Employers' Indemnity Corporation v. Woods
Employers' Indemnity Corporation v. Woods
Opinion of the Court
This suit was filed by appellant to set aside an award of the Industrial Accident Board in favor of appellee Willie Woods and his attorney, Pritchett Harvey. As a statement of the issues and facts in this case, we here give the first 10 of the trial court’s conclusions of fact:
“(1) On November 26, 1918, Ineeda Laundry & Dye Works, a corporation operating a steam laundry in the city of Houston, Harris county, Tex., was a ‘subscriber’ under and as defined by the Workmen’s Compensation Law of Texas, carrying a policy of insurance with the plaintiff in this suit, conditioned to pay to the employés of said Ineeda Laundry & Dye Works compensation as is provided for in said Workmen’s Compensation Law, in event of injury to such employés, or any of them.
“(2) That on said November 26, 1918, the defendant Willie Woods was an employé of said Ineeda Laundry & Dye Works, and covered and insured by said policy of insurance, issued by plaintiff.
“(3) On November 26, 1918, the defendant Willie Woods, while engaged in the course of his employment, by said Ineeda Laundry & Dye Works, and while covered by said policy of insurance, sustained an accidental injury to his right arm, by having same caught in. a steam wringer, which injury has produced and caused permanent loss of the use of his said arm.
“(4) That the average weekly wage of the defendant Willie Woods, on the date of injury, was $15 per week.
“(5) That said Willie Woods asserted the right to recover compensation under the Workmen’s Compensation Law in consequence of the injury-inflicted upon him on said 26th day of JSovember, 1918, and by and through mutual agreement between him and the Employers’ Indemnity Corporation compensation was paid to the said Willie Woods by the said Employers’ Indemnity Corporation for a number of weeks through the operation of the Workmen’s Compensation Law, under the general administrative supervision of the Industrial Board.
“(6) That on the 17th day of March, 1919, the plaintiff and defendant Willie Woods entered into the following agreement for a lump settlement, subject to the approval of the Industrial Accident Board:
‘State of Texas, County of Harris.
“ ‘Whereas, on the 26th day of November, A. D. 1918, Willie Woods was injured in the course of his employment at Ineeda Laundry & Dye Works, at Houston, Harris county, Texas; and whereas, said Willie Woods is now twenty-four (24) years of age; and whereas, Employers Indemnity Corporation carries the insurance of said Ineeda Laundry & Dye Works under the Workmen’s Compensation Law of the state of Texas and has paid unto Willie Woods all compensation due him to date for said injuries; and whereas said Willie Woods is desirous of obtaining the balance of compensation due him at the present time and has approached the representatives of said Employers’ Indemnity Corporation requesting such settlement: Now, therefore, it is agreed by and between said Willie Woods. and said Employers’ Indemnity Corporation that said Willie Woods will release said Employers’ Indemnity Corporation of and from all claims, demands, causes of action and rights of action of any sort whatever that he may have against it, either at common law or under statute by reason of aforesaid injury upon the payment to him by said Employers’ Indemnity Corporation of the sum of one hundred fifty dollars ($150.00); subject, however, to the condition that this agreement is approved by the Industrial Accident Board.
“ ‘Employers’ Indemnity Corporation,
“ ‘By Andrews, Streetman, Logue & Mobley, Ms
“ ‘Willie X Woods.
“ ‘Witness to mark:
“ ‘M. C. Champion.
“ ‘T. J. Bury.’
“(7) That said agreement for a lump settlement was submitted to the Industrial Accident Board by said Employers’ Indemnity Corporation and Willie Woods, for approval; that said board did not take any action on said agreement, but on October 16, 1919, said board entered its final order, in which the said Willie Woods was awarded compensation for 200 weeks from December 4, 1918, at the rate of $9 per week, less the amounts already paid him by the said Employers’ Indemnity Corporation, and the attorney’s fees allowed by said award.
“(8) I find that after said agreement for lump settlement was submitted to the Industrial Accident Board for its approval, and before sáid board had" acted on said application for lump settlement, the said Willie Woods,, on March 24, 1919, filed a suit against the Employers’ Indemnity Corporation, in justice’s *463 court, precinct No. 1, of Harris county, Texas, alleging, that he had entered into an agreement with the Employers’ Indemnity Corporation for a lump settlement of his said claim, for $150, provided said Industrial Accident Board approved said settlement.
“That the Employers’ Indemnity Corporation filed its answer in said suit on said 24th day of March, 1919, in which it admitted the facts alleged in said Woods’ petition, and further alleged that the Industrial Accident Board had not formally approved said settlement, and that the agreement was not binding on it until approved by said board. On the same day, a judgnfent was rendered by said justice’s court in favor of the said Willie Woods and against the Employers’ Indemnity Corporation for $150, and said sum of $150 was on said 24th day of March, 1919, paid to Jas. L. Bailey, attorney in said suit for the said Willie Woods, and on-the same day the said Woods executed the following release:
“ ‘The State of Texas, County of Harris.
“ T, Willie Woods, in consideration of the sum of one hundred fifty dollars ($150.00) paid me by the Employers’ Indemnity Exchange, Employers’ Indemnity Corporation, and Ineeda Laundry & Dye Works of Houston, Texas, the receipt of which sum is hereby acknowledged and confessed, do hereby release and forever quitclaim Employers’ Indemnity Exchange, Employers’ Indemnity Corporation, and Ineeda Laundry & Dye Works of and from all rights and causes of action, either at common law or under the Workmen’s Compensation Law, that I may have against them or any of them.
his
“ ‘Willie X Woods, mark
“ ‘Witness: C. Hency.
“ ‘State of Texas, County of Harris.
“ ‘Before me, the undersigned authority, on this day personally appeared Willie Woods, known to me to be the person whose name is subscribed by mark to the foregoing instrument of writing and acknowledged to me that he executed the same for the purposes and consideration therein expressed.
“ ‘Given under my hand and seal of office this the 24th day of March, A. D. 1919. ,
“ ‘R. H. Holland, Notary Public,
“ ‘[Seal.] Harris County, Texas.’
“(9) I find that the suit in justice’s court of Harris county, Ter., and -release executed by Willie Woods, described in paragraph 8, was a means employed by said parties to effectuate a lump settlement of said Woods’ claim against the Employers’ Indemnity Corporation without the approval of the Industrial Accident Board, for the sum of $150.
“(10) I find that said Willie Woods, at the time he accepted said $150 and executed said release, believed that his arm had then about recovered, and that he would have the full use of it in 15 weeks from the time said $150 was paid him; said belief being brought about by the advice and statements of Dr. Cruse, the physician who had been treating him, that the bones in his arm had knitted together, and that his arm would entirely recover from the effects of said injury in 15 weeks from said March 24, 1919; that said Willie Woods would not have accepted said sum of $150 in settlement of his claim but for the said statement of Dr. Cruse. I find that the statements made by said physician were not true, and that said Woods had, in fact, at said time, entirely and permanently lost the use of said arm. I find that the said Dr. Cruse had treated the said Woods continuously from the time he was injured up to the date said $150 was paid said Woods, and that the said Employers’ Indemnity Corporation paid said doctor’s bill.”
As a further statement of facts, we give the following excerpt from the testimony of James L. Bailey, who was Woods’ attorney in the justice^ourt suit:'
“Woods said he was getting $9 a week, and could not live on it, and that he wanted to go back to Missouri, and I felt an interest in him from the fact .that he came from where I used to live. I took the matter up with the Industrial Accident Board and with the attorney, Mr. Eountain, regarding an adjustment of the matter, but they would'not talk to me. He said that he did not care to settle at all, at the start, and he would have to take it up with the company. Before taking it up with Mr. Eountain I took it up with Dr. Cruse, and had considerable trouble getting a statement from him. Einally Mr. Eountain said that- he would pay $150. I told Willie about it, and he was perfectly satisfied with it. Willie got very impatient about it, and I had to call Mr. Proctor over the phone, who is a member of the Industrial Accident Board, who lives here, and I told him that I could get a statement from the doctor about the length of time, and he said, if I could get that statement, that he would approve, the board would approve, a settlement of $150.”
Against the judgment of the trial court, under the first four assignments, appellant advances the following propositions: (1) That the justice court had jurisdiction to render the judgment in favor of Woods against appellant; (2) the judgment so rendered was res adjudicata of all matters involved in this suit; (3) the settlement was supported by a valuable consideration; and (4) Woods is estopped by the justice court judgment to further prosecute his claim. We do not think that these propositions are sound.
These propositions rest on the construction of the following section of the Workmen’s Compensation Act: •
“No agreement by any employé to waive his rights to compensation under this act shall be valid.” Part 1, § 14 (Vernon’s Ann. Civ. St. Supp. 1918, art. 5246-32).
*464 “In cases where death or total permanent incapacity results from an injury, the liability of the association may be redeemed by payment of a lump sum by agreement of the parties thereto, subject to the approval of the Industrial Accident Board hereinafter created. This section shall be construed as excluding any other character of lump sum settlement save and except as herein specified: Provided, however, that in special cases, where in the judgment of the board manifest hardship and injustice would otherwise result, the board may compel the association in the cases provided for in this section to redeem their liability by.payment of a lump sum as may be determined by the board.” Part 1, § 15 (article 5246-33).
“It is the purpose bf this act that the compensation herein provided for shall be paid from week to week, and as it accrues and directly to the person entitled thereto, unless the liability is redeemed as in such cases provided elsewhere herein. * * * ” Part 1, § 18 (article 5246 — 37).
“The board upon application of either party may, in its discretion, having regard to the welfare of the employé and the convenience of the association, authorize compensation to be paid monthly or quarterly.
“In any case where the liability of the association or the extent of the injury of the employé is uncertain, indefinite or incapable of being satisfactorily established the .board may approve any compromise, adjustment, settlement or commutation thereof, made between the par'ties.” Part 2, § 12 (article 5246-53).
This Workmen’s Compensation Act is in derogation of the common-law rights of the parties, and proposes, within its own compass, to provide for a speedy adjustment of all industrial accidents coming within its terms. The Industrial Accident Board is the machinery provided for the administration of all claims arising under this act. Provision is made, by'way of appeal, for a review by the courts of the decisions and rulings of the board. The authority of the courts to review the decisions of this board is derived wholly from this act. A court of general jurisdiction, acting under a grant of special power, wholly derived from a legislative act, cannot act beyond the power thus granted. Of course we mean by this such legislative acts as are in (derogation of the common law, as is this I Workmen’s Compensation Act, and powers not pertaining to the general jurisdiction of the courts.
It follows, then, that no intendments can be indulged in favor of such jurisdiction, but the record itself must disclose the facts which authorize it to act, and it must appear that the jurisdiction thus assumed is within the limits of the legislative grant. Middleton v. Texas Power & Light Co., 108 Tex. 96, 185 S. W. 560; Corpus Juris, Workmen’s Compensation Acts, p. 126, § 133; Hollywood v. Wellhausen, 28 Tex. Civ. App. 541, 68 S. W. 329; Hill v. Lofton, 165 S. W. 67; Mitchell v. Runkle, 25 Tex. Supp. 137; Georgia Casualty Co. v. Ward, 220 S. W. 380; Tex. Emp. Ins. Ass’n v. Roach (Com. App.) 222 S. W. 159; 15 C. J. 842, Corpus Juris W. C. A. P. 126, § 133. In this case it affirmatively appears that the justice court, under its general jurisdiction, was without power to act.
Believing that the trial court made proper disposition of this case, and finding no errors in the record, the judgment is in all respects afiirmed.
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Reference
- Full Case Name
- EMPLOYERS’ INDEMNITY CORPORATION v. WOODS Et Al.
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- 15 cases
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- Published