Hudson v. Allen

161 N.W.2d 596, 11 Mich. App. 511, 1968 Mich. App. LEXIS 1314
CourtMichigan Court of Appeals
DecidedMay 29, 1968
DocketDocket 3,610
StatusPublished
Cited by10 cases

This text of 161 N.W.2d 596 (Hudson v. Allen) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hudson v. Allen, 161 N.W.2d 596, 11 Mich. App. 511, 1968 Mich. App. LEXIS 1314 (Mich. Ct. App. 1968).

Opinion

*513 Neal E. Fitzgerald, J.

Defendant brings appeal from an order denying his motion for accelerated judgment, 1 charging that the plaintiffs’ claim for damages is barred by the plaintiff Marjorie Hudson’s application for and acceptance of compensation under the workmen’s compensation act. 2

Defendant Austin H. Allen is the proprietor of a drugstore at 5922 Kings highway in Comstock, Michigan, doing business under the assumed name of “Allen Super Drugs”. Several doors away in the same block of stores Allen also operates the “Comstock Laundromat”. Plaintiff Marjorie Hudson was employed in the drugstore on September 12, 1964, the day she sustained the injuries that form the basis of her claim here. While in the course of her employment, plaintiff was delivering a hamburger from the drugstore to a customer down the street. As plaintiff passed the Comstock Laundromat while on this mission, the door of the laundromat suddenly opened, and she went through it, cutting herself severely. She alleges negligence in the location and maintenance of the door.

Defendant Austin H. Allen is the sole proprietor of both Allen Super Drugs and the Comstock Laundromat. The records are kept in common, and all tax liability incurred in the operation of both the drugstore and the laundromat is reported and paid under the Allen Super Drug title.

Plaintiff Marjorie Hudson applied for compensation, and over a period of 86 weeks received amounts totaling $2,637.62. On November 7, 1966' she brought this action against Austin H. Allen, claiming $100,000 damages. John E. Hudson, plaintiff’s husband, sues for the loss of his wife’s consortium. Lamoin M. Allen, the defendant’s wife, *514 was later joined as a party defendant since she shares in the profits of her husband’s business enterprise.

The defendants moved for accelerated judgment, asserting that the claims of the plaintiffs were barred because Marjorie Hudson had exhausted the exclusive remedy for her injuries by applying for and accepting compensation. The trial court denied the motion, and the issue is here on appeal.

The defendants rely on the provision of the workmen’s compensation act granting release from liability at law to any employer covered by the act:

“Where the conditions of liability under this act exist, the right to the recovery of compensation benefits, as herein provided, shall be the exclusive remedy against the employer.” CL 1948 § 411.4 (Stat Ann 1960 Rev §17.144).

“If the employee, or his dependents, in the case of his death, of any employer subject to the provisions of this act files any claim with, or accepts any payment from such employer, or any insurance company carrying such risks, or from the commissioner of insurance on account of personal injury, or makes any agreement, or submits any question to arbitration under this act, such action shall constitute a release to such employer of all claims or demands at law, if any, arising from such injury.” CL 1948, § 416.1 (Stat Ann 1960 Rev § 17.212).

The plaintiffs claim that the defendant was, in the operation of his laundromat, a legal personality separate and distinct from the legal personality operating the drugstore, and that therefore, as the tortfeasor here, the defendant was a “person other than * * * the employer” within the meaning of part 3, § 15 of the workmen’s compensation act:

“Where the injury for which compensation is payable under this act was caused under circum *515 stances creating a legal liability in some person other than a natural person in the same employ or the employer to pay damages in respect thereof, the acceptance of compensation benefits or the taking of proceedings to enforce compensation payments shall not act as an election of remedies, but snch injured employee or his dependents or their personal representative may also proceed to enforce the liability of such third party for damages in accordance with the provisions of this section.” CDS 1961, §413.15 (Stat Ann 1960 Rev §17.189).

The question before us is whether the defendant Austin H. Allen may be considered for the purposes of this action “some person other than * * * the employer”.

Plaintiffs rely primarily on the California case of Duprey v. Shane, (1952), 39 Cal 2d 781 (249 P2d 8), asserting that, although the decision is not authority in this jurisdiction, the analogy it bears to the instant case provides cogent support for this claim. In Duprey, the plaintiff was a practical nurse in the employ of the Shane Diagnostic Foundation, a partnership of which the defendant Dr. Shane was a member, engaging in the practice of chiropractic medicine. The plaintiff injured her neck in the course of her employment while trying to prevent a patient from falling off a treatment table. She requested treatment from the defendant Dr. Shane whose application of muscular pressure, she alleged, aggravated the injury to her neck. After applying for and receiving compensation under the California labor code, the plaintiff sued the defendant doctor for malpractice, and she obtained a jury verdict. The defendant appealed, alleging that the compensation award barred recovery in an action at law. The California supreme court affirmed the judgment, saying:

*516 “The question involved can be stated as follows: Where an employee of a doctor is injured in the course and scope of the employment, and the insured employer treats the industrial injury, and does so negligently, proximately causing a new and further injury and disability, may the employee sue the employer-doctor for malpractice, or has the commission exclusive jurisdiction? It is our conclusion that, when the employing doctor elected to treat the industrial injury, * * * the doctor assumed the same responsibilities that any doctor would have assumed had he been called in on the case.” 39 Cal 2d 781, 789 (249 P2d 8, 13).

Duprey v. Shane, supra, differs crucially from the case at bar. The recovery at law allowed in Duprey was on account of the second injury caused by the malpractice of the defendant doctor, who elected to treat the plaintiff’s first injury, the industrial injury, which the California court recognized would not be compensable at law. The parties, who were in the relationship of employer and employee, voluntarily entered into the second relationship of doctor and patient, out of which resulted plaintiff’s second injury for which she was awarded damages on account of the defendant’s malpractice. In the instant case, on the other hand, one injury only is involved.

Helmic v. Paine (1963), 369 Mich 114, urged by plaintiffs, does not aid our decision here, for in Ilelmic the question was whether the plaintiff and defendant were, at the time of the plaintiff’s injury, fellow employees within the meaning of the workmen’s compensation act.

The fundamental question we must decide is not novel in this jurisdiction. In Bross v. City of Detroit

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Bluebook (online)
161 N.W.2d 596, 11 Mich. App. 511, 1968 Mich. App. LEXIS 1314, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hudson-v-allen-michctapp-1968.