Union Indemnity Co. v. Saling

1933 OK 481, 26 P.2d 217, 166 Okla. 133, 1933 Okla. LEXIS 371
CourtSupreme Court of Oklahoma
DecidedSeptember 19, 1933
Docket23873
StatusPublished
Cited by59 cases

This text of 1933 OK 481 (Union Indemnity Co. v. Saling) 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
Union Indemnity Co. v. Saling, 1933 OK 481, 26 P.2d 217, 166 Okla. 133, 1933 Okla. LEXIS 371 (Okla. 1933).

Opinions

BUSBY, J.

This is an original proceeding instituted in this court to obtain a review of an order of the State Industrial Comfmission.

There are three principal questions -involved : Hirst, the constitutionality of the amendment to- section 7297, C. O. S. 1921, enacted by chapter 30, S. L. 1929, providing, in substance, for the execution of a bond as a condition precedent to instituting a proceeding in this court to review an award favorable to a claimant before the Commission. Second, the extent of the liability of the surety on such a bond. Third, the jurisdiction of the State Industrial Commission to determine the amount of the liability on such a bond.

The questions presented have not previously been decided by this court, and the answers to them by judicial determination will, in addition to -settling the issues between the parties involved in this proceeding, serve as a guide for future proceedings before the State Industrial Commission and in the various courts of original jurisdiction in the state, as well as settle- a number of controversies now pending in this court.

The facte in this case are not disputed. A proper consideration of the questions involved, however, requires a comprehensive review of the history of the controversy as disclosed by the record.

On the 12th day of September, 1928, Monroe Saling, who will be referred to as the claimant, received an accidental injury arising out of and in the course of his employment, while engaged in one of the hazardous occupations for which compensation is provided in the Workmen’s Compensation Act of this state. At the time of his injury he was employed by the Oklahoma Company. The compensation insurance risk of this company was carried by the Federal Surety Company.

In due time Saling filed a claim for compensation with the State Industrial Commission. After proper notice hearings were held upon this claim, and on the 22nd day of August, 19-29; the State Industrial Commission entered its order and award finding that since the date of the injury and up to and including the date of the hearing the claimant had been and was suffering from a temporary total disability which had not then terminated. In accordance with this finding, the claimant was awarded compensation, accrued and accruing at the rate of $18 per week, the same to continue “until the termination of the disability or until otherwise- ordered by the Commission.” While the Commission in that order determined the existence of temporary total disability, it did not then determine the duration thereof other than that the same was still existing at the time of the hearing. Neither did the Commission in its order make any finding determining the existence or nonexistence of permanent disability, either partial or total. While the order does not say so in specific language, it was obviously the intention and purpose of the Commission to reserve for future decision the- time of termination of the temporary total disability as well as the existence or nonexistence of any permanent disability that may have been sustained by the claimant as a result of his injury.

In order to institute a proceeding in this court for the purpose of procuring a review of the order above mentioned, and in compliance with the provisions of section 7297, C. O. S. 1921, as amended by chapter 30, S, L. 1929, the employer, the Oklahoma Com *135 pany, and the insurance carrier, Federal Surety Company, as principals, and the Union Indemnity Company, as surety, executed the bond involved in the present proceedings. The claimant was named in the bond as the obligee, and the conditions of the liability on the bond werei expressed in the language of the statute. We quote the applicable portions of the bond:

“Now, therefore, if the said the Oklahoma Company and Federal Surety Company will pay the amount of the award rendered herein, or on the further order of the Commission after the appeal shall have been decided by the Supreme Court, then this obligation shall be null and void. Otherwise, to remain in full force and effect.”

Subsequent to the execution of the bond an original proceeding was instituted in this court wherein the order of the Industrial Commission was reviewed and affirmed. Oklahoma Company et al. v. State Industrial Commission et al., 149 Okla. 18, 298 P. 1051. (Opinion May 5, 1931.)

On the 18th day of May, 1931, an order was entered by the Commission purporting to be in compliance with the above-mentioned opinion of this court, which order need not be considered in detail for the reason that it was vacated by a subsequent order of the Commission entered on the 13th day of June, 1931.

Subsequent to the revocation of the order mentioned, hearings were had for the purpose of determining the extent of the disability of the claimant, at which hearings testimony was introduced resulting in an order made on the 7th day of July, 1931, determining that the claimant was still suffering from temporary total disability and awarding him compensation until the expiration of the 30 days subsequent to the time of the order, within which time the claimant was given the option of accepting an operation which had been tendered by the insurance carrier. This tender of operation was accepted by the claimant within the time allowed. The operation was performed accordingly.

A receipt was later filed, which bore the signature of the claimant and acknowledged receipt of compensation payments in the sum of $2,631, representing payments of weekly compensation up to and including August 2, 1931.

On the 25th of August, 1931, an order (apparently ex parte on a motion of the employer and insurance carrier) was entered in which the payment of the $2,631 above mentioned was declared to be a satisfaction of the obligation which the bond was given to secure, and the sureties on the bond were declared exonerated and relieved from further liability. ■

It appears that the Federal Surety Company failed about September, 1931. Subsequently, and on or about the 16th day of November, 1931, a motion was filed by the claimant alleging that he was receiving no compensation and requesting that the cause be set down for the purpose of determining the permanent total disability of the claimant. No request whatever was made in this motion toi determine or fix any liability on the surety bond. In compliance with this request the State Industrial Commission held a hearing, at which the claimant appeared, in person and represented by counsel. Neither the employer, insurance company, nor surety on the bond in question appeared at this hearing. The hearing was held on the 3rd day of March, 1932, and on the 23rd day of March, 1932, the Commission made and entered its order in which it reviewed the previous proceedings before the Commission and also determined that the claimant had sustained a permanent total- disability and was entitled to compensation in the stim of $9,-000, less sums previously paid, reciting that the amount so paid had been $2,357. The Union Indemnity Company was declared to be secondarily liable, in the event of nonpayment by the obligors of the entire amount of the award, and was adjudged to pay the amount unpaid in any sum not exceeding $5,000 (the sum being the amount recited in the face of the bond as the penal obligation thereof).

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Bluebook (online)
1933 OK 481, 26 P.2d 217, 166 Okla. 133, 1933 Okla. LEXIS 371, Counsel Stack Legal Research, https://law.counselstack.com/opinion/union-indemnity-co-v-saling-okla-1933.