Federal Underwriters Exchange v. Read

158 S.W.2d 767, 138 Tex. 271, 1942 Tex. LEXIS 333
CourtTexas Supreme Court
DecidedFebruary 4, 1942
DocketNo. 7783.
StatusPublished
Cited by13 cases

This text of 158 S.W.2d 767 (Federal Underwriters Exchange v. Read) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Federal Underwriters Exchange v. Read, 158 S.W.2d 767, 138 Tex. 271, 1942 Tex. LEXIS 333 (Tex. 1942).

Opinion

Mr. Judge Hickman

delivered the opinion of the Commission of Appeals, Section A.

In the trial court Richard Read, the employee, recovered judgment against Federal Underwriters Exchange, the insurer, for compensation under our Workmen’s Compensation Law, *273 Article 8306 et seq., and that judgment was affirmed by the Court of Civil Appeals. 142 S. W. (2d) 440.

By its first group of assignments, the insurer called into question the action of the trial court in permitting the employee to have the case reinstated on the docket of that court after he had voluntarily discontinued same in vacation and paid up all court costs, accrued therein. It is made to appear by the record that the Industrial Accident Board made its award on June 12, 1939. The employee was not willing to abide by the ruling of the Board, and on or about June 30th thereafter mailed notice of that fact to the Board. On July 1st he instituted a suit in the proper court to set aside the award and to recover compensation. Thereafter he received notice from the Board that his notice of intention to appeal from its award had been received and filed on July 3, 1939. Concluding that his notice was filed too late, he, on July 6th, in vacation, paid all costs that had accrued and caused entry of discontinuance to be made on the docket of the trial judge, no answer having been filed by the insurer. The insurer gave notice of its dissatisfaction with the award but did not file any suit. On August 16, 1939, the employee filed suit to mature the award made by the Board as provided in Article 8307, Section 5a. Shortly thereafter he learned that his notice of dissatisfaction with the award had been received by the Industrial Accident Board in time to give the court jurisdiction of his original suit; whereupon he filed in the same court a motion to reinstate the original cause. That motion was granted and the case tried on its merits, resulting in a judgment in favor of the employee as noted above.

Under the provisions of Article- 8307, Sec. 5, the employee’s time for filing notice that he would not abide by the ruling and decision of the Board expired on July 2nd, 1939, twenty days after the award was made. It is stipulated that July 2nd, 1939, fell on Sunday. When the employee received notice from the Board that his notice had been received and filed on July 3rd, he concluded that same was filed too late to confer jurisdiction upon the court. By an Act of the 45th Legislature, at its 2nd Called session, Chapter 9, Sec. 1, there was added to Article 8307 a section brought forward in Vernon’s Statutes as Section 5b, providing that “in computing the twenty (20) days for the filing with the Board notices of unwillingness to abide by the final ruling and decision of the Board, * * * if the last day is a legal holiday or is Sunday, then, and in such case, such last day shall not be counted, and the time shall be and the *274 same is hereby extended so as to include the next succeeding business day.” That amendment to the statute was effective at the time the employee’s notice was filed with the Board, but his attorney did not know that same was. in existence, and that is the only reason why he caused the notice of discontinuance to be entered on the docket and the costs to be paid.

Based upon the foregoing facts, the insurer urges, (1) that the court was without jurisdiction to reinstate the case; (2) that if it had jurisdiction, same could be invoked on equitable grounds only, which grounds were neither pleaded nor proved by the employee; and (3) if the motion to reinstate and the proceedings had thereon were sufficient to constitute the commencement of a new suit, same were insufficient to give the court jurisdiction because they were begun more than twenty days after July 3rd, the date the employee filed his notice of appeal with the Board.

These conclusions will not be questioned: (1) Under the amended statute above referred to, the notice of appeal was filed in time, and by the filing of the suit the trial court acquired jurisdiction of the suit for compensation. (2) Since jurisdiction of the case was acquired by the court, an action to mature the award did not lie. Article 8307, Sec. 5a; Zurich General Accident & Liability Ins. Co. v. Rodgers, 128 Texas 313, 97 S. W. (2d) 674; Texas Reciprocal Ins. Ass’n. v. Leger, 128 Texas 319, 97 S. W. (2d) 667. (3) If the motion to reinstate be treated as the commencement of a suit, the court acquired no jurisdiction of the case- because such motion was filed more than twenty days after the employee gave notice of appeal. (4) If the court was without jurisdiction to grant his motion to reinstate, then the employee has no remedy and has suffered the loss of his claim entirely.

Article 2089, R. S. 1925 provides:

“The plaintiff may enter a discontinuance on the docket in vacation, in any suit wherein the defendant has not answered, on the payment of all costs that have accrued thereon.”

The insurer contends that the order of dismissal having been entered before an answer was 'filed, the court had no authority under that article to reinstate the case upon the motion of the employee. Two cases by courts of civil appeals are cited in support of the contention. Hutchinson v. Hamilton, *275 234 S. W. 417; Werner v. Kasten, 26 S. W. 322. We do not find it necessary to discuss those cases further than to note that neither was a compensation case and in neither was the motion to reinstate made by the party who caused the order of discontinuance to be entered. But whatever might be the rule in ordinary cases, we think it has been well established that the rule insisted upon has no general application in a compensation case. The effect of the filing of a suit in a workmen’s compensation case in the proper court is to set aside the award of the Industrial Accident Board, and if an insurer were permitted to set aside the award by the mere filing of a suit and then effectively to dismiss the suit so that the employee would be without remedy, an intolerable injustice would result. Texas Reciprocal Ins. Ass’n. v. Leger, supra. The statute has not been construed as a limitation upon the power of courts to prevent such an injustice. In the case last cited Justice Sharp wrote: “The law does not sanction such a principle, and such procedure would not be tolerated.” In National Indemnity Underwriters v. Shelton, 115 S. W. (2d) 1140, Justice Murray observed, “It is clear that Article 2089 above does not apply in its broad sense to Workmen’s Compensation cases.”

It was held in Texas Employers Ins. Ass’n. v. Miller, 137 Texas 449, 154 S. W. (2d) 450, that a contract of settlement entered into by an employee and the insurer while the case was pending in the trial court was not binding upon the employee until approved by the court even though voluntarily entered into by him without the taint of fraud or other vice in its procurement. Had the employee in this case contracted with the insurer to settle his claim and cause a discontinuance to be entered on the docket, such contract would not have been binding upon him until approved by the court. Having the authority to disregard the contract, it follows that the court should not be denied the authority to set aside the order entered in pursuance thereof.

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Bluebook (online)
158 S.W.2d 767, 138 Tex. 271, 1942 Tex. LEXIS 333, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-underwriters-exchange-v-read-tex-1942.