Peloso, Inc. v. Peloso

237 A.2d 320, 103 R.I. 294, 1968 R.I. LEXIS 795
CourtSupreme Court of Rhode Island
DecidedJanuary 17, 1968
Docket112-Appeal
StatusPublished
Cited by24 cases

This text of 237 A.2d 320 (Peloso, Inc. v. Peloso) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peloso, Inc. v. Peloso, 237 A.2d 320, 103 R.I. 294, 1968 R.I. LEXIS 795 (R.I. 1968).

Opinion

*295 Kelleher, J.

This is an employee’s appeal from a decree of the workmen’s compensation commission which on the employer’s petition to review found that the employee had regained his earning capacity and so ordered the suspension of the payment of future compensation benefits.

The petitioner is a common carrier engaged in the highway transport of commodities which, because of their unusual size or weight, require special handling in transit. A particular knowledge of the intricacies of the art of rigging is a necessity for the successful operation of the business. Although the corporation is the nominal petitioner, this cause was instituted at the behest of its insurance carrier. The employee, George Peloso, hereafter referred to as respondent, owns 12 per cent of the corporation’s stock. The respondent’s parents are the majority stockholders. His father is president and treasurer of the corporation.

The respondent is a man in his late thirties. He has worked with his father in this highly specialized field of transportation for 22 years. As a result of his long experience doing this type of work, he has acquired an expertise which is unique.

Up to the time he was injured, respondent was the corporation’s man in the field. He drove trucks to various portions of -the United States and supervised the loading and unloading of the cargo entrusted to the corporation’s care. His father, on the other hand, attended to the duties of the office. On September 22, 1965, a crane boom on which respondent was working became loose, swung out of control and pinned him against the cab of the crane. As a result of this unfortunate incident, respondent’s trachea was rup *296 tured, his ribs fractured and his shoulders suffered severe contusions. He was hospitalized for 15 days. Thereafter, on October 14, 1965, respondent entered into a preliminary agreement which awarded him compensation for the duration of his total incapacity. This petition to review that agreement was filed on August 3, 1966.

It is conceded that notwithstanding his injuries, the corporation has continued to pay respondent his usual weekly salary of $131.10. This sum is the net amount paid respondent after the corporation has made the usual payroll deductions including such items as the federal income and social security taxes.

The respondent’s injuries caused a realignment of the duties which he had shared with his father. In an effort to fill the void created by respondent’s forced retirement from the corporation’s activities, respondent’s father foresook his office duties and assumed his son’s position in the field. Shortly after his release from the hospital, respondent began performing different duties in the corporation’s office such as taking orders, keeping records and giving estimates. During this period, he was from time to time in telephonic communication with his father providing him with instructions as to the best procedure in handling sundry rigging problems which would occur on the actual on-the-spot operations of the business. The record indicates that the time which respondent was engaged in such activity varied both as to the number of days he worked each week and the number of hours he spent each day in the office.

The respondent contends that the full commission erred in finding that his earning capacity had been restored. In support of this position he relies on two, points of argument. First, he declares that there is insufficient evidence in the record upon which the full commission could find that the wages received by respondent represented earnings. Second, respondent urges us to find that the money received by him bore little or no relationship to the services he performed *297 for the corporation and therefore must be regarded at least in part as a gratuity passing to him from his employer.

The respondent’s argument raises two issues to be decided. The first is whether or not there exists in the record legally competent evidence upon which the full commission could base its finding that the money received by respondent represented wages earned and no portion thereof constituted a gift. The second, one of first impression in this jurisdiction, is whether or not the mere recept by an injured employee of his former pre-injury salary given him in exchange for the rendition of work so perfunctory as to be of little or no value gives rise to a conclusive presumption that the employee’s earning capacity has been fully restored and thereby effectively operates to preclude further recovery of workmen’s compensation benefits. Since our decision on the second issue substantially affects our treatment of the first, we shall address our attention to the issues in inverse order.

Under the Rhode Island workmen’s compensation act, it is clear beyond question that compensation is paid an injured worker for loss of earning capacity and not for the injury itself. Best Plastics, Inc. v. Grilli, 101 R. I. 32, 219 A.2d 913. Without a loss or impairment of earning capacity, no recovery of workmen’s compensation benefits may be accorded an injured employee irrespective of the fact that a permanent or lingering physical injury may have been sustained. Weber v. American Silk Spinning Co., 38 R. I. 309, 95 A. 603. Thus whether or not compensation pay- ' ments should continue to be paid an injured employee is determined by ascertaining the degree to which the employee’s earning capacity has been restored. When it is shown that the employee has regained his earning capacity to at least that stage at which it was before he sustained his disability, the act demands that compensation payments be terminated.

We have said before that evidence as to wages earned by *298 an employee on his return to work is material on the issue of his earning capacity, and when such evidence is adduced at trial 'it is entitled to that amount of weight which the commission may choose to assign it. Tretton v. Atwood Crawford Co., 98 R. I. 346, 202 A.2d 286. In cases where it can be shown that the employee’s post-injury earnings are at least equal to the amount which he earned prior to his injury, we have held that under the provisions of our compensation act it shall be conclusively' presumed that the employee’s earning capacity has been fully restored'. This rule applies even though the employee has returned to a different type of work. Universal Winding Co. v. Parks, 88 R. I. 384, 148 A.2d 755. It is significant to note, however, that the conclusive presumption referred to in the Universal Winding Co. case arises only when it can be demonstrated to the full commission’s satisfaction that the post-injury money received by the employee was in fact earned.

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Bluebook (online)
237 A.2d 320, 103 R.I. 294, 1968 R.I. LEXIS 795, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peloso-inc-v-peloso-ri-1968.