Pierson v. Industrial Accident Commission

220 P.2d 794, 98 Cal. App. 2d 598, 1950 Cal. App. LEXIS 1904
CourtCalifornia Court of Appeal
DecidedJuly 25, 1950
DocketCiv. 17422
StatusPublished
Cited by6 cases

This text of 220 P.2d 794 (Pierson v. Industrial Accident Commission) 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
Pierson v. Industrial Accident Commission, 220 P.2d 794, 98 Cal. App. 2d 598, 1950 Cal. App. LEXIS 1904 (Cal. Ct. App. 1950).

Opinion

VALLÉE, J.

Review of proceedings of the Industrial Accident Commission. November 14, 1947, petitioner George D. Pierson, while employed as a mine foreman, sustained injury arising out of and in the course of his employment resulting in total disability.

The commission found that at the time of the injury Pierson was employed by Livingston Greenwood who was then insured by Colonial Insurance Company. An award was made accordingly. Thereafter, on petition of Colonial, a rehearing was granted. After further hearings the commission found that *599 at the time of the injury Pierson was employed by Baldoro Mines, Inc., a corporation, which was uninsured, and not by Livingston Greenwood. An award was made in favor of Pier-son against Baldoro Mines, Inc. The proceeding was dismissed as to Livingston Greenwood and Colonial. Petitioner—applicant before the commission—seeks to annul the award.

December 27, 1946, Livingston Greenwood and Edward F. Cavanaugh, as lessees, leased some mining property in the county of Los Angeles, known as ‘ Baldoro Mines. ’ ’ Although Cavanaugh was named as lessee, the leasehold interest was in fact the property of Greenwood. Greenwood acquired the lease with the intention of individually doing all preparatory work, including road building; and when actual mining operations began he intended to form a corporation in the State of Washington, and after the corporation qualified in California, to transfer the leasehold interest to the corporation.

February 17, 1947, a policy of workmen’s compensation insurance was issued by Colonial insuring Greenwood. Premiums on the policy were calculated on a payroll audit submitted by Greenwood, which included the payroll of Pierson. The policy expired February 17,1948. During its life Colonial paid two accident claims other than that of Pierson.

July 3, 1947, Baldoro Mines, Inc., was incorporated in the State of Washington. July 25, 1947, Greenwood and Cavanaugh assigned their interest in the lease to Baldoro Mines, Inc. The assignment was never recorded in California. The board of directors of Baldoro Mines, Inc., never held a formal meeting. The corporation, as such, never functioned at any time. It did not transact or carry on any business in California prior to May 21, 1948, when it qualified to do business in this state. It appears from the record that the corporation is a mere shell, without any assets of value, and that the award against it is worthless.

From January 1 until about November 1, 1947, Cavanaugh was superintendent of the preparatory work then being done. He was paid by Greenwood personally. As many as eight men worked under Cavanaugh. They were all paid by Greenwood personally. October 14 or 15,1947, Greenwood employed Pier-son as superintendent. The road work had not been completed and the mine was not in production at the time Pierson was employed. Pierson purchased and rented equipment in Montana, obtained a crew there and brought the equipment and crew to the mine. He charged part of the equipment to Green *600 wood and paid for part of it himself. He was later reimbursed by Greenwood, personally, for the equipment and the expense of bringing the crew to the mine.

At the hearing Greenwood, when asked if anyone was appearing for the corporation, stated: “I am Baldoro Mines; I am doing business as Baldoro Mines” and “I admit that the man was injured when he was in my employ.” Greenwood testified: “I pay all the bills; every check has been made by Livingston Greenwood. Some $48,892.73 has been spent, every check signed by myself . . . Every check that has ever been paid has been signed by me personally and not Baldoro Mines, or any other organization. Q. You have never signed any checks for the Baldoro Mines in connection with this property, this Camp Baldy property, as president or any other officer of the-A. No, Ma’am, never have. Q. These payroll checks that Mr. Pierson testified to were the checks that you sent to Pierson to his order to have cashed and then pay the men? A. Yes. Q. And those were all signed by you personally ? A. All signed by me personally. . . . After Mr. Pierson came, he would send me the bill and I would send him the total amount including the check to Mr. George D. Pierson, and then he would cash the check and pay the men’s wages.” He also testified that after Pierson was employed he (Greenwood) was Cavanaugh’s employer, “there wasn’t anybody else.” He stated: “I am Baldoro Mines as far as that is concerned and I cannot enter in the State of California to do business other than Livingston Greenwood.” When asked if he wished to cross-examine Pierson, he said: “I have no questions to ask my employee. I hired him and I paid him and that’s all there is to it as far as I am concerned.”

All wages and all other expense in connection with the work done at the mine were paid by Greenwood from his personal checking account at Seattle. The corporation did not at any time have a checking account except at its inception in order to qualify under Washington law. No checks were ever written or signed by Greenwod as president of Baldoro Mines, Inc. No wages or other expense of the mine were ever paid with funds of Baldoro Mines, Inc. It never had a bank account in California. Greenwood personally paid all United States withholding taxes and state unemployment insurance upon the men employed at the mine with the exception of Pierson and Cavanaugh. Pierson took care of his own payroll deductions. There is no evidence that Greenwood was reimbursed by the corporation for the moneys expended by him. A fair inference *601 from the evidence is that he was not reimbursed. The mine was never brought into production. The work done was all preparatory.

Petitioner in his application for adjustment of claim alleged that his employer was “Livingstone Greenwood, Baldoro Mines, Inc.” One of the issues before the commission was whether petitioner was employed by Greenwood and Baldoro Mines, Inc., jointly. The commission did not find on or determine this issue. It is the duty of the commission after final hearing to make findings “upon all facts involved in the controversy.” (Lab. Code, § 5800.) The findings of the commission should conform to the general rules applicable to findings in trials which are conducted in the superior court. (Gouanillow v. Industrial Acc. Com., 184 Cal. 418, 420 [193 P. 937]; Dawson v. Industrial Acc. Com., 54 Cal.App.2d 594, 600 [129 P.2d 479].) The commission should make specific findings on all material issues presented in a claim for compensation. (California Shipbuilding Corp. v. Industrial Acc. Com., 85 Cal.App.2d 435, 436 [193 P.2d 61] ; Anno. 146 A.L.R. 123.) As said in Simmons Co. v. Industrial Acc. Com., 70 Cal.App.2d 664, 674 [161 P.2d 702], “It is ‘essential that findings be such that the truth or falsity of each material allegation in issue can be demonstrated from the findings.

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220 P.2d 794, 98 Cal. App. 2d 598, 1950 Cal. App. LEXIS 1904, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pierson-v-industrial-accident-commission-calctapp-1950.