Tri-State Casualty Ins. Co. v. Bowen

1941 OK 201, 113 P.2d 981, 189 Okla. 97, 1941 Okla. LEXIS 155
CourtSupreme Court of Oklahoma
DecidedJune 3, 1941
DocketNo. 29240.
StatusPublished
Cited by17 cases

This text of 1941 OK 201 (Tri-State Casualty Ins. Co. v. Bowen) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tri-State Casualty Ins. Co. v. Bowen, 1941 OK 201, 113 P.2d 981, 189 Okla. 97, 1941 Okla. LEXIS 155 (Okla. 1941).

Opinion

OSBORN, J.

This is an original action in this court wherein it is sought to review an award of the Industrial Commission entered in favor of J. B. Bowen against the Oklahoma Well Servicing Company, his employer, and the Tri-State Casualty Insurance Company, its insurance carrier, for an injury sustained on December 1, 1938. The award was for temporary total disability. It will be unnecessary to state the nature or extent of respondent’s injury.

The sole issue is whether or not the commission had jurisdiction to make a determination that petitioner, Tri-State Casualty Insurance Company, was the employer’s insurance carrier on the date of the injury, and whether it erred in so doing.

' It is shown that respondent insurance carrier issued its policy to the employer on January 1, 1938, for a period of one year. At that time the employer was a copartnership composed of C. W. Langs-ton, Joe Plasek, and H. F. Cope. In August, 1938, Langston and Plasek sold their interests to H. F. Cope, and on August 23, 1938, a corporation was formed. The stockholders and members of the corporation are Joe Barnhill, G. Stanley, and H. F. Cope. The name of the copartnership and the name of the corporation is “Oklahoma Well Servicing Company.” The policy was issued to the “Oklahoma Well Servicing Company.” It is stated in the declarations that the employer is a partnership. On December 10, 1938, and in compliance with section 13377, O. S. 1931, 85 Okla. St. Ann. § 64, the insurance carrier gave a 10-day notice of cancellation of its policy, and the same was canceled on December 20, 1938.

It is noted that the notice and cancellation were both subsequent to the date of claimant’s injury.

At the outset we are met with the contention that the commission was without jurisdiction to determine whether or not there was liability from the insurance carrier to the claimant for the reason that contractual rights *99 between the employer and the insurance carrier were involved. A number of authorities are relied upon which will presently be referred to. It appears that there is a lack of harmony in our former opinions dealing with this question and that it will be necessary to review these cases and point out the extent of conflict therein in order to clarify our views with regard to the jurisdiction of the commission to determine liability against an insurance carrier.

Section 2, ch. 29, Session Laws 1933, in part, provides:

“Upon application of claimant, respondent or insurance carrier, the commission may set down for hearing any claim for compensation, and, after notice to the adverse party shall proceed to hear and determine the liability of respondent and insurance carrier and or extent of disability of claimant. . . .”

Subsection (a), section 13377, O. S. 1931, 85 Okla. St. Ann. § 64, provides:

“Every policy of insurance covering the liability of the employer for compensation issued by a stock company or by a mutual association or other concern authorized to transact workmen’s -compensation insurance in this state shall contain a provision setting forth the right of the commission to enforce in the name of the people of the State of Oklahoma, for the benefit of the person entitled to the compensation insured by the policy either by filing a separate application or by making the insurance carrier a party to the original application, the liability of the insurance carrier in whole or in part for the payment of such compensation; provided, however, that payment in whole or in part of said compensation by either the employer or the insurance carrier shall, to the extent thereof, be a bar to the recovery against the other of the amount so paid.”

It is noted that these statutory provisions have expressly fixed authority in the Industrial Commission to determine and enforce the liability of the insurance carrier to the claimant. The case of Union Indemnity Co. v. Saling, 166 Okla. 133, 26 P. 2d 217, is authority for the proposition that, although the Industrial 'Commission is a tribunal of limited jurisdiction, where specific powers are granted to said commission by the Legislature, there is also authorized the use and exercise of such incidental powers as are necessary to accomplish the object sought by the legislation. It is therefore clear that since there is an express grant of power and authority to determine the liability of the insurance carrier to the claimant, it necessarily follows that the commission was vested with authority to determine whether or not the policy was effective on the date of the injury, for only in this manner may the relationship of employer and insurance carrier be established.

We shall refer to some of the cases heretofore dealing with the question. In the case of Farmers Gin Company of Manitou v. Jones, 146 Okla. 79, 293 P. 527, it was held that the Industrial Commission had jurisdiction to determine whether a compensation insurance policy had been canceled in accordance with the provisions of the statute providing for the method of cancellation, but had no jurisdiction to determine whether such policy had been canceled under the provisions of the insurance contract itself.

In order to determine the force and effect of this opinion it is necessary to take into consideration the factual situation presented. There was involved an appeal by the employer in which the principal contention was that the commission erred in its finding that a compensation insurance policy had been canceled in compliance with the statutes prior to the date of the injury involved. It appears that the employer made the contention that even though the policy was canceled in accordance with the terms of the statute, it was not canceled in accordance with the terms of the policy, in that the carrier had failed to return unearned premiums, but it was pointed out by this court that such proposition was not presented by the claimant, and that he was in no wise concerned with that controversy because it was purely a con *100 troversy between the employer and the insurance carrier which was not determinable by the Industrial Commission, but by the civil courts. The holding of the court was predicated upon the proposition that the rights of the claimant were purely statutory; that he was entitled to recover from the insurance carrier unless the insurance carrier had canceled its compensation insurance in accordance with the statutory provision for cancellation thereof; that he had no rights growing out of a contract between an employer and an insurance carrier other than the rights given him by the provisions of the act. When properly analyzed the holding of the court in this decision was that the commission had jurisdiction over an insurance carrier for the purpose of determining its liability to a claimant arising by virtue of statutory provisions, but that it was without jurisdiction to determine a controversy which was solely and exclusively between the employer and the insurance carrier arising solely through contract and which, in no way, affected the 'statutory liability of the carrier to the claimant.

The rule announced in the case of Farmers Gin Company of Manitou v. Jones, supra, was next applied in the case of Beck v. Davis, 175 Okla. 623, 54 P. 2d 371.

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Bluebook (online)
1941 OK 201, 113 P.2d 981, 189 Okla. 97, 1941 Okla. LEXIS 155, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tri-state-casualty-ins-co-v-bowen-okla-1941.