Insurance Company of Texas v. Davis

276 S.W.2d 327, 1955 Tex. App. LEXIS 2475
CourtCourt of Appeals of Texas
DecidedFebruary 11, 1955
Docket15586
StatusPublished
Cited by7 cases

This text of 276 S.W.2d 327 (Insurance Company of Texas v. Davis) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Insurance Company of Texas v. Davis, 276 S.W.2d 327, 1955 Tex. App. LEXIS 2475 (Tex. Ct. App. 1955).

Opinion

BOYD, Justice.

This is a Workmen’s Compensation case. Upon a jury trial, appellee J. D. Davis was awarded a judgment against appellant Insurance Company of Texas for compensation for fifty per cent permanent disability at the rate of $25 per week for 300 weeks. Appellee alleged that he had contracted to pay his attorneys such fees as the court might allow, not to exceed one- *329 third of the recovery; and that he was in necessitous circumstances and was entitled to accelerated payments.

Appellant assigns eight points for reversal. Points one and three complain of the action of the court in overruling appellant’s exception to the pleading as to the attorneys’ fees contract and its objection to reading that part of the petition to the jury. Point two involves the court’s overruling appellant’s exception to the allegations concerning the acceleration of payments. Points four, five and six relate to the court’s action in allowing the allegations as to appellee’s financial hardships and need for acceleration of payments to be read to the jury; in allowing evidence to be offered as to his necessitous circumstances; and the court’s refusal to grant appellant’s motion for a mistrial after ap-pellee had “abandoned” that part of his case seeking accelerated payments.

It is appellant’s position that the allegation as to attorney’s fees formed no part of appellee’s cause of action and was prejudicial; that the allegations as to financial hardships and the need for acceleration of payments were prejudicial in that they tended to enlist the sympathy of the jury for appellee; and that acceleration of payments was a matter of law for the court. Appellant’s contention is that since this was not a case involving total and permanent disability, where a lump-sum award might be authorized, the matters complained of were wholly irrelevant and of such prejudicial nature as to require a reversal, citing Texas Employers Ins. Ass’n v. Hatton, 152 Tex. 199, 255 S.W.2d 848, 849, in support of its position.

The Hatton case was a suit for total and permanent disability and the insurance carrier agreed in open court to pay the compensation in a lump sum if total and permanent disability should be found. Over the insurer’s objection, the allegations of the injured workman as to his contract with his attorney were read to the jury. The Supreme Court held: “Under no theory was it pertinent to advise the jury that the plaintiff, by reason of the contract made with his attorney, would eventually receive only two-thirds of whatever award might be made.” The Court also held that in compensation cases the amount of attorney’s fees to be allowed is exclusively for the court and not the jury; but it went on to say: “Respondent, insisting that the action of the (trial) court was proper, cites the case of Employers’ Liability Assurance Corporation v. Sims, Tex.Civ.App., 67 S.W.2d 445, error refused; Houston Fire & Casualty Insurance Co. v. Ford, Tex.Civ.App., 241 S.W.2d 158, N.R.E. In both of those cases the issue of lump-sum award was before the jury for decision, and the element of attorney’s fees was properly to be considered by the jury on that issue.”

In the instant case there was no allegation of total and permanent disability and no prayer for a lump-sum award. But ap-pellee did allege necessitous circumstances which he claimed entitled him to accelerated payments.

Article 8306, sec. 15a, R.C.S., is in part as follows: “Increase of weekly compensation. In any case where compensation is payable weekly at a definite sum and for a, definite period, and it appears to the board that the amount of compensation being paid is inadequate to meet the necessities of the employé or beneficiary, the board shall have the power to increase the amount of compensation by correspondingly decreasing the number of weeks for which the same is to be paid allowing discount for present payment at legal rate of interest; ⅜ ⅜ ⅜ »

We think that whether the amount of compensation is “inadequate to meet the necessities” of an employee is a fact question, and in jury trials it must be submitted to the jury. If this be so, the amount to be paid the claimant’s attorneys would affect the necessities of his situation no less than in lump-sum cases.

This question was before the court in Hartford Accident & Indemnity Co. v. Herriage, Tex.Civ.App., 139 S.W.2d 873, 874. There it was held that whether the *330 necessities of the compensation claimant were such as to entitle him to accelerated payments was a question of fact for the jury. After discussing Article 8306, sec. ;15, wherein lump-sum- settlements are authorized, the court said: “It was no doubt the purpose of the law makers when they enacted Sec. ISa to provide for some similar relief in cases where death or permanent incapacity did not result. Instead of allowing a complete lump sum settlement in such cases, it was provided that in necessitous cases the weekly payments may be increased by correspondingly decreasing the number of weeks for which the same is to be paid. It is evident that they had in mind the same character of relief and their purpose was to provide ameliorating conditions in cases where necessitous circumstances were shown and the amount of compensation provided by the law should be inadequate to meet the necessities of the employee or beneficiary.”

It was contended by the insurer in . the Herriage case, as in the instant case, that sec. 15a applies only in cases where the compensation has already been fixed either by the board or by the court upon a trial de novo. This contention was there rejected, the court saying that while the language, ‘amount of compensation being paid’ ”, standing alone, might lend plausibility to the contention, the compensation law must be construed as a whole, and that it should receive a broad and liberal construction so as to effectuate its intent and purpose. Indeed, it now seems to be the settled rule that the Workmen’s Compensation law will be construed liberally in favor of the compensation claimant. American Motorists Ins. Co. v. Steel, Tex.Civ.App., 229 S.W.2d 386.

For the reasons indicated, we conclude that appellee had a right to allege and try to prove that his situation was such as to entitle him to accelerated payments.

Point six involves the further proposition that even if the' allegations and evidence complained of were proper so long as the issue of' accelerated payments was in the case; when-that issue was not requested and was not submitted to the jury, appellant was entitled to a mistrial, since the only effect of such allegations and evidence was to enlist the sympathy of the jury for appellee. If it was proper for appellee to try to establish that hi-s financial situation was such as to entitle him to an acceleration of payments, his failure to go to the jury on that issue, for whatever reason, would not, in our opinion, infect the allegations and evidence, otherwise proper and competent, with an irremovable taint.

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276 S.W.2d 327, 1955 Tex. App. LEXIS 2475, Counsel Stack Legal Research, https://law.counselstack.com/opinion/insurance-company-of-texas-v-davis-texapp-1955.