THE STATE OF NORTH DAKOTA FOR THE BENEFIT OF THE WORKMEN‘S COMPENSATION FUND OF NORTH DAKOTA, and ELLSWORTH LA DUKE (The Injured Workman), Respondents, v. E. W. WYLIE COMPANY, A Foreign Corporation, Appellant.
File No. 7288
Supreme Court of North Dakota
March 19, 1953
58 NW2d 76 | 79 ND 471
BURKE, SATHRE, CHRISTIANSON and GRIMSON, JJ., concur.
Sullivan, Kelsch & Scanlon, for appellant.
When an injury or death for which compensation is payable under the provisions of this title shall have been sustained under circumstances creating in some person other than the fund a legal liability to pay damages in respect thereto, the injured employee, or his dependents may claim compensation under this title and obtain damages from and proceed at law to recover damages against such other person. . . .
The statute then provides that the recovery in such suit, if any, goes first to the workmen‘s compensation fund to reimburse this fund for the compensation paid and only the balance, if any, to the injured employee.
The plaintiff alleges in its complaint that the defendant E. W. Wylie Company is a foreign corporation doing a motor vehicle transportation business in this state; that the defendant Rolly Hull was an employee of the E. W. Wylie Company, driving one of its trucks westward along Highway No. 10 in North Dakota on March 26, 1949; that one Ellsworth La Duke was an employee of the Consolidated Freightways, Inc., driving one of its trucks eastward at said time and place; that because of the carelessness and negligence of said Rolly Hull a collision occurred between the two trucks, causing serious injuries to said Ellsworth La Duke, on account of which he sustained damages in the sum of $2,999.00; that the Consolidated Freightways, Inc., and Ellsworth La Duke were subject to the workmen‘s compensation law; that said La Duke filed a claim under said law with the workmen‘s compensation bureau which made him a partial allowance for medical and hospital expenses in the sum of $208.87; that no allowance was made for his damages.
At the commencement of the trial plaintiff moved to strike out Paragraph 8 from the amended answer on the grounds that it was immaterial and that the defendant, in spite of the allegations therein, was a third party under
The defendant specifies as errors the granting of the plaintiff‘s motion to strike out Paragraph 8 of defendant‘s amended answer; the refusal to admit evidence to sustain the allegations of that paragraph; the overruling of the defendant‘s motion at the end of the trial for a directed verdict, and submitting the issues to the jury. No question is raised as to the amount of the verdict or the sufficiency of the evidence to sustain it. The only ques-
The defendant, E. W. Wylie Company, contends that since it is an employer who has fully complied with the workmen‘s compensation law it is immune from liability to the plaintiff; that it has paid into the fund the amount assessed against it and that the contributions so made by it became a part of a common fund from which all awards made by the bureau are paid; that said fund is made up from premium rates computed upon classification of employments.
Plaintiff on the other hand contends that it is only in cases where the relationship of employer and employee exists between the injured employee and the employer that the latter is protected under the act. Otherwise stated, it is the contention of plaintiff that any employer other than the one employing the injured workmen, even though such employer complies fully with the terms of the act, is a third person within the purview of
The question for decision is, therefore, whether or not the defendant, E. W. Wylie Company, is some other person than the fund who is liable to pay damages in an action at common law for the injuries occasioned by the negligence of its employees when the employer and the employee as well as the employer of the injured employee are all subject to and had fully complied with the workmen‘s compensation act at the time such compensable injuries were sustained.
Two sections of our workmen‘s compensation law are involved in this controversy. The plaintiff contends that
“An employer securing the payment of compensation to his employees by contributing premiums to the fund shall be relieved thereby of all liability for personal injuries or death sustained by his employees, and the persons entitled to compensation under the provisions of this title shall have recourse therefor only to the fund and not to the employer.”
The defendant in support of his contention cites
“Employers who comply with the provisions of this chapter shall not be liable to respond in damages at common law or by statute for injury to or death of any employee wherever occurring, during the period covered by the premiums paid into the fund.”
The defendant contends that
It will be noted that there is in that language no limitation on the term, “any employee.” It is not limited to employees of those who have paid their premiums to the workmen‘s compensation fund. The language of the section does not indicate that the injury must occur in the course of the employment of the employee, nor does it limit it to the place of employment. If an employer or his employee, during the time for which his premium was paid into the compensation fund, negligently collided with any employee anywhere, he would, according to the literal meaning of the phrase used, be relieved of liability. Such literal meaning of the language employed would constitute absolute insurance of such an employer against an action for damages by any employee.
Such results as would follow the plain language of the section would greatly enlarge the scope of the workmen‘s compensation act beyond even the intent contended for by the defendants and would lead to uncontemplated results.
“Where the intention of the legislature is so apparent from the face of the statute there can be no question as to the meaning, there is no room for construction.’ Only in this situation will the court in applying the words of the statute follow the rule of literal interpretation. For although many expressions of approval for the rule may be found in the cases it is perfectly clear that if the literal import of the words is not consistent with the legislative intent, or such interpretation leads to absurd results, the words of the statute will be modified by the intention of the legislature. The modern cases also indicate that courts today rather than beginning their inquiry with the formal words of the act consider from the start the legislative purpose and intention. This tendency is to be commended for it is more consonant with the proper judicial use of statutory materials.”
“Where the court is satisfied that adherence to the strict letter of the law would defeat the object or intent of the legislature it is the duty of the court to regard the intent of the legislature even where to do so it is compelled to restrain the letter.” Vermont Loan & Trust Co. v. Whithed, 2 ND 82, 49 NW 318.
In Walker v. Haley, 110 Tex 50, 214 SW 295, 5 ALR 1185, it is said: “It is the intention of a law which is the law, and once truly ascertained, it should prevail, even against the strict letter of the law.”
In Town of Clayton v. Colorado & Southern Railroad Co., US Cir Ct of App 10th Cir, 51 Fed2d 977, 82 ALR 417, the court says:
“Where, however, the language is of doubtful meaning, or where adherence to the strict letter would lead to injustice or absurdity, or result in contradictory provisions, it devolves upon the court to ascertain the true meaning. (Citations.) The general design and purpose of a statute should be kept in mind and its provisions should be given a fair and reasonable construction with a view to effecting its purpose and object. (Citations.)”
Our workmen‘s compensation act was enacted by the legislature in 1919 as
The conflict, if any, in the two sections involved arises from the use of the term “his employees” in
The two phrases in question came into our law at the same time and as parts of the same statute,
“be relieved from all liability for personal injuries or death sustained by his employees”
while Section 9 provided:
“Employers who comply with the provisions of Sections six and seven shall not be liable to respond in damages at common law or by statute for injury or death of any employee, ....”
It is the duty of the court to so construe a statute as to harmonize apparently conflicting provisions, if possible. City of Minot v. Amundson, 22 ND 236, 133 NW 551; State ex rel. Erickson v. Burr, 16 ND 581, 113 NW 705. Where the statute contains language that is seemingly contradictory, it should be
The general purpose of the act is to protect the employees coming within the act by: 1. permitting employees of complying employers to recover from the fund for disabilities suffered in the course of employment; 2. proceeding against a non-complying employer by bringing a suit for damages in which certain defenses are denied the employer (
Section 9 of the original act, which states the exemption from suit accorded to complying employers, uses the term “any employee” but Section 11 dealing with the liability of non-conforming employers says: “Employers subject to this Act, who shall fail to comply with the provisions of Sections six and seven hereof, shall not be entitled to the benefits of this Act during the period of such non-compliance, but shall be liable to their employees for damages suffered by reason of injuries sustained in the course of employment, . . .”
In Catholic Order of Foresters v. State, 67 ND 228, 271 NW 670, 109 ALR 979, this court said:
“the word ‘any’ is a general word and may have a diversity of meanings, its meaning in any particular case depending largely upon the context and subject matter of the statute or instrument in which it is used.”
The word “any” may generally be said to have a broad and unrestrictive meaning but the textual exegesis may indicate a restricted connotation. Dowd v. Sullivan, 217 Ind 196, 27 NE2d 82; U. S. v. Weil, 46 Fed Supp 323.
Under
“Employers who comply with the provisions of Sections-six and seven shall not be liable to respond in damages at common law or by statute for injury or death of any employee, wherever occurring, during the period covered by such premiums so paid into the North Dakota Workmen‘s Compensation Fund, provid-
ed that this section shall not apply to minors employed in violation of the law, in which case both remedies shall be applicable.”
If a minor under that proviso elected to sue rather than take compensation, he certainly could sue only his own employer. That indicates that the legislature had in mind the relationship of employer and his employee when it enacted this section. The reference to Sec 6 (
The only change made in
This court has repeatedly held that the relationship of employer and employee must exist in order to make the provisions of the workmen‘s compensation act applicable. See Kronick v. McLean County, 52 ND 852, 204 NW 839; Mutual Life Ins. Co. v. State, 71 ND 78, 298 NW 773, 138 ALR 1115; Groff v. State, 72 ND 554, 9 NW2d 406; Starkenberg v. Workmen‘s Compensation Bureau, 73 ND 234, 13 NW2d 395.
“Employers making such contributions (to the fund) are not liable to respond in damages for injuries to their employees.”
The South Dakota court has held that compensation under workmen‘s compensation law is based on relationship of employer and employee. Benson v. Sioux Falls Medical and Surgical Clinic, 62 SD 324, 252 NW 864; Roush v. Town of Esmond, 73 SD 406, 43 NW2d 547; Schumacher v. Schumacher, 67 SD 46, 288 NW 796.
“The provisions of the Workmen‘s Compensation Act are construed liberally in favor of the workman. The fund is created to protect the workman.” Booke v. Workmen‘s Compensation Bureau, 70 ND 714, 718, 297 NW 779.
There is no provision anywhere in our statute to indicate that an employee was deprived of his common law rights to a suit for damages against anyone except his own employer. An existing common law right is not to be taken away by statute unless by direct enactment or necessary implication. King v. Viscoloid Co., 219 Mass 420, 106 NE 988, 7 NCCA 254, Ann Cas 1916D 1170.
Defendant contends as further grounds for his position that the premiums he pays are commingled into a common fund “which is used for the payment of expenses of administration and of all compensable claims of injured employees irrespective of the amount of premiums which the employer contributes to such fund.” The provisions of the act providing for the fund do not support such an inference.
The only inference that can be drawn from these provisions of the act is that the premiums are based upon the risk involved by each employer and cover the protection provided for his employees only. Each employer pays in proportion to his payroll and his accident experience shown in each case.
Defendant also contends that if
All of the states in the union, and Alaska, Puerto Rico and Hawaii now have workmen‘s compensation acts and all but two provide that “when compensable injury is the result of a third person‘s tortious conduct the right of action against the tort feasor is preserved. The compensation system was not designed to attain immunity to strangers. 2 Larson Workmen‘s Compensation Law, Third Party Actions, Sec 71, p 165. . . In most jurisdictions the concept of ‘third persons’ against whom common law actions may be brought for compensable injuries includes all persons other than the injured persons or employer.” 2 Larson‘s Workmen‘s Compensation Law, Third Party Actions, Sec 72, p 170.
However, by statute in some states some limitation has been prescribed in regard to bringing suits against other persons than the employer. In Alabama a third party under the act is liable only up to the amount of the compensation payable. 2 Larson‘s
Minnesota has provided that if all parties, the employee, the employer and tort feasor are under the act and if the tort feasor and employer were engaged at the time of the injury in the furtherance of a common enterprise and related purposes the tort feasor‘s liability is limited in damages to the amount of compensation provided under the compensation act. The Minnesota decisions cited by defendant come under that provision. The Minnesota court has found some difficulties in defining “common enterprise” and “related purposes.” Those provisions, however, are not in our statute and the cases cited are, therefore, not applicable. Court decisions from those states are not in point under our law.
In former opinions of this court it is indicated that the North Dakota Workmen‘s Compensation Law was modeled on the Ohio law. State ex rel. Woods v. Hughes Oil Co., 58 ND 581, 601, 226 NW 586; Fahler v. Minot, 49 ND 960, 977, 194 NW 695; State ex rel. Dushek v. Watland, 51 ND 710, 720, 39 ALR 1169, 201 NW 680.
The Ohio Workmen‘s Compensation Act provides:
“Employers who comply with the provisions of Section 1465-69 shall not be liable to respond in damages at common law or by statute, . . . for any injury, disease or bodily condition, whether such injury, disease or bodily condition is compensable under this act or not, or for any death resulting from such in-
jury, disease or bodily condition, of any employee, wherever occurring, during the period covered by such premium so paid into the state insurance fund or during the interval of time in which such employer is permitted to pay such compensation direct to his injured or the dependents of his killed employees as herein provided.” Sec 1465-70 Throckmorton‘s Ohio Code, 1940, Title 3, Chap 10, p 758.
The language of our
In the case of Trumbull Cliffs Furnace Company v. Shachovsky, 111 Ohio St 791, 146 NE 306, Shachovsky had been injured while working on the premises of the Trumbull Cliffs Furnace Company by the negligence of the furnace company. He was himself an employee of the Truscon Steel Co. Both companies had complied with the workmen‘s compensation act. Shachovsky applied for and accepted compensation under the act and then brought action against the furnace company. The defendant pleaded as a complete defense a compliance with the workmen‘s compensation act by itself and the independent contractor and the acceptance of compensation by the employee. The court held that the constitutional and statutory enactments did not deprive an employee of an action against a third person whose negligence caused him to be injured in the course of his employment even though he had accepted compensation under the act and even though the third person sued was an employer who had complied with the act.
This holding was confirmed in the case of Ohio Public Service Company v. Sharkey, 117 Ohio St 586, 160 NE 687, 27 NCCA 833. In that case an employee of the Youngstown Sheet & Tube Company was fatally injured in the performance of his duties by the employee of the Ohio Public Service Co. Both companies were insured under the Ohio Workmen‘s Compensation Act. The deceased man‘s widow applied for and received compensation under the act. The administrator of the deceased man‘s estate brought an action against the Ohio Public Service Co. Recovery was allowed.
“. . . the injured employee who received such compensation was not deprived of his common-law action against the party responsible for his injury unless the circumstances were such as to create the relation of master and servant between them, even though the party sued had complied with the Workmen‘s Compensation Law for the benefit of his employees, . . .”
See also Arnold v. Ohio Gas & Electric Co., 28 Ohio App 434, 162 NE 765.
Other states not having the specific provision of Alabama, Illinois and Washington regarding third party suit have also held along the same line as the Ohio Court. In Harbour v. Graham Mfg. Co. (Texas Civ App) 47 SW2d 700, it was held:
“Where employee of independent contractor was electrocuted by defective light cord furnished by defendant‘s employees, employee‘s dependents could proceed against defendant for damages for death of employee, notwithstanding defendant was subscriber to compensation law.”
In Moeser v. Shunk, 116 Kan 247, 226 Pac 784, the court, referring to a statute similar to our
“The statute does not attempt in any way to determine the rights or liability of the employee in respect to a person not his employer. It does not repeal the statute providing for an action for wrongful death (RS 60-3203), nor does it take away from an employee his common-law right of action for injury to the person against one not his employer who by negligence has caused the death or injury.” See also Bristol Telephone Company v. Weaver, 146 Tenn 511, 243 SW 299.
In Smale v. Wrought Washer Mfg. Co., 160 Wis 331, 151 NW 803, the plaintiff, an employee of the Andrae Company, was sent to the shop of the Washer Company to do some work, and while doing the work was seriously injured by reason of the negligence of the Washer Company. Both Andrae Company and the Washer Company were under the workmen‘s compensation act. The defendant there as here contended that since it and the plaintiff‘s employer were both subject to the provisions of the
“The claim cannot be sustained. The purpose and effect of the workmen‘s compensation act is to control and regulate the relation between an employer and his employee. As between them the remedies there provided are exclusive when both are under the act at the time of the accident.”
Construing our whole act according to the rules of construction, reconciling apparently conflicting terms in the two sections of the law here involved and having in mind the purpose of the act as hereinbefore expressed we believe that the legislative intent was that both
The judgment of the district court is affirmed.
MORRIS, Ch. J., and BURKE, J., concur.
CHRISTIANSON, J. (concurring). This controversy involves the application or construction of
“Employers who comply with the provisions of this chapter shall not be liable to respond in damages at common law or by statute for injury to or death of any employee, wherever occurring, during the period covered by the premiums paid into the fund.”
The above section was embodied in the original act (
The Workmen‘s Compensation Law was first enacted in this state as
“An Act Creating the North Dakota Workmen‘s Compensation Fund, for the Benefit of Employees Injured and the Dependents of Employees Killed in Hazardous Employment; Fixing the Duties and Liabilities of Employees and Employers; Creating the Workmen‘s Compensation Bureau and prescribing its Powers and Duties; Providing for Expenditures Hereunder and Limiting the Amount Thereof; and Making an Appropriation Therefor.”
The Act provided that whenever used in the Act:
“‘Hazardous employment’ means any employment in which one or more employees are regularly employed in the same business, or in or about the same establishment, except agriculture and domestic service, and any common carrier by steam railroad.
“‘Employee’ means every person engaged in a hazardous employment under any appointment or contract of hire, or apprenticeship express or implied, oral or written, including aliens, and also including minors, whether lawfully or unlawfully employed, but excluding any person whose employment is both casual and not in the course of the trade, business, profession or occupation of his employer.”
Laws 1919, Ch 162, Sec 2 ;NDRC 1943, 65-0102(4-5) .
“It shall be unlawful for any person, firm, or corporation to employ anyone, or to receive the fruits of the labor of any person, in a hazardous employment as defined in this chapter, when such employee is not protected by workmen‘s compensation insurance in full force and effect. The bureau, by proper application to the courts of this state, may enjoin the unlawful employment of uninsured workers.”
NDRC 1943, 65-0105 .
“An employer securing the payment of compensation by contributing premiums to the Workmen‘s Compensation Fund shall thereby be relieved from all liability for personal injuries or death sustained by his employees and the persons entitled to compensation under this Act shall have recourse therefor only to the North Dakota Workmen‘s Compensation Fund and not to the employer.”
Laws 1919, Ch 162, Sec 6 ;NDRC 1943, 65-0108 .
While certain changes have been made in the Workmen‘s Com-
The Workmen‘s Compensation Law in force at all times involved in this controversy provided:
“‘Injury’ shall mean only an injury arising in the course of employment including an injury caused by the willful act of a third person directed against an employee because of his employment, but such term shall not include an injury caused by the employee‘s willful intention to injure himself or to injure another, nor any injury caused by the voluntary intoxication of the employee. Such term, in addition to an injury by accident, shall include:
a. Any disease which can be fairly traceable to the employment.”
NDRC 1943, 65-0102(8) .
“Where one performs service for another for a remuneration, whether the same is paid as a salary, commission, or otherwise, the person performing such service is presumed to be an employee of the person for whom the services are performed until the contrary is shown.”
NDRC 1943, 65-0103 .
The law further provides that an employer who is subject to the provisions of the act and who fails to comply with the provisions thereof so as to secure the payment of compensation to his employees by contributing the prescribed premiums shall not be entitled to the benefits of the law during the period of non-compliance, “but shall be liable to his employees for damages suffered by reason of injuries sustained in the course of employment, and also shall be liable to the personal representatives of such employees where death results from such injuries. The employer shall not avail himself in such action of the following common law defenses: 1. The defense of the fellow-servant rule; 2. The defense of the assumption of risk; or 3. The defense of contributory negligence. The employer shall be liable for the premiums provided for in this title.”
In construing Workmen‘s Compensation Acts it has been held by the courts generally that in the absence of controlling statutes to the contrary an injured person or his dependents are entitled to compensation only if he is an employee, workman or servant of his employer at the time of the accident or injury. 71 CJ 420. See, also, 58 Am Jur Workmen‘s Compensation, p 665. And the holdings of this Court are to the same effect. As said in the opinion prepared by Judge Grimson:
“This Court has repeatedly held that the relationship of employer and employee must exist in order to make the provisions of the workmen‘s compensation act applicable. See Kronick v. McLean County, 52 ND 852, 204 NW 839; Mutual Life Ins. Co. v. State, 71 ND 78, 298 NW 773; Groff v. State, 72 ND 554, 9 NW2d 406; Starkenberg v. Workmen‘s Compensation Bureau, 73 ND 234, 13 NW2d 395.”
In Mutual Life Ins. Co. v. State, supra, this Court said: “The relationship of employer and employee must exist in order to make the provisions of the Workmen‘s Compensation Act . . . applicable.” In Starkenberg v. Workmen‘s Compensation Bureau, supra, this Court said:
“The relation of employer and employee must exist in order to render the North Dakota Workmen‘s Compensation Fund liable for compensation benefits. The Fund is not liable for injuries sustained by an independent contractor.”
I agree that
“The act must be interpreted as a whole, and not by taking single words here and there to determine its true meaning.” In Re Milwaukee Chapter; Izaak Walton League of America, et al, 194 Wis 437, 440-441, 216 NW 493, 495.
“In construing statute, court will not take detached sentences or sections, but take statute by its four corners, the better to ascertain intent of the lawmakers.” (Syllabus, par 6) State v. Lee Chue, 130 Ore 99, 100, 279 Pac 285.
American Jurisprudence says:
“A statute is not open to construction as a matter of course. It is open to construction only where the language used in the statute requires interpretation, that is, where the statute is ambiguous, or will bear two or more constructions, or is of such doubtful or obscure meaning, that reasonable minds might be uncertain or disagree as to its meaning. Where the language of a statute is plain and unambiguous and conveys a clear and definite meaning, there is no occasion for resorting to the rules of statutory interpretation, and the court has no right to look for or impose another meaning. In the case of such unambiguity, it is the established policy of the courts to regard the statute as meaning what it says, and to avoid giving it any other construction than that which its words demand. The plain and obvious meaning of the language used is not only the safest guide to follow in construing it, but it has been presumed conclusively that the clear and explicit terms of a statute expresses the legislative intention, so that such plain and obvious provisions must control. A plain and unambiguous statute is to be applied, and not interpreted, since such a statute speaks for
itself, and any attempt to make it clearer is a vain labor and tends only to obscurity.” 50 Am Jur pp 204-207.
It seems to me that when the Workmen‘s Compensation Law is considered as a whole the meaning of the words “any employee” in
I agree that the statute as so construed and applied is in no sense violative of Sec 20 of the Constitution of the State of North Dakota or Art 14 of the Amendments to the Constitution of the United States.
I concur in an affirmance of the judgment.
I concur in the foregoing opinion by Judge CHRISTIANSON.
SATHRE, J.
