Wilson v. Associated Indemnity Corp.

74 F.2d 896, 1935 U.S. App. LEXIS 3559
CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 12, 1935
DocketNo. 7441
StatusPublished
Cited by6 cases

This text of 74 F.2d 896 (Wilson v. Associated Indemnity Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wilson v. Associated Indemnity Corp., 74 F.2d 896, 1935 U.S. App. LEXIS 3559 (5th Cir. 1935).

Opinion

FOSTER, Circuit Judge.

This is a suit arising under the Workmen’s Compensation Law of Texas, articles 8306 to 8309, inclusive, Rev. Civ. Stat. 1925, the pertinent provisions of which are set out in full in the margin.1 Appellant, Alberta [898]*898Wilson, on her own. behalf and as next friend of her minor son, John Wilson, brought suit in the District Court of Bowie county, Tex., against appellee, Associated Indemnity Corporation, to mature and enforce an award of the Industrial Accident Board, which gave them a recovery of $7.79 a week for a period of 360 weeks, based on the death of John Wilson, the husband and father, while an employee of the Wichita Falls Cotton Oil Company, and prayed for lump sum judgment of $2,804.40, together with statutory penalties of 12 per. cent, and reasonable attorney’s fees. Appellee timely removed the suit to the federal District Court for the Eastern District of Texas. The parties will be hereafter referred to, respectively, as claimants and insurer. After removal, the insurer filed a plea in abatement and a plea in bar, with practically identical allegations, and an answer in the nature of a general denial. Claimants filed demurrers and replications to the pleas. The jury was waived and the case was submitted on an agreed statement, of facts. The District Court entered judgment against claimants and in favor of the insurer. From that judgment this appeal is prosecuted.

The following material facts appear from the record. The award was made on February 21, 1930. The injury occurred in Clay county. In conformity with the statute, the insurer filed suit in the District Court of Clay county to set aside the award. Claimants filed answer and a cross-action to enforce the award. Trial was had to a jury, and a verdict resulted on which judgment was entered for claimants on June 13, 1930. The insurer appealed to the Court of Civil Appeals for the Second Judicial District, sitting at Fort Worth. 41 S.W.(2d) 143. On May 16, 1931, that court reversed the judgment on the sole ground that the trial judge had refused to give a special instruction requested by the insurer. After reversal nothing further was done in the case by either party for more than twelve months and the. mandate was never issued. This suit was filed in the District Court of Bowie county on July 18, 1932, more than a year after the judgment of the Court of Appeals became final. The claimants are residents of Bowie county. After the suit was filed in Bowie county, on July 29, 1932, th'e claimants obtained a certificate from the clerk of the-Court of Appeals, under the [899]*899provisions of article 1867, Texas Rev. Civ. Stat. 1925, showing that no mandate had been taken out, and filed it with the clerk of the District Court of Clay county, on August 3, 1932, with a motion to dismiss the suit. On August 11, 1932, an order of dismissal was entered. This suit was removed to the federal court on September 22, 1932.

The decree is in the form oí a judgment on the merits, and the record is silent as to the reasons for its rendition, but we must assume the District Court sustained the contention of the insurer that the suit could not have been properly brought in any court other than the District Court of Clay county.

Under the provisions of article 1867, Rev. Civ. Stat. of Texas, 1925, where a case has been reversed and remanded by a Court of Civil Appeals, if no mandate has been taken out and filed in the court where the cause originated within one year after final judgment rendered, upon the filing in the lower court of a certificate of the clerk of the Court of Civil Appeals to that effect, the case must be dismissed by the District Court. In Gilmore v. Ladell (Tex. Civ. App.) 196 S. W. 362, it was held that where the judgment of the appellate court did not adjudge the rights of either party to the suit but merely reversed it for a new trial, the effect of dismissal for failure to take out the mandate was the same as if no suit had been instituted. In Morris v. McGough (Tex. Civ. App.) 290 S. W. 209, it was held the mandate might issue after twelve months but the court refrained from deciding what the effect would be. In Davy Burnt Clay Ballast Co. v. St. Louis S. W. R. Co. (Tex. Civ. App.) 32 S.W.(2d) 209, it was held that although a mandate had issued after twelve months, nevertheless the other party had the right to have the suit dismissed on procuring the necessary certificate. The reversal of the judgment of the lower court did not settle the rights of either party. While either party could have taken out the mandate, it was as much the duty of the insurer to timely do so as it was that of the claimants. We consider the failure of the insurer to take out the mandate amounted to a want of prosecution of the suit to set aside the award of the Industrial Accident Board and the resulting dismissal did away with the suit as though it had never been filed.

Section 5 of article 8307 provides that any party in interest not willing to abide by the decision of the Industrial Accident Board, after giving notice to that effect, may file a suit in a court of competent jurisdiction, in the county where the injury occurred, to set it aside. While the article provides that in such suit the trial is de novo, and the burden is on the claimant to establish his right to compensation, the party appealing from the award is in law the plaintiff in the suit and responsible for its effective prosecution. Until a judgment is entered in the suit, taking the place of the award of the board, the award stands, suspended and not effective while the suit to set it aside proceeds, but subject to be made effective upon the dismissal or abandonment of the suit to set it aside. During the pendency of a suit to set aside the award no other action can be filed to enforce it, jurisdiction is withdrawn from the board, and a final judgment does away with the award. But nothing short of final judgment will do this. The abandonment or dismissal of the suit to set aside the award reinstates the award and another suit may be brought to mature and enforce it.

Under the provisions of the first paragraph of section 5a of article 8307, if no appeal has been taken, the claimant may file a suit in a court of competent jurisdiction in the county where the injury occurred to mature the award. He may also sue for penalties of 12 per cent, and reasonable attorney’s fees. Under the second paragraph of the article, if the insurer fails or refuses “without justifiable cause” to make payments as they mature the claimant has the right to mature the entire claim and institute a suit to collect the full amount, with penalties of 12 per cent, and attorney’s fees. The suit may be brought either in the county where the injury occurred or in the county where one or more of the claimants reside. In Vestal v. Texas Employers’ Ins. Ass’n (Tex. Com. App.) 285 S. W. 1041, a decision by the Commission of Appeals, it was held that in suits under this section the trial is not de novo, the burden is not on the claimant to establish his right to compensation, and the award is final. We have also so held. Maryland Casualty Co. v. Latham (C. C. A.) 41 F.(2d) 312; Western Casualty Co. v. Hunt (C. C. A.) 69 F.(2d) 129.

In support of the contention that only the District Court of Clay county had jurisdiction, the insurer relies upon the case of Mingus v. Wadley, 115 Tex. 551, 285 S. W. 1084, a decision by the Supreme Court of Texas. In that case it appeared that the claimant had filed suit to enforce the award [900]*900in the District Court of Tarrant county.

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Bluebook (online)
74 F.2d 896, 1935 U.S. App. LEXIS 3559, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilson-v-associated-indemnity-corp-ca5-1935.