Lumbermen's Reciprocal Ass'n v. Kaisha

51 F.2d 599, 1931 U.S. Dist. LEXIS 1550, 1931 A.M.C. 1604
CourtDistrict Court, S.D. Texas
DecidedJuly 29, 1931
DocketNo. 1386
StatusPublished
Cited by11 cases

This text of 51 F.2d 599 (Lumbermen's Reciprocal Ass'n v. Kaisha) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas 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. Kaisha, 51 F.2d 599, 1931 U.S. Dist. LEXIS 1550, 1931 A.M.C. 1604 (S.D. Tex. 1931).

Opinion

HUTCHESON, Circuit Judge.

This ease as first filed presented an effort on the part of Culver, an injured employee of Young & Suderman, independently contracting stevedores, and their insurer, under the Longshoremen’s and Harbor Workers’ Compensation Act (33 USCA §§ 901-950), to sue as “persons other than the employer liable for damages” the owner of the ship Jufuku .Maru, and the ship in the course of the loading of which the injury was received.

A hearing on exceptions to‘their right to sue them as third persons resulted in. an order overruling the contention that the ship and'owners were not third parties, sustaining the exception as fo Culver’s right to sue, and [600]*600because the insurer had procured an assignment from the insured, the statutory assignee of Culver’s right of action, sustaining the insurer’s right to sue. So. Pac. Co. v. Winton, 27 Tex. Civ. App. 503, 66 S. W. 477; see Culver’s Case (D. C.) 1930 A. M. C. 1791, 44 F.(2d) 659.

The ease afterward coming on for trial on its merits; respondents, renewing their contention that the ship was not a third party, proved that, though Young & Suderman had taken out the insurance required by the act for the protection of its employees, the ship had paid to them, as part of the cost of the loading, the amount of the premiums.

They argued from this, and from the statute making it the duty of the ship to let the work only to contractors who had taken out insurance, that the ship must be treated as a statutory employee and itself protected by the insurance and not as a third party, a stranger to the insurance arrangement.

Cases are cited from states having statutes designed and effective to treat an entire undertaking as a unit and to provide that persons working on it shall have as to all persons working on it, or connected with it, one remedy, that for compensation.

The effect of these statutes is to release all other persons working on or connected with the undertaking from their common-law liability for damages for injuries which they cause. In Standard Accident Ins. Co. v. Pennsylvania Car Co. (C. C. A.) 49 F.(2d) 73, 75, these eases are referred to, but not followed, for the reason that there, as here, the statute under construction was different from those considered in the cited eases. For the same" reason they will be referred to, but not followed here. There, under a statute (Rev. St. Tex. 1925, art. 8307, § 6a) which, while giving a cause of action against “person other than the subscriber,” provided (article 8306, § 3) that the employees should have “no right of action against their employer or against any agent, servant, or employee of said employer,” we held an independent contractor liable in damages to the employees of the contractor. Here the statute provides (section 4 of the act [33 USCA § 904]): “Every employer shall be liable for and shall secure the payment to his employees of the compensation” provided by the act (section 5 [33 USCA § 905]): “The liability of an employer prescribed by the act shall be exclusive and in place of all other liability of such employer to the employee.” Section 33 of the act (33 USCA § 933) provides that, if the employee determines that “some person other than the employer is liable in damages,” he may elect compensation or suit for damages against such third person, and that acceptance of compensation shall operate as an assignment to the employer of all right of the employee to recover damages against such third person, subject only to the requirement that, if the employer recover any excess over his disbursements, he shall pay them to the employee. This statute vests in the employer complete control over the cause of action. Hunt v. Bank Line (C. C. A.) 35 F.(2d) 136.

I think it plain that, just as the independent contractor in the Standard Accident Case, supra, was under the Texas statute a “person other than the subscriber,” and therefore liable to suit, so here, under the Federal statute, if there is liability on the ship and its owners, the statutory case of “some person other than the employer is liable in damages” is presented, and ship and owner are suable; for under no reasonable view of the statute in the light afforded by its language considered alone, or in the light of the purpose to be accomplished by it, the mischief to be remedied, can it be considered that the ship or its owner was Culver’s “employer.” I therefore adhere to the rulings made on exceptions to the libel, holding with the libel-ants that it may sue on the cause of action alleged. See The Pacific Pine (D. C.) 31 F.(2d) 152.

On the merits, however, I think the decision must be for respondents.

In a ease of this kind, where the employer was unquestionably negligent in the way the work was performed, and where, nearly a year after the injury occurred, for the first time, claim is made that the ship caused the injury, libelants should be prepared, not merely to suggest that the ship may have been negligent, and that its negligence may have been the proximate cause of the injury, but to clearly and satisfactorily establish that it was negligent, and that that negligence was a proximate cause.

Respondents insist that the testimony of Jure, generally in charge of the loading for Young & Suderman, that the winch worked all right, and loaded cargo properly, that he saw nothing the matter with it, and that no complaints of anything being wrong with it were made to him, taken in connection with the testimony of the ship’s officers that as to the winch there was nothing wrong with it, and as to the bolts for the beam they were available and used, in the light of the con-[601]*601cededly dangerous and reckless method employed in- getting the bale of cotton out of the hold by dragging the fall across the beam, instead of topping the boom, rebuts the claim of libelants’ witnesses that the winch was de^ feetive, and that they were unable to secure bolts for the beam.

I do not find it necessary to decide this point, for, assuming without deciding that the ship failed and refused to furnish bolts for the beam, it is entirely plain that everyone, including Culver, knew that the beam was not bolted; and assuming in the same way that in the particulars of leaking steam and the absence of a brake the winch was defective, and that the failure to have the winch in better condition was negligence, it is entirely clear that neither the absence of bolts, nor the condition of the winch, was the proximate cause of the injury. This occurred solely and entirely as the proximate result of the generally reckless manner in which a dangerous piece of work was being performed by attempting to drag the bale up across the beam knowing that it was bound to foul it unless some one pushed it oft, instead of topping the boom for a complete clearance. And specifically because the beam upon which Culver was standing was displaced through the negligence of the gangwayman in ordering the winch to proceed ahead after Culver had signaled to him to stop it.

Libelants’ counsel argue this ease as though the beam was dislodged by the winch proceeding up after the gangwayman had ordered it stopped. The evidence establishes just the contrary.

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Bluebook (online)
51 F.2d 599, 1931 U.S. Dist. LEXIS 1550, 1931 A.M.C. 1604, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lumbermens-reciprocal-assn-v-kaisha-txsd-1931.