Swaney v. GEORGE NEWTON CONSTRUCTION COMPANY

169 S.E.2d 90, 5 N.C. App. 520, 1969 N.C. App. LEXIS 1390
CourtCourt of Appeals of North Carolina
DecidedAugust 13, 1969
Docket6810IC331
StatusPublished
Cited by8 cases

This text of 169 S.E.2d 90 (Swaney v. GEORGE NEWTON CONSTRUCTION COMPANY) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Swaney v. GEORGE NEWTON CONSTRUCTION COMPANY, 169 S.E.2d 90, 5 N.C. App. 520, 1969 N.C. App. LEXIS 1390 (N.C. Ct. App. 1969).

Opinions

PARKER, J.

By appropriate assignments of error appellant challenges the order of the Industrial Commission which authorized reduction in the amount of the workmen’s compensation benefits payable to him and the conclusions of law upon which that order was based. In the opinion and award made by the Chairman of the Industrial Commission, which were adopted with modification by the full Commission, the Chairman had concluded as a matter of law that “(u)nder the provisions of G.S. 97-10, G.S. 97-10.1 and G.S. 97-10.2, the defendant employer is not obligated to pay compensation and medical expense for the plaintiff until such time as they exceed the amount recovered from the third party tort-feasor.” Based on this conclusion of law, which was adopted as its own by the full Commission, the Commission entered its order which, as finally amended, in effect authorized the defendant carrier to reduce to one-third the amount of weekly compensation and medical benefits which it would otherwise be obligated to pay to the plaintiff, the reduction in such payments to remain in effect “until such time as the sum of $23,045.66 or one-third of the amount of the plaintiff’s share of the third party recovery has been exhausted.” While the exact meaning of the quoted portion of the Commission’s order is not altogether clear, presumably the Commission intended that the reduction in the amount of the payments should remain in effect until the total of the reduced payments should equal the amount of the attorney’s fees which had been paid by the plaintiff out of that portion of the third party recovery (one-half) which had been distributed to the plaintiff by agreement between the parties approved in 1964 by the Commission. It is, however, unnecessary for us to determine the exact meaning of the Commission’s order, since in our view the Industrial Commission was without power, under the circumstances of this case, to authorize any reduction in the amount of the compensation and benefit payments to which plaintiff was entitled under the North Carolina Workmen’s Compensation Act.

For most industrial injuries compensable under the North Carolina Workmen’s Compensation Act, the Act provides limitations in the period of time during which payments are to be made and in [524]*524the total amount of such payments. However, G.S. 97-29 contains-the following:

“In cases in which total and. permanent disability results from paralysis resulting from an injury to the brain or spinal cord or from loss of mental capacity resulting from an injury to the brain, compensation, including reasonable and necessary nursing services, medicine, sick travel, medical, hospital, and! other treatment or care shall be paid during the life of the injured employee without regard to the (maximum limitations of time and amount.)” (Emphasis added.)

G.S. 97-41 contains the following:

“In cases where permanent total disability results from paralysis or loss of mental capacity caused by an injury to the brain or spinal cord, compensation shall be payable for the life of the injured employee as provided by G.S. 97-29.” (Emphasis-added.)

The defendant employer and its insurance carrier have never questioned that plaintiff’s accident arose out of and in the course of his employment, that the injuries he received thereby rendered him totally and permanently disabled, and that this permanent disability resulted from paralysis caused by an injury to his spinal cord. No> question is raised, therefore, but that plaintiff’s condition brings him squarely within the language of G.S. 97-29 and G.S. 97-41 and that he is entitled to be paid the compensation and to receive the benefits provided by the Workmen’s Compensation Act throughout his life and without regard to any limitation in the total amount.

The opinion and award of the Chairman of the Industrial Commission, which was adopted by the full Commission, expressly found that “plaintiff has been rated totally and permanently disabled and is entitled to compensation for life.” Nevertheless he concluded as a matter of law that “(u)nder the provisions of G.S. 97-10, G.S. 97-10.1, and G.S. 97-10.2, the defendant employer is not. obligated to pay compensation and medical expenses for the plaintiff until such time as they exceed the amount recovered from the third party tort-feasor.” At the outset we observe that the provisions of G.S. 97-10.1 and G.S. 97-10.2 are not applicable to plaintiff’s injuries. These two sections were enacted by Chap. 1324 of the 19591 Session Laws. That Act deleted G.S. 97-10 as it then existed and substituted in lieu thereof G.S. 97-10.1 and G.S. 97-10.2. Section 2 of that Act expressly provided that it shall not apply to any injury occurring before the ratification thereof. The Act was ratified on [525]*52520 June 1959. Plaintiff’s injuries occurred on 4 April 1957. Therefore, G.S. 97-10.1 and G.S. 97-10.2 are not applicable in this case.

Nor does G.S. 97-10 as it existed prior to the 1959 Act support the Commission’s conclusion of law. G.S. 97-10 provided:

“The rights and remedies herein granted to an employee where he and his employer have accepted the provisions of this article, respectively, to pay and accept compensation on account of personal injury or death by accident, shall exclude all other rights and remedies of such employee, his personal representative, parents, dependents or next of kin, as against his employer at common law, or otherwise, on account of such injury, loss of service, or death: Provided, however, that in any case where such employee, his personal representative, or other person may have a right to recover damages for such injury, loss of service, or death from any person other than the employer, compensation shall he paid in accordance with the provisions of this chapter.” (Emphasis added.)

The statute then went on to provide that after the Industrial Commission had issued an award or the employer or his carrier had admitted liability in writing, the employer or his carrier should have the exclusive first right to commence an action for damages on account of the employee’s injuries; if the employer failed to commence action within six months of the injury, the employee might do so; and in either event any amount recovered was to be applied first to the payment of court costs and attorneys’ fees, and “the remainder or so much thereof as is necessary shall be paid to the employer to reimburse him for any amount paid and/or to be paid by him under the award of the industrial commission; if there then remain any excess, the amount thereof shall be paid to the injured employee . . .” The insurance carrier which assumed the liability of the employer was subrogated to the rights and duties of the employer.

It is clear that G.S. 97-10 as it existed at the time of plaintiff’s injuries furnishes no support for the Commission’s action in ordering reduction in the amount of the compensation payable to plaintiff. That section provided exactly to the contrary. By express lan-quage the statute directed that in any case where the employee might have a right to recover damages for his injuries from any person other than his employer, “compensation shall be paid in accordance with the provisions of this chapter.”

Appellees contend in their brief that it was and is a “basic premise” of our North Carolina Workmen’s Compensation Act, [526]

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Swaney v. GEORGE NEWTON CONSTRUCTION COMPANY
169 S.E.2d 90 (Court of Appeals of North Carolina, 1969)

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Bluebook (online)
169 S.E.2d 90, 5 N.C. App. 520, 1969 N.C. App. LEXIS 1390, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swaney-v-george-newton-construction-company-ncctapp-1969.