided in tbe policy, and, as the policy was kept alive, we must assume that tbe auditor satisfied himself that tbe mortgage company continued to pay remuneration to employés.

Notices were duly served on tbe employer, tbe insurer, and tbe Accident Board, in regard to appellee’s injuries. The notice to the Accident Board was given by G. A. Harding, who, as president of tbe Gulf Mortgage Company, reported that appellee was injured in tbe course of bis employment with said company. Tbe Accident Board entered an order to tbe effect that tbe Gulf Mortgage Company was a subscriber to tbe Employers’ Liability Law, by virtue of a policy of compensation insurance carried with the Federal Surety Company (appellant), and bad in its employ J. S. Scott (appellee), who sustained injuries June 18, 1928, while engaged in tbe course of bis employment; that his average weekly wage was $46.15; thereupon awarded him tbe maximum sum of $20 per week for 200 weeks.

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Bluebook (online)
22 S.W.2d 157, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-surety-co-v-scott-texapp-1929.