Tadlock v. United States Fidelity & Guaranty Co.

219 So. 2d 143, 1969 Miss. LEXIS 1414
CourtMississippi Supreme Court
DecidedFebruary 10, 1969
DocketNo. 45191
StatusPublished
Cited by4 cases

This text of 219 So. 2d 143 (Tadlock v. United States Fidelity & Guaranty Co.) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tadlock v. United States Fidelity & Guaranty Co., 219 So. 2d 143, 1969 Miss. LEXIS 1414 (Mich. 1969).

Opinion

RODGERS, Justice:

This case came to this Court from a final judgment of the Circuit Court of Lee County, Mississippi. The resulting judgment grew out of a damage suit for personal injuries caused to the appellant, William T. Tadlock, in a litigation brought against Robert T. Wilson and others, defendants.

The United States Fidelity & Guaranty Company (hereinafter referred to as U. S. F. & G.) was the workmen’s compensation carrier in an insurance policy covering Mr. Tadlock’s employer. The U. S. F. & G. intervened as a party plaintiff for the purpose of recovering the amount expended in payment of the workmen’s compensation due Mr. Tadlock. The trial in the damage suit resulted in the verdict and judgment in favor of the plaintiff and the intervener, as their interests appeared, in the sum of $50,000. After final judgment and before the case was appealed to the Supreme Court, the matter was settled and compromised for $45,000. There was an agreement that the amount due U. S. F. & G. would be reduced so that the settlement could be had. A disagreement then arose between Tadlock and U. S. F. & G. as to whether or not under the provisions of section 30, Mississippi Workmen’s Compensation Act (Miss.Code 1942 Ann. § 6998-36 (1952)), U. S. F. & G. was liable for its pro rata part of the cost of collection. This issue was presented to the Circuit Court on Mr. Tadlock’s motion to correct judgment and for distribution of proceeds [144]*144of settlement. The Circuit Court, after a hearing at which the parties stipulated relevant facts, entered a final order sustaining the contention of U. S. F. & G. and directing that the balance of the proceeds of the settlement be disbursed to it. From that order Mr. Tadlock has prosecuted this appeal to this Court.

The statement of facts shows that on January 12, 1966, Tadlock was employed by C. E. Bullock, doing business as Bullock Construction Company, on a building project in Tupelo, Mississippi. Bullock’s workmen’s compensation carrier was U. S. F. & G. On this date, Tadlock was severely injured by some steel being unloaded at the job site by the original defendants, Central Electric Machinery Company, Sid Lambert, and others. U. S. F. & G. was also the general liability insurance carrier for these defendants. U. S. F. & G. had paid to Tadlock at the time of the suit the sum of $11,971.70 under the workmen’s compensation benefit contract with Tadlock’s employer.

The U. S. F. & G. did nothing about perfecting a third party claim under the Workmen’s Compensation Act, but Mr. Tadlock, on February 28, 1966, employed counsel to handle his claim for damages on a basis whereby said counsel, after reimbursement of out-of-pocket expenses incurred, would receive forty percent of the balance as their fee for services. The attorneys filed suit for Mr. Tadlock against the original defendants above named. Mr. Tadlock, through his counsel, advised U. S. F. & G. of the institution of the suit, recognizing U. S. F. & G.’s right to a lien on .all sums recovered for the amount of the compensation paid to Mr. Tadlock, less a reasonable cost for collection, and he advised the U. S. F. & G. that reimbursement would be made accordingly. The U. S. F. & G. then employed other attorneys to defend the case.

After the case was set for trial and approximately a week before the trial, U. S. F. & G. had an intervening petition filed in the case showing that it was the workmen’s compensation carrier and entitled to the sum paid Mr. Tadlock out of such sums as he might recover. The attorneys for U. S. F. & G. made a brief opening statement to the jury with reference to the claim of U. S. F. & G. and retired from the case.

When the jury returned its verdict in favor of the plaintiff, the court entered its final judgment against the defendants in favor of Tadlock and U. S. F. & G. as their interests might appear. The defendants in the original cause perfected an appeal, but before the appeal was perfected a settlement was had between Tadlock and the defendants for the sum of $45,000, in which it was agreed that this amount would be distributed to Tadlock and U. S. F. & G. “as their interests may appear.” In order to reach this settlement, however, the judgment was reduced by ten percent so that U. S. F. & G. would be entitled to recover for the workmen’s compensation benefits paid to Tadlock, the sum of $10,773.97, rather than the sum of $11,971.07 actually paid.

After the settlement had been concluded, Tadlock filed a “Motion to Correct Judgment and for Distribution of Proceeds of Settlement,” asking that the U. S. F. & G. be paid $6,414.66, Tadlock the sum of $20,268.79, and the attorneys representing the plaintiff, $18,316.55.

U. S. F. & G. filed its answer contending that it was entitled to the sum of $10,773.97, the full amount paid under its contract as a workmen’s compensation insurance carrier, and that Tadlock should be paid the sum of $15,909.48. The difference between the two claims was the sum of $4,359.31. The trial court therefore ordered the distribution of all the other funds except the above named sum claimed by Tadlock and U. S. F. & G. The trial court determined that this sum belonged to the U. S. F. & G. and not to Tadlock. The primary question on appeal, then, is whether or not the trial court was correct in holding that the U. S. F. & G. was entitled to the full amount it [145]*145paid under its workmen’s compensation liability.

Mississippi Code 1942 Annotated section 6998-36 (1952) is in the following language :

“The acceptance of compensation benefits from or the making of a claim for compensation against an employer or insurer for the injury or death of an employee shall not affect the right of the employee or his dependents to sue any other party at law for such injury or death, but the employer or his insurer shall be entitled to reasonable notice and opportunity to join in any such action or may intervene therein. If such employer or insurer join in such action they shall be entitled to repayment of the amount paid by them as compensation and medical expenses from the net proceeds of such action (after deducting the reasonable costs of collection) as hereinafter provided.
“The commencement of an action by an employee or his dependents (or legal representative) against a third party for damages by reason of the injury, or the adjustment of any such claim, shall not affect the right of the injured employee or his dependents (or legal representative) to recover compensation, but any amount recoverd by the injured employee or his dependents (or legal representative) from a third party shall be applied as follows: Reasonable costs of collection as approved and allowed by the court in which such action is pending, or by the commission of this state in case of settlement without suit, shall be deducted; the remainder, or so much thereof as is necessary, shall be used to discharge the legal liability of the employer or insurer, and any excess shall belong to the injured employee or his dependents. The employee or his dependents bringing suit against the third party must notify the employer or carrier within fifteen days of the filing of such suit.

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Cite This Page — Counsel Stack

Bluebook (online)
219 So. 2d 143, 1969 Miss. LEXIS 1414, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tadlock-v-united-states-fidelity-guaranty-co-miss-1969.