Garsee v. Indemnity Ins. Co. of North America

47 S.W.2d 654, 1932 Tex. App. LEXIS 208
CourtCourt of Appeals of Texas
DecidedMarch 18, 1932
DocketNo. 2207.
StatusPublished
Cited by16 cases

This text of 47 S.W.2d 654 (Garsee v. Indemnity Ins. Co. of North America) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Garsee v. Indemnity Ins. Co. of North America, 47 S.W.2d 654, 1932 Tex. App. LEXIS 208 (Tex. Ct. App. 1932).

Opinion

O’QUINN, J.

On October 3, 1929, appellant was an em.ployee of the Gulf Refining Company at Port Arthur, Tex. Said company was a subscriber under the Texas Employers’ Liability Act (Vernon’s Ann. Civ. St. art. 8306 et seq.), ap-pellee being its insurance carrier. On said date, while in the course of his employment, appellant received an injury resulting in hernia. He was operated on at the expense of the insurance carrier, appellee, which operation was a success. Just before the operation was performed, appellant, at the request of W. Hilton Berger, agent and claim adjuster for appellee, entered into a compromise settlement agreement of his claim for compensation by which agreement appellee paid him the sum of $149.50. The compromise settlement was reduced to writing and submitted to the Industrial Accident Board of the state of Texas, and was by said board approved on or about October 13, 1929. Appellant filed this suit on November 12, 1930, in the county court at law of Jefferson county, to set aside said compromise agreement and settlement. For grounds of action, appellant alleged that said compromise agreement of settlement was obtained by fraud on the part of appellee’s said agent Berger.

As constituting fraud, appellant alleged in substance that said W. Hilton Berger represented to him:

(a) That he (Berger) wanted to settle appellant’s claim for compensation. That appellant was about to undergo a serious operation which might be successful, and might not, *655 due to appellant’s age. That the bill .for said operation would be large, and that appellee would have to pay it, and was not really able to do so. That it had a large number of similar bills to pay.

(b) That the sum of $149.50 was all that appellant was entitled to receive under the law, and that said sum was reasonable,, and it was right and proper for him to have said amount. That said siim was the usual, reasonable, and customary amount paid in such cases. That appellant is an old man, unable to read or write the English language or any other language, and unlearned in the matter of his rights to compensation, and had and placed confidence in the said Berger, agent of appel-lee. That said Berger is a shrewd, learned, and experienced insurance adjuster, all of which appellant knew, and knowing that said Berger was experienced and learned in such matters, and that said Berger knew the amount of compensation to which appellant was entitled, and then and there having and placing confidence in said agent, Berger, told said Berger that he (appellant) was placing such confidence and trjist in him, and expected him to.treat appellant right and to pay him all that he was entitled to receive. That said agent, Berger, deceived appellant, and took advantage of the trust and confidence so placed in him by appellant, and, instead of paying him compensation for a period of twenty-six weeks, to which he was entitled under the law, amounting to $471.75, which sum-of money the said Berger well knew He (appellant) was entitled to receive, he paid to appellant only the sum of $149.50, thus defrauding appellant out of the sum of $324.25. That he believed the statements relative to the compensation due him, made to him by said agent, Berger, and relied upon same, and but for the confidence he had in said Berger, and his belief in said Berger’s truthfulness and honesty, he would not have settled his claim for the said sum' of $149.50, all of which said Berger well knew.

(c) That, after said settlement was made, appellant was informed that said settlement was reduced to writing, and that he signed same by affixing his mark thereto some time in the month of October, 1929, and that shortly thereafter said settlement agreement was presented to and approved by the Industrial Accident Board of the state of Texas; that, at the time said settlement agreement was approved by said board, appellant did .not know, and had no way of knowing, that said agent of appellee, Berger, had perpetrated said fraud upon him,, and then still had and maintained his said confidence and trust in the truthfulness and honesty of the said Berger, and that it was long after said settlement agreement was made and approved by said Board, to wit, about the latter part of •December, 1929, that he discovered the fraud that had been perpetrated upon him, and that he immediately took steps to rectify same.

(d)That manifest injustice had been done him and hardship worked on him by and through the false and fraudulent representations made to him by said Berger, which said representations were known to be false by said Berger when he so made them, and were calculated to cheat and defraud appellant out of the compensation actually due him under the law; and that said settlement agreement should in all things be set aside because of said fraud, and judgment should be entered setting the same aside, together with the order of approval of same by said Board.

Appellant further alleged that he is a poor man, has no property, and depends solely upon his earnings for support of himself and family, and that he had spent the $149.50 paid him by appellee, and is not able to return same, but offered to allow said amount as a deduction against the amount he is actually entitled to recover; that, after discovering the fraud that had been perpetrated upon him, he filed with the Industrial Accident Board a motion to reopen his claim for compensation and to set aside said settlement agreement, which said motion was refused by said board on April 16, 1930. He then made the usual and necessary allegations for the recovery of compensation in suits of that character, and prayed for judgment setting, aside the settlement agreement, that same be held of no effect, and that he recover “all costs in this behalf expended, and for such other and further relief, general and special, at law and in equity, as he may show himself justly entitled to réceive.”

Appellee filed a plea in abatement urging that the court was without .jurisdiction to hear the case because:

(a) A compromise settlement-agreement had been executed by the parties, and said settlement approved by the Industrial Accident Board of the state of Texas, in November, 1929, and no appeal had been taken by appel-lee from said order of said board. That in March, 1930, appellant had filed motion with said board to set aside said order approving said settlement, which motion was in all things refused by said board on April 16,1930, and from which order of said board no appeal was taken, wherefore the court had no jurisdiction to hear the cause.

(b) Appellant’s petition failed to allege any facts which could be'used to ascertain the average weekly wage of appellee, and hence failed to show that a recovery, if one should be had, was within the jurisdiction of the court. Dismissal of the suit was asked.

Subject to its plea in abatement, appellee answered by general demurrer, several special exceptions, general denial, and specially denied certain allegations of appellant’s petition, not necessary to mention.

*656

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Johnson, A., Aplt. v. Wetzel, J.
Supreme Court of Pennsylvania, 2020
Abilene National Bank v. Fina Supply, Inc.
706 S.W.2d 737 (Court of Appeals of Texas, 1986)
General Accident Fire & Life Assurance Corp. v. Marker
298 S.W.2d 848 (Court of Appeals of Texas, 1957)
Associated Employers Lloyds v. Howard
288 S.W.2d 861 (Court of Appeals of Texas, 1956)
Squyres v. Christian
242 S.W.2d 786 (Court of Appeals of Texas, 1951)
Safety Casualty Co. v. McGee
127 S.W.2d 176 (Texas Supreme Court, 1939)
Stark v. Equitable Life Assurance Society of United States
285 N.W. 466 (Supreme Court of Minnesota, 1939)
Bankers Life & Loan Ass'n v. Pitman
115 S.W.2d 1008 (Court of Appeals of Texas, 1938)
Phipps v. American Nat. Ins. Co.
116 S.W.2d 800 (Court of Appeals of Texas, 1938)
Towns v. Traders & General Ins. Co.
107 S.W.2d 460 (Court of Appeals of Texas, 1937)
Safety Casualty Co. v. McGee
93 S.W.2d 519 (Court of Appeals of Texas, 1936)
Central Surety & Insurance Corp. v. French
72 S.W.2d 699 (Court of Appeals of Texas, 1934)
Texas Employers' Ins. Ass'n v. McCarty
60 S.W.2d 1069 (Court of Appeals of Texas, 1933)
Stratton v. Gulf Casualty Co.
53 S.W.2d 518 (Court of Appeals of Texas, 1932)
Commercial Standard Ins. Co. v. Lowrie
49 S.W.2d 933 (Court of Appeals of Texas, 1932)

Cite This Page — Counsel Stack

Bluebook (online)
47 S.W.2d 654, 1932 Tex. App. LEXIS 208, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garsee-v-indemnity-ins-co-of-north-america-texapp-1932.