Franz v. Sun Indemnity Co. of New York

7 So. 2d 636, 1942 La. App. LEXIS 434
CourtLouisiana Court of Appeal
DecidedApril 13, 1942
DocketNo. 17768.
StatusPublished
Cited by27 cases

This text of 7 So. 2d 636 (Franz v. Sun Indemnity Co. of New York) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Franz v. Sun Indemnity Co. of New York, 7 So. 2d 636, 1942 La. App. LEXIS 434 (La. Ct. App. 1942).

Opinion

This is a suit for compensation under the Louisiana Workmen's Compensation Law, Act 20 of 1914, as amended. The defendant is Sun Indemnity Company of New York, the liability and workmen's compensation insurance carrier of Pat J. McMahon-Coburn Company, Inc., a corporation engaged in business in New Orleans as undertakers, morticians and operators of a funeral home.

Plaintiff's husband was president of this corporation, his salary being $105 per week. In addition to his executive duties he was what is known as a funeral director, and in this latter capacity was required to attend funerals and to direct or assist in the loading and unloading of caskets to and from hearses, and he was especially required to operate an automobile, and by means of it, whenever he "directed" a funeral, to precede the funeral cortege from the home to the church and from the church to the cemetery, and, of course, to return from the cemetery after the burial.

The McMahon-Coburn Company owned and operated in its business seven passenger automobiles in addition to one hearse, one ambulance and one "dead wagon", all propelled by gasoline motors and all stored, greased, supplied with gasoline and oil and repaired on the property of the company and by its employees.

The accident from which the death of McMahon resulted occurred on the premises of the employer corporation just after McMahon had returned from lunch, and as he stepped to the ground from the automobile which he had himself driven. He sustained a skull fracture and other injuries from which his death resulted.

It is the contention of defendant insurer that there is no liability in compensation for the reason that the employer corporation was not and is not engaged in one of the occupations within the purview of the statute, the undertaking business and the operation of establishments known as funeral homes not being therein set forth by name and not having previously been judicially declared to be hazardous, and the special contention is made that the operation of automobiles is not so closely identified with nor necessary in that business as to permit it to be said that those engaged therein are engaged in the operation of automobiles.

Plaintiff, on the other hand, maintains that though the business of operation an undertaking establishment is not expressly mentioned in the act, still the operation of automobiles in that business is so necessary to its success as to justify the conclusion that such automobiles are indispensable and that thus the said business must properly be characterized as the operation of machinery since automobiles should be classified as machines and since the operation of machines is expressly and in terms brought within the contemplation of the compensation statute. Plaintiff further maintains that the employer corporation is within the coverage of the act for additional reasons; because large quantities of gasoline are stored on the premises and because the automobiles mentioned are greased and repaired on the premises and by company employees.

Plaintiff makes the further contention that even if it should be held that as a matter of fact the employer corporation is not engaged in an occupation contemplated by the statute, nevertheless the compensation insurance carrier is liable for the reason that it has accepted a premium for the issuance of a policy, one feature of which affords protection against liability for compensation and, having accepted such premium, cannot be heard to contend that under no circumstances could the employer corporation be liable in compensation.

In his reasons for judgment, the district judge said: "* * * the business of undertaker or mortician is hazardous because of the contact of employees with the bodies of those who died of contagious disease, and because of the necessary use of the dangerous instrumentality the automobile, the hearse, or the ambulance * * *".

The judgment was for plaintiff for $20 per week for 300 weeks for herself and 2 children under 18 years of age. The judgment also included $90.65 for hospital, medical and similar expenses, and $150 for costs of burial.

Defendant has appealed.

If by the issuance of a policy in which it agreed to indemnify the employer corporation against loss due to liability for compensation and by the acceptance of a premium therefor the insurer estopped itself to contend that the employer, because of the nature of its business, could not be liable in compensation, then that is an end of the entire matter so we should first consider that contention, which is in the nature of a plea of estoppel. In the first *Page 639 place, it should be noted that in the policy there is no clause or stipulation which in any sense imposes on the insurer any liability other or greater than that which by law could be imposed upon the employer. The policy is simply an agreement that if the employer becomes liable in compensation to an employee, or to his dependents, the insurer will assume that liability. It is true that it does contain a stipulation that the insurer will make payment directly to the employee or to his dependents and that the employee or his dependents may sue the insurer directly and without the necessity of making the employer a defendant. But this stipulation results from the law which gives these rights where there is a policy and which provides that though no insurance need be obtained by the employer, if it is secured, the insurer must make itself liable directly to the employees provided there is liability in the employer. These stipulations do not in any way nor does the law in any way create against the insurer a cause of action where none exists against the employer. And we know of no reason which would justify the view that the acceptance of a premium operates as an estoppel and prevents the insurer from contending that there can be no liability. It may well be that the nature of a business is such that its operator and the insurer may both feel reasonably certain that it is not within the contemplation of the workmen's compensation statute, and yet that there is a possibility that the courts may differ from them if and when a claim in compensation arises. Why, under such circumstances, should the employer not be permitted to make certain of his own protection by purchasing insurance without, by so doing, cutting off from the insurer the right to make the defense which both think is perfectly sound; that the employment is not hazardous? The statute itself contemplates that no such estoppel shall result for it provides that even the furnishing of medical service or the making of payments by the employer or by the insurer shall not constitute an admission of liability: "Neither the furnishing of medical services nor payments by the employer or his insurance carrier shall constitute an admission of liability for compensation under this Act." Sec. 4408, Par. 5, p. 384, Dart's Louisiana General Statutes, Vol. 3, Act No. 20 of 1914, § 18, subd. 5, as amended by Act No. 85 of 1926.

It will be noted that there is no limitation in this provision. Even after the furnishing of medical services or even after the making of a payment the employer or the insurer may still set up as a defense any contention; even that, because of the nature of the employer's business, the employer is not within the contemplation of the statute. In Benjamin v. Standard Accident Insurance Co. of Detroit, 152 La. 874, 94 So. 428, 429, the Supreme Court expressed the view that the issuance of a policy does not make the insurer liable unless the employer could have been held. That was a suit under this statute. It was held that the business of that employer was not hazardous.

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7 So. 2d 636, 1942 La. App. LEXIS 434, Counsel Stack Legal Research, https://law.counselstack.com/opinion/franz-v-sun-indemnity-co-of-new-york-lactapp-1942.