Scammahorn v. Gibraltar Savings & Loan Assn.

404 P.2d 165, 195 Kan. 220, 1965 Kan. LEXIS 385
CourtSupreme Court of Kansas
DecidedJuly 10, 1965
Docket44,127
StatusPublished
Cited by14 cases

This text of 404 P.2d 165 (Scammahorn v. Gibraltar Savings & Loan Assn.) 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
Scammahorn v. Gibraltar Savings & Loan Assn., 404 P.2d 165, 195 Kan. 220, 1965 Kan. LEXIS 385 (kan 1965).

Opinions

The opinion of the court was delivered by

Fatzer, J.:

This is an appeal from a lump-sum judgment of workmen’s compensation award entered by the district court pursuant to G. S. 1961 Supp., 44-512a.

Counsel for the parties filed a stipulated and agreed record which is summarized as follows: On October 28, 1963, the examiner granted the plaintiff, Dale F. Scammahorn, a workmen’s compensation award and ordered the defendant, Gibraltar Savings & Loan Association, to pay $9,629.73 compensation and $1,937.20 medical benefits. Gibraltar requested a review by the director of workmen’s compensation who entered an order November 20, 1963, affirming the award. Two days later Gibraltar appealed the award to the district court, which was docketed as case No. 15,892-B, and is appeal No. 44,146, Scammahorn v. Gibraltar Savings & Loan Assn., 195 Kan. 273, 404 P. 2d 170, this date decided.

[221]*221On December 5, 1963, plaintiff served a demand for all compensation and medical expenses due and unpaid, upon Gibraltar and its attorney. Gibraltar paid the medical benefits to the plaintiff, which he accepted, but it refused to pay the demand for the full compensation awarded.

On December 19, 1963, the plaintiff served an amended demand upon Gibraltar for all compensation due and unpaid in the amount of $9,629.73. However, on December 18, 1963, Gibraltar tendered to plaintiff all compensation due for the ten-week period next preceding the director’s decision of November 20, 1963, and did thereafter make weekly tenders of checks in the sum of $23.25 each for compensation due the plaintiff as ordered by the examiner and approved by the director of workmen’s compensation, up to and including January 24, 1964. The plaintiff refused to accept Gibraltar’s weekly tender of compensation due, and returned each of its checks as they were tendered.

On January 24, 1964, the plaintiff commenced this action to recover a lump-sum judgment of compensation awarded in the sum of $9,629.73. He alleged he had made all statutory demands and performed all other conditions precedent, but that Gibraltar had failed to pay all compensation which was then due and unpaid.

Gibraltar’s answer alleged that plaintiff’s award for compensation was pending on appeal in the district court in case No. 15,892-B; that it had complied with the provisions of G. S. 1961 Supp., 44-556, now K. S. A. 44-556, by filing a bond with the district court in accordance with provisions of G. S. 1949, 44-530, now K. S. A. 44-530, and had tendered all compensation due for the ten-week period next preceding the director’s decision and all compensation accrued since that time and that the plaintiff had returned all payments except the payment of medical expenses, which was retained.

The parties stipulated that Gibraltar had no workmen’s compensation insurance and that it had not taken steps to qualify as a self-insurer under the provisions of G. S. 1949, 44-532, now K. S. A. 44-532. Thereafter each party filed a motion for summary judgment.

On June 16, 1964, the district .court filed a written memorandum opinion containing its findings of fact and conclusions of law, and rendered judgment in favor of the plaintiff in the sum of $9,629.73.

The real issue presented is whether Gibraltar, who had no workmen’s compensation insurance and who had failed to qualify as a [222]*222self-insurer as provided in 44-532, is entitled to plead as a valid defense to plaintiff’s action that it had complied with the provisions of K. S. A. 44-556 by appealing the award of compensation to the district court, filing a bond to stay proceedings and to insure the payment of compensation pursuant to K. S. A. 44-530, and tendering all compensation due for the ten-week period next preceding the director’s decision and all compensation accrued until plaintiff filed his action.

In its conclusions of law, the district court stated that prior to the amendment to 44-556 in 1961, Gibraltar could not plead the defense it alleged since the facts in the instant case were substantially the same as the facts in Teague v. George, 188 Kan. 809, 365 P. 2d 1087. In that case we held that a supersedeas bond filed by an employer and his insurance carrier under 44-530 did not stay the payment of compensation pending his appeal to the district court, or afford protection from a statutory action commenced by the claimant under 44-512a to recover a lump-sum judgment. The district court also noted that the 1961 amendment provided that “if the employer is insured,” or “if the employer is a self-insurer” and has posted bond, he is relieved to some extent of the holding in Teague, and since the parties stipulated that Gibraltar was not insured, it asked the question, “Was it a self-insurer?” In its memorandum opinion, the court stated:

“Section 44-532, G. S. Kansas 1949, described what it takes to be a self-insurer. It provides that every employer shall secure compensation to his employees by insuring in one of the following ways:
“ ‘First, by insuring and keeping insured the payment of such compensation with any stock corporation or mutual association or reciprocal or interinsurance exchange or association authorized to transact the business of workmen’s compensation insurance in the state of Kansas; or, second, by showing to the commissioner that said employer carries his own risk and is what is known as a self-insurer and by furnishing proof to the commissioner of his or its financial ability to pay such compensation for himself or it.’
“Admittedly, Gibraltar in this case did not take the steps to become a self-insurer within the contemplation of 44-532.
“What is the situation of an employer who is neither an insured, nor a self-insurer within the contemplation of 44-532? Either he has to be in a third category, different from either the insured group or the group of self-insurers. Or else it must be said that anyone without insurance is automatically a self-insurer.
“On the basis of section 44-532, my answer to the question posed is that Gibraltar is neither an insured nor a self-insurer and is not entitled to the benefits of the 1961 amendment to section 44-556.”

[223]*223We think the district court erred in its conclusion of law that Gibraltar was not a self-insurer as that term is used in 44-556, and, consequently, it was entitled to plead its full compliance with the statute as a complete defense to plaintiff’s action to recover a lump-sum judgment. While the Teague case was decided after the 1961 amendment to 44-556 became effective, it was conceded that since all the proceedings and the judgment of the district court were rendered prior to the amendment, this court was not required to construe the amendment in deciding that case. Hence, we are called upon for the first time to ascertain the intent and purpose of the 1961 amendment to 44-556. That section authorizes any party to a workmen’s compensation proceeding to appeal from any decisions, findings, award or rulings of the director to the district court of the county where the cause of action arose upon questions of law and fact, by filing a written notice of appeal with the director within twenty days after the decision, finding, award or ruling appealed from, and the director shall transmit a certified copy of the notice of appeal to the clerk of the district court, who shall docket the cause for hearing as in other cases on appeal.

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Cite This Page — Counsel Stack

Bluebook (online)
404 P.2d 165, 195 Kan. 220, 1965 Kan. LEXIS 385, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scammahorn-v-gibraltar-savings-loan-assn-kan-1965.