Richardson v. U. S. F. & G. Co.

102 So. 2d 368, 233 Miss. 375, 1958 Miss. LEXIS 394
CourtMississippi Supreme Court
DecidedApril 28, 1958
Docket40786
StatusPublished
Cited by19 cases

This text of 102 So. 2d 368 (Richardson v. U. S. F. & G. Co.) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Richardson v. U. S. F. & G. Co., 102 So. 2d 368, 233 Miss. 375, 1958 Miss. LEXIS 394 (Mich. 1958).

Opinion

*377 Gillespie, J.

*378 This appeal involves the extent of the subrogation rights of the compensation carrier to the proceeds of a judgment against a third-party wrongdoer under Section 30 of the Workmen’s Compensation Act. The facts are not in dispute.

Charles Zack Richardson (claimant) was gravely injured in an accident arising out of and in the course of his employment with Clinch Drilling Company (employer). In due course, United States Fidelity and Guaranty Company (carrier) began paying compensation benefits under the Mississippi Workmen’s Compensation Act, including weekly compensation of $25.00 per week and medical benefits. Claimant filed suit in the Circuit Court of Adams County against G. L. “Doc” Fife and Son, Inc., alleging that the latter had negligently caused claimant’s injuries, and demand was made in said suit for damages for loss of earnings, permanent pain and suffering, medical expenses, and other elements allowable in suits for personal injuries. The carrier intervened in said suit and showed as its interest therein the amount of compensation benefits it had paid claimant and its liability for the payment of future liability under its Workmen’s Compensation policy issued to the employer.

The third-party action against G. L. “Doc” Fife and Son, Inc., was settled for the sum of $50,000, and judgment was entered on May 24, 1957 in that amount in favor of claimant and the intervenor, the carrier. The judgment provided that the sum should be paid to the circuit clerk, who was ordered to disburse said sum by paying the attorneys for plaintiff the sum of $16,666.67,-as the reasonable cost of collection, with the balance to be disbursed as follows: To the carrier the amount of is legal liability as fixed by the Workmen’s Compensation Commission, and the balance to claimant. It was ordered that the circuit clerk transmit a copy of the judgment to the Workmen’s Compensation Commission. *379 Claimant and his wife, and carrier, released Gr. L. “Doc” Fife and Son, Inc., upon the payment of $50,000 to the clerk, hut claimant and his wife each reserved all rights as between them and the carrier.

The claimant, employer, and carrier filed a joint petition with the Workmen’s Compensation Commission requesting an order of the Commission fixing the legal liability of the carrier and employer under the terms of the Workmen’s Compensation Act, and for a certification thereof to the Circuit Clerk of Adams County. Claimant filed with the Commission a separate petition requesting the Commission to hold that neither the employer nor the carrier were entitled to subrogation or that they were entitled at most to subrogation only for medical benefits and compensation benefits paid prior to the date of the circuit court judgment of May 24,1957.

The Workmen’s Compensation Commission entered its order reciting the foregoing proceedings, and held that prior to May 24, 1957, the date of the third-party judgment, the carrier had paid to or for claimant medical and hospital expenses and compensation to the extent of $15,375.54, and had paid additional benefits in the interim so that the total of such benefits paid to July 23, 1957, was $15,635.32; and found that claimant was totally and permanently disabled and would probably need additional medical treatment for his injuries. The Commission’s order recited that it had no way to determine the future liability of carrier. The Commission then declined to make any finding or decision relative to the subrogation rights as between the parties, stating that such questions were not before it. From this order, the employer and carrier appealed to the Circuit Court of Adams County, as did claimant.

The circuit court reversed the Commission in part, and on the 8th day of August, 1957, entered its order finding (on stipulation of parties) that the total benefits paid by carrier to claimant to the date of this order *380 amounted to $15,710.83; and that under Section 30 of the Act (Section 6998-36, Mississippi Code of 1942), the $50,000 in the hands of the clerk of the court should he disbursed as follows: (1) The cost of collection amounting to $16,666.67, as allowed in its previous order; (2) to carrier the sum of $15,710.83 theretofore paid out by it in compensation benefits; and (3) the balance of $17,622.50 to claimant. It was ordered that the future liability of the employer and carrier to pay compensation benefits to claimant for the latter’s said injuries be credited with said sum of $17,622.50, and the employer and carrier were authorized and empowered to suspend any and all future payments and benefits under the Workmen’s Compensation Act, including disability benefits and medical service and supplies, and any other compensation benefits under the Act on account of the injury to claimant on August 14, 1955, until such time as the Mississippi Workmen’s Compensation Commission shall fix and determine by final order the date on which the legal liability of employer and carrier accruing after July 28,1957, equal the sum of $17,622.50. In other words, the employer and carrier were authorized and empowered to suspend all future compensation benefits until such suspended benefits, which the carrier and employer would otherwise have to pay, equal said sum of $17,622.50. The order further provided that such suspension shall not cause any statute of limitation to run. It was also ordered that the amount of compensation benefits for which the employer and carrier is hereafter to become liable, but which were suspended as stated, be determined by the Workmen’s Compensation Commission under the provisions of the Act in force at the time of claimant’s injury and in accordance with the rules and regulations of the Commission, and the cause was remanded to the Commission for enforcement of the judgment.

The question is whether the balance of the recovery against the third-party wrongdoer remaining after the *381 payment of costs of collection and reimbursing the compensation carrier of the amount of compensation benefits paid claimant prior to the date of the judgment against the third-party wrongdoer, shall be used to discharge the future liability of the employer and carrier accruing after the date of the judgment against the third-party wrongdoer.

Appellant does not contend that the carrier should not be reimbursed the sum paid in compensation benefits prior to the date of the judgment against the third-party wrongdoer, but contends that such reimbursement should be the extent of the subrogation rights of the carrier and employee. In other words, claimant contends that he should receive the net proceeds of the judgment, amounting to $17,622.50, and continue to draw compensation benefits as provided by the Act.

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Bluebook (online)
102 So. 2d 368, 233 Miss. 375, 1958 Miss. LEXIS 394, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richardson-v-u-s-f-g-co-miss-1958.