Fox v. Swartz

36 N.W.2d 708, 228 Minn. 233
CourtSupreme Court of Minnesota
DecidedApril 8, 1949
DocketNo. 34,787.
StatusPublished
Cited by14 cases

This text of 36 N.W.2d 708 (Fox v. Swartz) 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
Fox v. Swartz, 36 N.W.2d 708, 228 Minn. 233 (Mich. 1949).

Opinion

Loring, Chief Justice.

Plaintiff appealed from an order denying his motion for a new trial after the court had granted defendants’ motion for judgment on the pleadings. 2 He was an employe of defendant Freda Swartz, d. b. a. The Flame, located in Minneapolis. He brought this suit against her and her surety, under M. S. A. 340.95, the civil damages section of our liquor control act, for injuries suffered when defendant’s manager, in a drunken condition, assaulted him.

From the pleadings, it appears that plaintiff has twice previously sought relief for the same injury. First, he sued Freda Swartz and Joseph Swartz, the bar manager, and recovered a verdict against Joseph for $1,000. The trial court directed a verdict for Freda, taking the view that her liability, if any, was under the workmen’s compensation act. A motion for new trial was denied, and no appeal was taken. Second, he brought a proceeding against this defendant under the workmen’s compensation act. The industrial commission held that plaintiff was an employe of Freda Swartz and that he had suffered an accidental injury which arose out of and in the course of his employment. It made an award to plaintiff against Freda, covering direct medical and hospital expenses; costs of bringing the compensation action; compensation for the period of disability incidental to further surgical and hospital care; and such further surgical and hospital care as he might require.

*235 Plaintiff alleged in this action (his third) that Joseph Swartz, husband of Freda, was in the employ of Freda as a general manager in supervision of a tavern licensed to sell liquor and that Joseph, while in an intoxicated condition caused by the illegal dispensing of liquor after hours and while still under the direction of Freda, assaulted plaintiff and injured him severely.

The question presented now for the first time is whether the legislature, in enacting the amendments making the workmen’s compensation act compulsory, intended to make its provisions exclusive of the statutory remedy created under the civil damages section of the liquor control act, § 340.95, insofar as injuries arising out of and in the course of employment are concerned.

Where an employe has been assaulted by a fellow worker, a foreman, or a third party in the course of his employment, it has been held that the injury is compensable under the workmen’s compensation act. In State ex rel. Anseth v. District Court, 134 Minn. 16, 158 N. W. 713, L. R. A. 1916F, 957, a bartender employed in a saloon was struck in the eye by a drinking glass thrown by a drunken patron of the saloon. This was held to have been an injury arising out of the employment. In Hinchuk v. Swift & Co. 149 Minn. 1, 182 N. W. 622, the court considered a number of authorities where compensation was allowed when one employe had been injured or killed because of the wilful act of another employe, 3 and it held that there was liability under the act where there was some relationship between the injury and the work or employment pursued.

Under the workmen’s compensation act, as amended by L. 1937, c. 64, the employe’s right to elect not to be bound by the act theretofore existing was abolished as to contracts thereafter arising. § 176.02. The same amendments require every employer under the act to pay compensation in every case of personal injury of his employe “caused by accident arising out of and in the course of the *236 employee’s employment * * § 176.02. The liability imposed by §§ 176.02 and 176.03 is made the employer’s exclusive liability by § 176.04:

a* -* * jn the place of any other liability to such employee, his personal representative, surviving spouse, parents, child or children, dependents or next of kin, or any other person entitled to recover damages at common law or otherwise on account of such injury or death, * * (Italics supplied.)

In Breimhorst v. Beckman, 227 Minn. 409, 35 N. W. (2d) 719, these provisions were construed in a case involving the issue of whether an employe who in fact had sustained compensable injuries from an accident could bring a common-law action in tort for serious permanent disfigurement resulting from the accident, but which did not materially affect her employability and therefore could not be compensated under the act. This court held that where plaintiff sustained certain injuries which were in fact covered by the. workmen’s compensation act the remedies under that act were exclusive of her common-law remedies for the employer’s negligence and tort. In sustaining the constitutionality of this amendment of the act as based on the inherent police power of the state, the court said (227 Minn. 436, 35 N. W. [2d] 735) :

“By the weight of authority, it is recognized that compulsory workmen’s compensation acts similar to ours do provide a remedy which is an adequate substitute for the common-law or statutory action for damages for injuries sustained by an employe in his employment. Although the plaintiff, by becoming subject to the workmen’s compensation act as an employe, has lost a right to sue at law for all damages incurred from injuries resulting from her employer’s negligence, she has been fully compensated for this loss by receiving in return a remedy which gives her a certainty of compensatory relief, without the delay of litigation and without regard to any negligence or assumption of risk on her part.”

A comparison of the provisions of § 176.04 of the workmen’s compensation act with | 340.95, the civil damages section of the liquor *237 control act, shows that in enacting the workmen’s compensation act. the legislature considered precisely the same interests as those protected by the civil damages section. Thus, the workmen’s compensation act expressly substitutes its contractual liability arising out of the employment relation for any other liability to such employe, his dependents, or any other person entitled to recover damages at common law, or otherwise, on account of such injury or death. The civil damages portion of the liquor control act likewise created a special cause of action to “Every husband, wife, child, parent, guardian, employer, or other person” injured by an intoxicated person to whom liquor had been illegally dispensed. 4 An action to recover damages for illegal sale, under the liquor control act, is not for a tortious wrong known at common law, but is a means of enforcing the penalty imposed on the dealer by statute, ordinance, and his own contract. 5

Section 340.95, in its present form, was on the statute books long before L. 1937, c. 64, was enacted. Since the workmen’s compensation act is mandatory and clear in its purpose and specifically covers the relationship of master and servant to the exclusion of any liability .at common law, or otherwise, the compensation act should be construed as superseding § 340.95 and excepting from its terms injuries arising in the master-and-servant relationship covered by the compensation act. 6

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Bluebook (online)
36 N.W.2d 708, 228 Minn. 233, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fox-v-swartz-minn-1949.