75 Ind. App. 620 | Ind. Ct. App. | 1918
Lead Opinion
Under the provisions of §57 of the Workmen’s Compensation Act (Acts 1915 p. 392, §80201 et seq. Burns’ Supp. 1918), as amended (Acts 1917 p. 227, §4), there was filed with the Industrial Board, November 7, 1917, a memorandum of compensation agreement, bearing date of October 27, 1917, executed by appellee Shiveley Brothers, a corporation, as employer, and by appellee Ever M. Shiveley, as surviving dependent, wife of Orestes E. Shiveley, a deceased employe of such corporation. The memorandum recited the necessary facts to entitle Ever M. Shiveley to an award of a definite amount of compensation under the act and in harmony with the recited facts, and fixed such compensation, including an allowance for burial expenses and doctor bills, in the gross sum of $4,070, to be paid in such installments as should thereafter be determined by the Industrial Board under the provisions of the act. The memorandum provided also that pending its consideration by the board, due notice should be given appellant as insurance carrier. November 10, 1917, the board by one of its members indorsed its approval on the memorandum.
December 5, 1917, appellant filed with the board its verified petition, naming appellees as defendants thereto, and praying thereby that the approval of the compensation agreement be set aside, and the cause heard on its merits. The petition alleged facts to the
The board heard the evidence, bearing not only on the quéstion whether the approval of the memorandum agreement should be set aside, but also respecting the merits of the claim, and made a finding of facts in part to the following effect:
The corporate stock of Shiveley Brothers corporation was owned in equal parts by Orestes E.- Shiveley, his brother Cortland W. Shiveley, and O. C. Wainscott. The stockholders constituted the board of directors, of which Cortland was president. The corporation operated the principal hotel at Peru.
On and prior to July 24, 1917, the routing of the proposed Range Line Dixie Highway from Indianapolis to
August 31, 1916, appellant issued to Shiveley Broth
September 18, 1917, Ever M. Shiveley was informed by Cortland W. Shiveley that she was probably entitled to establish a compensatory claim against Shiveley Brothers, based on the death of her husband, and that appellant as insurance carrier was primarily liable for its payment. On the same day at Cortland’s suggestion, she executed to Robert J. Loveland, a lawyer, a power of attorney authorizing him to represent and act for her in the matter of such claim. On the same day by her attorney-in-fact, she notified appellant through its local representative, of the facts respecting her husband’s death and of her claim to compensation under the Workmen’s Compensation Act. Thereupon appellant, representing that it was investigating to determine
October 27, 1917, the memorandum of compensation agreement was executed as above stated, appellant not being a party to it. November 6, 1917, claimant by attorney-in-fact mailed to appellant’s representative a copy of the memorandum together with an explanatory letter reciting that claimant at appellant’s request had delayed action for three successive periods, all of which had expired, and that the memorandum was then being forwarded to the board together with a request for favorable action thereon. The memorandum was filed with the Industrial Board on the morning of November 7, 1917. At about the same hour appellant by its Indianapolis representative received through the mail, the copy of the memorandum together with the explanatory letter forwarded by claimant’s attorney-in-fact the day before. Appellant’s Indianapolis office is situated very near the offices of the Industrial Board. Appellant’s representative on receiving such copy of the memorandum with the accompanying letter promptly communicated with the secretary of the board by phone, and informed him that appellant was opposed to the approval of the memorandum, whereupon the secretary informed such representative that the matter was pending before Mr. Hughes, a member of the board, and that objections should be presented to him. No objections
The matter of the approval of the compensation agreement was not formally set for hearing, or a time fixed for action thereon, and no notice of any kind was given appellant that, at any fixed time, action would be taken on the question of the approval of the agreement.
Soon after such agreement was approved, appellant by representative informed the board that it was objecting to such approval on the ground that Orestes E. Shiveley at the time of his death was not an employe of Shiveley Brothers, and that his death was not due to an accident arising out of and in the course'of his employment. As we have said, the petition to vacate the order of approval was filed December 5, 1917. At the time of the approval of the agreement, the board entered no order fixing the installments in which compensation should be paid.
It is at least impliedly conceded that the finding is in harmony with the evidence. On the votes of Mr. Hughes and Mr. Perkins, Mr. Artman, the third member dissenting, the board denied the petition. Mr. Hughes grounded his vote on his judgment that under the finding, decedent at the time of his injury and death, was an employe of Shiveley Brothers, and that his injury and death were due to an accident arising out of and in the course of his employment. Mr. Perkins was of the opinion that decedent was an employe of Shiveley' Brothers, but he differed from Mr. Hughes on the proposition of decedent’s death being due to an accident arising out of the employment. He based his vote on his judgment that under the Workmen’s Compensation Act an employer and his employe, or the dependents of the latter, have an absolute right to enter into a compensation agreement without regard to the desires of the
From the finding and the opinions of the respective members of the board, it seems that a consideration of the substantial phases of the claim was rather more potent in the determination of the petition, than an inquiry whether such illegality or irregularity attended the execution, filing and approval of the agreement as required that such approval be annulled on application if seasonably made, and the cause assigned to be heard on its merits.
The shape in which the record comes to us requires that we consider three questions: First, the rights of an insurance carrier in such a situation; second, the petition to set aside the agreement; third, the merits of the claim.
An agreement entered into by the parties and approved by the board, pursuant to the terms of the statute, has the force and effect of an award. In re Stone (1917), 66 Ind. App. 38, 117 N. E. 669.
Subject to certain exceptions, every employer operating under the act is required to keep insured his liability thereunder, in some association authorized to transact the business of workmen’s compensation insurance in this state, §68 (Acts 1915 p. 392, supra).
The insurer is in all things bound by and subject to the awards, judgments or decrees rendered against the insured. ' §73 (Acts 1915 p. 392, supra). The policy of insurance must be construed as the direct promise of the insurer to pay to the person entitled to compensation, all benefits awarded under the act. §74 (Acts 1915 p. 392, supra). All policies of insurance issued under the act must contain a provision that as between the employer and the insurer, notice to or knowledge of the former that a workman has been injured, shall be deemed notice to or knowledge of the- latter. §73, Acts 1915 p. 392, supra. In case of an injury to a workman it is the duty of him or his representative, subject to certain exceptions, to notify the employer of the occurrence, in writing, §22, Acts 1915 p. 392, supra.
From what we have said, it follows that under the act an insurance carrier is not a necessary party to such an agreement as is involved here or to a proceeding looking to its approval by the board. Indeed, the act does not contemplate the insurance carrier as a necessary party to any proceeding before the board involving a claim to compensation. By this statement we mean to say that an injured workman or his representative may file such a claim, and push it until it terminates in an award, and in so doing ignore the insurance carrier without hazarding defeat or embarrassment through an objection that there is a defect of parties.
. But as we have said, the act provides that the policy of insurance contain a stipulation in effect, that the insurer shall be bound by all awards rendered against the insured, and a further stipulation which must be construed as the direct promise of the insurer to the person entitled thereto, that it will pay all installments of compensation that may be awarded, or agreed on under the act. §§73 and 74, supra.
Under such circumstances it is our judgment that in all proceedings before the board, the insurance carrier is a proper party, where its interests are likely to be affected by reason of its obligation under its policy. Moreover, in view of its primary and direct liability as above indicated, it seems to us apparent that where an
It will be observed that the deductions of the members of the board from the facts found, entirely ignore the question whether appellant’s diligence was such, in view of its knowledge, as entitled it to be heard respecting the annulling of the order. The negative vote of one member of the board was controlled entirely by his judgment that decedent’s dependents were entitled to compensation. The negative vote of another member was grounded solely on his judgment, which we hold to be erroneous; that the employer and employe or dependents of the latter, have an unqualified right to enter into a compensation agreement, and that the insurance carrier may -not challenge the result of their action. This member’s judgment was that the facts did not establish a right to compensation. The third member’s dissenting vote was controlled by his belief that under the facts the right to compensation did not exist, and that an insurance carrier is not bound, at all events, by such an agreement as is involved here.
Such being the situation, we are impressed that through inadvertence this proceeding did not receive that careful consideration that usually characterizes action by the board. Under circumstances such as are presented here,-an application to set aside an approval
If from the facts found, we were able to hold as matter of law that decedent was such an employe, and the circumstances of his injury and death were such as to entitle his widow to compensation, then also it would appear that a proper result had been reached by the
The cause is reversed with instructions to the board to consider first, the question whether under this opinion, appellant is entitled to have annulled the order approving the agreement. Should the board be required to consider the cause on its merits, we suggest the following for the consideration of the board: At the time of decedent’s injury and death was he on a mission authorized by the company ? Did he and the proper representatives of the company believe that such mission might reasonably be expected to result in financial benefit to the latter? That is, did it hold out reasonable prospects that thereby the company’s business might be increased? Did the fact of such prospective benefits induce the trip? As bearing on these suggestions, attention is directed to In re Raynes (1917), 66 Ind. App. 321, 118 N. E. 387, and Raynes v. Staats-Raynes Co., supra.
Dissenting Opinion
I am unable to agree with the prevailing opinion of my associates that this cause should be reversed and remanded to the Industrial Board for further' consideration.
It appears that an agreement was duly made awarding compensation and fixing the amount.
The agreement was duly approved by the Industrial Board on November 10, 1917, and stands as an award until duly set aside by such board.
Appellant filed its petition on December 5, 1917, to have the approval of the board set aside and the case heard on its- merits.
The prevailing opinion states that: “On the votes of Mr. Hughes and Mr. Perkins, Mr. Artman, the third member dissenting, the board denied the petition.” Such opinion also states that: “The board heard the evidence bearing, not only on the question whether the approval of the memorandum agreement should be set aside, but also respecting the merits of the claim.”
The board therefore heard appellant’s petition to set the approval of the compensation agreement aside, and by the votes of two of its members decided to deny the petition.
An award by agreement of the- parties and approval of the.board is authorized by the statute and sanctioned by the courts. Acts 1917 p. 227, amending §57[ of the Acts of 1915 (Acts 1915 p. 392, §80201 etseq. Burns’ Supp. 1918). In re Stone (1917), 66 Ind. App. 38, 117 N. E. 669.
So long as an award so made stands any proceedings before the Industrial Board relating to the merits of the claim is unauthorized, and in this instance, the statements made by the individual members, in passing upon the question before them, were surplusage and did not change the effect of their action in denying appellant’s
The prevailing opinion shows that the board did consider the merits of the claim and the right to compensation, in an irregular manner, but the only question properly before it was the one presented by appellant’s request to have the approval of the compensation agreement' set aside. Both the hearing on the merits and statements made by the members of the board in announcing their decision, were foreign to the question properly before the board and actually decided by it as above shown.
The reasons given for a decision may or may not be consistent with the decision announced. But in either event, the reasons given do not change the issue nor render ineffectual the decision made and duly announced as in the case at bar.
It is universally held that an erroneous reason, given for a decision, does not affect the merits or change the binding force and effect of .such decision. Terre Haute, etc., R. Co. v. State ex rel. (1902), 159 Ind. 438-472, 65 N. E. 401; Willan v. Hensley School Tp. (1911), 175 Ind. 486-492, 93 N. E. 657; Singer Sewing Machine Co. v. Phipps (1911), 49 Ind. App. 116-122, 94 N. E. 793; McDermott v. Burke (1912), 256 Ill. 401, 100 N. E. 168; Gillespie v. Ferguson Co. (1909), 78 N. J. Law 470, 74 Atl. 460; 2 Am. Digest, Appeal and Error, Key Number 854.
Putting the case in the most favorable light for appellant, its right to a reversal depends upon an affirmative showing that the board abused the discretionary power possessed by it in denying the petition to set aside its approval of the compensation agreement, and thereby deprived appellant of some substantial right.
No abuse of such discretion is shown, but on the contrary, there appears from the prevailing opinion facts
It appears that appellant carried on negotiations looking to an adjustment of the claim; that it procured extensions of time and delayed the adjustment; that when the compensation agreement was made appellant was given a copy of it with full explanation for the action taken and was promptly advised of its presentation to the board; that appellant communicated with the board immediately after the compensation agreement was filed with it, knew the agreement was pending for approval of the board three days before the board approved the same, and then after its approval waited twenty-five days before it filed its petition to obtain a hearing before the board.
The prevailing opinion states that the “situation is such that this court cannot say as a matter of law whether or not the petition should have been granted.”
Conceding this to be true, it in no way obviates the rule that places upon an appellant the burden of showing reversible error, and none is shown in this cause.
The prevailing opinion shows that appellant sought to have the approval of the board set aside solely on the ground of fraud in the making of the compensation agreement and in procuring its approval by the Industrial Board.
Fraud is never presumed and the party who alleges and relies upon it must prove his allegations or fail. There is no finding of fraud which necessarily amounts to a finding against appellant on that vital and controlling issue.
I am unable to see anything in the evidence even tending to prove fraud, but even if a different view may reasonably be taken, it is immaterial here because
Furthermore, if we look beyond the petition to the unauthorized' consideration of the claim on its merits, the facts of the case tend strongly to show that substantial j ustice has been done between the parties.
In such cases, under a well established rule of appellate procedure, any intervening technical error, which does not deprive the complaining party of some substantial right, will be disregarded on appeal.
The prevailing opinion assumes to find cause for reversal in the unauthorized hearing on the merits, in connection with the hearing on the motion of appellant, and the statements of the members of the board in announcing their decision.
At most, such hearing and statements only amount to irregularities in the proceedings, on a question not then properly before the board.
But even if we look to the statements, we find that they deal mainly with expressions of opinions as to the law applicable to the case, the main proposition being whether the accident involved arose out of and in the course of the employment of the deceased.
On the facts of the case as presented by the prevailing opinion, about which there seems to be no controversy, in the light of the decisions cited in the concluding paragraph of the opinion, there can, in my opinion, be but one reasonable conclusion, which-is that the accident arose out of and in the course of the employment.
In the light of these authorities, the award made by. agreement of the parties and approval by the board is legal, comes within both the letter and spirit of the compensation law and satisfies the ends of justice.
No fraud is shown, nor does it seem possible that appellant was misled or deceived in any way, but on the
So appellant, in my opinion, has not only failed to show reversible.error, but has likewise wholly failed to make even a prima facie case of great injustice, which may in exceptional cases of great hardship, justify this court in directing a rehearing in order to give a diligent party an opportunity to right an apparent wrong for which there is no other adequate remedy.