State Highway Department v. Gorham

162 S.W.2d 934, 139 Tex. 361, 1942 Tex. LEXIS 243
CourtTexas Supreme Court
DecidedMay 27, 1942
DocketNo. 7963.
StatusPublished
Cited by70 cases

This text of 162 S.W.2d 934 (State Highway Department v. Gorham) 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
State Highway Department v. Gorham, 162 S.W.2d 934, 139 Tex. 361, 1942 Tex. LEXIS 243 (Tex. 1942).

Opinion

MR. Justice Sharp

delivered the opinion of the Court.

W. E. Gorham, having obtained legislative consent, brought this suit under Article 6674s, Vernon’s Annotated Civil Statutes, against the State Highway Department of Texas, referred to as the Department, and The State of Texas, to recover workmen’s compensation for injuries sustained while in the employ of the Department. A recovery was denied by the Industrial Accident Board, referred to as the Board, and Gorham appealed. Upon trial in the district court, the jury found that he was totally and permanently disabled as the result of an accidental injury received on December 7, 1937, in the course of his employment for the Department. The trial court thereupon awarded Gorham a lump sum recovery of $3,591.70. The judgment was affirmed by the Court of Civil Appeals. 158 S. W. (2d) 330. This Court granted a writ of error.

The principal question is whether the insurance coverage contemplated by the law providing for compensation insurance for employees of the Highway Department was in effect on December 7, 1937, the date on which Gorham was injured. For a determination of this matter the Act itself, Article 6674s, Vernon’s Annotated Civil Statutes, must be construed.

This Act was passed on June 11, 1937, and was signed by the Governor on the same day. It carried the emergency clause, and provided that it should take effect immediately after its passage. The Act, therefore, unquestionably became a law on June 11, 1937. The question then remains as to when the insurance provisions in the Act became effective.

The Act provides in part as follows:

*364 “Sec. 3. After the effective date of this lato any employee * * *, who sustains an injury in the course of his employment shall be paid compensation as hereinafter provided.

“The Department is hereby authorized to be self insuring and is charged with the administration of this law. The Department shall notify the Board of the effective date of such insurance, stating in such notice the nature of the work performed by the employees of the Department, the approximate number of employees, and the estimated amount.of the payroll.

“The Department shall give notice to all employees that, effective at the time stated in such notice, the Department has provided for payment of insurance.” (Italics ours.)

The Act further provides that the Department is authorized to promulgate and publish rules and regulations, and to prescribe and furnish such forms as may be necessary. It is required to designate a convenient number of physicians and surgeons to make physical examinations of all persons in the employ of the Department, and to determine those who are physically fit to be classified as employees.

There is a further provision that no person shall be certified as an “employee” unless and until he has submitted himself to a physical examination and is found to be physically fit for the duties to which he is assigned; but it is further provided that failure to be examined shall not bar a recovery.

The Act authorizes the Department to set aside from its available appropriations an amount, not to exceed of the annual labor payroll of the Department, for the payment of all costs, administrative expense, charges, benefits, and awards authorized by this law: The Department is charged with the duty of keeping a record of all injuries sustained by its employees and of making a report thereof to the Board.

On December 21, 1937, the Department notified the Board that, “Workmen’s Compensation insurance for certain employees of the Highway Department, as provided in said Statute, will become effective at 12:01 A. M., January 1, 1938. The nature of the work performed by employees of the Highway Department is Highway Construction and Maintenance, and all work incidental thereto. The appropriate number of *365 such employees is seven thousand (7,000). The estimated amount of annual payroll is Nine Million Dollars ($9,000,000.00).”

The Industrial Accident Board certified that the Department became a subscriber as outlined under the Workmen’s Compensation Law on January 1, 1938, at 12:01 A. M.

On May 26, 1939, the Legislature passed House Bill No. 1047, being Chapter 1, page 950, Special Laws of the 46th Legislature, granting Gorham permission to sue for compensation on account of the alleged injuries and on account of the failure of the Department to provide compensation insurance within a reasonable time; and it was provided that any judgment so recovered should be paid out of the funds of the Department set aside for injuries to its employees. The bill reserved to the Department all defenses available to it under Article 6674s, “except its failure to have compensation insurance and to comply with the law relevant thereto and to certify said Gorham as an employee, and except the Statute of Limitations. It being the purpose of this act to make available to the said W. E. Gorham, all rights and privileges of Article 6674s us if the Highway Commission hud put suid Act into effect prior tu December 7, 1937.” (Italics ours.)

It is a settled rule that where a statute is plain and unambiguous, it will be enforced according to its wording. It is the duty of the Court to examine the entire Act, and to construe it as a whole. The statute should be given a fair and reamatter, in order to accomplish the legislative intent and pursonable construction, considering the language and the subject pose. 39 Tex. Jur., p. 166 et seq., secs. 90 and 91.

After June 11, 1937, the Department was authorized and required to promulgate rules and regulations, and to prescribe and furnish forms, for the effective administration of the law. It was authorized to set aside from its appropriation an amount, not to exceed 3 yi % of its annual labor payroll, to cover all costs of the program. It necessarily had to investigate the number of employees to be included, the risks covered, and the probable cost to the Department. The Department was required to designate a convenient number of doctors, and was authorized to conduct physical examinations of employees. Since the program was to be administered in connection with the Industrial Accident Board, the statute prescribed that the Board be notified of the nature of the work performed by the employees, the *366 approximate number of employees, and the estimated amount of the payroll. The Legislature must have contemplated that it would take a reasonable time to put this program in operation. Therefore the following provisions of the Act appear to be controlling as to the meaning of the “effective date” upon which the insurance should go in operation:

“The Department shall notify the Board of the effective date of such insurance. * * * The Department shall give notice to all employees that, effective at the time stated in the notice, the Department has provided for payment of insurance.” (Italics ours.)

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162 S.W.2d 934, 139 Tex. 361, 1942 Tex. LEXIS 243, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-highway-department-v-gorham-tex-1942.