Galloway v. Employers Mutual of Wausau

286 So. 2d 676
CourtLouisiana Court of Appeal
DecidedMarch 1, 1974
Docket5632
StatusPublished
Cited by24 cases

This text of 286 So. 2d 676 (Galloway v. Employers Mutual of Wausau) 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
Galloway v. Employers Mutual of Wausau, 286 So. 2d 676 (La. Ct. App. 1974).

Opinion

286 So.2d 676 (1973)

Cavell GALLOWAY
v.
EMPLOYERS MUTUAL OF WAUSAU et al.

No. 5632.

Court of Appeal of Louisiana, Fourth Circuit.

November 30, 1973.
Rehearing Denied January 8, 1974.
Writ Refused March 1, 1974.

*678 Francipane, Regan & St. Pee, Chester Francipane, Metairie, for Employers Mutual of Wausau, Jack Wilson and Walter Morton.

Badeaux, Discon & Cumberland, J. Michael Cumberland, New Orleans, for plaintiff-appellee.

Beard, Blue, Schmitt & Treen, A. J. Schmitt, Jr., R. M. Johnston, New Orleans, for Luther-Bowers, defendant-appellant.

Before SAMUEL, J., and CONNOLLY and DURAN, JJ. Pro Tem.

MELVIN J. DURAN, Judge Pro Tem.

This is a third party tort action. The plaintiff, Cavell Galloway, was employed by W & A Engineers, Inc. as a machinist. Within the course and scope of his employment, he was involved in an accident that resulted in the traumatic amputation of his entire penis. This lawsuit is against Jack A. Wilson, Walter Morton and Luther Bowers, as executive officers of W & A Engineers, Inc. and against their liability insurer, Employers Mutual of Wausau. There was a trial by jury, with a verdict of $200,000.00 in favor of the plaintiff. It was admitted by the defense that Wilson and Morton, President and Vice-President respectively of W & A were executive officers of that corporation. It was denied that Bowers was an executive officer. The question of whether Bowers was an executive officer within the terms of the insurance policy was tried by the judge alone, and his judgment was in the affirmative. All other issues were tried by the jury.

The appellants are: Employers Mutual of Wausau, Jack A. Wilson and Walter Morton. The appellees, filing separate briefs and represented by different counsel are: Cavell Galloway and Luther J. Bowers. (Employers Mutual, without prejudice to its position, defended for Bowers in the trial court). We affirm the judgment of the trial judge alone, and we affirm the jury verdict and the judgment rendered thereon.

We delayed our decision in this matter because, at the time of oral argument, there was pending in the Louisiana Supreme Court the hearings on two other cases which are determinative of the major issues in this case. These cases, more fully discussed later, are Canter v. Koehring Co., La., 283 So.2d 716 and Fontenot v. Insurance Company of America, La., 283 So.2d 733.

It should likewise be noted that the U.S. Fifth Circuit Court of Appeals Decision in Strickland v. Transamerica Insurance Co., 481 F.2d 138, though rendered July 3, 1973 had not been published when we heard this case. Finally, on August 31, 1973, the Louisiana Supreme Court denied writs in Hall v. Hartford Accident & Indemnity Co., 281 So.2d 753. All of these cases, especially Canter and Fontenot, weighed heavily in our consideration of this case.

In almost all of these third party tort actions, (we say almost rather than all because of the possibility that we may have missed one or two), there are perennially presented to the appellate courts five major issues, to wit:

(1) Was the immediate "boss of the operation" an executive officer of the company?

*679 (2) Did that "immediate boss" owe a duty to the injured man of providing him with safe equipment and safe working conditions?

(3) What should have been taken into consideration in determining whether there was a negligent breach of that duty?

(4) Was the injured employee contributorily negligent?

(5) What weight should be given to the trial court's determination of these four preceding issues of fact?

The situation is no different on this appeal. We will address ourselves to these issues, but not in the order in which they appear hereinabove.

Issues No. 1 and No. 5

Issue No. 1 is present only in those cases wherein there is an insurance company defendant. The determination of this issue is important because of the plaintiff's necessity to include the individual among the insureds who are protected by the policy insuring "executive officers." While it is true that our law does permit these third party tort actions to be brought against fellow employees who are Not Covered by insurance, the truth of the matter is, no such case has reached the appellate courts to our knowledge. Perhaps the plaintiffs' theoretical considerations here weigh more heavily than do the theoretical fears of those who anticipate "disaster" for the fellow employee to be casted. Are we allowed to make a presumption here? If so, may we not reasonably presume that the closeness between fellow employees prevents them from suing one another when there is no insurance shield? Are they really fighting one another in these cases? Witness Bowers' position on this appeal wherein he casts himself as an appellee, asks that we affirm the judgment holding him to be an executive officer. Does not our law permit a judgment to be in an amount commensurate with the defendant's ability to pay?

It can serve no useful purpose here to recite All of the facts upon which the trial court concluded that Luther Bowers was an executive officer, since they are peculiar to this case alone. Suffice it to say, we have reviewed the voluminous record sent up to us and we are prepared to say that had the trial judge not found Bowers to be an executive officer of W & A, we would then have found reversible error. That corporation's entire business activity, the day-to-day management of its corporate business, its purpose for existence was placed entirely in the hands of three men: (1) Wilson, its President (admittedly an executive officer) whose managerial responsibilities included design, some sales, financing, engineering and job bidding; (2) Morton, Vice-President in charge of general office operations and supervision, customer relations and some sales (also admittedly an executive officer) and (3) Bowers, whose title was "shop foreman" but whose functions and responsibilities far exceeded his title. He had under his management and direct control the entire production of the company; the supervision, hiring and firing of everyone in the plant itself (some thirty men). Without the products manufactured and produced under the full and complete authority of Bowers, Wilson and Morton would have had difficulty justifying their existence; would have had nothing to bid for, nothing to finance, nothing to sell, no need for customers, engineering or designing. Noteworthy in their appeal is the appellants' argument (on another point) that neither Wilson nor Morton were even present at the company's place of business when the plaintiff was injured. Bowers, third in command, was therefore left in full and complete charge of the entire operation. His only two superiors were Wilson and Morton, all facts firmly established by the record.

In disposing of Issue No. 5, we need go no further than Justice Tate did in the *680 Canter decision, where he so succinctly states:

"When there is evidence before the trier of fact which, upon its reasonable evaluation of credibility, furnishes a reasonable factual basis for the trial court's finding, on review the appellate court should not disturb this factual finding in the absence of manifest error.

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286 So. 2d 676, Counsel Stack Legal Research, https://law.counselstack.com/opinion/galloway-v-employers-mutual-of-wausau-lactapp-1974.