Security Union Casualty Co. v. Peer Oil Corp.

1 S.W.2d 1112
CourtCourt of Appeals of Texas
DecidedJanuary 6, 1928
DocketNo. 1635. [fn*]
StatusPublished
Cited by2 cases

This text of 1 S.W.2d 1112 (Security Union Casualty Co. v. Peer Oil Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Security Union Casualty Co. v. Peer Oil Corp., 1 S.W.2d 1112 (Tex. Ct. App. 1928).

Opinion

O’QUINN, J.

Appellee, Peer Oil Corporation, on November 15, 1926, filed two suits in justice court, precinct No. 1, Liberty county, against appellant, Security Union Casualty Company, to enforce two awards, each in the sum of $100, in its favor against appellant, made by the Industrial Accident Board, which resulted in judgments in its favor, and which judgments were appealed to the county court of Liberty county and there consolidated and tried as one July 25, 1927, resulting in a judgment in favor of appellee against appellant in the sum of $200, the amount sued for, and 12 per cent, damages, $24, and $100 as an attorney’s fee. The case is before us for review on appeal.

Briefly stated, the facts out of which the suits grew are:

The Peer Oil Corporation, on March 30, 1926, was an employer of labor and carried a policy of insurance issued by appellant covering its employees under the Workmen’s Compensation Act (Rev. St. 1925, arts. 8306-8309). ' On said date a severe windstorm struck the oil field in Liberty county where appellee was operating and blew down numerous oil derricks, killing Jack Kelly and A. P. Brown, two of its employees; who at the time were at labor in the course of their employment. Appellant was duly notified of these accidents and deaths, and denied any liability under its insurance contract. Ap-pellee assumed and paid the funeral expenses in the burial of said two employees, $343 in the case of Kelly, and $376 in the case of Brown.

Mrs. W. T. Kelly, the stepmother of Jack Kelly, and certain other relatives, made claim before the Industrial Accident Board for compensation, and "appellee filed its claim for reimbursement for funeral expenses in the statutory sum of $100-, and on July 2, 1926, the board, after due notice and hearing, entered its final award in favor of said claim for compensation, and in favor of appellee for the sum of $100 as reimbursement for funeral expenses incurred and paid by it in the burial of Jack Kelly, said award providing that said sum of $100 should be paid to appellee out of the first compensation to-accrue and be paid in the compensation award. Appellant, Security Union Casualty Company, gave due notice to Mrs. Kelly and her attorney and to the Industrial Accident Board that it would not abide the award for compensation, and duly filed suit in the district court of Liberty county to set aside said award. No notice of unwillingness to abide the award in favor of appellee for the $100-was given, and appellee was not a party to-the suit in the district court. Upon the trial of the case in the district court, judgment. *1113 was rendered in, favor of Mrs. Kelly and her attorney for the amount of the compensation award, and this judgment was appealed by the Security Union Casualty Company to the Court of Civil Appeals at Beaumont and at the time the instant case was tried was still pending in said appellate court. Later, October 6, 1927, this judgment was affirmed by the Court of Civil Appeals (299 S. W. 286) and is now pending in the Supreme Court on application for writ of error.

The relatives, beneficiaries of A. P. Brown, filed claim for compensation before the Industrial Accident Board, and appellee filed its claim for reimbursement for funeral expenses incurred by it in the burial of said ■Brown in the statutory sum of $100, and after due notice and hearing the board, on July 2, 1926, entered its final award in favor of claimants for compensation and in favor of appellee for the sum of $100 as reimbursement for said funeral expenses, said award providing that said sum of $100 should be paid out of the first compensation to accrue and be paid on the award for compensation for the injury and death of said Brown. Appellant, Security Union Casualty Company, gave due notice that it would not abide the award for compensation, and duly filed suit in the district court of Liberty county to set aside said award. No notice of appeal was given appellee as to the award for $100, and it was not a party to the suit in the district court. In the trial of the case in the district court, judgment was rendered in faTOr of said beneficiary claimants and their attorney, on October 20, 1926. Appellant appealed this judgment to the Court of Civil Appeals at Beaumont, where said judgment was affirmed June 18, 1927, and was pending in said appellate court on motion for rehearing at the date of the instant judgment in the county court of Liberty county. We deem it proper to say that both judgments of the Court of Civil Appeals, Kelly and Brown, were carried to the Supreme Court on applications for writs of error by appellant, Security Union Casualty Company, and the application in the Brown Case denied November 30, 1927, and the application in the Kelly Case is still pending.

The judgment will have to be reversed and the case dismissed, for the reason that at the time this suit was instituted and at the time the judgment was rendered appel-lee’s cause of action had not matured. The award of the Industrial Board was in accordance with article 8306, § 9, Revised Civil Statutes 1925, which provides:

“ ⅜ • * * Where any deceased employe leaves legal beneficiaries, but is buried at the expense of his employer or any other person, the ,expense of such burial, not to exceed $100, shall be payable out of the compensation due the beneficiary or beneficiaries of such deceased employ é, subject to the approval of the board”

Each of the deceased employees left legal beneficiaries, but each of them was buried at the expense of his employer, appellee. There is no contention as to any of the facts. The Question is, Did appellee, at the time it filed • this suit to enforce the award in its favor and at the time the judgment appealed from was rendered, have an enforceable cause of action? We think not. The law (article 8306, § 9) above quoted, authorizes an award in favor of the employer who buried his deceased employee in the sum of $100, but it also provides that this shaU be paid out of the compensation to accrue and be paid under the award for compensation. Appellant denied any liability under its contract of insurance, and, as the law gave it a right to do, resisted in the proper time and manner all claims for compensation in the premises. No compensation legally accrued and became payable until the award and judgment allowing same had been approved by the appellate courts to which appellant took its appeal. The final action of these courts was had after the filing of appellee’s suits and after the judgment in its favor.

The rule is well settled that, generally, a cause of action must exist at the time suit is commenced. Suit may not be maintained on an obligation for the payment of money before it is due and payable according to its terms. Insurance Co. v. English, 96 Tex. 268, 273, 72 S. W. 58; Moreland v. Atchison, 24 Tex. 164, 168; 1 R. C. L. § 21, p. 340.

But appellee insists that, as appellant in the Kelly and Brown suits did not give notice that it would not abide the award in favor of appellee and did not make appel-lee a party to the suit in the district court of Liberty county to set said awards aside, therefore, the awards as to it were not appealed from and became final and subject to suit for enforcement. We cannot agree with this contention.

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Bluebook (online)
1 S.W.2d 1112, Counsel Stack Legal Research, https://law.counselstack.com/opinion/security-union-casualty-co-v-peer-oil-corp-texapp-1928.