Havana National Bank ex rel. Hartford Accident & Indemnity Co. v. Tazewell Club

19 N.E.2d 228, 298 Ill. App. 393, 1939 Ill. App. LEXIS 676
CourtAppellate Court of Illinois
DecidedJanuary 24, 1939
DocketGen. No. 9,149
StatusPublished
Cited by2 cases

This text of 19 N.E.2d 228 (Havana National Bank ex rel. Hartford Accident & Indemnity Co. v. Tazewell Club) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Havana National Bank ex rel. Hartford Accident & Indemnity Co. v. Tazewell Club, 19 N.E.2d 228, 298 Ill. App. 393, 1939 Ill. App. LEXIS 676 (Ill. Ct. App. 1939).

Opinion

Mr. Presiding Justice Riess

delivered the opinion of the court.

The plaintiff has appealed from an order of the circuit court of Tazewell county sustaining a motion of defendant appellee, The Tazewell Club, a corporation, to dismiss appellant’s amended complaint.

From the pleadings, it appears that on June 22,1934, Phillip D. Dieffenbacher. was an official of the Havana National Bank and was attending a bankers’ association meeting at the Tazewell Club in Pekin, Illinois; that a porch railing at its clubhouse gave way, causing him to fall and receive injuries from which he died on the following day.

On June 21, 1935, within one year after his death, suit was filed by the Havana National Bank, as administrator of his estate, against the defendant appellee under the Injuries Act for the benefit of his surviving widow and three minor children, as next of kin. The defendant filed its answer denying the acts of negligence and averring that the deceased was an employee of the Havana National Bank and that the alleged injury and death arose out of and in the course of his employment; that both the bank and defendant were operating under the Workmen’s Compensation Act of the State of Illinois, and by reason thereof the plaintiff had no cause of action against the defendant.

The widow of the deceased also filed a claim for compensation against the employer, which was heard before the arbitrator on June 5, 1935, and compensation was denied. A petition for review was filed with and heard by the Industrial Commission, which approved the decision of the arbitrator. An appeal was then taken to the circuit court of Mason county, and on September 18,1936, the decision of the commission was reversed, and an order followed awarding compensation in the sum of $5,500. The respondent petitioned for a writ of error to the Supreme Court, which was denied.

On February 15,1938, plaintiff appellant was granted leave over defendant appellee’s objections to amend the name of the plaintiff in the suit previously filed by the administrator for the use of the widow and next of kin, to read “Havana National Bank, administrator of the estate of Phillip Dieifenbacher, deceased, for the use of Hartford Accident and Indemnity Company” and leave was granted to file an amended complaint. The amended complaint, with supporting affidavits of subrogation under section 22 of the Practice Act, alleged that by virtue of section 29 of the Compensation Act, the deceased’s employer became subrogated to the right of action of the personal representative, and that in turn the Hartford Accident and Indemnity Company became subrogated to the right of the employer to whom it had issued a policy of insurance, under the terms of which it had paid the compensation awarded against the employer.

Defendant’s motion to strike the amended complaint was heard and allowed, judgment for costs was entered, and this appeal followed.

Defendant’s motion to strike the amended complaint alleged in substance: (1) That in an action for wrongful death, the personal representative has no authority to bring suit for the benefit of any other person than the next of kin. (2) That the plaintiff named in the original complaint, and retained in the amended complaint, lacked the capacity to prosecute a suit under the law and facts as pleaded. (3) That the amendment to the complaint was barred by the one-year provision of the Injuries Act.

Plaintiff appellant contends that it has a right of action which can be prosecuted in the name of the personal representative under the amended complaint for the use and benefit of the Hartford Accident and Indemnity Company as subrogee of the original plaintiff. Appellant further contends that since the original complaint was filed by the administrator of the deceased employee within one year after his death, the amended complaint was not barred by the limiting proviso of the Injuries Act.

Section 29 of the Workmen’s Compensation Act of Illinois (Ill. Rev. Stat. 1937, ch. 48, par. 166; Jones Ill. Stats. Ann. 143.44) provides, that where both the employer and employee are under the act and compensation becomes payable, and the employee is injured or killed under circumstances creating a legal liability in a third person, who is also bound by the act, “then the right of the employee or personal representative to recover against such other person shall be transferred to his employer and such employer may bring legal proceedings against such other person to recover the damages sustained, in an amount not exceeding the aggregate amount of compensation payable under this Act, by reason of the injury or death of such employee.” Prior to 1935, the word “subrogated” appeared in place of the word “transferred” in the above section.

Numerous cases are cited wherein the employer, who paid to the employee the amount of compensation awarded, has prosecuted his right of action against the third person who was also under the provisions of the act, but no cases are cited wherein the employer or the insurance company which paid the award and was subrogated to the rights of the employer under its contract, has filed or prosecuted suit for the recovery of such award in the name of the personal representative of the deceased.

It has been held under such circumstances, that while the employer may prosecute such suit in his own name againfet the third person directly (Metropolitan Trust Co. v. Bowman Dairy Co., 369 Ill. 222, 15 N. E. (2d) 838) or for the use of the insurance company as subrogee of such employer (Lincoln Park Coal & Brick Co. v. Wabash Ry. Co., 338 Ill. 82, 170 N. E. 8), the “personal representative cannot maintain the action, the right having been transferred to the employer.” Parker v. Alton R. Co., 295 Ill. App. 60, 63, 14 N. E. (2d) 665. See also Brennan Const. Co. v. Blair, 261 Ill. App. 9; McNaught v. Hines, 300 Ill. 167, 174, 133 N. E. 53; Schlitz Brewing Co. v. Chicago Rys. Co., 307 Ill. 322, 327, 138 N. E. 658; Goldsmith v. Payne, 300 Ill. 119, 122, 133 N. E. 52.

In Parker v. Alton R. Co., supra, at page 64, we said: “If the appellee was in fact under the Compensation Act, it is clear from the decisions above quoted that the appellant would not have the capacity to sue, and the only right of action in this case would be in the employer’s name.”

In Lincoln Park Coal & Brick Co. v. Wabash Ry. Co., supra, it was held in a case wherein the employer sued the third person to recover the amount of the award paid by him to the employee, when all three parties were operating under the provisions of the Workmen’s Compensation Act, and the complaint was filed by the employer in his own name within one year after the death of the employee, the complaint could be thereafter amended by making the insurance company which paid the award a party as subrogee of the rights of the employer which passed to it under the terms of the insurance contract. The time limit of one year having passed for so filing a direct proceeding by the employer for the use of the insurance company as subrogee, as was done in the above case, the plaintiff appellant herein has sought to save his cause of action by an amendment to the original declaration, which was not filed by the employer but was filed within one year after the employee’s death by his personal representative under the provisions of the Injuries Act.

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19 N.E.2d 228, 298 Ill. App. 393, 1939 Ill. App. LEXIS 676, Counsel Stack Legal Research, https://law.counselstack.com/opinion/havana-national-bank-ex-rel-hartford-accident-indemnity-co-v-tazewell-illappct-1939.