U. S. Fidelity & Guaranty Co. v. Davis

212 S.W. 239, 1919 Tex. App. LEXIS 642
CourtCourt of Appeals of Texas
DecidedMarch 22, 1919
DocketNo. 9061.
StatusPublished
Cited by9 cases

This text of 212 S.W. 239 (U. S. Fidelity & Guaranty Co. v. Davis) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
U. S. Fidelity & Guaranty Co. v. Davis, 212 S.W. 239, 1919 Tex. App. LEXIS 642 (Tex. Ct. App. 1919).

Opinion

DUNKLIN, J.

W. W. D'a/vis' was an employs of the J. W. ThompsÓn Construction Company, which was a subscriber to the Workmen’s Compensation Act, appearing in full in the acts of the Legislature of 1917, p. 269 (Vernon’s Ann. Civ. St. Supp. 1918, arts. 5246—1 to 5246 — 91), and held a policy of insurance in the United States Fidelity & Guaranty Company, issued according to the requirements of the act, and which made the insurer liable for compensation to the employés of the Thompson Construction Company for injuries sustained by them while engaged in such employment. On February 1, 1918, the Industrial Accident Board, with whom Davis had filed a claim for compensation, awarded him compensation to be paid by the insurer in the sum of $15 per week for the injury which the board found had totally incapacitated him for work, said weekly allowance to continue during the existence of such total incapacity, not to exceed, however, the period of 401 weeks, and subject to modification or termination in accordance with the provisions of the act.

Davis had attempted to procure an order allowing him compensation in a lump sum rather than in weekly installments in accordance with the provisions of section 15, pt. 1, p. 280, of the act, upon the plea that, as he had a wife and three small children to support, the oldest being only 12 years of age, and as he was wholly incapacitated to work himself, a manifest hardship and an injustice would be done him if his compensation was fixed at even the maximum weekly allowance authorized by the act. And when that request was refused he, within 20 days after that decision by the Industrial Accident Board, gave notice to the board and to the insurer that he would not abide by said ruling, and immediately instituted this suit to recover compensation under the act, as was his right to do under the provision of section 5, pt. 2, p. 283, of the act. In his petition, filed .in this suit, he sought to recover compensation in a lump sum as he did before the Accident Board, and on the same grounds. In the alternative he prayed that, if he was not entitled to a lump sum settlement, then he should be awarded compensation in the sum of $15 per' week for 389 weeks. Plaintiff further alleged that he had presented his claim to the Industrial Accident Board, and that said board had awarded him compensation which the defendant had refused to pay in accordance with the terms of that decision, although defendant was duly notified of plaintiff’s dire distress and urgent need of such compensation for the support of his family.

In both counts of his petition plaintiff sought to recover exemplary damages in the sum of $4,000, as well as actual damages, which in each count was fixed at the sum of $6,000; the claim for exemplary damages being predicated upon an allegation of the construction company’s “negligence and willful disregard for this plaintiff’s rights in causing the said injuries.”

It was further alleged that plaintiff has the right to a lump sum settlement by reason of the fact that the insurer had, without justifiable cause, failed to pay the weekly allow- *241 anees made by the Accident Board as they matured.

Judgment was rendered decreeing a recovery by the plaintiff of $22 per week for 265 weeks, after allowing the defendant credit for $180 which it had already paid prior to the triál under the ruling of the Industrial Accident Board. But one-third of the recovery was awarded to plaintiff’s. attorney for his services in prosecuting the suit. From that judgment the defendant has prosecuted this appeal.

The trial was before a jury, who returned a verdict, such as is indicated by the judgment, upon a general charge submitted to them by the trial judge.

[1] By section 5a, pt. 2, p. 284, of the act it is provided that, should the insurer, without justifiable cause, refuse to make prompt payment of the assessments decreed by the Industrial Accident Board as the same mature, then the injured employé or his beneficiary shall have the right to mature the entire claim and to institute suit thereon to collect the full amount of the award, together with 12 per cent, penalty and attorney’s fees. While plaintiff did allege in his petition such a failure on the part of defendant, coupled with an allegation of his right thereby to mature the entire amount of his claim, yet the trial judge did not submit to the jury the issue whether or not the defendant had, “without justifiable cause,” refused to pay said awards, and no complaint is made by the appellee here of the failure of the court to submit that issue. Furthermore, as shown by plaintiff’s petition, he was not willing to abide by the decision of the Industrial Accident Board, and instituted this suit under the provisions of section 5, pt. 2, p. 283, of the act, according to the terms of which the decision of the board was thereby abrogated, and exclusive jurisdiction to determine the controversy was vested in the court in which the suit was instituted. Plaintiff could not thus repudiate and abrogate the ruling of the Industrial Accident Board, and at the same time treat it as effective and binding upon the defendant and seek to hold it liable for a lump sum settlement of his claim by reason of its failure to comply with mandates of the board. The only basis for a verdict in plaintiff’s favor for a lump sum settlement submitted in the court’s charge was the issue whether or not a manifest hardship and injury would' result to the plaintiff if he were not allowed that relief in accordance with the provisions of section 15, pt. 1, p. 280, of the act, and no complaint was made by the plaintiff of the charge of the court in thus limiting his right to recover damages in a lump sum to that theory of his pleading.

In various sections of part 1 of the act it is provided that the Industrial Accident Board shall allow compensation for the injuries received by an employé of a subscriber to the act, and the rules for computing the compensation are prescribed. Section 10, pt. 1, p. 274, of the act reads as follows:

“While the. incapacity for work resulting from injury is total, the association shall pay the injured employé a weekly compensation equal to' sixty per cent, of his average weekly wages, but not more than $15.00 nor less than $5.00, and in no case shall the period covered by such compensation be greater than four hundred and one (401) weeks from the date of the injury.”'

Section 12d, pt. 1, p. 278, of the act reads as follows:

“Upon its own motion or upon the application of any person interested showing a change of conditions, mistake, or fraud, the board at any time within the compensation period may review any award or order, ending, diminishing or increasing compensation previously awarded within the maximum and minimum provided in this act, or change or revoke its previous order sending immediately to the parties a copy of Its subsequent order or award. Review under this section shall be only upon notice to the parties interested.”

Section 15, pt. 1, p. 280, of the act provides:

“In cases where death or total permaneni incapacity results from an injury, the liability of the association may be redeemed by payment of a lump sum by agreement of the parties,! thereto, subject to the approval of the Indus trial Accident Board.”

The court did not submit the issue of n

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Bluebook (online)
212 S.W. 239, 1919 Tex. App. LEXIS 642, Counsel Stack Legal Research, https://law.counselstack.com/opinion/u-s-fidelity-guaranty-co-v-davis-texapp-1919.