True v. Amerail Corp.

584 S.W.2d 794, 1979 Tenn. LEXIS 475
CourtTennessee Supreme Court
DecidedAugust 6, 1979
StatusPublished
Cited by8 cases

This text of 584 S.W.2d 794 (True v. Amerail Corp.) 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
True v. Amerail Corp., 584 S.W.2d 794, 1979 Tenn. LEXIS 475 (Tenn. 1979).

Opinion

OPINION

HENRY, Judge.

The sole question in this Workmen’s Compensation action is whether a Tennessee resident, employed principally in Tennessee under a contract made in Tennessee, who is injured while working in Virginia, and who accepts benefits under the Virginia Workmen’s Compensation law, is barred from a recovery under Tennessee Law. The Chancellor sustained the employer’s motion for a summary judgment. We affirm.

I.

Plaintiff is a resident of Washington County, Tennessee, where Amerail maintains offices and where the contract of employment was made. He was employed principally in Tennessee; however, he was injured on a job site in Clintwood, Dicken-son County, Virginia.

Plaintiff sued for workmen’s compensation benefits in the Chancery Court of Washington County, Tennessee on December 9, 1976, demanding judgment “for the benefits due him under the Workmen’s Compensation Laws of the State of Tennessee.” While the complaint1 is somewhat meager, we treat it as a suit for full compensation benefits, including medical expenses, based upon injury to the shoulder and back.

Amerail’s principal defense was that plaintiff had the choice of proceeding under Tennessee or Virginia law; that he elected to proceed under the Virginia law; and had received payment from Amerail’s insurance carrier from September 13, 1976 (the approximate date of the injury) through December 5, 1976. Thus, Amerail says that plaintiff has elected his remedy under the laws of the Commonwealth of Virginia and is now estopped to proceed under the Workmen’s Compensation Laws of Tennessee.

Subsequently Amerail filed its motion for a summary judgment under Rule 56, Tenn. R.Civ.P. relying upon its answer, the exhibits thereto, and the affidavit of the claims manager of its insurance carrier, Hartford Accident and Indemnity Company.

This motion asserts (1) that plaintiff “instituted a proceeding and procured a recovery of compensation in the Commonwealth of Virginia in which his injury occurred and that such action was a clear renunciation of the contract of employment made in the State of Tennessee,” and (2) that the award [796]*796by the Virginia Industrial Commission is entitled to full faith and credit and is a bar to plaintiff’s right to prosecute the instant suit.

The record shows that at an undisclosed date in December 1976, the plaintiff executed a Memorandum of Agreement as to Payment of Compensation on a form prescribed by the Industrial Commission of Virginia.2 This document recites that the parties “have reached an agreement in regard to compensation for the injury,” under the terms of which plaintiff shall receive weekly compensation, in a stated amount, payable during the period of incapacity from and including the 20th day of September 1976 “until terminated in accordance with the provisions of the Workmen’s Compensation Law of the State of Virginia.” This memorandum was filed in December 1976.

A copy of an “Award — Approval of Agreement” issued by the Industrial Commission of Virginia on December 14, 1976 appears in the record. It bears no signature but appears on an official form. In this document the Commission approved the Memorandum of Agreement and entered an award in accordance therewith. It bears the notation that “before closing the file, we will require a final medical report.”

Additionally, there appears on an official form, an undated Agreed Statement of Fact, signed by the plaintiff, but not executed by the insurance carrier, in which it is agreed that plaintiff was able to return to work on December 6, 1976. It will be noted that the instant suit was filed three (3) days later. It is specifically recited that the termination on December 6,1976 is “subject to approval by the Industrial Commission.” It is further provided that “[t]he employee may reopen the claim pursuant to § 65.1-99. SEE NOTE BELOW.” The note reads:

The signing of the above agreement is not a requirement for payment. This agreement is neither a receipt for money nor a release of claim. Should further disability result, the claim can be reopened by written application received by the Industrial Commission within twelve months from the last date for which compensation was paid .

From the affidavit of the Claims Manager it appears that plaintiff was paid at the rate of $86.33 per week, beginning September 13, 1976 through December 5, 1976, making a total of $1,035.93.

Plaintiff filed no countervailing affidavits as permitted by Rule 56.03, Tenn.R. Civ.P., and as required by Rule 56.05. Instead he elected to rest upon the allegations of his abbreviated complaint. Thus, the matter is before the Court on a record built by Amerail.

Three significant facts emerge, viz:

1. Plaintiff invoked the Workmen’s Compensation Law of Virginia.
2. He received benefits thereunder.
3. The plaintiff’s Virginia claim was pending final determination before the Industrial Commission of Virginia on the date the instant suit was filed.

The Chancellor sustained the motion for summary judgment in toto.

II.

The Tennessee Workmen’s Compensation Law has extraterritorial application, providing coverage for injuries sustained while working outside the boundaries of this State if they are such as would be compen-sable if sustained within the State, providing the employment was localized within the State, or the contract of hire was made within the State. § 50-917, T.C.A.

The precise question we are called upon to answer is whether the application for and acceptance of benefits under the Virginia Workmen’s Compensation Law bars the instant suit.

A discussion of this issue must start with Tidwell v. Boiler & Tank Co., 163 Tenn. 420, 43 S.W.2d 221 (1931). Plaintiff’s deceased husband was killed while working in Ohio pursuant to an assignment by his employer, a Chattanooga based activity. His employment was principally in Tennessee.

After her husband’s death, plaintiff began proceedings in Ohio under the Work[797]*797men’s Compensation Law of that state and obtained death benefits in the sum of $4,800.64, payable at the rate of $11.54 per week for 416 weeks. At the time of the trial she had received $1,927.18.

The sole defense to her Tennessee suit was the proceeding in Ohio.

Mr. Chief Justice Green, speaking for the Court, declared:

[W]hen petitioner instituted the proceedings in Ohio to recover compensation for her husband’s death, this was a clear renunciation or disaffirmance of the contract.3 163 Tenn. at 424, 43 S.W.2d at 223.

After noting the general rule of law that “[t]he obligations of the contract cannot be repudiated in one suit and benefits of that contract be claimed in a subsequent suit”, the Court said:

There can be no question but that the election thus made was irrevocable because petitioner has taken the benefit of the Ohio suit and defendant will doubtless take the detriment of that suit. 163 Tenn. at 424, 43 S.W.2d at 223.

The case of Thomas v. Transport Ins. Co.,

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Bluebook (online)
584 S.W.2d 794, 1979 Tenn. LEXIS 475, Counsel Stack Legal Research, https://law.counselstack.com/opinion/true-v-amerail-corp-tenn-1979.