Indemnity Ins. Co. of North America v. Murphy

53 S.W.2d 503
Court of Appeals of Texas·Decided September 17, 1932·No. No. 11277.·Published·Cited by 9 cases

Opinions

LOONEY, J.

This case arose under the Workmen’s Compensation Law. T. A. Murphy was an employee of Smith Bros., Inc., a subscriber who carried a policy of workmen’s compensation insurance, covering its employees, with the Indemnity Insurance Company of North America. Murphy, having received injuries in the coutse of his employment and refusing to abide by the final decision of the Industrial Accident Board, filed this suit in the court below to set aside its award, etc. The case was tried to a jury, and upon their findings the court set aside the award and gave Murphy compensation as for total permanent incapacity at the rate of $17.31 per week, and, after deducting $173.10, amount previously paid appellee by the insurance company, rendered a lump sum judgment in his favor for $6,074.76, directing that one-third be paid to White & Yarborough, appellee’s attorneys, from which the indemnity company appealed.

A defense urged by appellant was that, on March 31, 1930, it paid appellee $173.09, being for ten weeks’ disability at the rate of $17.31 per week, and that on receipt of said payment appellee signed a compensation settlement receipt agreeing that it was in full settlement of compensation due him for said injuries, and that the settlement receipt was filed by appellant with the Industrial Accident Board; however, there was neither allegation nor proof that the settlement was approved by said board; in fact, its subsequent action shows that the settlement was not approved. The legal validity of this transaction' is raised by appellant in several assignments, all of which, in our opinion, should be overruled for reasons which we will now state.

The pertinent provisions of the Workmen’s Compensation Law are these: Section 14 of article 8306 provides that: “No agreement by any employee to waive his rights to compensation under this law shall be valid.” In section 15 of said article we find that: “In cases where death or total permanent incapacity results from an injury, the liability of the association may be redeemed by payment of a lump sum by agreement of the parties thereto, subject to the approval of the Industrial Accident Board. This section shall be construed as excluding any other • character of lump sum settlement except as herein specified.” Section IS of said article expresses the intent and purpose of the law, as follows: “It is the purpose of this law that the compensation herein provided for shall be paid from week to week and as it accrues and directly to the person entitled thereto, unless the liability is redeemed as in such cases provided elsewhere herein.” Section 5 of article 8307 provides that: “All questions arising under this law, if not settled by agreement of the parties interested therein and within the provisions of this law, shall, except as otherwise provided, be determined by the board. * * * ” Also in section 12 of article 8307 we read: “* * * Where the liability of the association or the extent of the injury -of the employee is uncertain, indefinite or incapable of being satisfactorily established, the board may approve any compromise, adjustment, settlement or commutation thereof made between the parties.”

These provisions clearly indicate that the adjustment of compensation claims arising under the statute is intrusted primarily to the Industrial Accident Board, and that a claimant and the association cannot ágree among themselves so as to deprive the board of its jurisdiction.

This is no longer a debatable question, as the quoted provisions of the statute have heretofore been construed to prohibit all settlement contracts between beneficiaries and compensation insurers, unless approved by the Industrial Accident Board. See Employers’ Indemnity Corp. v. Woods (Tex. Civ. App.) 230 S. W. 461; same case by Commission of Appeals 243 S. W. 1085; also Indemnity Insurance Co., etc., v. Jones (Tex. Civ. App.) 299 S. W. 674. We therefore overrule all assignments in relation to this matter.

Prior to the announcement for trial, appellant moved the court to appoint a disinterested competent physician of its own choice to examine appellee, as provided by the statute. The" court refused the motion, and at the conclusion of the evidence the motion was renewed, with like result, but in overruling the same, the court said: “The defendant’s motion for the court to appoint a physician of its own choosing to examine the plaintiff is *505 denied, as was a similar motion made by tbe defendant prior to tbe taking of testimony in tbe case. The court stated to counsel for tbe defendant in overruling tbe first motion made that he would grant a motion of tbe defendant, and appoint a physician for such purpose, to be selected by tbe defendant as provided in tbe Act of tbe 42nd Legislature Regular Session, which reads as follows: (Tbe court here quotes tbe statute referred to.) Tbe court now says to counsel for tbe defendant in overruling tbe motion as framed, that the court will grant a motion of tbe defendant and appoint a physician of the defendant’s own choosing for tbe purpose requested.’.’

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Indemnity Ins. Co. of North America v. Murphy, 53 S.W.2d 503 (Tex. Ct. App. 1932).

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