United States Casualty Co. v. Standard Acc. Ins.

136 S.W.2d 504, 175 Tenn. 559, 11 Beeler 559, 126 A.L.R. 876, 1939 Tenn. LEXIS 75
CourtTennessee Supreme Court
DecidedFebruary 17, 1940
StatusPublished
Cited by14 cases

This text of 136 S.W.2d 504 (United States Casualty Co. v. Standard Acc. Ins.) 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
United States Casualty Co. v. Standard Acc. Ins., 136 S.W.2d 504, 175 Tenn. 559, 11 Beeler 559, 126 A.L.R. 876, 1939 Tenn. LEXIS 75 (Tenn. 1940).

Opinion

Me. Justice McKinney

delivered the opinion of the Court.

By the bill complainant asks the court to declare its right to contribution from defendant when it satisfies an obligation for- which it is alleged defendant is primarily liable, or at least jointly liable with it. Complainant does not ask for a money decree in this cause, and upon the theory of joint liability could not do so because, under its own statement, it has not paid its share of the obligation. 13 Am. Jur., pp. 10-11; Restatement of the Law of Restitution, section 82.

On October 28, 1936, Laurie 0. Lundberg, while working as a plasterer on the Pearl High School Building in Nashville, fell from a scaffold and suffered injuries that rendered him totally and permanently disabled. Lund-berg was a resident of Chicago, and was employed in that city by Goss & Guise, an Illinois corporation, to come to Nashville and do the work he was performing when injured. Goss & Guise for some years had taken contracts to do construction work in various States. At the time Lundberg was injured complainant was the compensation insurer of Goss & Guise, for all claims controlled by and enforceable under the provisions of the Illinois Workmen’s Compensation Law (Smith-Hurd Stats. Til., chapter 48, section 138 et seq.).

On July 16,1937, Lundberg filed his application against his employer, Goss & Guise, with the Illinois Industrial *562 Commission at Chicago for compensation as the result of the injury referred to above. Complainant was not made a party to that proceeding. The application was resisted upon the ground that the Commission was without jurisdiction, for the reason that the case came within the provisions of the Tennessee Workmen’s Compensation Act (Code 1932, section 6851 et seq.). This contention was overruled, and on April 27, 1938, petitioner was awarded compensation in the sum of $15 per week for a period of 266% weeks, and thereafter an annual pension of $320, payable in twelve, equal installments of $26.66 per month during life. This award was confirmed by the Superior Court of Cook County on November 9, 1938. Complainant alleges that upon said confirmation it began paying petitioner compensation, and at the time of the filing of the bill herein on April 21, 1939, had paid him $1,870.

We, of course, must give full faith and credit to this award, and are without authority to modify or set it aside.

When Goss & Guise came to Nashville to construct this school building it quite likely employed some local laborers to work on this project who would not be protected by the Illinois contract. In any event, Goss & Guise also qualified under the Tennessee Workmen’s Compensation Act, with defendant as its insurer. When Lundberg was injured defendant assumed liability therefor, paid his medical and hospital bills, and also paid him compensation at the rate of $16 per week up to May 26, 1937, when Lundberg declined to accept further compensation from it.

The bill concedes that there are material differences between the provisions of the Illinois Act and the Tennessee Act. We quote from the bill the following: “For *563 example, it is possible that claimant may collect or receive under tlie Illinois statutes an amount as mucli as fifteen thousand dollars, whereas under the Tennessee statutes, the utmost he will receive will not exceed $7150. . . .

“The Tennessee Workmen’s Compensation Act and that of the State of Illinois are quite distinct in many other particulars than those respecting benefits. For instance, with respect to building operations, the Illinois statute is compulsory, while the Tennessee statute is elective. There is algo a difference in the use of terms defining employer and employee in that in the Tennessee statute the words with reference to an employer embraced anyone ‘using the services of five persons or more’; and anyone serving with as many as four other persons is declared to be an employee. Code, section 6852. Whereas, under the Illinois Act [Smith-Hurd Stats. Ill., chapter 48, section 142] no one is an employee except by means of a contract. In Tennessee, the only means of enforcing payment against an unwilling employer is by means of a judicial proceeding, while such claims are adjusted by a body of Commissioners in the State of Illinois.”

In view of the foregoing facts, we are of the opinion that Lundberg could have recovered either under the Illinois or the Tennessee law. This being true, in the event complainant satisfies the award adjudged against Goss & Guise, would it be entitled to contribution in some amount from defendant? The chancellor answered this question in the negative by dismissing the bill upon demurrer.

The well-recognized governing principle of law is stated in 13 Am. Jur., Contribution, pp., 12, 13, as follows:

*564 “It is essential to the application of the principle of contribution that the party claiming contribution be in aequali jure with the others; the principle applies only in cases where the situations of the parties are equal, since equality among persons whose situations are not equal is not equitable. This requirement is satisfied and the situations, are deemed equal, so as to give rise to the subordinate or inchoate right or obligation of contribution, when the parties are under a common burden, obligation, or liability, regardless of whether such common burden is one assumed by the parties through contract, one resting on property and devolving on them as co-owners, one imposed by statute, or one which the law imposes equally on the parties in certain classes of cases as a result of their concurring acts or because of a community of risk. If the burden thus assumed or imposed is one which is common to all of the parties, it is immaterial whether there is a joint, several, or joint and several liability, whether it arises from the same or different instruments, whether it has been incurred at the same or different times, whether the parties knew of each other’s engagements or not, whether their respective liabilities are in the same or different amounts, or whether some of the co-obligors were compensated (but not indemnified) and others assumed the obligation as an accommodation. Solidarity of obligation is not a prerequisite to the possession or exercise of the right to enforce contribution.
“It is clear from the foregoing propositions that whether or not a common burden, obligation, or liability devolves on the parties in the legal situation in question furnishes a test as to whether or not a right to contribution may accrue in favor of the claimant. If, as between the co-obligors, the claimant’s obligation or liability is *565 primary and that of the defendant is only secondary, the former cannot have contribution; no right to contribution or obligation to contribute arises, as a general rule, between parties who are obligated, though to the same person or upon the same transaction, severally and successively, instead of equally nnder a common burden. ’ ’
The last clause in the foregoing statement has direct application to the cause nnder consideration.

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Bluebook (online)
136 S.W.2d 504, 175 Tenn. 559, 11 Beeler 559, 126 A.L.R. 876, 1939 Tenn. LEXIS 75, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-casualty-co-v-standard-acc-ins-tenn-1940.