Travelers Insurance Co. v. Fidelity & Casualty Co. of New York

409 S.W.2d 175, 219 Tenn. 244, 23 McCanless 244, 1966 Tenn. LEXIS 522
CourtTennessee Supreme Court
DecidedNovember 14, 1966
StatusPublished
Cited by2 cases

This text of 409 S.W.2d 175 (Travelers Insurance Co. v. Fidelity & Casualty Co. of New York) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Travelers Insurance Co. v. Fidelity & Casualty Co. of New York, 409 S.W.2d 175, 219 Tenn. 244, 23 McCanless 244, 1966 Tenn. LEXIS 522 (Tenn. 1966).

Opinion

Mr. Justice Chattin

delivered the opinion of the Oourt.

This appeal is from the action of the trial judge in sustaining a demurrer to the declaration of plaintiff-in-error, Travelers Insurance Company, against the defendant, Fidelity & Casualty Company of New York.

"We quote the pertinent parts of the declaration, as follows:

“2. On or about October 21, 1964, Travelers Insurance Company was the Workmen’s Compensation [246]*246insurer of Anderson and Gore Construction Company. Fidelity and Casualty Insurance Company of New York was the Workmen’s Compensation insurer of Ira Hoffman Company.
“3. On said date Anderson and Gore Construction Company was the general contractor on construction of a building at 20th Avenue and Grand Street known as the 1 Methodist General Board of Evangelism’ job in Nashville, Tennessee. Ira Hoffman Company was a sub-contractor on said job for the brick work.
“4. On said date Anderson and Gore Construction Company was the general employer of Crockett Eugene Bryant.
“5. On or about said date, Crockett Eugene Bryant, was a special employee of Ira Hoffman Company, having been loaned to said Company by Anderson and Gore Construction Company.
“6. On or about said date, Crockett Eugene Bryant, while in the course of his special employment by said Ira Hoffman Company and while engaged in the dismantling of a scaffold and while under the direction and control of said Ira Hoffman Company sustained an injury when said scaffold collapsed.
“7, As the result of being the general' employer of Crockett Eugene Bryant, Anderson and Gore- Construction Company was required by law to and did, through its insurer, the plaintiff,-provide said employee benefits under the Tennessee Workmen’s Compensation Law.
“8. Travelers Insurance Company made, a demand upon Fidelity and Casualty Insurance Company and [247]*247on or about February 24, 1965, the. defendant refused to accept liability for Workmen’s Compensation payments to Crockett Eugene Bryant contending that he was not a loaned employee of Ira Hoffman Company.
“9. Travelers Insurance Company alleges that Workmen’s Compensation benefits were paid to or on behalf of Crockett Eugene Bryant as follows:
Temporary Total Disability .$ 200.57
Medical Treatment. 838.49
Permanent Partial Disability. 2,819.15
Attorney’s Fees for Court settlement. 50.00
Court Costs . 10.00
Total .$3,918.21
“10. Travelers Insurance Company alleges that its insured, Anderson and Gore Construction Company, loaned said employee to Ira Hoffman Company; that the work being done at the time of injury was that of • Ira Hoffman Company and said Company had the right to control details of the work being performed by Crockett Eugene Bryant.
“11. Travelers Insurance Company alleges that Ira Hoffman Company was exclusively liable for payment of Workmen’s Compensation benefits to said Crockett Eugene Bryant and that the defendant is legally liable to plaintiff.”

The declaration was filed on March 31, 1966. Summons was issued on the same day and served upon the Commissioner of Insurance and Banking.

The single ground of the demurrer is that the declaration shows on- its face the injury to Bryant occurred on October 21, 1964; and, therefore, plaintiff’s cause of [248]*248action arose more than one year before the suit was brought.

Travelers has appealed to this Court and assigned as error the action of the trial judge in sustaining the demurrer.

It is the insistence of Travelers the suit is for indemnity or contribution; and, therefore, the statute of six years, T.C.A. Section 28-309, applies.

On the other hand, Fidelity insists the suit is one for subrogation; and, therefore, the one year statute of limitation, T.C.A. Section 50-1003, for recovery of compensation under the Workmen’s Compensation Act applies.

T.C.A. Section 50 915, insofar as pertinent here, reads:

“A principal, or intermediate contractor, or subcontractor shall be liable for compensation to any employee injured while in the employ of any of his subcontractors and engaged upon the subject matter of the contract to the same extent .as the immediate employer. ’ ’

T.C.A. Section 20-109 provides:

“Persons jointly or severally or jointly and severally bound on the same instrument, or by judgment, decree, or statute, including the makers and endorsers of negotiable paper and sureties, may all or any part of them be sued in the same action.”

In considering the above Code Sections, this Court in the case of Reynolds & Company v. McKnight, 177 Tenn. 28, 148 S.W.2d 357 (1941) said:

“The principal contractor and the subordinate contractors being by the statute made liable, ‘to the same [249]*249extent’ as immediate employer, they are jointly, or jointly and severally, liable, and nnder Cod© Section 8611 (now T.C.A. Section 20-109) all of them may be sued in the same action.”

The Workmen’s Compensation Act does not determine, as between contractors and subcontractors, who is primarily liable as that determination must be made on equitable principles. Tayloe Paper Company v. W. F. Jameson Const. Co., 211 Tenn. 232, 364 S.W.2d 882 (1963).

In the case of Tayloe Paper Company v. W. F. Jameson Const. Co., supra, the Memphis Park Commission entered, into a contract with W. F. Jameson Construction Company for the construction of a community center and swimming pool. Jameson then entered into a contract with Tayloe for the installation of basketball backstops in the community center. Tayloe entered into a contract with A. Gr. Murrell for the installation of the backstops. Wells, an employee of Murrell, was injured while engaged in work under this contract. Murrell did not employ five employees and was not liable under the Workmen’s Compensation Act.

Wells brought suit against Jameson and Tayloe and recovered compensation. An execution was issued and Tayloe paid the entire judgment. Tayloe, the subcontractor, then filed suit against Jameson, the general contractor, for contribution.

The Chancellor entered judgment against Jameson, the general contractor, for one-half of the amount paid by Tayloe, the subcontractor.

[250]*250Jameson appealed to this Court. In an opinion by Chief Justice Burnett the Court reversed the Chancellor and dismissed the suit.

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409 S.W.2d 175, 219 Tenn. 244, 23 McCanless 244, 1966 Tenn. LEXIS 522, Counsel Stack Legal Research, https://law.counselstack.com/opinion/travelers-insurance-co-v-fidelity-casualty-co-of-new-york-tenn-1966.