Phœnix Indemnity Co. v. Barton Torpedo Co.

19 P.2d 739, 137 Kan. 92, 1933 Kan. LEXIS 63
CourtSupreme Court of Kansas
DecidedMarch 11, 1933
DocketNo. 30,915
StatusPublished
Cited by13 cases

This text of 19 P.2d 739 (Phœnix Indemnity Co. v. Barton Torpedo Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Phœnix Indemnity Co. v. Barton Torpedo Co., 19 P.2d 739, 137 Kan. 92, 1933 Kan. LEXIS 63 (kan 1933).

Opinion

The opinion of the court was delivered by

Hutchison, J.

This is an action in tort by an insurance carrier having been theretofore adjudged in a workmen’s compensation case to pay the dependents of a deceased workman a definite award, to recover on its behalf and on behalf of the dependents damages from third parties for their negligence which caused the death of the workman. The demurrers of the defendants to .the petition were overruled. A plea in abatement filed by one of the defendants, The Shell Petroleum Corporation, was also overruled. This defendant appeals, alleging error in both these rulings.

The petition alleged that plaintiff was an insurance carrier and had executed and delivered to one W. H. Schwartz a policy insuring him against liability under the workmen’s compensation law, that Schwartz had by written contract with The Shell Petroleum Corporation engaged to drill a certain oil well in Greenwood county, Kansas, the company “to furnish the drilling rig, casing, fuel and water, and that when said well reached the oil-bearing sand- said Schwartz should shut down, notify Shell Petroleum Corporation thereof and that it should thereupon take full charge of the well and of the operations thereat, and direct, manage and control the drilling into, shooting and testing of the sand and placing the well on the pump, paying said Schwartz for the use of his tools and drilling equipment and of the workmen employed by him for all time so spent the sum of $80 per day of twenty-four hours.” That when oil-bearing sand was reached by Schwartz, on March 19,1929, the petroleum company took full charge of the well, tools and equipment, and managed, controlled and supervised the completion of the well, including drilling into and shooting the oil-bearing sand, that it employed the Barton Torpedo Company to shoot the well with an explosive, and the defendant Pearl Blair represented the torpedo • company and he acted jointly with the petroleum company representatives, Bielde and Lingo, in lowering the container, and then they fastened the reel to the fly wheel of the engine used in the drilling for the purpose of withdrawing the torpedo line from the hole; that Logan Herbert, the tool dresser in the employ of Schwartz, was di[94]*94rected by those in charge to start the engine, and when he did so the reel came loose from the flywheel and struck him, inflicting a serious wound from which he died.

The petition gives details of negligence, names the dependents, specifies the award of the compensation commissioner as $4,350 against Schwartz and plaintiff insurance company, which the latter is regularly paying, attaches a copy of the award and prays for a judgment of $10,000 for the benefit of itself and the dependents, as their interests may appear.

A general demurrer to this petition was overruled and then the petroleum company filed a plea in abatement, attaching a copy of the contract between the petroleum company and Schwartz, calling special attention to the part of that contract which obligated Schwartz to procure an insurance contract under the workmen’s compensation law, and that no right of action was given such insurance carrier against the petroleum company. The plea further alleged that the petroleum company, Schwartz and Herbert were all operating under the workmen’s compensation law at the time of the accident. The errors assigned by the appellant are in overruling the demurrer and the plea in abatement.

The difficulty and confusion which has arisen in the case is in the apparent shifting o'f position by the Shell Petroleum Corporation since the writing of the contract between that company and Schwartz. The contract on its face is unmistakably designed to eliminate the company from liability under the workmen’s compensation law. Throughout the entire contract the company is regularly and frequently referred to as the “owner,” and Schwartz as the “contractor.” The attitude of the appellant in the demurrer, the plea in abatement and the brief, presented here on review, is not upon the theory of appellant being the owner, but as being the principal contractor and Schwartz the subcontractor.

The principal contractor and the subcontractor can both be made liable under the workmen’s compensation law, while an owner, generally speaking, is not liable under that law. R. S. 1931 Supp. 44-503 in the first paragraph (a) makes such principal contractor liable to the workman employed by the subcontractor as if employed immediately by him.

Doubtless the trial court in overruling the demurrer and the plea in abatement regarded the contract as one between an owner and contractor, as it especially emphasized the former. However, it [95]*95enumerates privileges and duties which go much farther than any ordinary owner could or would reasonably go, such as furnishing the drilling rig and other equipment, also taking full charge of the well and the operations thereat and managing the shooting and testing of the well and assuming the responsibility until the shot hole is cased off. These rights and privileges reserved to itself in contracting with Schwartz make the petroleum company more nearly in line with the definition of a principal contractor, as defined in the first pragraph of the section above cited, than an owner, as it is regularly denominated in the contract.

The requirement of the contract that Schwartz procure a $10,000 bond from an insurance carrier to cover injuries to employees and servants of Schwartz under the workmen’s compensation law and providing a failure to secure the same within ten days would constitute a breach of the contract, plainly recognized a legal liability for such injuries on the part of the petroleum company which it was attempting by its contract to avoid.

The very evident import of the first paragraph of the section of the statute above cited was for the protection of the workman and to enable him to reach the principal contractor as well as the subcontractor and his bondsman, and if Schwartz and his insurance carrier in this case should both have happened to be insolvent the dependents of the deceased workman could undoubtedly have reached the petroleum company as the principal contractor and made it liable, notwithstanding the evident design exhibited in the contract was to avoid such liability.

In the case of Purkable v. Greenland Oil Co., 122 Kan. 720, 253 Pac. 219, the oil company contracted with another party to erect a derrick for the purpose of using it in drilling an oil well at that place. One^of the workmen fell off the derrick and was injured, and the court held the work of building the derrick was part of the company’s business within the meaning of R. S. 44-503, and the company letting the contract was liable for compensation. It was said in the opinion:

“The statute was enacted for the very purpose of giving employees of the contractor remedy against the principal, and the court has so held. (Spencer v. Marshall, 107 Kan. 264, 191 Pac. 468.)” (p. 722.)

This brings us to the all-important question in this case as to whether a party liable under the workmen’s compensation law can be made liable as a third party in a tort action for the same injury. [96]*96This exact question was before this court in the case of Leebolt v. Leeper, 128 Kan. 61, 275 Pac. 1087, and it was there held—

“. . . that the injured workman’s immediate employer was a subcontractor, and that under the provisions of the workmen’s compensation act (R. S. 44-501 et seq.)

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Cite This Page — Counsel Stack

Bluebook (online)
19 P.2d 739, 137 Kan. 92, 1933 Kan. LEXIS 63, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phnix-indemnity-co-v-barton-torpedo-co-kan-1933.