Indemnity Insurance Co. of North America Ex Rel. Estate of Lyda v. Odom

116 S.E.2d 22, 237 S.C. 167, 1960 S.C. LEXIS 91
CourtSupreme Court of South Carolina
DecidedAugust 23, 1960
Docket17702
StatusPublished
Cited by7 cases

This text of 116 S.E.2d 22 (Indemnity Insurance Co. of North America Ex Rel. Estate of Lyda v. Odom) is published on Counsel Stack Legal Research, covering Supreme Court of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Indemnity Insurance Co. of North America Ex Rel. Estate of Lyda v. Odom, 116 S.E.2d 22, 237 S.C. 167, 1960 S.C. LEXIS 91 (S.C. 1960).

Opinion

Oxner, Justice.

About 7:40 on the morning of March 1, 1956, a pickup truck owned by Y. C. Ballenger Electrical Contractors and driven by C. H. Rogers, one of its employees, collided with a tractor-trailer unit owned by E. R. Watson and driven by R. A. Odom, one of his employees, at a point on the Green-ville-Spartanburg highway near the entrance to the WinnDixie Warehouse. As a result of said accident, Earl Lyda, another employee of Y. C. Ballenger Electrical Contractors, who was riding in the rear of said pickup truck, received injuries from which he died shortly thereafter.

Death benefits under the Workmen’s Compensation Act were duly paid to the widow and four minor children of Earl Lyda by the Indemnity Insurance Company of North America, the insurance carrier for Y. C. Ballenger Electrical *171 Contractors. Thereafter this action was brought by the administratrix of the estate of Earl Lyda and the Indemnity Insurance Company of North America against Odom, Watson, and the tractor-trailer to recover damages in the sum of $100,000.00 for the alleged wrongful death of Lyda. It was alleged in the complaint that the action was prosecuted for the benefit of the insurance carrier to the extent of the amount which it had paid under the Workmen’s Compensation Act, and for the benefit of the widow and children to the extent of any recovery exceeding said amount.

On the trial of the case, plaintiffs, at the conclusion of the testimony, were permitted to take a voluntary nonsuit as to Odom, leaving Watson and the tractor-trailer as the sole defendants. In addition to being required to find a general verdict, the jury was instructed to determine the following special issue: “Was the death of C. Earl Lyda caused or brought about through contributory negligence or contributory willfullness by C. H. Rogers, the driver of the pickup truck in which the deceased was riding?”

The foregoing question was answered by the jury in the affirmative and a general verdict found in favor of the plaintiffs for $60,000.00 actual damages. An order was thereafter filed wherein the Court held that the finding on the special issue barred any recovery by the insurance carrier and accordingly directed that the amount paid by it be deducted from the verdict and judgment entered against the defendants for the balance.

The plaintiff Insurance Company has appealed from that portion of the order of the Circuit Judge holding that the contributory negligence on the part of the employer barred its right to recover the compensation paid. By numerous exceptions the defendants attack the entire judgment. There is no appeal by the administratrix.

We shall first discuss the legal effect of the finding of the jury that Rogers was guilty of contributory negligence. Such negligence, of course, must be imputed to his employer. The *172 jury was instructed that contributory negligence on the part of the employer would not be a complete defense but would only constitute a bar, pro tanto, to the recovery of compensation paid by the insurance carrier. This is the view advanced by the administratrix on this appeal. The plaintiff Insurance Company contends that upon the payment of the award of the Industrial Commission, the entire cause of action for wrongful death was assigned to it unimpared and that the defendants are liable for the full amount of the damages sustained by Lyda’s dependents, irrespective of the contributory negligence of the employer. Defendants contend that the contributory negligence of the employer constitutes a complete bar to any recovery. They say that the payment of the award by the Industrial Commission operated as an assignment to the insurance carrier of the entire cause of action stated in the complaint; that the Insurance Company is the only real party plaintiff; and that the holding of the Court below that contributory negligence only constituted a bar pro tanto has the effect of splitting the cause of action, which cannot be done.

Section 72-122 of the 1952 Code permits an employee having a right to recover damages against a person other than his employer, to “institute an action at law against such third person before an award is made under this Title and prosecute it to its final determination.” But under the terms of Section 72-123, “either the acceptance of an award under this Title or the procurement and collection of a judgment in an action at law shall be a bar to proceeding further with the alternate remedy.”

Section 72-124 provides that an acceptance of an award for compensation “shall operate as an assignment to the employer of any right to recover damages which the injured employee or his personal representative or other person may have against any other person for such injury or death and such employer shall be subrogated to any such right and may enforce, in his own name or in the name of the injured employee or his personal representative the legal *173 liability of such, other person. * * *” Section 72-125 requires that any amount collected by the employer in excess of the amount paid by him be held for the benefit of the injured employee or other person entitled thereto and forbids any compromise settlement by the employer “in the exercise of his right of subrogation without the approval of the Commission being first had and obtained.”

Under the terms of Section 72-126, whenever an employer or his carrier has become subrogated to the right of an employee to recover damages against a third party and refuses to bring an action against such third party for three months after being requested to do so by the employee, such employee “may bring an action in his own name and for his own benefit against such third party.”

Section 72-127 reads: “The amount of compensation paid by the employer or the amount of compensation to which the injured employee or his dependents are entitled shall not be admissible as evidence in any action brought to recover damages.”

Under the terms of Section 72-422, when the compensation is paid by an insurance carrier, such carrier becomes “subrogated to all the rights and duties of the employer and may enforce any such rights in its own name or in the name of the injured employee or his personal representative.”

The holding of the Court below that a third party may plead and prove the independent concurring negligence of the employer as a bar, pro tanto, to the recovery of compensation paid by the employer or insurance carrier is sustained by several decisions: Thornton Bros. Co. v. Reese, 188 Minn. 5, 246 N. W. 527; Alaimo v. DuPont, 11 Ill. App. (2d) 238, 136 N. E. (2d) 542; Lovette v. Lloyd, 236 N. C. 663, 73 S. E. (2d) 886. This was the construction placed upon our own Act by Chief Judge Wyche in American Casualty Co. of Reading, Pa. v. South Carolina Gas Co., D. C., 124 F. Supp. 30. These courts hold that it would be unjust and inequitable to permit an employer or his insurance carrier *174 to recover compensation for injuries sustained in an accident to which the negligence of the employer contributed.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Howle v. PYA/Monarch, Inc.
344 S.E.2d 157 (Court of Appeals of South Carolina, 1986)
Vidrine v. Michigan Millers Mutual Insurance Co.
268 So. 2d 233 (Supreme Court of Louisiana, 1972)
Brooks v. United States
273 F. Supp. 619 (D. South Carolina, 1967)
Spradley v. Houser
146 S.E.2d 621 (Supreme Court of South Carolina, 1966)
Harper v. Bolton
124 S.E.2d 54 (Supreme Court of South Carolina, 1962)

Cite This Page — Counsel Stack

Bluebook (online)
116 S.E.2d 22, 237 S.C. 167, 1960 S.C. LEXIS 91, Counsel Stack Legal Research, https://law.counselstack.com/opinion/indemnity-insurance-co-of-north-america-ex-rel-estate-of-lyda-v-odom-sc-1960.