Jacobs v. Globe Indemnity Co.

40 Pa. D. & C.2d 774, 1966 Pa. Dist. & Cnty. Dec. LEXIS 135
CourtPennsylvania Court of Common Pleas, Pike County
DecidedMarch 29, 1966
Docketno. 71
StatusPublished

This text of 40 Pa. D. & C.2d 774 (Jacobs v. Globe Indemnity Co.) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Pike County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jacobs v. Globe Indemnity Co., 40 Pa. D. & C.2d 774, 1966 Pa. Dist. & Cnty. Dec. LEXIS 135 (Pa. Super. Ct. 1966).

Opinion

Davis, P. J.,

This action of assumpsit was brought by plaintiff, William Jacobs, an agricultural employe of Margaret L. Hamilton, against defendant, Globe Indemnity Company, upon a [776]*776written contract in the form of a workmen’s compensation insurance policy issued by defendant to said Margaret L. Hamilton, effective for the period from March 18, 1958, to March 18, 1959. Plaintiff avers, in the complaint to which a copy of the contract marked “Exhibit A” is attached, that he was employed by Margaret L. Hamilton to care for her house and grounds, to farm, to garden, and to serve as her general handyman ; that, on February 20, 1959, while plaintiff was working in the course of his regular employment on the premises of Margaret L. Hamilton, he fell and sustained injuries which have rendered him totally and permanently disabled; that defendant reimbursed plaintiff for drugs, hospital, nursing and medical care in the aggregate amount of $467 and paid plaintiff weekly compensation of $25 for the 26-week period extending from February 20, 1959, to August 8, 1959, or, a total of $650; but that defendant terminated further payment of compensation on August 9, 1959, although plaintiff’s total disability has continued. He seeks a judgment for compensation at the rate of $25 per week from August 8, 1959, to such date as the court may direct. The case is now before this court for consideration of defendant’s preliminary objections in the nature of a demurrer and a motion to strike off certain portions of the complaint.

Two principal questions are presented: whether an agricultural employe, excluded as such from the coverage of the Workmen’s Compensation Act, may recover comparable compensation, measured by the same statutory standard which would apply if he had been so covered, in an action of assumpsit on a special contract of insurance issued to his employer; and whether the terms of the contract in the instant case permit such recovery.

The portions of that contract, upon which plaintiff relies, read as follows:

[777]*777“GLOBE INDEMNITY COMPANY
i(
“Agrees with the insured, named in the declarations made a part hereof, in consideration of the payment of the premium and in reliance upon the statements in the declarations and subject to the limits of liability, exclusions, conditions and other terms of this policy.
“INSURING AGREEMENT
“I Coverage A — Workmen’s Compensation
“To pay promptly when due all compensation and other benefits required of the insured by the Workmen’s Compensation law•.
a
“EXCLUSIONS
“This policy does not apply:
it
“ (b) unless required by law or described in the declarations, to domestic employment or to farm or agricultural employment; . . .
“CONDITIONS
a
“7. Statutory Provisions — Coverage A. The Company shall be directly and primarily liable to any person entitled to the benefits of the workmen’s compensation lato under this policy. The obligations of the company may be enforced by such person, or for his benefit by any agency authorized by law, whether against the company alone or jointly with the insured. . . .” (Italics in all above excerpts supplied.)
“DECLARATIONS
it
“Item 2. Policy Period:
Prom Mar 18, 1958 to Mar 18 1959 ....
“Item 3. Coverage A of this policy applies to the workmen’s compensation law and any occupational disease law of each of the following states: PA.
[778]*778“Item 4. Classification of Operations
“Entries in this item, except as specifically provided elsewhere in this policy, do not modify any of the other provisions of this policy
“Code Premium Basis No. Estimated Total Annual Remuneration
“Rates Per $100 of Remuneration
“Estimated Annual Premiums
“1
“FARMS — ALL EMPLOYEES OTHER THAN INSERVANTS AND CLERICAL OFFICE EMPLOYEES INCLUDING DRIVERS, CHAUFFEURS AND THEIR HELPERS. 0006 $1,500 2.10 31.50
“POLICY FEE 0020 8.00
“Minimum Premium $28.00 Total Estimated
Annual Premium $39.50”.

Counsel for defendant have attacked the complaint upon an excessively broad front. We need not discuss the objection that this action sounds in tort, rather than contract; that action is barred by the statutory limitation applicable to trespass actions; and that plaintiff has failed to reduce his claim to a judgment against his employer before proceeding against defendant, the insurance carrier, as he would be required to do if “Coverage B” were his sole available basis for relief under the insurance contract. Defendant’s relevant objections may be summarized as follows: (1) This court has no jurisdiction of the instant action because the Workmen’s Compensation Act confers exclusive original jurisdiction of workmen’s compensation benefit claims upon the Workmen’s Compensation Board. (2) An action of assumpsit does not lie against either [779]*779defendant or Margaret L. Hamilton on the insurance contract here presented. (3) Plaintiff cannot maintain this action against defendant because there is no privity of contract between plaintiff and defendant.

Counsel’s challenge to the jurisdiction is based upon the assumption that the Workmen’s Compensation Act removes from the jurisdiction of the courts all claims in the nature of workmen’s compensation benefits and transfers them, without qualification, to the jurisdiction of the Workmen’s Compensation Board. Analysis of the constitutional basis and the structure of the act will show that this assumption cannot be supported. Authority for this legislation was created by the amendment of November 2, 1915, to the Pennsylvania Constitution, art. Ill, sec. 21, which provides, in part:

“The General Assembly may enact laws requiring the payment by employers ... of reasonable compensation for injuries to employes arising in the course of their employment . . . regardless of fault of employer or employe, and fixing the basis of ascertainment of such compensation and the maximum and minimum limits thereof, and providing special or general remedies for the collection thereof. . . .” (Italics supplied.)

The Act of June 2, 1915, P. L. 736, passed in anticipation of the constitutional authorization, became effective subsequently thereto on January 1, 1916.

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Bluebook (online)
40 Pa. D. & C.2d 774, 1966 Pa. Dist. & Cnty. Dec. LEXIS 135, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jacobs-v-globe-indemnity-co-pactcomplpike-1966.