Houston Gas & Fuel Co. v. Perry

91 S.W.2d 1052
CourtTexas Commission of Appeals
DecidedFebruary 26, 1936
DocketNo. 1580—6430; Motion No. 12371
StatusPublished
Cited by50 cases

This text of 91 S.W.2d 1052 (Houston Gas & Fuel Co. v. Perry) is published on Counsel Stack Legal Research, covering Texas Commission of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Houston Gas & Fuel Co. v. Perry, 91 S.W.2d 1052 (Tex. Super. Ct. 1936).

Opinions

TAYLOR, Commissioner.

Defendant in error, Mrs. D. N. Perry, for herself and as next friend for her minor daughter, sued Houston Gas & Fuel Company and Hartford Accident & Indemnity Company for damages on account of the death of D. N. Perry, husband of Mrs. Perry, and father of the minor daughter, Daisy Perry; and sued also for the benefit of Vera Perry, O. ,M. Perry, and Daniel IT. Perry.

Plaintiff alleged that JD. N. Perry was an employee of Hermann Hospitals Estate, a subscriber to the Workmen’s Compensation Act, and that the indemnity company had issued a policy of compensation insurance to the subscriber as such; that as a result of the death of Perry the indemnity company had paid doctors’, hospital and nurses’ fees to the extent of $1,000, and that plaintiff had been compelled to pay funeral expenses in the sum of $400. Plaintiff alleged also that shortly after Perry’s death the indemnity company admitted its liability under its policy and began its payments to plaintiff, and thereby acknowledged its liability on account of Perry’s death in the sum of $7,200, and further pleaded that the indemnity company was subrogated to the rights of plaintiff for damages on account of the negligent death of her husband and entitled to be subro-gated to plaintiff’s right of action against Houston.Gas & Fuel Company to the extent of the sum provided in said policy; that though the indemnity company had [1053]*1053been requested to file suit under its subro-gation rights against the Houston Gas & Fuel 'Company, it had declined to do so, and that plaintiff was therefore filing suit making the indemnity company a party and acknowledging its rights through subrogation.

It is not alleged by plaintiff that she was suing for the use and benefit of the indemnity company, but, on the other hand, it is alleged that her suit is on behalf of herself individually and as next friend of the minor daughter of herself and her deceased husband, and for the benefit of the other parties above named. It appears also that plaintiff in concluding her petition does not pray for recovery of anything against the indemnity company, but, on the other hand, prays for recovery for herself and daughter, and makes no mention of the indemnity company in her prayer.

The Houston Gas & Fuel Company’s trial answer consists of a general demurrer, general denial, and a plea of contributory negligence on the part of the deceased. The company makes no mention in its answer of its codefendant, the indemnity company, and the answer contains no prayer of any kind.

"The indemnity company, though duly served with notice of suit, did not file any character of pleading seeking any kind of recovery against Houston Gas & Fuel Company, its codefendant, plaintiff in error here. In fact, the transcript does not contain any pleading whatsoever on behalf of the indemnity company, notwithstanding it was regularly before the trial court.

It is not disputed that the indemnity company, prior to the filing of the suit by plaintiff, obligated and bound itself to pay compensation pursuant to the Workmen’s Compensation Act to Mrs. Perry and her daughter in the sum of $7,200 as pleaded by plaintiff, $3,600 payable at the rate of $10 per week for Mrs. Perry, and a like amount payable in the same manner .to her daughter. Nor is it disputed that the indemnity company paid doctors’, hospital and nurses’ fees in the sum of $803.50. No evidence was offered on behalf of the defendants.

The jury found damages for Mrs. Perry individually in the sum of $8,000 and for $5,000 as next friend for her daughter, and reasonable funeral expenses in the sum of $200. Judgment was entered by the trial court in favor of Mrs. Perry for $8,200 and in favor of her daughter for $5,000 against Plouston Gas & Fuel Company. Judgment was entered in favor of the indemnity company against Houston Gas & Fuel Company under its subrogation right for $1,313.50 for doctors’, hospital and nurses’ fees. The correct amount for such fees was admitted by plaintiff on appeal to be $803.50. The judgment awards the indemnity company a recovery against Houston Gas & Fuel Company for $680, the amount of the assumed compensation already paid in weekly installments. The judgment further decreed that Mrs. Perry recover nothing for the benefit of Vera, O. M., and Daniel H. Perry. The indemnity company did not appeal. The Court of Civil Appeals reformed the judgment of the trial court only to the extent of reducing the amount of recovery for doctors’, hospital and nurses’ fees to $803.50, and in all other respects affirmed the judgment of the trial court. 55 S.W.(2d) 901.

The principal questions presented are in effect .whether the trial court erred in awarding judgment in favor of the indemnity company through subrogation for doctors’, nurses’ and hospital fees, and for not deducting from • the amounts of damages found by the jury for plaintiff individually, and as next friend for her daughter, respectively, the amount of the indemnity company’s assumed compensation liability in the sum of $3,600 each.

The rights of plaintiff are governed by section 6a of article 8307 of the' Workmen’s Compensation Act (Rev.St.1925) which reads: “Where the injury for which compensation is payable under this law was caused under circumstances creating a legal liability in some person other than the subscriber to pay damages in respect thereof, the employee may at his option proceed either at law against that person to recover damages or against the association for compensation under this law, but not against both, and if he elects to proceed at law against the person other than the subscriber, then he shall not be entitled to compensation under this law. If compensation be claimed under this law by the injured employee or his legal beneficiaries, then the association shall be subrogated to the rights of the injured employee in so far as may be necessary and may enforce in the name of the injured employee or of his legal beneficiaries or in its own name and for the joint use and benefit of said employee or beneficiaries and the association the liability of said other person, and in case the association recovers a sum [1054]*1054greater than that paid or assumed by the association to the employee or his legal beneficiaries, together with a reasonable cost of enforcing such liability, which shall be determined by the court trying the case, then out of the sum so recovered the association shall reimburse itself and pay said cost and excess so recovered shall be paid to the injured employee or his beneficiaries. The association shall not have the right to adjust or compromise such liability against such third person without notice to the injured employee or his beneficiaries and the approval of the board, upon a hearing thereof.”

The act expressly provides that the compensation insurer, in the event compensation is claimed by the beneficiaries of the injured employee, shall be subrogated to the rights of the employee, and that it may enforce same against the negligent third party. It is settled by the decisions in this state, however, that in the event the compensation insurer refuses to sue the negligent third persons, the injured employee or his representatives may sue for the excess. Lancaster v. Hunter (Tex.Civ.App.) 217 S.W. 765. It is held in the case cited that the section of the act above quoted, by expressly providing that the insuring company may enforce the liability of such third person, does not destroy the cause of action of the employee or his representatives, or their right to sue in case the insurers fail to sue.

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Bluebook (online)
91 S.W.2d 1052, Counsel Stack Legal Research, https://law.counselstack.com/opinion/houston-gas-fuel-co-v-perry-texcommnapp-1936.