Southern Underwriters v. Gallagher

136 S.W.2d 590, 135 Tex. 41, 1940 Tex. LEXIS 165
CourtTexas Supreme Court
DecidedFebruary 14, 1940
DocketNo. 7440
StatusPublished
Cited by31 cases

This text of 136 S.W.2d 590 (Southern Underwriters v. Gallagher) is published on Counsel Stack Legal Research, covering Texas Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern Underwriters v. Gallagher, 136 S.W.2d 590, 135 Tex. 41, 1940 Tex. LEXIS 165 (Tex. 1940).

Opinion

Mr. Judge Critz

delivered the opinion of the Court.

This is a workman’s compensation suit. It is founded on Section 19 of Article 8306, R. C. S. 1925, as amended. Such statute is generally referred to as the extraterritorial provision of our Workmen’s Compensation Statutes.

Gallagher was injured about March 10, 1936, in the State of New Mexico, while in the course of his employment as an employee of Liberty Oil & Drilling Company, Inc. Southern Underwriters was the employer’s Texas compensation insurance carrier at the time Gallagher was injured. Gallagher contends that, at the time of his injury, he was a Texas employee of the above-named employer within the meaning of the above-mentioned statute. Southern Underwriters contends to the contrary. Simply stated, Southern Underwriters contends that the evidence in this record shows indisputably that, at the time Gallagher was injured, he did not occupy the status of a Texas employee of Liberty Oil & Drilling Company, Inc., within the meaning of the above-mentioned statute.

[43]*43The ease was tried in the district court with the aid of a jury. Based on the answers of the jury to certain special issues submitted to them, the trial court entered judgment for Gallagher, and against Southern Underwriters. Southern Underwriters appealed to the Court of Civil Appeals at Eastland. On final hearing in the Court of Civil Appeals that court reversed the judgment of the trial court, and remanded the case for a new trial. 116 S. W. (2d) 450. The opinion of the majority of the Court of Civil Appeals is by Associate Justice Grissom, concurred in by Chief Justice Leslie. Associate Justice Funderburk dissented in part. Both parties applied to this Court for writs of error, and both writs were granted.

The dissenting opinion holds that the evidence in this record shows indisputably that Gallagher, at the time he was injured, did not occupy the status of a Texas employee of Liberty Oil & Drilling Company, Inc. We agree with such holding, but we are not in accord with all the reasons given therefor.

We will first dispose of the application for writ of error filed by Southern Underwriters. Southern Underwriters contends that the Court of Civil Appeals should have rendered judgment in its favor after reversing the judgment of the trial court, because the evidence in this record shows indisputably that at the time Gallagher was injured he did not occupy the status of a Texas employee of Liberty Oil & Drilling Company, Inc., sent incidentally or temporarily out of the State of Texas to perform labor or services. In this connection, it is shown that Gallagher was injured while working for the company just-named in the State of New Mexico.

The statute, Section 19 of Article 8306, supra, involved in this case, so far as pertinent here, reads as follows:

“Sec. 19. (Section 1) If an employee, who has been hired in this State, sustain injury in the course of his employment he shall be entitled to compensation according to the Law of this State, even though such injury was received outside of the State, and that such employee, though injured out of the State of Texas, shall be entitled to the same rights and remedies as if injured within the State of Texas, except that in such case of injury outside of Texas, the suit of either the injured employee or his beneficiaries, or of the Association, to set aside an award of the Industrial Accident Board of Texas, or to enforce it, as mentioned in Article 8307, Section 5-5a, shall be brought either * * *
❖ * $ ❖ $ $ >¡J
“Providing that such injury shall have occurred within one [44]*44year from the date such injured employee leaves this State; and provided, further, that no recovery can be had by the injured employee hereunder in the event he has elected to pursue his remedy and recovers in the state where such injury occurred.”

In the case of Texas Employers’ Insurance Assn. v. Volek (Tex. Com. App.), 69 S. W. (2d) 33, Section A of the Commission construed the above statute, and held:

“A careful reading of the above statute shows that it has effect to extend the provisions of our Workmen’s Compensation Law to any employee ‘who has been hired in this State,’ even ‘though injured out of the State of Texas,’ if such injury be received within one year from the date he leaves the state. It will be noted that the statute only purports to cover ‘an employee who has been hired in this State.’ This clause certainly does not have reference to the place where the hiring was originally made. The primary purpose of our Compensation Law is to protect our own workmen. The purpose of the extraterritorial provision is to protect, under our law, employees who are such in this state under some contract of hiring-, and who are incidentally or temporarily sent out of this State to perform labor or services.”

In the very recent case of Fidelity & Casualty Company of New York v. McLaughlin, 134 Texas 613, 135 S. W. (2d) 955, we expressly approved and reaffirmed the holding in the Volek case, supra. We quote the following from the opinion in the McLaughlin case:

“We will adhere to the construction of the above-quoted statute as announced in the Volek case, supra. Our compensation statutes were enacted primarily to protect Texas workmen and employees. The extraterritorial provisions thereof were enacted to protect Texas workmen or employees, — that is, workmen or employees who occupy such status in Texas under some contract of hiring, who are incidentally or temporarily sent out of this State by their employers to perform labor or services.”

Under the plain provisions of Section 19 of Article 8306, supra, as interpreted and construed in the two cases above mentioned, before an employee injured outside the territorial limits of this State can recover for such injury under our Compensation Statutes, he must prove that, at the time of such injury, he occupied the status of a Texas employee incidentally or temporarily sent out of the State to perform labor or services. [45]*45The phrase, “who has been hired in this State,” has no reference to the place where the contract of hiring took place. The test is: What was the status of the employee at the time of injury with regard to being a Texas employee? If, at such time, he occupied the status of a Texas employee, he is entitled to protection under our Compensation Statutes, even though he was working out of the State. On the other hand, if the employee is hired or contracted with in this State to go out of this State to perform labor or services, he cannot claim protection under our Compensation Law merely because the contract was made or entered into in this State. Also, if a person is hired to work in this State, — that is, if, under the contract of hiring, such person becomes a Texas employee in the sense that it is contemplated that his services are to be rendered in this State, such employee is protected by our Compensation Law, even thought he is first sent incidentally or temporarily out of the State to perform labor or services, and the mere fact that such employee performs his first services out of this State will not defeat his right to protection under our Compensation Statutes. In any event, before the statute under consideration can be applied in favor of an employee injured out of this State, it must be shown that he occupied the status of a Texas employee before leaving the State.

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Bluebook (online)
136 S.W.2d 590, 135 Tex. 41, 1940 Tex. LEXIS 165, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-underwriters-v-gallagher-tex-1940.