Munson v. Vane-Stecker Co.

79 N.W.2d 855, 347 Mich. 377, 1956 Mich. LEXIS 272
CourtMichigan Supreme Court
DecidedDecember 28, 1956
DocketDocket 46, Calendar 46,970
StatusPublished
Cited by19 cases

This text of 79 N.W.2d 855 (Munson v. Vane-Stecker Co.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Munson v. Vane-Stecker Co., 79 N.W.2d 855, 347 Mich. 377, 1956 Mich. LEXIS 272 (Mich. 1956).

Opinion

Carr, J.

This is an action for damages resulting from an accident occurring on November 3, 1950. While engaged in erecting steel on a building being constructed for the Dearborn Furniture Company, in Dearborn, Michigan, plaintiff, while endeavoring to climb scaffolding, fell and sustained serious injuries. He was at the time in the employ of the Acorn Iron Works as a foreman of steelworkers, and the employer was subject to the provisions of the workmen’s compensation act of the State. Plaintiff’s hospital and medical expenses were paid in accordance with the provisions of the statute, and he received compensation for his disability. On or about August 1, 1952, plaintiff sought and obtained permission from the compensation commission to settle with his employer and its insurer for a lump-sum payment. The total amount of all payments *381 made under the compensation act was approximately $8,500. Following the settlement, and under date of August 25, 1952, the present suit for damages was instituted, the defendants being charged with negligence because of failure to properly inspect and repair the scaffolding.

The declaration in the case alleged that in the construction of the building for the Dearborn Furniture Company the Etkin Construction Company was the general contractor, and the Vane-Stecker Company and the Acorn-Iron Works were subcontractors on the project. The Safeway Steel Scaffold, Inc., was joined as a party defendant with Etkin and Vane-Stecker, it being claimed in the pleading that Safeway was the owner of the scaffolding from which plaintiff fell. At the conclusion of the proofs on the trial in circuit court the case was dismissed as to Safeway. Motions made by the other defendants for directed verdicts in their favor were taken under advisement by the trial court. The jury returned a verdict for plaintiff, and thereupon defendants Vane-Stecker and Etkin each moved for judgment in its favor notwithstanding said- verdict. These motions were granted, and plaintiff has appealed.

Prior to the impaneling of the jury counsel for defendants joined in a motion to dismiss on the ground that plaintiff, at the time he started his action on August 25,1952, was not entitled to seek damages from defendants because of his election to take compensation from his employer under the workmen’s compensation act. The trial court did not determine the issue, granting the motions for judgments notwithstanding the verdict on Other grounds. Appellees now claim that the action taken may properly be sustained on the theory that the case was prematurely brought.

*382 At the time plaintiff filed, his declaration as commencement of suit on August 25, 1952, a provision of the workmen’s compensation law granted to an employee sustaining an-injury in the course of and. arising out of his employment the option to proceed with his claim for compensation or bring an action at law against a third party against whom legal liability existed because of the injury and resultant disability. The employee could not, however, pursue both remedies. Such provision (CL 1948, §413.15 [Stat Ann 1950 Rev §17.189]) was amended by PA 1952, No 155 (CLS 1952, § 413.15 [Stat Ann 1953 Cum Supp § 17.189]), which became effective on September 18, 1952, and which materially changed the prior statute, providing, in substance, that the acceptance of compensation benefits or the bringing of proceedings under the compensation act should not constitute an election of remedies, but that the injured employee, his dependents, or personal representatives may bring action to enforce the liability of a third party claimed to be liable for damages. The validity and application of this amendment were considered and determined in Rookledge v. Garwood, 340 Mich 444, where it was held that said amendment was essentially remedial in character and should, as such, be given a retroactive effect.

In Rookledge v. Garwood the amendment of 1952, above cited, was in effect at the time the action for damages was instituted against defendant. In the opinion, however (p 458), reference was made to the decision of the circuit court of appeals of the 6th circuit in Foster v. Buckner, 203 F2d 527, 531. The following excerpt from the opinion indicates the view of that court with reference to the specific question here at. issue. . After discussing other questions involved in the proceeding, it was.said; .

*383 “A further conclusive answer to this contention is that the Michigan statute which was construed in the Dinardo Case [Dinardo v. Consumers Power Co. (CCA), 181 F2d 104] has now been changed. An amendment was enacted to CL 1948, § 413.15 (Stat Ann 1950 Rev § 17.189), in 1952, PA 1952, No 155, after the instant action was commenced but while it was pending. The former statute required an employee to elect whether to pursue his remedy against the employer for compensation or to seek his common-law remedy against the third party causing the injury. Under the present statute the employee may receive compensation or take: proceedings to enforce compensation payments and, also, sue :the third party. The statute provides in substance, that in case of recovery against the third party, after deducting expenses of recovery, the amount of the judgment is to be used first to reimburse the employer or the workmen’s compensation insurance carrier for amounts paid or payable under the compensation act to date of recovery and the balance is paid to the inshred employee or his dependents. This statute pertains to the remedy and, hence, applies to the present action. Judd v. Judd, 125 Mich 228; Heineman v. Schloss, 83 Mich 153; Nash v. Robinson, 226 Mich 146; Detroit Club v. State of Michigan, 309 Mich 721; Stott v. Stott Realty Company, 288 Mich 35. Since the change in the statute created no new cause of action and the amendment merely limited a procedural defense, the amended statute governs this controversy. The Dinardo Case, supra, does not apply and the claimed issue does not arise.”

In the instant case the prosecution of plaintiff’s alleged cause of action against defendants was, at the time suit was brought, subject to the statutory provision then in effect, pursuant to which he was bound by his election to take compensation from his employer. However, the workmen’s compensation act did not undertake to abolish such cause of action but, on the contrary, expressly recognized it. The *384 pertinent statutory provision merely raised a bar to its prosecution, based on tbe election to ■ take advantage of the statutory remedy. Tbe amendment of 1952 removed that barrier. It does not appear that tbe question was raised in tbe trial court by any of tbe defendants until after tbe effective date of tbe amendment on September 18, 1952. The inhibition imposed on plaintiff was procedural in character, and, having been removed by act of tbe legislature, tbe motions to dismiss made on behalf of defendants were not' well-founded.

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Bluebook (online)
79 N.W.2d 855, 347 Mich. 377, 1956 Mich. LEXIS 272, Counsel Stack Legal Research, https://law.counselstack.com/opinion/munson-v-vane-stecker-co-mich-1956.