Pacific Employers Insurance v. Industrial Accident Commision

152 P.2d 501, 66 Cal. App. 2d 376, 1944 Cal. App. LEXIS 1190
CourtCalifornia Court of Appeal
DecidedOctober 17, 1944
DocketCiv. No. 12738
StatusPublished
Cited by18 cases

This text of 152 P.2d 501 (Pacific Employers Insurance v. Industrial Accident Commision) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pacific Employers Insurance v. Industrial Accident Commision, 152 P.2d 501, 66 Cal. App. 2d 376, 1944 Cal. App. LEXIS 1190 (Cal. Ct. App. 1944).

Opinion

NOURSE, P. J.

The petitioner as the insurance carrier of a general employer seeks to review an award of the respondent commission based upon a holding that the general and the special employers were both liable for payment of compensation. Both being fully covered by compensation insurance, the award was made against the two insurance carriers.

Viewing the evidence in the light most favorable to respondent, as we are required to do in a proceeding of this nature, it appears that Dinwiddie Construction Company held a general contract to perform certain work for a cement company in Davenport in Santa Cruz County. In the course of its operations Dinwiddie let a subcontract to W. R. Ballinger & Son on a cost plus basis. Under the terms of this contract Dinwiddie agreed to and did furnish its own employees to help the” employees of Ballinger in the work under the subcontract. All these employees were carried on the Dinwiddie payroll and were paid by Dinwiddie checks. Prior to the time of the accident no one of these employees had been carried on the Ballinger payroll, and all had been under the direct supervision and control of Dinwiddie.

A short time before the accident Ballinger had completed its work under the subcontract and had removed from the premises all the men and equipment with the exception of two men and two trucks. These, on the special request of Dinwiddie, were permitted to remain a few days to clean up and to remove some other equipment to the plant of another cement company in the vicinity. The injured employee, who was then on the regular payroll of Dinwiddie, was directed by Dinwiddie’s superintendent to assist the two employees of Ballinger and in the course of this work he suffered the injuries on which the award was based. During all this work the employee was under the direction of Dinwiddie’s superintendent. The two employees of Ballinger with whom he was working at the time of the injuries were under the same di[379]*379rection, the Ballinger superintendent and foreman having left the premises with the rest of their crew several days previously.

When the applicant was injured the superintendent and timekeeper for Dinwiddie arranged hospitalization and medical care, but later in the same day they took the position that he was an employee of Ballinger and so notified the doctor and the hospital. Dinwiddie then requested Ballinger to pay his wages for the day and to assume the responsibility of his injury. This was done and the payrolls were readjusted to show that the injured employee was on the Ballinger payroll on the day of the injury, and medical care was furnished the employee for several months at the expense of Ballinger’s insurance carrier.

The evidence as to the employer-employee relation presents a case in which Dinwiddie was the general employer having the right of control and exercising that right at the time of the injury. Whether Ballinger was a special employer we need not decide since they have assumed liability and do not question the award. The argument of petitioner that the applicant was not in their employ at the time because he was helping the two employees of Ballinger and under their control is not impressive. The evidence was such that it would support an inference that all three were under the direction and control of Dinwiddie.

The petitioner complains of the amount of the award claiming it should have been based on the rate of pay of a laborer rather than on the rate of a truck driver. The evidence here is not in conflict. The applicant had been regularly employed as a truck driver and had been paid as such. On the day of the accident he was directed by his superintendent to help two other truck drivers. No arrangement was made for a different rate of pay. His contract called for truck driver’s pay even when assigned to other work. The act of these employers in sending him a check for that day at the laborer’s rate was a mere subterfuge since he worked but a part of the day and had no knowledge that the check was not based upon his usual daily rate of pay.

The argument of petitioner that the commission erred in basing its award upon a finding of permanent disability rests upon citations from the testimony of one of the examining physicians. Reference to the testimony of the applicant and [380]*380of Dr. Moore is sufficient. The applicant was injured in March, 1942, After hospitalization and frequent examinations and treatment, a hearing was held by the commission on September 8, 1943, at which it appeared that the applicant still had trouble with his right knee and left ankle, both of which were injured in the accident.

The writ herein was issued because we were in doubt as to' the issue of the applicability of the statute of limitations. Thp applicant filed a claim with the respondent commission-seeking an award against Ballinger and its insurance carrier. Thereafter, and more than six months after the injury, he requested that Dinwiddie and its insurance carrier be joined. Such an order was made and the award against the carriers of both employers followed. The petitioner • argues that the commission was without jurisdiction to make any award against it because it was not brought into the proceedings within six months after the date of the injury.

The right to institute proceedings for the collection of benefits under the Labor Code is limited to ‘ ‘ Six months from the date of injury, or from the date of the last payment of any compensation. ...” Section 5405. Payment of “compensation” within this section includes payment or furnishing, of medical care, hospitalization, or other benefits recoverable under the code. The objective policy of this portion of the code is the protection of the injured employee from being lulled into a sense of security by voluntary payments of benefits. until the time to commence formal proceedings with the commission has expired. So far as the policy of the statute is concerned it makes no difference whether these benefits are paid under a confession of legal liability or not. The deciding factor is that the employee has been paid and is therefore not moved to commence legal .proceedings to enforce his claim.

When acts are done by the employer which lead the employee to believe that liability under the statute is admitted and will not be contested, or where the acts of the employer either falsely misrepresent to the employee or fraudulently -conceal from him the truth of the facts upon which the liability of the employer depends, the running of the statute of ■ limitations may be tolled and it is immaterial whether the employee relies - upon actual fraud or mere estoppel. .

. A somewhat similar ease is Kimball v. Pacific Gas & Elec. [381]*381Co., 220 Cal. 203 [30 P.2d 39]. That was a case involving a general and a special employer. After the employee was injured one of the employers entered into a secret agreement ■with the other to conceal from the employee the facts of the employment of the fellow servant who caused the injury, and agreed to pay to the other employer one-half of any compensation or benefits awarded on account of the injury. Long after the statutory period the employee sued for damages against the employer who was not named in the proceedings before the Industrial Accident Commission and obtained a verdict. In affirming the judgment the court quoted from Kane v. Cook, 8 Cal.

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Bluebook (online)
152 P.2d 501, 66 Cal. App. 2d 376, 1944 Cal. App. LEXIS 1190, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pacific-employers-insurance-v-industrial-accident-commision-calctapp-1944.