Southern Railway Co. v. Overnite Transportation Co.

158 S.E.2d 387, 223 Ga. 825, 1967 Ga. LEXIS 720
CourtSupreme Court of Georgia
DecidedNovember 22, 1967
Docket24256
StatusPublished
Cited by26 cases

This text of 158 S.E.2d 387 (Southern Railway Co. v. Overnite Transportation Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern Railway Co. v. Overnite Transportation Co., 158 S.E.2d 387, 223 Ga. 825, 1967 Ga. LEXIS 720 (Ga. 1967).

Opinions

Almand, Presiding Justice.

This appeal by Southern Railway Company is from an order overruling its general and special demurrers to the petition of Overnite Transportation Co,, which sought to recover the amount of $4,646.95 by reason of payments Overnite had made of workmen’s compensation and medical expenses to one of its employees, Cleveland C. Trout, for injuries inflicted upon said employee by reason of the tortious conduct of the defendant Southern.

The petition alleged that plaintiff’s employee, Trout, while in the course and scope of his employment was struck by one of defendant’s trains and suffered bodily injury; that plaintiff had made payments of workmen’s compensation and medical expenses in the sum of $4,646.95 pursuant to the Georgia Workmen’s Compensation Law for the injury resulting from said accident to its employee; that Trout, plaintiff’s employee, filed suit in Fulton Superior Court against the defendant on May 25, 1965; and that on June 10, 1964, July 28, 1964, August 11 and 14, 1964, and February 12, 1965, “plaintiff, by its attorneys, notified defendant of plaintiff’s subrogation rights in the amount of $4,646.95. Copies of said notices, sent by certified mail, return receipt requested, were received by defendant through its agent and counsel, and copies of same . . . [were attached to the petition]. Said notices stated that plaintiff was entitled to be subrogated to the rights of Cleveland C. Trout for the aforesaid workmen’s compensation payments, and that any settlement agreement between Cleveland C. Trout and defendant should consider and give cognizance to plaintiff’s subrogation rights under Code Ann. § 114-403 (Ga. L. 1963, pp. 141, 145).” Further, the petition alleged that on “August 19, 1964, and February 12, 1965, plaintiff, through its attorney Thomas A. Rice, gave notice to said Cleveland C. Trout of plaintiff’s subrogation rights under Code Ann. § 114-403 (Ga. L. 1963, pp. 141, 145), [827]*827said notice being given in letters dated August 19, 1964, and February 12, 1965. Both letters were addressed to said Cleveland C. Trout and were sent in care of his attorney, Mr. Guy Parker. A copy of each of these letters is attached ... [to the petition].” After the defendant filed its answer in the tort action, the parties settled the tort action with the defendant, agreeing to pay Trout the sum of $10,000. The plaintiff’s petition alleged that in “settling case No. B-13278 without recognizing plaintiff’s subrogation rights under Code Ann. § 114-403 (Ga. L. 1963, pp. 141, 145), after having been given numerous notices pursuant to the edict of Code Ann. § 114-403 (Ga. L. 1963, pp. 141, 145), defendant has acted in bad faith, has been stubbornly litigious, and has caused the plaintiff unnecessary trouble and expense in requiring plaintiff to prosecute this action in order to collect sums due to plaintiff under Code Ann. § 114-403 (Ga. L. 1963, pp. 141, 145) and plaintiff should be awarded all expenses of this litigation, including reasonable attorney’s fees, as a part of the damages.”

By its general demurrers the defendant asserts (a) that the petition failed to set forth a cause of action and (b) that Code Ann. § 114-403 (Ga. L. 1963, pp. 141, 145), upon which plaintiff bases its suit, is void and of no effect for reasons that will be dealt with seriatim below.

This court has jurisdiction of the appeal by reason of the constitional attack made upon Code Ann. § 114-403 (Ga. L. 1963, pp. 141,145).

That section provides: “Whenever any person is called upon to pay compensation, medical expenses and/or funeral expenses on account of injury or death compensable under this Title, and such person contends that a person or persons other than the employer is liable to pay damages, on account of such injury or death, to the injured employee or those entitled to recover for the employee’s death, such person called upon to make such payment may give to the persons contended to be so liable and to the injured employee or those entitled to recover on account of his death written notice of such contention and of the fact that the person giving notice is required to make such payment. Upon giving such written notice, the person called upon to make [828]*828such payment shall be subrogated, to the extent of the compensation medical expenses and/or funeral expenses payable, to all rights arising out of the injury or death which the injured employee or those entitled to recover on account of his death shall have against such notified persons, and shall have a lien therefor against the net recovery of any judgment or settlement recovered by the injured employee or those entitled to recover on account of the employee’s death against any of the persons so notified.”

It is contended that the above Act insofar as it purports to grant a right of subrogation is so uncertain, vague and indefinite as to be void. The Act is not subject to these objections.

It is asserted that if common carriers engaged in interstate commerce are bound by the provisions of the above cited subrogation Act, the said Act is void and in violation of Article 1, Section 1, Paragraph 3 of the Constitution of the United States, which provides that the Congress shall have power to regulate commerce among the several states, because said Act would place an unreasonable burden upon interstate commerce.

State statutes which only relate to or indirectly affect interstate commerce or cover matters not legislated on by Congress are not invalid as interfering with or burdening interstate commerce. 15 C'JS 873, Commerce, § 138 (1). See Layton v. State, 165 Ga. 265 (140 SE 847).

“The interstate commerce clause did not withdraw from the states the power to legislate with respect to their local concerns, even though such legislation may indirectly and incidentally affect interstate commerce and persons engaged in it.” Boston & Maine R. Co. v. Armburg, 285 U. S. 234, 238 (52 SC 336, 76 LE 729). Where a carrier is subject to suit by a plaintiff within the State, an attachment or garnishment of the carrier’s property is not invalid as being a burden on interstate commerce. Natural Gas Pipeline Co. v. Slattery, 302 U. S. 300 (58 SC 199, 82 LE 276). See also Pere Marquette R. Co. v. Tifton Produce Co., 48 Ga. App. 286 (172 SE 727); 15 CJS 881, Commerce, § 139.

The contention of defendant that Code § 114-108 which states that the “provisions of this Title shall not apply to any [829]*829common carrier by railroad engaging in commerce between any of the several states” forbids the application of Code Ann. § 114-403 (Ga. L. 1963, pp. 141, 145) to the instant case is without merit. The title of Code 114 is “Workmen’s Compensation.” The suit by the plaintiff is not one to recover compensation as an employee of the defendant, a common carrier by railroad, but is to indemnify plaintiff for a monetary loss caused by defendant’s tortious act to plaintiff’s employee.

This ground of the demurrer is without substance.

The grounds of the general demurrer that Code Ann. § 114-403 (Ga. L. 1963, pp. 141, 145) violates that part of Article I, Section I, Paragraph II of the Georgia Constitution (Code Ann.

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Southern Railway Co. v. Overnite Transportation Co.
158 S.E.2d 387 (Supreme Court of Georgia, 1967)

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Bluebook (online)
158 S.E.2d 387, 223 Ga. 825, 1967 Ga. LEXIS 720, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-railway-co-v-overnite-transportation-co-ga-1967.