Monarch Rubber Co. v. Weinstein
Monarch Rubber Co. v. Weinstein
Opinion of the Court
delivered the opinion of the Court.
STATEMENT OF THE CASE
On 19 March 1970, Philip Weinstein, an employee of the Monarch Rubber Co., sustained an accidental personal injury arising out of and in the course of his employment. Monarch secured workmen’s compensation to its employees by insuring the payment of such compensation in the State Accident Fund. On 12 June 1970 the Workmen’s Compensation Commission found that Weinstein was temporarily totally disabled as a result of the injuries. It ordered the employer and the insurer to “Pay unto the said claimant compensation at the rate of $55.00 per week, payable weekly, during the continuance of the temporary total disability of the claimant, subject to the provisions of the Workmen’s Compensation Law; compensation to begin on the 23rd day of March, 1970; provided, however, that if the injury results in disability of more than 28 days, compensation shall be paid from the date of disability, including the day on which the injury occurred, unless the employee was paid wages for such day; subject to credit for days for which wages were paid in full during temporary total disability; and subject to credit for days claimant worked and received regular wages during temporary total disability, if any; and rate of temporary total disability in excess of 42 days in the aggregate shall be $80.51.” Monarch, however, paid Weinstein his full wages in the amount of $155 per week until 13 February 1971. After that date, the Fund paid Weinstein $80.51 per week until 18 March 1974, which date was four years after the injury was sustained. From 13 February 1971 to 30 July 1972, Monarch paid Weinstein the difference of $74.50 between the award and his salary. The record does not reflect why Monarch discontinued its supplementation. On 24 April 1974 there was a hearing before the Commission on the issue “Has the
ISSUE FOR DECISION
The issue for decision is whether Monarch and the Fund should be given credit as temporary total disability payments for the wages paid by Monarch to Weinstein from 19 March 1970 to 13 February 1971.
THE LAW
It once was that Code, art. 101, § 36 (2) included a provision that compensation for temporary total disability was “in no case to continue more than six years from the date of the injury or to exceed five thousand dollars in the aggregate.” Annotated Code of Maryland (1957). By Acts 1961, ch. 698, “six years” was changed to “four years” and “from the date of the injury or to exceed five thousand dollars in the aggregate” was stricken. The law then read that compensation for temporary total disability was “in no case to continue more than four years.” By Acts 1968, ch. 743, the provision was amended by adding the words “in the aggregate”. At the time Weinstein suffered his injury, § 36 (2) of art. 101 prescribed that compensation for temporary total disability was “in no case to continue more than four years in the aggregate.”
“Compensation” under art. 101, § 67 (5) “means the money allowance payable to an employee or to his dependents as provided for in this article, and includes funeral benefits provided therein.” See Uninsured Employers’ Fund v. Booker, 13 Md. App. 591, 598 (1971).
DECISION
We believe that it was within the discretion of the Commission, upon a finding that Weinstein was temporarily totally disabled on 19 February 1971 to award compensation therefor to begin as of that date rather than as of the date of the injury, provided that Monarch or the Fund had not, in the meantime, paid workmen’s compensation benefits to Weinstein under the order of 12 June 1970. That is, if no payments by way of compensation had been paid before 19 February 1971, the Commission could require them to be paid for four years from 19 February 1971, provided, of course, that Weinstein was temporarily totally disabled for that period. This would be in accord with the liability imposed by art. 101, § 36 (2), and, if the compensation for the temporary total disability continued for not more than four years in the aggregate, neither Monarch nor the Fund had ground to complain. The question is, therefore, the status of the payments made by Monarch to Weinstein for the eleven months from 19 March 1970 to 13 February 1971.
The court below found as a fact that the monies received by Weinstein for the period 19 March 1970 to 13 February 1971 were gratuitously paid by Monarch.
The court discussed the evidence before it:
“The record and the testimony taken show that the claimant was a trusted and valued employee. During the eleven months he was paid his full salary by his employer, he was on call for consultation with his replacement, and at least on one occasion went to the factory to assist in setting up the operation he had been supervising.
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The evidence indicates that even after the insurer began to pay temporary total, the employer made up the difference of his salary. At the time of the hearing the employer was paying life insurance and health insurance benefits for the employee even though he had not worked for more than four years.”
This was a fair capsule description of the evidence. It was not disputed that Weinstein performed no regular tasks for Monarch after his injury. He did not appear at Monarch’s plant on any but very infrequent and irregular occasions. Milton Seidman, Secretary of Monarch, testified that Weinstein had worked for Monarch for over ten years. He operated a machine and had seven or eight persons under his supervision. After he was injured he came to the plant once in January or February of 1971 because the man who had taken his place died and the vice-president and the superintendent of the company “wanted to get some things straightened out. They wanted to talk to him about the operation of the machine, at that time, because the two men
“Well, I’ll tell you. We knew Phil a long time. We knew him before he came to Monarch Rubber Company, when he was with Chesapeake Shoe Company, and we knew this was a traumatic experience to him; on top of the fact there were other things that happened to him while he was in the hospital. In our long friendship with him, we didn’t want to add to his discomfort, so we continued to pay him.”6
On this evidence, it is manifest that the evidence was sufficient in law to support a finding that the payments made for the eleven month period were gratuities.
In holding that the monies paid to Weinstein by Monarch
We have examined representative cases on the point from other jurisdictions. No matter what result they reached, we think it fair to say that generally they are consistent with the “intention” principle used by Larson as the key to that entire class of cases. In other words, it is the intention of the employer, shown directly or inferred from the circumstances, which is the underlying principle.
Some of the cases in other jurisdictions allowed payments made by the employer to the employee to be credited against compensation liability because of a controlling statute.
“Every policy of insurance covering the liability of the employer for compensation issued by a stock company or by a mutual association authorized to transact workmen’s compensation insurance in this State, shall contain a provision setting forth the right of the Commission to enforce in the name of the State of Maryland for the benefit of the person entitled to the compensation insured by the policy either by filing a separate application or by making the insurance carrier a party to the original*693 application, the liability of the insurance carrier in whole or in part for the payment of such compensation; provided, however, that payment in whole or in part of such compensation by either the employer or the insurance carrier shall to the extent thereof be a bar to the recovery against the other of the amount so paid.”
We do not agree with the view of Monarch and the Fund that this statute operates to compel a credit against compensation benefits of the payments made by Monarch to Weinstein during the period 19 March 1970 to 13 February 1971. The statute concerns only “compensation” paid. As we have indicated, Code, art. 101, § 67 (5) defines “compensation” as “the money allowance payable to an employee or to his dependents as provided in this statute. . . .” We have found that the payments here made were not “compensation” but gratuities. Therefore, they were without the ambit of § 19 (a).
Judgment affirmed; appellants to pay costs.
. Code, art. 101, § 56 (e) provides, inter alia: “If a motion for rehearing is filed, the time within which an appeal can be taken from the decision shall commence from the time of the ruling by the Commission on the motion.... If the appeal shall be heard subsequent to the ruling by the Commission on the motion, then the court shall determine all questions of fact and law arising under the original order or under such order, or orders as the Commission may have made pursuant to such motion.”
. No question is raised about the monies representing the difference between the award and the wages which Monarch paid to Weinstein from 13 February 1971 to 30 July 1972.
. The clause “but in no case to continue more than four years in the aggregate” was stricken from the law by Acts 1971, ch. 402. Section 2 of the Act declared “that this Act shall not apply to accidental injuries or occupational diseases occurring prior to July 1, 1971.”
. The court said: “The employer, whether because of the loyalty of the employee in making himself available to help, even though he was seriously injured, or because of its gratuitous desire to protect a good employee, elected to pay his salary for eleven months.”
. The court said: “I do not believe it was the intention of the legislature to thus unjustly enrich the Fund. ... The Fund should not be permitted to deprive the employee of his full benefits because of the employer’s largess.”
. In sustaining an objection to a question asked at one point in the cross-examination the court said: “It’s quite clear on the record that Mr. Weinstein was a valuable employee as well as a person with close personal relationship, and that’s the reason the money was paid, apparently. The witness indicates that is unusual, as far as he was concerned.” This was a fair statement, we believe, and we note that its propriety was not disputed.
. The court noted: “The only cases which might be held to be analogous to the instant case are those which follow the opinion of the Court of Appeals in Plank v. Summers, 203 Md. 552 [1954].” That case, as the court below pointed out, held that a tortfeasor is liable to the injured party for damages in an amount that is not affected by any other sources of help or reimbursement the injured party may have. The Court of Appeals apparently adopted as the modern majority rule that an injured person may recover for wages lost and medical expenses incurred during his incapacity even though such amounts were supplied by insurance, a contract of employment, or gratuitously. Id.., at 559. See discussion of the point at 556-562.
. For examples of cases in which credit has been allowed against compensation liability, see: Herrera v. Workmen’s Compensation Appeals Board, 455 P. 2d 425 (Calif. 1969); Martin v. Travelers Ins. Co., 200 So. 2d 141 (La. App. 1967); Carpenter v. Employers Mutual Liability Ins. Co., 178 So. 2d 486 (La. App. 1965); Murphy v. Baton Rouge Coca Cola Bottling Co., Ltd., 165 So. 2d 636 (La. App. 1964); Howard v. Globe Indemnity Co., 147 So. 2d 912 (La. App. 1962); Rimbolt v. New Orleans, 150 So. 2d 871 (La. App. 1963); Walters v. General Accident and Fire Assurance Corp., Ltd., 119 So. 2d 550 (La. App. 1960); Lion Oil Co. v. Reeves, 254 S.W.2d 450 (Ark. 1952); Daoud v. Matz, 73 So. 2d 51 (Fla. 1954); Carlino v. U.S.F. & G., 199 So. 228 (La. 1940).
For examples of cases in which credit has not been allowed against compensation liability see: Southwestern Bell Tel. Co. v. Siegler, 398 S.W.2d 531 (Ark. 1966); Looney v. Sears, 371 S.W.2d 6 (Ark. 1963); Trzoniec v. General Controls Co., 216 A. 2d 886 (R. I. 1966); Modern Equipment Co. v. Industrial Commission, 20 N.W.2d 121 (Wis. 1945); Middleton v. City of Watertown, 16 N.W.2d 39 (S. D. 1944); Hartford Accident and Indemnity v. Hay, 17 S.W.2d 904 Tenn. 1929).
. See Baker v. Standard Rolling Mills, 131 N.Y.S.2d 739, 741 (1954).
. See, for example, the Louisiana Statutes Annotated — Revised Statutes, 23:1206, “Voluntary payments: deduction from benefits”, which provides:
“Any voluntary payments made by the employer or his insurer either in money or otherwise, to the injured employee or his dependents, and accepted by the employee, which, by the terms of this act, were not due and payable when made, may, subject to the approval of the court, be deducted from the payments to be made as compensation; provided, that in case of disability, such deduction shall be made by shortening the period during which compensation shall be paid, and not by reducing the amount of the periodical payments.”
. We note that § 19(a) speaks only of a policy of insurance covering the liability of an employer for compensation “issued by a stock company or by a mutual association authorized to transact workmen’s compensation insurance in this State. ...” We have serious doubt that the State Accident Fund, Code, art. 101, §§ 70-84, is encompassed within § 19 (a) in any event, because it does not appear to be either a stock company or a mutual association. In the light of our holding, however, that the subsection is not applicable to the payments here considered, we need not reach the point and expressly do not decide it. It may be that the legislature intended to exclude the Fund from the provisions of § 19 (a), but if it did not, it may desire to consider clarifying language.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.