Globe Indemnity Co. v. Toye Bros. Auto & Taxicab Co.

129 So. 234, 14 La. App. 142, 1930 La. App. LEXIS 432
CourtLouisiana Court of Appeal
DecidedJune 16, 1930
DocketNo. 13,206
StatusPublished
Cited by1 cases

This text of 129 So. 234 (Globe Indemnity Co. v. Toye Bros. Auto & Taxicab Co.) 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
Globe Indemnity Co. v. Toye Bros. Auto & Taxicab Co., 129 So. 234, 14 La. App. 142, 1930 La. App. LEXIS 432 (La. Ct. App. 1930).

Opinion

HIGGINS, J.

This is a suit by an insurance company to recover damages from a third person for the amount it paid as compensation to an injured employee who sustained injuries as the result of the negligence of the third person.

The defenses are as follows:

First, that the petition does not disclose a cause or right of action.

Second, that there is a nonjoinder of parties plaintiff, or defendant.

Third, that the plaintiff has failed to prove its case.

Fourth, that the defendant was not negligent in the operation of its cab, and that La Barbera, the injured employee, was guilty of contributory negligence which was the proximate cause of the accident.

There was ' judgment in favor of the plaintiff as prayed for, i. e., nine weeks’ compensation at $19.50 a week paid to the injured employee and $94.10 for medical bills or a total of $269.60. Defendant has appealed.

The record shows that Anthony La Barbera was employed by S. P. Daroea, who operates a garage business in the city of New Orleans; that on January 18, 1925, at 1:30 o’clock a. m., Daroea sent La Barbera to tow in a wrecked automobile on Frenchmen street near the intersection of North Tonti street. La Barbera drove to the scene of the accident in the truck, or wrecker, and parked it in front of the disabled automobile and then stepped between the two cars for the purpose of hooking the chains to the wrecked automobile in order to tow it in. There was an electric light with a reflector attached to the top of the crane which was used to hoist up wrecked automobiles in order that they might be towed in. This light was focused on the wrecked automobile and there was also another light oh the side of the machine. While La Barbera was in this position between the automobiles, which were facing towards the lake on Frenchmen street, a Yellow cab driven by one of the defendant’s chauffeurs, proceeding out Frenchmen street in the direction of the lake, struck the rear of the wrecked automobile, forcing it forward and jamming La Barbera between the wrecked automobile and the truck. La Barbera was rendered unconscious, sustained a broken leg, broken arm, and three fractured ribs, which disabled him for a period of nine weeks. He was immediately taken to the hospital in the taxicab. The cab, after striking the wrecked automobile, ran some 150 feet to the corner, where it stopped. Daroea was insured against such loss with the plaintiff insurance company, which paid La Barbera nine weeks’ compensation at $19.50 per week, being 65 per cent of his wages, and also paid medical bills amounting to $94.10, or a total of $269.60.

The compensation insurance policy contained the following provision:

“The Company shall be subrogated in case of any payment under its policy to the extent of such payment to all rights of recovery therefor vlested by law either in [144]*144this employer or in any employee, or his dependents claiming hereunder against persons, corporations, associations or societies.”

Daroca also made a' conventional assignment and subrogation to the plaintiff of any claims or rights or causes of actions against the defendant as a result of the injuries sustained by La Barbera in the accident, and particularly any rights or causes of actions in favor of the employer, Daroca, under Act No. 20 of 1914.

In support of the exception of no right or cause of action, counsel for the defendant contends:

(a) That an insurance company that issues a policy covering liability under the compensation law has no direct right of action against a third person, under article 2315, Rev. Civ. Code, to recover damages to the amount of compensation paid to an injured employee who was hurt through the negligence of a third person.

(b) That an insurer has no right of legal subrogation, under the Compensation Law or Employers’ Liability Act, at the time of the accrual of the. alleged cause of action in January, 1925, or under articles 2159-2161, Rev. Civ. Code, to the employer’s right to collect damages for the compensation paid to the employee on account of personal injuries negligently inflicted by a third person upon the employee.

(c) That at the time of the accident an insurer was barred from the right of conventional subrogation to the rights of the employer to collect damages for compensation paid from third persons who negligently inflicted injury on the employee, -because paragraph 1 of section 22 of Act No. 20 of 1914 expressly provides that such claims, or payments, shall not be assigned.

(d)That the conventional assignment was without serious or adequate consideration because it was made for “the sum of $10.00 and other consideration.”

We shall discuss all these points in their order.

We find it unnecessary to decide the first two issues raised by counsel in support of the exception of no cause of action, i. e., plaintiff has no direct right or cause of action and no legal right of subrogation, because we are of the opinion that the conventional subrogation by the employer in favor of the insurance company is valid. In the case of Carroll & Co. v. N. O., Jackson & Great Northern R. R. Co. et al., 26 La. Ann. 447, the. Supreme Court clearly indicated that if the insurance company, which paid a loss resulting from the destruction of cotton by fire while in the possession of the carrier, had been assigned the rights of the assured and shipper, the court would have recognized the conventional subrogation and enforced it against the carrier.

In the case of Bouchon v. Southern Surety Co. et al., 151 La. 503, 91 So. 854, the Supreme Court held that there was nothing to prohibit an injured employee from conventionally subrogating an insurance company to his claim against a third person whose negligence injured the employee and caused the insurance company to pay compensation under Act No. 20 of 1914. While the court held that the insurance company, under such circumstances, was not subrogated by mere operation of law to the rights of the injured employee to proceed against a third person whose negligence caused injury to the employee, the court clearly indicated that if there had been a conventional subrogation it would have been recognized and enforced. To furtheshow that it is not against public policy [145]*145that the insurance company be subrogated to the same rights that the employer has against third persons causing injury to an employee through their negligence, the Legislature passed Act No. 85 of 1926, and paragraph 2 of section 23 of that act reads as follows:

"The insurer is hereby subrogated to all the rights and actions which the employer is entitled to under this act.”

We therefore hold that the conventional subrogation was legal and binding and it will be enforced unless it can be said that the provisions of Act No. 20 of 1914, the Compensation Law, expressly prohibit it, or unless the conventional assignment was without serious or adequate consideration.

We shall now consider the other two points raised under the. exception of no cause of action.

(c) In support of the contention that the compensation act expressly prohibits the assignment of claims of payments made under its provisions, counsel for the defendant refers us to paragraph 1 of section 22 of Act No. 20 of 1914, which reads as follows:

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Bluebook (online)
129 So. 234, 14 La. App. 142, 1930 La. App. LEXIS 432, Counsel Stack Legal Research, https://law.counselstack.com/opinion/globe-indemnity-co-v-toye-bros-auto-taxicab-co-lactapp-1930.