McMillen v. Arthur G. McKee & Co.

529 P.2d 1380, 165 Mont. 462, 1974 Mont. LEXIS 441
CourtMontana Supreme Court
DecidedDecember 26, 1974
DocketNo. 12805
StatusPublished
Cited by4 cases

This text of 529 P.2d 1380 (McMillen v. Arthur G. McKee & Co.) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McMillen v. Arthur G. McKee & Co., 529 P.2d 1380, 165 Mont. 462, 1974 Mont. LEXIS 441 (Mo. 1974).

Opinions

ME. JUSTICE HASWELL

delivered the Opinion of the Court.

This is a consolidated appeal by the employer and its insurer from two judgments of the district court of Silver Bow County, awarding workmen’s compensation benefits to two injured employees in companion cases.

Claimants are John and Eobert McMillen, employees of Arthur G. McKee & Company, a contractor engaged on a job of smelter improvement in Anaconda, Montana, under a written contract. Defendant is General Accident Fire & Life Assurance Corporation, a private insurance company, the Plan II insurer of the McKee Company under the Montana "Workmen’s Compensation Act.

The ultimate issue for review is whether the employees were injured in the course and scope of their employment so as to entitle them to workmen’s compensation benefits under the [464]*464Montana Act. The Workmen’s Compensation Division and the district court held they were. We affirm.

The two McMillen brothers lived in Butte and traveled each workday to and from the Anaconda job. site where they had been employed for about two years. Each was paid $4 per day travel allowance under the terms of a union contract providing in material part:

“* * * Travel pay or subsistence shall be for days worked. # * # The mileage and amount of travel pay or subsistence shall be as follows:

“Zero to 12y2 miles....................................................................none

“Over 12y2 to 25 miles..............................................................$2.50

“Over 25 to 50 miles..................................................................$4.00

“Over 50 miles............................................................................$8.00”

John McMillen purchased a used Dodge truck three days before the accident in question. It had some 71,000 miles on it at the time of purchase, but John testified he carefully checked the car before purchase and found it safe.

On Monday morning, July 2,1973, the two McMillen brothers were seriously injured in a single car accident while enroute to work. Due to some mechanical failure of the Dodge truck, the rear wheels locked, the truck overturned, and both Mc-Millens were injured. The accident occurred on the highway between Butte and Anaconda before they reached the job site. The cause of the accident was something over which neither the employees nor the employer had any control.

Prior to the day of the accident, both employees had been paid $4 per day for each day worked in addition to their wages. The amount paid was called “the mileage and amount of travel pay or subsistence”. On the itemized breakdown attached to their checks, there is a column headed “Subs. Travel” in which this payment was entered. The employer did not deduct any taxes on this travel pay, but each employee paid income taxes on the travel money.

[465]*465Neither employee received any travel pay on the day of the accident.

The claims of each employee were heard by the Workmen’s Compensation Division. The Division entered findings of fact, conclusions of law, and an order awarding compensation. The substance of the Division holding was that the travel allowance was paid as an incentive “to get the men to come on the job” and a benefit to the employer; that accordingly each suffered an accidental injury arising out of and in the course of his employment; and, that each was entitled to benefits under the Montana Act including compensation, medical expense and attorney fees.

On appeal to the district court, the cases were heard on the record before the Workmen’s Compensation Division without additional evidence. The district court adopted the findings of facts and conclusions of law of the Division, and entered judgment affirming the Division award of benefits.

The employer and insurer now appeal from the judgment of the district court.

The issue is whether under the facts and circumstances of this case the two employees suffered accidental injuries “arising out of and in the course of” their employment within the meaning of Montana’s Workmen’s Compensation Act. Section 92-614, K.C.M.1947.

A review of some prior decisions of this Court on compensation coverage where an employee is injured “going or coming” to and from the job furnishes the background for our determination.

In Griffin v. Industrial Accident Fund, 111 Mont. 110, 106 P.2d 346, compensation was denied a foreman injured in a fall on a city sidewalk when returning home from work. The basis of denial was that the sidewalk was not used by the employer in carrying on his business in which the employee was employed and consequently the employee was injured only by an ordinary street hazard common to all pedestrians.

[466]*466In Morgan v. Industrial Accident Board, 133 Mont. 254, 260, 321 P.2d 232, 235, claimant, a union shop steward, was injured in an automobile accident while traveling from Miles City to Forsyth. In denying compensation, this Court pointed out that at the time of injury claimant was on union business and not within the scope of his employment. The Cóurt laid down this principle:

“Under the particular circumstances, where the accident occurred is irrelevant. If claimant was injured within the scope of his employment, the fact that he was injured ‘after hours’ and ‘off premises’ is incidental. Even in ‘street risks’, the scope, not the place of employment controls.”

Guarascio v. Industrial Accident Board, 140 Mont. 497, 501, 374 P.2d 84, granted compensation where an itinerant terrazzo tile worker residing in Salt Lake City was killed in an automobile accident enroute from Utah to Butte, Montana to aid in construction of a hospital there. At the time of the accident Guarascio was being paid a travel pay allowance based upon his hourly rate of pay multiplied by the number of hours necessary to travel from Salt Lake City to Butte, plus an allowance for subsistence and transportation costs.

In Guarascio after finding “[an] informal, oral type of employment”, this Court laid down the test of compensability in “going and coming” eases in terms of whether some reasonably immediate service to the employer was involved:

“In the instant case, the decedent Guarascio was carrying on the business of his employer by transporting himself to Butte, Montana, so that he could be on the job as soon as possible. Furthermore, the employer recognized the benefit to it by virtue of the fact that decedent workman was to receive monetary compensation for the time spent traveling to the job.

“In Morgan v. Ind. Acc. Bd., 133 Mont. 254, 321 P.2d 232, this Court made the following observation:

“‘What is the underlying principle? In cases where some reasonably immediate service to the employer can be discerned [467]*467the claim has been sustained. Where there has been no reasonably immediate service the claim has been denied.

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Bluebook (online)
529 P.2d 1380, 165 Mont. 462, 1974 Mont. LEXIS 441, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcmillen-v-arthur-g-mckee-co-mont-1974.