Schramm v. Industrial Accident Commission

59 P.2d 858, 15 Cal. App. 2d 475, 1936 Cal. App. LEXIS 81
California Court of Appeal·Decided July 16, 1936·No. Civ. 10620·Published·Cited by 5 cases

Opinion

HOUSER, P. J.

The facts that would appear to be pertinent to a decision of the several questions that are presented herein are as follows: Two individuals, Munson and Hewes (as a copartnership), were the owners of a store which they had leased to Schramm (petitioner herein), who used the greater portion thereof for the purpose of conducting a grocery therein. The remainder of the store room was subleased by Schramm to one Kuhn, who conducted therein a vegetable store. For some months one Blair had been indebted to Schramm in the sum of about $23 for groceries which the former had purchased from the latter. Similarly, Blair owed Kuhn $3.50 for vegetables. It also appears that some of the vegetable stands in Kuhn’s store were either somewhat out of repair, or that to replace old stands new ones were desired. Blair was more or less out of employment, and, at least partly in order to discharge or to make payment on account of his several financial obligations, as well as on the part of Schramm individually, and Munson and Hewes as a copartnership, to satisfy Kuhn as a tenant, an arrangement was made among the several parties by which Munson and Hewes agreed to furnish the necessary materials for the *477 building of one new vegetable stand, which was designed to replace two old ones; Blair was to perform the labor necessary to its construction; upon its completion the vegetable stand was to be the property of Munson and Hewes; and thereupon Blair’s several debts were to be canceled. After the vegetable stand had been built on premises that also belonged to Munson and Hewes, Blair was injured in falling from a truck that was the property of Kuhn, and which the latter and Schramm had directed to be used in transporting the vegetable stand from the place where it had been built to the place where it was to be used in Kuhn’s store. On the hearing before the respondent commission of Blair’s claim for adjustment of' compensation on account of his injuries, an award was made, in effect, that Schramm only was liable, and consequently that, although Schramm’s liability in that regard apparently was covered by a policy of insurance that had been issued by National Automobile Insurance Company, Schramm was ordered to pay to Blair a weekly compensation of $17.78, besides various expenses that had been incurred by Blair in and about being cured of his said injuries. In due course, at the instance of Schramm, this court issued its writ of certiorari in the premises.

By its award the respondent commission having relieved Schramm’s insurance carrier from liability, it is first urged that in that regard the respondent commission acted in excess of its powers;—a contention which (especially in view of the recent decision in the ease of Bankers Indemnity Ins. Co. v. Industrial Acc. Com., 4 Cal. (2d) 89 [47 Pac. (2d) 719]) the respondent commission conceded to be correct, and thereupon suggested that its award theretofore made herein be annulled by this court and the matter remanded to the respondent commission for further proceedings. However, to such proposed order the insurance company has objected. It therefore is deemed advisable that the inducing facts relative to the issuance of the insurance policy be stated:

For some time preceding the date when the accident in question occurred, Schramm and one other person had been conducting the grocery as a partnership, under the fictitious name of “Bill’s Market”; and in the name of such partnership and the said fictitious name had carried a workmen’s compensation insurance policy which had been pro *478 cured from one Rose, who at that time was acting as an agent for the Maryland Casualty Company, which issued the policy. Thereafter, and before that insurance policy had terminated, the said partnership was dissolved. In the meantime, Rose had ceased to be the agent for the Maryland Casualty Company, but had become an agent or broker for the National Automobile Insurance Company. As the date approached when the policy was about to expire, Schramm applied to Rose for the issuance of a new policy. At the same time he informed Rose of the fact that his former partnership had been dissolved, and requested of Rose that the new policy be issued to Schramm alone. Thereafter, and before the date of the happening of the accident in question, at the instance of Rose the National Automobile Insurance Company issued its policy, presumably for the protection of Schramm only. However, instead of issuing the policy in that manner, it purported to protect the individual members of the former partnership, which at that time no longer was in existence; but, as before, the new policy did cover the premises and the business known as “Bill’s Market”. On the delivery of the policy to Schramm, which was on the day before the accident in question occurred, Schramm at once discovered the mistake which had been made, and immediately notified National Automobile Insurance Company thereof. Six days thereafter the policy was corrected in accordance with the original instructions given for its issuance, and made effective as of the day preceding the date of the accident. On the hearing of the application for adjustment of Blair’s claim for compensation, Rose testified that at all times pertinent to the matter he was acting as an authorized agent (as distinguished from a broker) of the National Automobile Insurance Company. At the time when Rose gave such testimony, the insurance company practically admitted that such statement was correct, but reserved the right to introduce evidence to the contrary if, prior to the time when the hearing should be concluded, it should be discovered that Rose’s statement in that regard was incorrect; but at no time did the insurance company produce or offer to produce any evidence that in any manner could be deemed contradictory of the fact that Rose was its agent.

*479 With respect to the point presented as to whether in such circumstances the insurance policy in question afforded protection to Schramm from personal liability, the ease of Bankers Indemnity Ins. Co. v. Industrial Ace. Com., supra, would seem to answer conclusively to the effect that, as far as Schramm was concerned in that regard, he was entitled to an order by the respondent commission by which he should be discharged from liability. Specifically, in the cited ease, in substance it was held (syllabus) that even where the insured was represented by brokers “who in cases of compensation insurance acted as soliciting agents for it, their acts as such, in so far as they were instrumental in effecting such insurance, were the acts of petitioner (the insurance company); and where it appeared that the insured acted in good faith in his application for the policy, a mistake made therein by such agents in the designation of the insured, which was acted upon by the petitioner (insurance company), was the act of petitioner”.

However, as far as Schramm is concerned, even assuming the binding force of the insurance policy as an instrument of ordinary protection from liability for injuries that may have been sustained by any of Schramm’s regular employees while engaged in their several duties as such, it is contended by National Automobile Insurance Company that by the terms of its policy, in the particular circumstances herein, and considering the work which Blair was engaged to perform, Schramm was not protected.

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Schramm v. Industrial Accident Commission, 59 P.2d 858, 15 Cal. App. 2d 475, 1936 Cal. App. LEXIS 81 (Cal. Ct. App. 1936).

59 P.2d 858 (Schramm v. Industrial Accident Commission) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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