Saxton v. St. Louis Stair Company

410 S.W.2d 369, 1966 Mo. App. LEXIS 500
CourtMissouri Court of Appeals
DecidedDecember 20, 1966
Docket32426
StatusPublished
Cited by19 cases

This text of 410 S.W.2d 369 (Saxton v. St. Louis Stair Company) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Saxton v. St. Louis Stair Company, 410 S.W.2d 369, 1966 Mo. App. LEXIS 500 (Mo. Ct. App. 1966).

Opinion

TOWNSEND, Commissioner.

This is an appeal from a judgment of the Circuit Court affirming a workman’s compensation award of $10,894 by the Industrial Commission in favor of the claimant Robert G. Saxton. The sole issue in the case is whether or not Saxton was an employee of the stair company at the time of his injury.

On August 16, 1963 Saxton accidentally sustained amputation of the left arm midway between the wrist and elbow while operating a planing machine in the manufacturing plant of the stair company.

The St. Louis Stair Company is a corporation, having outstanding one hundred shares. The claimant first became connected with the company in 1947 when he entered its employment as a workman in its manufacturing plant in St. Louis. In 1953 he purchased from his father-in-law, Frank Bruckner, forty-nine of the fifty shares owned by Bruckner. Of the remaining fifty-one shares, forty-nine are registered in the name of Frank J. Jostrand, who at all relative times was the president of the cor *371 poration. One share remains in the ownership of Frank Bruckner and one is registered in the name of Ben Jostrand. There is evidence in the record that the one share registered in the name of Ben Jostrand is owned by Frank J. Jostrand, who stated, “It is signed back to me.” At the time of the accident claimant was secretary-treasurer of the company and was also its shop foreman in the manufacturing plant.

In each of the years 1954 — 1963, inclusive, the board of directors of the stair company voted an annual salary of $18,000 to Frank J. Jostrand and the same amount to Robert G. Saxton. In none of these years, however, was the income of the company sufficient to justify the payment of these salaries in full and in each of such years Frank J. Jostrand and the claimant each waived, in equal amounts, his right to a part of the salary so voted by the directors. The amount waived varied from $5500 to $12,-000. In each of the four years, 1956, 1957, 1958 and 1959, the larger amount was waived by each of the named parties. The waiver in 1962 and 1963 was for $8000 each.

Between 1946 and 1953, when Saxton acquired his shares from his father-in-law, Bruckner, and the latter retired from active participation in the management of the business, the Board of Directors voted Bruckner and Jostrand each a salary of $18,000. With the exception of perhaps two years, there was throughout this period a waiver each year of a part of the voted salaries. Appellant emphasizes that the same salary was voted to each of the shareholders holding forty-nine registered shares and that the waiver by each in each year was of the same amount.

The business of the company was carried on in two divisions, one sales and installation, over which Frank J. Jostrand exercised complete supervision; the other division, manufacturing, was immediately supervised by the claimant. Ordinarily the claimant had two carpenters working under him in the manufacturing end; at the time of claimant’s injury, however, only one carpenter was so engaged. The claimant was back at the plant only twelve days after his injury and at that time was interviewed by the investigator of the stair company’s insurance carrier. Questions and answers were recorded by a court reporter. He was asked “Do you own any stock in the company?”, and he answered, “I own half interest in the company.” Question: “You own a fifty per cent interest, is that right?” Answer: “That’s right.” Question: “How is the other stock held?” Answer: “By my partner, Mr. Frank Jo-strand.” Thereafter the insurer paid the claimant $47.50 in respect of the time immediately following the injury of August 16, 1963; the insurer also paid $846.85 in respect of medical expenses and $400.40 for an artificial arm.

This Court handed down its opinion in Voss v. Merchants Dairy Company, 373 S.W.2d 662, on December 17, 1963.

On February 14, 1964, the same claims investigator for the insurer again interviewed the claimant and took down his statement in question-and-answer form. At this interview Frank Jostrand was present and added some remarks to the answers given by the claimant. Neither the statement of August 28, 1963, nor that of February 14, 1964 is in the record; however, the content of each statement was elicited, in part, at the time of the cross-examination of the claimant in the hearing before the referee. Extensive quotation is necessary in order to illustrate the basis of the contentions herein of the respective parties. The following testimony was given with respect to the statement of August 28, 1963:

“Q. And I note that you were asked the question: Do you own any stock in the company? And you answered: I own half interest in the company. The question then was: You own a fifty per interest, is that right ? The answer was: That’s right. The question was then asked: How is the other stock held? *372 And the answer in your words was: By my partner, Mr. Frank Jostrand.
You remember those questions being asked and those answers being given at the time that statement was taken?
A. I don’t remember. If they were written there, I guess I said them.
Q. They were true at that time, sir, the answers given to the questions that I have just read?
A. Yes, sir.
Q. And they are true today, isn’t that ■correct ?
A. No.
Q. Now, what I am asking you is whether or not these statements were made voluntarily by you at the time that the investigator was at the premises of the St. Louis Stair Company inquiring of your injury and of the stock ownership which you had in the company; isn’t it correct that they were made voluntarily by you at that time?
A. Yes.
Q. And they were statements that comprised your general knowledge of your association with Mr. Jostrand in the company at that time, .isn’t that correct, sir?
A. Yes.”

With respect to the statement of February 14, 1964, the following testimony was •developed:

“Q. As a matter of fact, on February 14, 1964, you were asked the question: Who does the hiring of these [shop] men ? And you answered: me. Isn’t that correct?
A. Yes.
Q. And you were asked: Ordinarily who decided whether they worked out, meaning whether they were acceptable to the corporation, I presume, and you answered: Me. Again, isn’t that correct?
A. Yes.
******
Q. The question was again asked you on that date: You are the one that hires them and you are the one that tells them what to do ? And the answer was: Yes. Is that correct?
A. Yes.

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Bluebook (online)
410 S.W.2d 369, 1966 Mo. App. LEXIS 500, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saxton-v-st-louis-stair-company-moctapp-1966.