Mercer - Fraser Co. v. Industrial Accident Commission

251 P.2d 955, 40 Cal. 2d 102, 1953 Cal. LEXIS 176
CourtCalifornia Supreme Court
DecidedJanuary 6, 1953
DocketSac. 6238; Sac. 6239; Sac. 6240; Sac. 6241
StatusPublished
Cited by102 cases

This text of 251 P.2d 955 (Mercer - Fraser Co. v. Industrial Accident Commission) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mercer - Fraser Co. v. Industrial Accident Commission, 251 P.2d 955, 40 Cal. 2d 102, 1953 Cal. LEXIS 176 (Cal. 1953).

Opinions

SCHAUER, J.

In these four consolidated matters petitioner corporation seeks review of awards, made by the Industrial Accident Commission, of increased benefits assessed against it under the provisions of section 4553 of the Labor Code,1 upon the theory that it was guilty of serious and wilful misconduct.2 We have concluded that although we assume the sufficiency of the evidence to support findings which would sustain awards upon the issue of serious and wilful misconduct, petitioner is correct in its contention that the findings made by the commission do not support the awards, in that they disclose that such awards are based upon an erroneous and untenable concept of the law. We conclude further that the individual respondents’ objections to the jurisdiction of this court to entertain these proceedings on their merits cannot be sustained, and that the awards should be annulled.

In June, 1948, four employes of petitioner were injured, two of them (Soden and Epping) fatally, when the prefabricated parts of a building being constructed by the employer collapsed and fell while the employes were working thereon. The record shows that the commission made a conclusional finding that the employer was guilty of serious and wilful misconduct and that this conclusion is based on various primary findings, including a finding that the employer’s general superintendent knowingly and wilfully failed and neglected to properly and adequately brace and guy the prefabricated parts of the building being erected, “so as to prevent” the fall or collapse thereof during the construction. The record also discloses, as will subsequently be shown in some detail, that the commission was of the view that the peti[108]*108tioner was bound under an absolute duty to preserve the safety of the employes, at least to the extent that it was humanly possible to foresee and guard against danger, and that any failure to maintain such standard of safety, whether negligent or otherwise, constituted serious and wilful misconduct.

Petitioner urges that the awards are unreasonable and arbitrary and are not supported by the findings, that the findings are not supported by the evidence, and more particularly that the commission has by the findings and awards unlawfully imposed upon petitioner a responsibility to insure (i.e., preserve absolutely) the safety of its employes or be subject to the increased assessment under section 4553.

It must be recognized at the outset that the statute in question does not make the employer an insurer of safety and that it does not authorize the additional award upon a showing of mere negligence, or even of gross negligence. Under the provisions of section 4553 the awards of increased benefits can be sustained only if the employes were “injured by reason of the serious and wilful misconduct” (italics added) of the employer, and where, as here, the employer is a corporation, such misconduct must be “on the part of an executive, managing officer, or general superintendent” of the employer corporation. (See California Shipbuilding Corp. v. Industrial Acc. Com. (1947), 31 Cal.2d 278, 279 [188 P.2d 32].) Imposition of the increased award upon evidence showing (or a finding of) conduct any less culpable than that specified by the statute would constitute an unlawful taking of the property of one person and an unwarranted giving of it to another. An award of the type here involved, although denominated and regarded for some purposes as “increased compensation,” is actually of the nature of a penalty (Campbell, “Workmen's Compensation,” § 423, p. 381; cf. E. Clemens Horst Co. v. Industrial Acc. Com. (1920), 184 Cal. 180, 192 [193 P. 105, 16 A.L.R. 611]), and cannot be insured against (Ins. Code, § 116613). Such an award, therefore, can be sustained only if the evidence establishes and the commission finds, directly or impliedly, every fact essential to its imposition.

Since in interpreting the law (specifically, the meaning of the words “serious and wilful misconduct”) we must concern [109]*109ourselves with its impact upon employes as well as upon employers, it should be noted that, with certain statutory exceptions, the Legislature has seen fit to penalize employes as well as employers for “serious and wilful misconduct.” “Where the injury is caused by the serious and wilful misconduct of the injured employee, the compensation otherwise recoverable therefor shall be reduced one-half . . .'” (§ 4551). It cannot be seriously disputed that the words “serious and wilful misconduct” must be given the same meaning in section 4551 as they have in section 4553. As has been heretofore declared, “There is no difference in principle between the degree of care required of an employer and that exacted from an employee” in determining whether serious and wilful misconduct occurred (see Campbell, “Workmen's Compensation,” § 393, p. 363; E. Clemens Horst Co. v. Industrial Acc. Com. (1920), supra, 184 Cal. 180, 188; Parkhurst v. Industrial Acc. Com. (1942), 20 Cal.2d 826, 831 [129 P.2d 113]). In other words, acts of the employer, to constitute serious and wilful misconduct which would warrant increased compensation must be of no less moment, in the relative circumstances, than the acts of an employe which would warrant reduction of his normal compensation. In determining, then, whether the managing superintendent of petitioner was guilty of serious and wilful misconduct which would justify increasing the award for other injured employes we must also consider that such misconduct, if the same accident injured the superintendent, would require reducing the normal award to him.

In order that the general principles of the law, which we hereinafter undertake to state with such comprehensiveness as appears practicable, may be clearly understood in their application to this case, it seems desirable to first relate the facts with considerable detail.

The prefabricated wooden structure here involved was one of three units, A, B, and C, being constructed by petitioner for the Hammond Lumber Company. Hammond supplied the materials and hardware and prefabricated the lumber, and petitioner supplied the construction “know-how” and the men for the job. Bach unit, when completed, was to be approximately 500 feet long in a north-south direction and 192 feet wide. Units A and B, standing side by side, were up and all of the bracing, except for the roof panels, was in. The accident occurred during the construction of unit C, which was situated to the north of, and adjacent to, unit A, [110]*110and was to be attached to the latter unit (i.e., the south end of C was to be attached by trusses to the north end of A) to form one continuous building 1,000 feet in length. C was not commenced as an extension of A; rather, petitioner began the erection of C at its most northerly end, raising and extending columns and trusses in a southerly direction until C reached the junction point with A.

Each unit was erected with 14-inch square timber columns standing vertically on concrete footings. The columns were spaced some 60 feet apart along the length of each unit and 63% feet apart along the width, thus forming rectangular areas (termed bays) throughout the unit.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

(PC) Gelazela v. United States
E.D. California, 2025
Lantz v. Workers' Compensation Appeals Board
226 Cal. App. 4th 298 (California Court of Appeal, 2014)
CLP Resources v. WCAB (Mora) CA1/1
California Court of Appeal, 2013
Bigge Crane & Rigging Co. v. Workers' Compensation Appeals Board
188 Cal. App. 4th 1330 (California Court of Appeal, 2010)
Torres v. Parkhouse Tire Service, Inc.
30 P.3d 57 (California Supreme Court, 2001)
Calvillo-Silva v. Home Grocery
968 P.2d 65 (California Supreme Court, 1998)
Ferguson v. Workers' Compensation Appeals Board
33 Cal. App. 4th 1613 (California Court of Appeal, 1995)
Newton v. Workers' Compensation Appeals Board
17 Cal. App. 4th 147 (California Court of Appeal, 1993)
Rhiner v. Workers' Compensation Appeals Board
848 P.2d 244 (California Supreme Court, 1993)
Shell Oil Co. v. Winterthur Swiss Insurance
12 Cal. App. 4th 715 (California Court of Appeal, 1993)
Zipton v. Workers' Compensation Appeals Board
218 Cal. App. 3d 980 (California Court of Appeal, 1990)
National Can Corp. v. Jovanovich
503 N.E.2d 1224 (Indiana Court of Appeals, 1987)
Cole v. Fair Oaks Fire Protection District
729 P.2d 743 (California Supreme Court, 1987)
Toccalino v. Workers' Compensation Appeals Board
128 Cal. App. 3d 543 (California Court of Appeal, 1982)
Marvin v. Marvin
122 Cal. App. 3d 871 (California Court of Appeal, 1981)
National Kinney v. Workers' Compensation Appeals Board
113 Cal. App. 3d 203 (California Court of Appeal, 1980)
Johns-Manville Products Corp. v. Superior Court
612 P.2d 948 (California Supreme Court, 1980)
Bekins Moving & Storage Co. v. Workers' Compensation Appeals Board
103 Cal. App. 3d 675 (California Court of Appeal, 1980)

Cite This Page — Counsel Stack

Bluebook (online)
251 P.2d 955, 40 Cal. 2d 102, 1953 Cal. LEXIS 176, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mercer-fraser-co-v-industrial-accident-commission-cal-1953.