New Amsterdam Casualty Co v. Commercial Casualty Insurance

129 Misc. 466, 222 N.Y.S. 701, 1927 N.Y. Misc. LEXIS 1351
CourtCity of New York Municipal Court
DecidedApril 19, 1927
StatusPublished
Cited by5 cases

This text of 129 Misc. 466 (New Amsterdam Casualty Co v. Commercial Casualty Insurance) is published on Counsel Stack Legal Research, covering City of New York Municipal Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New Amsterdam Casualty Co v. Commercial Casualty Insurance, 129 Misc. 466, 222 N.Y.S. 701, 1927 N.Y. Misc. LEXIS 1351 (N.Y. Super. Ct. 1927).

Opinion

Finelite, J.

This is an action to recover from defendant $1,327.14 paid by plaintiff to a widow and son under an award made by the State Industrial Commission. A jury was waived and the question was submitted to the court on conceded facts, as follows:

On June 30, 1920, the plaintiff issued its compensation policy to John H. Doscher, covering the location at Pratts, Madison county, N. Y., vicinity, and Kerhonkson, N. Y., and classified the risk as creamery.

On January 2, 1921, one George Newbeck, a chauffeur employed by John H. Doscher at his store, No. 502 West Thirty-ninth street, New York city, was killed in Brooklyn, N. Y., and said John H. Doscher, on January 4, 1921, notified the State Industrial Commission of said accident and the death of said George Newbeck, and in said notice designated the plaintiff as the insurance carrier.

Proceedings were had before the State Industrial Commission, [467]*467and on February 5, 1921, an award was made against the plaintiff herein to Mrs. Loretta Newbeck, widow, and George W. Newbeck, son, for the sum of $11.54 weekly from date of death of said George Newbeck, and for a further sum of $100 to August Struening, undertaker, for funeral expenses.

Commencing February 19, 1921, to and including March 2, 1923, the plaintiff did pay to the widow- and son of George New-beck, pursuant to said award, the sum of $1,327.14. On March 1, 1922, the plaintiff demanded a complete payroll from said John H. Doscher, and was then first informed that the defendant had issued a policy of workmen’s compensation insurance upon the New York city plant of said John H. Doscher, and that a premium on a payroll on the New York city plant, which included George Newbeck, was refused by the insured, John H. Doscher.

The defendant’s policy of insurance was issued to John H. Doscher on or about June 25, 1920, for a period of one year from that date, and the location of the risk was described as No. 502 West Thirty-ninth street, New York city, and classified on the risk as milk dealer.

Upon learning of the insurance issued by the defendant, the plaintiff, on notice to the defendant on or about March 3, 1922, moved for a rehearing before the State Industrial Board, and at said hearing, on June 29, 1922, the award against the plaintiff was reaffirmed by the State Industrial Board.

The plaintiff thereupon appealed to the Appellate Division, Third Department, from said award, and on March 7, 1923, the Appellate Division reversed the ruling and award of said State Industrial Board and remitted the matter to them. (Neubeck v. Doscher, 204 App. Div. 617.)

From that date the plaintiff stopped paying under said award, and has never since paid any additional sum pursuant thereto.

On November 27, 1923, said State Industrial Board, pursuant to said Appellate Division decision, reversed itself and awarded compensation from the date of the death of said George New-beck to said Loretta Newbeck and son at the rate of $11.54 weekly, and the sum of $100 for funeral expenses, and said award further provided that it appearing that the plaintiff by an award heretofore made had paid to these claimants the sum of $1,327.14-, which award was reversed by the Appellate Division, the defendant, the carrier, hereby charged with the payment of said award, shall deduct that amount from the award hereby made and commence its payments where the plaintiff left off paying and continue on from there under this award.

[468]*468The said award further states that •“ while this board has no authority to direct and enforce the payment of $1,327.14 by the Commercial Casualty Company to the New Amsterdam Casualty Company, we recommend that that be done as a matter of equity and justice.” This award is set forth in full in paragraph “ fifteenth ” of the complaint and not denied by the answer, and was conceded at the trial.

Thereafter the defendant appealed from said last-mentioned award to the Appellate Division, Third Department, and in May, 1924, said award was unanimously affirmed by said Appellate Division without opinion. (Neubeck v. Doscher, 209 App. Div. 843.)

The defendant has paid and is now paying awards to the claimants under the last-mentioned award. . This is the agreed statement of facts submitted on the trial.

This action is brought by the plaintiff to recover from the defendant $1,327.14, that being the amount of money paid by the plaintiff to the claimants, Mrs. Newbeck and her son, pursuant to the first award entered against the plaintiff by the State Industrial Commission. This sum the defendant would have had to pay under the award of November 27, 1923, had the plaintiff not paid this sum. The award of November 27,1923, clearly shows that the entire award was made against the defendant and that the payment by the plaintiff was the payment of that portion of the award due from the defendant to the claimants, and because of such payment the defendant was not obliged to again pay said amount to the said claimants, and in equity and good conscience should reimburse the plaintiff in that amount.

The award against the plaintiff was entered against it upon the report of the employer, John H. Doscher, and had not the defendant Commercial Casualty Insurance Company also carried workmen’s compensation insurance on behalf of said John H. Doscher said award would have stayed against the plaintiff.

The award made by the State Industrial Commission against the plaintiff was enforcible as a judgment when filed in the county clerk’s office-pursuant to section 26 of the Workmen’s Compensation Law if not paid within ten days. In view of this section it cannot be successfully contended that because the plaintiff herein bowed to the jurisdiction of the State Industrial Commission and recognized said award without waiting until judgment had been entered on said award and execution issued to the sheriff and levied against the plaintiff.

In fact it was conceded by the attorney for the defendant that the defendant is now malting payments under a similar award made by the State Industrial Board against it, continuing where [469]*469the plaintiff left off paying, and it is absurd for it to contend that payment by the plaintiff was voluntary, especially after it took an appeal to the Appellate Division from said award. If the award of the Industrial Board was not enforcible against the defendant, why did the defendant appeal from said award?

Further, that in recognizing the award against it it is barred from now attacking the validity of said award, and by the decision on appeal is estopped from denying its liability.

Section 29 of the Workmen’s Compensation Law provides that where dependents of an employee elect to take compensation the awarding of compensation shall operate as an assignment of the cause of action to the insurance carrier hable for the payment of such compensation. Therefore, upon the plaintiff paying to the claimants the award it automatically becomes subrogated to all claims which the claimants had against third persons to the amount of such payment.

The reading of the award fully set forth in paragraph

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Bluebook (online)
129 Misc. 466, 222 N.Y.S. 701, 1927 N.Y. Misc. LEXIS 1351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-amsterdam-casualty-co-v-commercial-casualty-insurance-nynyccityct-1927.