Lumbermen's Reciprocal Ass'n v. Day

17 S.W.2d 1043
CourtTexas Commission of Appeals
DecidedJune 5, 1929
DocketNo. 1075—5288
StatusPublished
Cited by30 cases

This text of 17 S.W.2d 1043 (Lumbermen's Reciprocal Ass'n v. Day) is published on Counsel Stack Legal Research, covering Texas Commission of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lumbermen's Reciprocal Ass'n v. Day, 17 S.W.2d 1043 (Tex. Super. Ct. 1929).

Opinion

SHORT, P. J.

This suit involves the construction of section 12, art. 8307, of the Workmen’s Compensation Act, which is as follows: “Where the liability of the association or the extent of the injury of the employs is uncertain, indefinite, or incapable of being satisfactorily established, the Board may approve any compromise, adjustment, settlement or commutation thereof” that is “made between the parties.” In this case it conclusively appears that the defendant in error claimed that he received an injury to one of his eyes on April 19, 1926, while engaged in the work of his employer, who was a subscriber under the Workmen’s Compensation Act, with the plaintiff in error, carrying the compensation insurance. The final result was that the injured eye had to be removed, and the other eye became involved by reason of the injury to such extent that the vision is now greatly' impaired and may be totally lost. Before the removal of the injured eye, and before the present impairment of the vision of the other eye existed, and at a time when defendant in error was suffering very much from the injured eye, a compromise adjustment of the claim for compensation insurance was made between the adjuster of the insurance company and the defendant in error, by the terms of which defendant in error, was to be paid the sum of $500 in full settlement of the claim, but, before this amount was accepted by the defendant in error, it was increased to $600. This adjustment was submitted, as required by law, to the Industrial Accident Board, together with the reason for making the eom-[1044]*1044promise agreement, and was approved, and the money paid, whereupon the defendant in error executed a release. This occurred in August, 1926.

The compromise agreement, among other things, recites that: “The facts and circumstances connected with and surrounding the infliction of the injury make the liability of Lumbermen’s Reciprocal Association uncertain and indefinite, or incapable of being satisfactorily established * * * the loss of vision and condition of claimant’s eye due to glaucoma. Investigation shows that he had trouble with this eye two years ago. Injury only caused it to be inflamed.”

Thereafter an application was made to the Industrial Accident Board to set aside the order approving the agreement,' and to open up the matter again, and to grant the defendant in error further relief. This was refused. Thereupon this suit was instituted, and upon a trial, after hearing the evidence, the district judge instructed the jury to return a verdict for the plaintiff in error. This was done, and judgment was entered- accordingly. Upon appeal to the Court of Civil Appeals at Dallas, the judgment of the district court was reversed, and the case remanded for another trial. 8 S.W.(2d) 709.

The plaintiff in error’s application for writ of error was granted upon the following proposition, under the first assignment: “Under the Workmen’s Compensation Act a compromise settlement made between an injured man and the compensation insurance company duly approved by the Industrial Accident Board, the money being paid, constitutes a bar to any further claim on his part for compensation, in the absence of the showing of fraud, accident or mistake and where such a claim has been duly compromised and settled, with the approval of the (Board, the injured claimant is not entitled to recover additional compensation on the sole ground of a showing of a change in his condition after the compromise settlement.”

We think this proposition states the law of this case, and to the extent that the opinion of the Court of Civil Appeals holds to the contrary, it is error.

Section 5 of article 8807 of the same act recognizes the right of the party to make a settlement provided for in section 12. Section 5 is as follows: “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.” In Jenkins v. Texas Employers’ Insurance Association (Tex. Civ. App.) 211 S. W. 349, in which a writ of error was refused, similar provisions, under the Workmen’s Compensation Act of 1913, were construed in accordance with the law announced in the above proposition. The Court of Civil Appeals, in holding that a compromise agreement by the parties, duly approved by the board, could be set aside upon the showing of the change of condition of the injured party, based its holding on section 12d of article 8306, which permits the board, upon a showing of a change of condition, mistake, or fraud, to review a previous award. This section of the act is an entirely separate one from that dealing with the subject of compromise. The law must be construed so as to give effect to all its parts, if it can be done. The Legislature has seen fit to authorize a settlement by compromise for either of two reasons,, one being where the liability of the association is. uncertain, and the other where the injury of the employe is uncertain, indefinite, or incapable of being satisfactorily established.

In Texas Employers’ Insurance Association v. Ezell (Tex. Com. App.) 14 S.W.(2d) 1018, in speaking of the power of the parties to make an agreement and settlement of their differences, it is said: “There is nothing in the compensation statute * * * to prevent the parties in making any compromise and settlement of the suit they may choose to make.” In re McCarthy, 226 Mass. 444, 115 N. E. 764, wherein the facts are very similar to those in this cáse, under a like provision of the law, the Supreme Court of Massachusetts held that a settlement on a lump sum basis, by way of a compromise, between the compensation insurance company and the injured employé, was a complete bar to -any further claim on the part of the employé for injuries from the accident in question, even though the effects thereof developed after the settlement, and were unknown at the time of the settlement. The section of the act making provision for the approval of compromise settlement presupposes an uncertainty either as to the liability of the insurance company or the extent or nature of the injury to the employé.

In this case evidently the insurer claimed there was no liability, basing its claim upon the contention that the injury to the eye was not the result of any accident happening while the employé was working for his employer, who had taken out insurance with the plaintiff in error for the protection of its employés. Upon the other hand, the employé evidently claimed that liability existed because the disability was due to the -accident happening as stated in the petition. The issue thus drawn was not determined by the board. The action of the board in approving the settlement was predicated upon a disagreement on the point as to which no adjudication by the board was sought. The record shows that the parties contemplated the possibility, if not the probability, of the necessity to remove the injured eye. The agreement was entered into in contemplation of a possible change of condition for the worse. If, because of the change of condition contemplated by the parties, the defendant in error is entitled to revoke the provisions of section 12d of article 8306, then it would also be true that, if the defendant in error’s condition had changed for the better, the plaintiff [1045]*1045in error would also be entitled to reopen the case on that ground.

Section 12, art. 8307, evidently presupposes the existence of a condition, under which the parties have agreed' that they desire, in lieu of an award of the board, a friendly settlement.

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Bluebook (online)
17 S.W.2d 1043, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lumbermens-reciprocal-assn-v-day-texcommnapp-1929.