Hatch v. Industrial Lumber Co.

199 So. 587
CourtLouisiana Court of Appeal
DecidedJanuary 14, 1941
DocketNo. 2180.
StatusPublished
Cited by12 cases

This text of 199 So. 587 (Hatch v. Industrial Lumber 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
Hatch v. Industrial Lumber Co., 199 So. 587 (La. Ct. App. 1941).

Opinion

OTT, Judge.

The suit is for compensation for total, permanent disability at the rate of $7.80 per week for a period of 400 weeks, and for -damages in the sum of $3,000 on account of the failure of defendants to give plaintiff, treatment for his injuries as required of them under the Compensation Law, Act No. 20 of 1914. The defendants are the Industrial Lumber Company and the Calca-sieu Sulphate Paper Co., Inc., both sepa *588 rate corporations, but the former being- the owner of a majority of the stock of the latter, and both corporations being managed by practically the same officers.

Plaintiff alleges that his right leg was fractured and his left knee was seriously injured when a truck in which he was riding to his work on July 12, 1938, ran into a ditch, throwing him against a pole and causing these injuries which he alleges have rendered him totally and permanently disabled from work; that at the time he was injured he was working under one Reese Brown in cutting and sawing pulpwood for the defendants; that said Reese Brown was an employee, agent or contractor of the defendants in cutting and hauling this paper wood; that the paper wood was being cut from lands of one Turner through an arrangement made by the logging superintendent of the defendant companies whereby the said superintendent agreed with the owner of the timber that the defendants would hold out the stumpage' of SO cents per cord, and informed the owner that he (the superintendent) would send one of the agents of the companies to cut and haul the said timber; that said superintendent sent said Brown to arrange to cut and remove said timber. Plaintiff then alleges, in effect, that the defendants were the real purchasers of the timber from Turner and that Brown was merely the agent, employee or contractor of the defendant companies, but that the defendants, in order to avoid payment of compensation to workmen injured in cutting and hauling said timber, were attempting to make it appear that Brown bought the timber from Turner, manufactured it into paper wood and sold it to the defendants at a certain price per cord.

The claim for damages is based on allegations to the effect that the defendant companies operate a hospital for the treatment of their employees, and that plaintiff was taken to the hospital immediately after his injury, and was first received as a patient in the hospital where X-rays were made of his legs and first aid treatment was given him; that he was first led to believe by the physicians in said hospital (that he would be given proper treatment,but that after several hours, he was advised- that he was not entitled to treatment at the hospital, and he was then forced to go to the Charity Hospital in Shreveport, all of which caused great pain and suffering, mental anguish and sorrow, and 'resulted in unnecessary delay in the treatment of his injuries.

The substance of defendants’ answer (and the matter on which the main issues in the case depend) is that Brown purchased the timber from Turner and manufactured the timber into pulpwood and this wood was sold to the Industrial Lumber Company at a fixed price per cord, delivered at the said lumber company’s tracks; that Brown was not an agent, employee 'or contractor of either defendant, but that his relation to the lumber company was only that of vendor of the paper wood.

The defendants denied any liability for damages on account of the alleged refusal to give plaintiff treatment at the sanitarium, and denied that the defendant companies operated said sanitarium, but averred' that it is operated by a fund arising from contributions made by the employees of these two defendants and other companies, and that the sanitarium is managed by a committee from the employees of these various companies.

The trial judge rejected the demands of the plaintiff both for compensation and for damages. The plaintiff has appealed.

Quite a lot of the record is taken up in an effort to show that the two defendant corporations are to all intents and purposes one corporation, the Industrial Lumber Company being the owning and controlling corporation and the other being merely a servient and subsidiary corporation, rendering both liable in solido to the plaintiff for compensation and for damages. In view of the conclusion we have reached, it is not necessary for us to pass on this question. For the purposes of our discussion, we will consider the Industrial Lumber Company as the principal defendant and refer to it as the defendant.

The sole question presented in the case is whether or not the defendant in good faith purchased from Brown the pulpwood at a fixed price per cord delivered at its tracks. If the relation, between the defendant and Brown was that of purchaser and vendor of the wood there is no liability on the part of the former to an employee of the latter for compensation on account of an injury received by such employee while cutting the wood. This principle is so well settled by the courts of this state that no citation of authority is necessary. However, in order that our reports may show a convenient list of the cases support *589 ing this principle, we list here a few of them that we consider most appropriate and illustrative: West v. Martin Lumber Co. et al., 7 La.App. 366; Eaves v. Hillyer-Edwards-Fuller, Inc., La.App., 139 So. 510; Whitley v. Hillyer-Deutsch-Edwards, Inc. et al., La.App., 142 So. 798; Brasher v. Industrial Lumber Co., Inc. et al., La.App., 165 So. 524; Anthony v. Natalbany Lumber Co., Ltd., La.App., 187 So. 288 and Cannon v. Tremont Lumber Co. et al., La.App., 188 So. 431.

But if the employer of the injured employee was merely the agent or contractor of the defendant lumber company, the latter would be liable for compensation. Carter v. Colfax Lumber & Creosoting Co. et al., 9 La.App. 497, 121 So. 233; Hollingsworth v. Crossett Lumber Co., 184 La. 6, 165 So. 311. It is under this rule that plaintiff hopes to bring his right to recover compensation by showing that Reese Brown was nothing more than the agent or contractor of the defendant; that the latter was the real purchaser of the timber from Turner, and Brown was its agent or contractor in cutting and hauling the wood; that the entire arrangement was merely a subterfuge or device on the part of the defendant to avoid liability for compensation, contrary to Section 36 of Act 20 of 1914, which provides that no contract, rule, regulation or device whatsoever shall operate to relieve the employer from liability for payment of compensation under the act.

The evidence shows that Turner offered to sell his timber to the defendant lumber company for 75 cents per cord; that the company declined to pay that price for the wood, but the logging superintendent of the defendant told Turner that he would send a man to see him who might buy his timber at that price; that the superintendent told Brown of this timber and told him if he (Brown) made a deal with Turner for the timber, the lumber company would give Brown $3 per cord for wood cut from the timber and loaded on cars on its railroad track. Brown accordingly made the deal with Turner, and arrangements were made with the defendant by which it was to hold out 50 cents per cord for stumpage and pay it direct to Turner, and Brown paid the difference of 25 cents per cord' direct to Turner.

Brown employed the plaintiff to cut the wood and paid him weekly on the basis of the number of cords cut.

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Bluebook (online)
199 So. 587, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hatch-v-industrial-lumber-co-lactapp-1941.