348 Mass. 447 | Mass. | 1965
This is an appeal by the insurer from a final decree of the Superior Court awarding payment of “all reasonable medical and hospital bills” to the claimant in
The relevant facts are not in dispute. Under a declaration of trust in 1959, the claimant and three others established the Pinecrest Duck Farm Trust for the purpose of conducting the business of raising and selling ducks. According to the declaration, the claimant is the managing trustee and “shall exercise all of the powers of the Trustees . . . [thereunder], and execute on behalf of the Trustees any and all instruments with the same effect as though executed by all of the Trustees.” The claimant’s consent is required for the valid delegation by the trustees of various powers “to any one or more” of themselves or others. “The Trustees, except as . . . otherwise specifically provided, shall have the same powers with respect to all real and personal estate at any time held by them as if they were the absolute owners thereof, and shall . . . have powers [inter alia] ... to purchase and otherwise acquire any real or personal property; to invest . . ., to sell and exchange . . . [any of the Trust property]; and to execute, acknowledge and deliver all such . . . deeds, mortgages, leases, discharges and partial releases ... as they may deem advisable in the course of the administration of the Trust.” “Neither the Trustees nor the shareholders shall ever be personally liable . . . [under the declaration] as partners or otherwise. . . . The beneficial interests of the Trust shall be initially divided into 500 shares of common stock without par value. Said shares shall be issued by the Trustees for such consideration and to such persons as they may deem advisable. Additional shares may be issued at any time with the written consent of the holders of at least 60% of the shares then outstanding. . . . Any Trustee may without impropriety be a shareholder and exercise all rights of a shareholder and powers of a Trustee. . . . Any holder of shares . . . who desires to sell or transfer any of such shares shall offer to sell such shares to the Trustees or their nominee .... [The trustees] shall . . . mail to the holder notice of their decision. Within thirty (30) days after
By “Action of Trustees” on February 27,1959, the claimant became “President and Treasurer” of the trust, and 500 shares of stock were issued to him. On December 29, 1959, the trustees “accept[ed] ” the claimant’s shares for transfer and reissued 400 shares to the claimant and 100 shares to one Donald D. Hayes. The claimant regarded this transaction as “a gift” of 100 shares from him to his son. On February 10, 1960, in exchange for certain assets which the claimant transferred to the trust, the trustees “issued” 152 additional shares to him. His work in the trust business consists of “ [g]eneral supervision of the whole farm,” waiting on customers, and performing “most of the jobs in processing . . . the ducks.” His annual salary has been $10,000. He received the same amount in 1961 even though he performed none of his ordinary duties after the accident mentioned below. There are “ [a]bout 80” employees with the trust.
“ [U]nder the name of Pinecrest Duck Farm Trust,” the claimant obtained workmen’s compensation insurance with the insurer in 1959. On July 11,1961, while “waiting on a customer,” the claimant “slipped and fell,” hurting his “right ankle and . . . [breaking] both bones of . . . [his] right leg.” He was hospitalized and given medical treatment. Prior to the accident he had been told by agents of the insurer that he was “covered by Workmen’s Compen
The single member found that the trust “is a legal entity capable of hiring employees and that [the] claimant is such an employee within the meaning of the Act.” He also found that the claimant “sustained an injury on July 11, 1961, which occurred in and arose out of his employment as managing Trustee . . . and ... by reason ... [of which] he was partially incapacitated . . .; and further, that during . . . [the] period of partial incapacity he received his regular weekly wages. ’ ’ The single member concluded that “no award of weekly incapacity compensation is due . . ., [but] directed [the insurer] to pay reasonable medical bills in accordance with the provisions of the Act.”
1. According to Gr. L. e. 152, § 30, “ [t]he insurer shall furnish to an injured employee adequate and reasonable medical and hospital services, and medicines if needed, together with the expenses necessarily incidental to such services.” An “employee” is “every person in the service of another under any contract of hire, express or implied, oral or written . . ..” Gr. L. c. 152, § 1 (4). The insurer contends that the claimant cannot recover reasonable medical expenses under the act because the claimant was not an “employee.” It thus argues that the claimant in his capacity as managing trustee of the Pinecrest Duck Farm ‘‘is in actual possession of all the powers of the employer;” and therefore cannot also be an “employee” within the meaning of § 1 (4). We agree.
We think that Ryder’s Case controls the determination of the claimant’s status under Gr. L. c. 152, § 1 (4). Here, as managing trustee, president and treasurer, the claimant exercises “all of the powers of the Trustees . . . and execute [s] on [their] behalf . . . any and all instruments with the same effect as though executed by all of the Trustees.” He shares this authority with no one. He owns 552 of 652 outstanding shares, and, as managing trustee, can prevent the transfer of outstanding shares held by others by exercising the trustees’ option to purchase the shares at whatever price the “trustees” shall determine. The other trustees cannot remove him. Moreover, unlike the claimant in Ryder’s Case, the claimant herein does exercise powers of “ [g]eneral supervision” of the business operations. It is true that the claimant also engages in manual and non-
2. The claimant argues that “the insurer is estopped to deny recovery under the act.” However, since the claimant is not an ‘ ‘ employee ’ ’ under- the act, the Industrial Accident Board had no jurisdiction to direct the insurer to “pay reasonable medical bills” on any basis whatsoever. See G-. L. c. 152, § 30. The board “is not a court of general or limited common law jurisdiction; ... it is purely and solely an administrative tribunal, specifically created to administer the workmen’s compensation act in aid and
Decree reversed.