Sturgill v. M & M, INC.

329 A.2d 360
CourtSupreme Court of Delaware
DecidedNovember 15, 1974
StatusPublished
Cited by14 cases

This text of 329 A.2d 360 (Sturgill v. M & M, INC.) is published on Counsel Stack Legal Research, covering Supreme Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sturgill v. M & M, INC., 329 A.2d 360 (Del. 1974).

Opinion

DUFFY, Justice:

We here consider cross-appeals from the Superior Court which reviewed an award by the Industrial Accident Board. Two issues are presented under the Workmen’s Compensation Act: the compensability of that part of a disability attributed to psychogenic causes, and the exclusion of “tips” as wages in computing the compensation basis.

I

Claimant petitioned the Board for compensation under 19 Del.C. § 2326 for permanent physical impairment of her back and left leg resulting from an accident arising out of and in the course of her employment. 1 Both parties agree that *361 claimant is entitled to some award, so the disputed issue is the percentage of disability. A neurologist, testifying for claimant, concluded that she had sustained a 50% back disability and an 80% leg disability; those figures were based on a consideration of both psychogenic and organic factors. 2 The Board’s finding of 30% and 20% impairment of the back and leg, respectively, was based “ . . . solely upon the percentage of physical and functional disability suffered by the claimant .”. Relying on Burton Transportation Center, Inc. v. Willoughby, Del.Supr., 265 A.2d 22 (1970), the Board thus gave no weight to any disability resulting from psychogenic factors.

The Superior Court distinguished Burton, correctly, we think, from the instant case and ordered a remand. In Burton the employee sought recovery on the theory that a traumatic neurosis “is a partial loss of use of a 'part of the body’ within the meaning of that term in § 2326(g).” Recovery was denied because the Court construed the term “as intended to refer to some specific identifiable member or organ of the body”. In short, traumatic neurosis per se was determined to be not compensa-ble under § 2326 which fixes compensation for certain “scheduled” injuries or losses. But it does not follow that psychogenic factors which cause scheduled losses are not compensable. On the contrary, we think they are. 3

As the Court said in Burton, “disability resulting from traumatic neurosis is com-pensable”, cf. Rice’s Bakery v. Adkins, Del.Supr, 269 A.2d 215 (1970) and Ware v. Baker Driveway, Inc, Del.Super, 295 A.2d 734 (1972), aff’d, Del.Supr, 303 A.2d 358 (1973), and that includes a disability which is a scheduled loss specified in § 2326.

Here, there was evidence in the record which could lead the Board to conclude that the psychogenic overlay was related to identifiable parts of the body. Accordingly, the Superior Court correctly ordered the award vacated and remanded the case for further findings as to causal connection, first, between the accident and the psychogenic overlay and, second, between such overlay and a member of or organ of the body identifiable under § 2326.

II

The second issue raised in the appeal relates to “tips” as wages and, as to these, the Board Stated:

“Claimant was, at the time of the accident, a waitress. Her earnings, including gratuities, averaged between $125.00 and $150.00 per week. Her actual wages on the other hand, amount to $24.00 per week. That is she worked 48 hours per week and received from her employer $.50 per hour.”

*362 The Board concluded that $24.00 was the appropriate compensation basis under the statute and the Superior Court affirmed on the basis that tips were gratuities and thus excluded from consideration.

19 Del.C. § 2302(a) reads in part:

“The term ‘wages’ means the money rate at which the service rendered is recompensed under the contract of hiring in force at the time of the accident. It does not include gratuities received from the employer or others . . ..”

Our duty is to read statutory language so as to avoid constitutional ques-tionability and patent absurdity and to give the language a reasonable and suitable meaning. Opinion of the Justices, Del. Supr., 295 A.2d 718 (1972). The obvious intent of the Legislature in enacting § 2326 was that the Board award “proper and equitable compensation”, 19 Del.C. § 2326(g), and that the method of computation fairly ascertain the earnings of an employee. 19 Del.C. § 2302(b). A finding that a waitress who earned $125 to $150 a week had “wages” of only $24 certainly does not square with that intent and assuredly would produce an unjust result.

We recognize that in many relationships a “tip” is regarded as a “gratuity” but it does not follow that the statute compels that equation in every case. Indeed, the undisputed facts, in our view, show beyond doubt that what the claimant here received from customers were not gratuities at all.

A “gratuity” in its ordinary, dictionary meaning is that which is given over and above what is due. It is “Something given freely or without recompense; a gift”. Webster, supra; Black’s Law Dictionary. It connotes something voluntarily or freely given over and above what is earned. In brief, a gift or gratuity is not what one earns — it is what he receives without earning.

Turning now to this case, it is beyond dispute that the claimant “earned” more than $24.00 for 48 hours of services. Since the employer paid her only 50‡ per hour, any amount of earnings in addition thereto necessarily came from tips. Common sense tells us that this employer did not simply agree to pay the claimant 50^ and nothing more. (Indeed, Delaware law requires more. See 19 Del.C. § 902.) And the only reasonable conclusion from the undisputed facts is that any tips received by claimant were necessarily a very part of her contract of hiring.'

We are not called upon to determine the nature or character of tips as between claimant and the employer’s customers. To the latter, they may well have been (and are commonly) regarded as “gratuities” and not part of the purchase price for food and services. But our inquiry is to the relationship between employer and waitress and the only reasonable conclusion from the record is that the contract of hiring provided that claimant would receive as wages $24 per week plus tips. Under those circumstances tips are not “gratuities” within the meaning of § 2302(a).

Although it appears that in most jurisdictions tips received by a waitress are included in the compensation basis, see, e. g., Employers Commercial Union Insurance Co. v. Bryant, 130 Ga.App. 596, 203 S.E.2d 896 (1974) and cases cited therein, we recognize that such holdings are based on statutes different from § 2302. But see Coates v. Warren Hotel, 18 N.J.Misc. 363,

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