Certiorari to the district court of Hennepin county to review a judgment denying the relator compensation under the Workmen’s Compensation Act for the death of her husband.
The question is whether with the facts as stated the motion of the employer for judgment on the pleadings was rightly granted. Liability would be conceded had the accident happened in Minnesota. The claim of the employer is that compensation cannot be awarded for'an accident occurring outside the state.
The Minnesota compensation act provides for elective compensation. G-. S. 1913, § 8202, et seq.; Mathison v. Minneapоlis St. Ry. Co.
In Connecticut, New York, Rhode Islаnd, West Virginia, Indiana and New Jersey, under varying statutes and with facts changing from ease to case, it is held that compensation may be awarded for an injury occurring outside thе state. Kennerson v. Thames Towboat Co. 89 Conn.
*208
367,
A considerаtion at length of the arguments which support the diverse views does not serve our present purpose. Different arguments appeal to different courts. Often a distinction is drawn between an elective and a compulsory act with the suggestion that in the case of the former there is a contract to pay which is the basis of the right to compensation, that a contract is not local as is a tort, and therefore state boundaries are not important. Whether an agreement to pay is imported into the contract of hiring where a compulsory act is in force is not material to our inquiry for ours is not such an act. That under our act there is a contract оbligation is clear. The weight of authority supports the view that, under an elective act like ours and with facts such as are present, an accidental injury though it ocсurs outside the state is compensable. This view we adopt. There is nothing in Johnson v. Nelson,
*209 A basic thought underlying the compensation act is that the business or industry shall in the first instance pay for accidental injuries as a business еxpense ot a part of the cost of production. It may ábsorb it or it may put it partly or wholly on the consumer if it can. The economic tendency is to push it along just аs it is to shift the burden of unrestrained personal injury litigation. When a business is localized in a state there is nothing inconsistent with the principle of the compensation act in requiring thе employer to compensate for injuries in a service incident to its conduct sustained beyond the borders of the state. The question of policy is with the legislature. It may enact j an elective compensation act bringing such result if it chooses. In the case before us the business of the employer was localized in the state. What the employee did, if done in Minnesota, was a contribution to the business' involving an expense and presumably resulting in a profit. It was ncjt different because done acrоss the border in North Dakota. It was referable to the business centralized in Minnesota.
Sometimes the construction which we adopt will result to the immediate advantage of the employee and against the employer and sometimes the result will be the reverse. Whatever view is adopted perplexing situations may arise. Business has scant respect for state boundaries. An industry may be located a part in one state and a part in another, or it may have separate business situs in two or more, and its еmployees may from time to time work in each and may reside in one or another at their convenience. Situations may arise where it is difficult to say whether the employment is referable by the act of the .parties or by intendment of law to a business conducted in one state or another and whether, the governing law, applicable to an injury coming from the employment, is that of the one or the other, or whether there may be a recovery of the employer under the compensatiоn act of. one state and of a third person under the common law of the state of the injury. They are safely left for determination when they arise. Here, if the facts stated in the complaint are true, the employment was referable to the business conducted in Minnesota and its compensation aet'is the governing law between еmployer and employee. We hold that judgment on the pleadings should not have been directed for the employer.
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J udgment reversed.
