Gaiennie Co. v. Chisolm

3 La. App. 358, 1926 La. App. LEXIS 332
CourtLouisiana Court of Appeal
DecidedJanuary 4, 1926
DocketNo. 9090
StatusPublished
Cited by7 cases

This text of 3 La. App. 358 (Gaiennie Co. v. Chisolm) 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
Gaiennie Co. v. Chisolm, 3 La. App. 358, 1926 La. App. LEXIS 332 (La. Ct. App. 1926).

Opinion

BELL, J.

The appeal in this case is from a judgment maintaining an exception of no cause of action. At the hearing on appeal, counsel for all parties to the appeal submitted the following written admissions:

“It is admitted that Gaiennie & Co., Ltd., were sub-contractors of Chisolm & Company, who was the general contractor; and it is further admitted all questions of misjoinder and nonjoinder are waived, and the only question to be decided is whether a general contractor can be considered as a third person under the provisions of Sections 6 and 7 of the Compensation Act.”

It was also admitted in argument by counsel for plaintiffs and appellants that the exception of no cause of action was properly maintained as to the co-plaintiff, the Union Indemnity Company. (Bouchon vs. Southern Surety Company, et al., 151 La. 503, 91 South. 854.) The parties before this court are, therefore, Gaiennie Co., Ltd., as plaintiff and appellant, and John O. Chisolm as defendant and appellee.

Prom the foregoing admissions amplifying the allegations of the petition as filed, the case is presented under facts as follows:

On June 30, 1920, while defendant, John O. Chisolm, as general contractor, was erecting the Delgado Trade School in the city of New Orleans, and while plaintiff, Gaiennie Co., Ltd., as sub-contractor, was installing the plumbing in the building, William Shiel, a pipefitter, working for plaintiff, sustained physical injuries for which he sought and obtained compensation under the Employers’ Liability Act in the sum of $363.04. This amount was1paid him by the Union Indemnity Company,, carrying compensation insurance for account of plaintiff.

On May 13, 1921, plaintiff and the Union Indemnity Company filed these proceedings, alleging, in their petition, that the suit was brought against defendant as a third party under the provisions of the Employers’ Liability Act, and that plaintiffs were “entitled, as subrogees, to receive $10,000.00 damages by reason of the injuries received by the' said Shiel”; that they were further entitled to deduct from the amount of damages here claimed the aforementioned sum of $363.04, which the Union Indemnity Company had paid Shiel, “and to turn over the balance to William Shiel, for whose use and benefit the law authorizes this suit to be brought”. Charging the defendant with acts of gross negligence, detailed by averments which could not be here noted, plaintiffs prayed for judgment in the above amount.

At the time of the accident the Compensation Law, particularly Section 7, upon which appellant specially relies and which was amended by Act 38 of 1918, read as follows:

“That when an injury for which compensation is payable under this act shall have been sustained under circumstances creating in some other person than the employer a legal liability to pay damages in respect thereto, the injured employee or his dependent may, at his option, either claim compensation under this Act, or obtain damages from or proceed at law against such other person to recover damages; and if compensation is claimed and [360]*360awarded under this act, an employer having paid the compensation or having become liable therefor shall be subrogated to the rights of the injured employee or his dependent to recover against that person, and may compromise the claim therefor in his discretion; provided, if the employer shall recover from such other person damages in excess of the compensation already paid or awarded to be paid under this Act, then any such excess shall be paid to the injured employee or his dependent, less the employer’s legitimate and reasonable expenses and costs of tjb.e action, which payment shall be credited upon the balance of compensation, if an!y, that may become due thereafter.”

It is argued, on behalf of appellant, that the foregoing provisions of the Act constitutes the defendant “some other person than the employer” of the “injured employee”, Shiel, and that defendant is consequently a “third person” within the intendment of the Act, and is a party from whom damages ex delicto may be recovered in excess of the compensation already recovered by Shiel. It is further contended that, under this same section of the Act, appellant, as the immediate employer of Shiel, is legally subrogated to Shiel’s action not only for the compensation already received by Shiel, but also for damages, which, when recovered by appellant, shall be payable by him to Shiel after deduction of two items, to-wit: The amount of compensation already received by Shiel and also reasonable expenses and costs of this action.

On the other hand, it is contended by appellee that the rights and liabilities of the ■ parties are controlled by the provisions of Section 6 of the Act, and not by those of Section 7, on which latter section the suit is predicated, under erroneous conclusions that the defendant is a . third party tort feasor. It is accordingly argued for defendant that:

1.Appellant's only right by way of legal subrogation would have been by suit for recoupment of such compensation as appellant has paid to his employee, Shiel.

2. That appellant, as subrogee of Shiel for recovery of compensation paid Shiel, can have no greater right than Shiel, his subroger.

3. That Shiel, as an employee of appellant, the sub-contractor in this. case, has no right of action ex delicto against appellant’s principal or general contractor, inasmuch as the only right of action which Shiel has is for workman’s compensation, which he, at his option, may have asserted against either appellant, his immediate employer, or against the defendant, his principal employer.

The foregoing contentions appear to us to be well founded, for the following reasons:

Sheil, having elected to accept compensation from his immediate employer, has, under Section 34 of the Act, exhausted his rights and remedies, for it is provided in said section as follows:

“That the rights and remedies herein granted to an employee or his dependent on account of a personal injury, for which he is entitled to compensation under this Act, shall be exclusive of all other rights and remedies of such employee, his personal representatives, dependents, relations or otherwise, on account of such an injury.”

It therefore follows that appellant could not be legally subrogated to an action ex delicto, his subroger being barred from such action because of his electing to seek relief by way of compensation.

In Helton vs. Tall Timber Lumber Co., 148 La. 180, 86 South. 729, it was held that under the Compensation Act one employing an independent contractor is liable only for' workmen’s compensation in the case of one working for the contractor, if the workman was an employee and not himself an independent contractor.

[361]*361If Shiel, the injured employee, had seen fit to seek compensation, as he could have done, directly from the principal or general contractor rather than from his immediate employer, the sub-contractor. Chisolm, the general contractor, could have called, the immediate contractor (appellant herein) to defend the suit; or had Chisolm paid compensation to Shiel, Chisolm would have had a cause of action against appellant for reimbursement, all in conformity with Sections 2 and 4 of the Act.

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Bluebook (online)
3 La. App. 358, 1926 La. App. LEXIS 332, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gaiennie-co-v-chisolm-lactapp-1926.