Lukich v. Department of Labor and Industries, 24720.

Citation176 Wash. 221,29 P.2d 388
Decision Date22 January 1934
Docket Number24720.
PartiesLUKICH v. DEPARTMENT OF LABOR AND INDUSTRIES.
CourtWashington Supreme Court

Department 1.

Appeal from Superior Court, Grays Harbor County; J. M. Phillips Judge.

Proceeding under the Workmen's Compensation Act by Sofia Lukich claimant, for the death of her husband, opposed by the Department of Labor and Industries. From a judgment of the superior court awarding claimant full compensation and reversing an order of the joint board of the Department of Labor and Industries which sustained a decree of the supervisor of the Department holding that claimant was entitled to only 50 per cent. of the compensation, the Department appeals.

Reversed with directions.

G. W Hamilton and John W. Hanna, both of Olympia, for appellant.

C. T. Haas and Peter A. Schwabe, both of Portland, Or., for respondent.

BEALS Chief Justice.

Joe Lukich and plaintiff, Sofia Lukich, citizens of the kingdom of Yugoslavia, intermarried in that country and remained husband and wife up to the time of Joe Lukich's death. Some time prior to 1929, Joe Lukich came to the state of Washington, where, during the month of May, 1929, he was killed in an industrial accident while subject to the Workmen's Compensation Act as then in effect. Mrs. Lukich has at all times resided in Yugoslavia and is a citizen of that country.

It is admitted that Mrs. Lukich is entitled to benefits under the Workmen's Compensation Act; the sole question to be determined being whether or not, under Rem. Rev. Stat. § 7684, her compensation shall be reduced to one-half that which she would receive were her status other than that of a nonresident alien. The pertinent portion of the section referred to reads as follows: 'Except as otherwise provided by treaty, whenever under the provisions of this act, compensation is payable to a beneficiary or dependent who is an alien not residing in the United States, the department shall pay fifty per centum of the compensation herein otherwise provided to such beneficiary or dependent.'

After the death of Mr. Lukich, the supervisor of the Department of Labor and Industries decided that Mrs. Lukich, being an alien not residing in the United States, was entitled to receive only 50 per cent. of the compensation provided by the statute, and this decision was on appeal sustained by order of the joint board of the department. From this order Mrs. Lukich appealed to the superior court, which reversed the order of the joint board and entered judgment in plaintiff's favor, awarding her the full compensation provided by the act; from which judgment the department appeals.

The cause was submitted to the superior court on an agreed statement of facts; respondent making no denial of the fact that she is a nonresident alien.

In the opening phrase of Rem. Rev. Stat. § 7684, above quoted, the paramount authority of treaties between the United States and other nations is recognized. December 27, 1882, a 'Convention of Commerce and Navigation' between the kingdom of Serbia and the United States, which had theretofore been negotiated, was proclaimed. It is conceded that the present kingdom of Yugoslavia has replaced and absorbed the kingdom of Serbia, and that the convention above referred to is now in full force and effect between Yugoslavia and the United States. The convention is found in 2 Malloy's Treaties, Conventions, International Acts, Protocols and Agreements between the United States of America and Other Powers 1776-1909, p. 1613 (22 Stat. 963), and article 1 thereof reads as follows:

'There shall be reciprocally full and entire liberty of commerce and navigation between the citizens and subjects of the two high contracting powers, who shall be at liberty to establish themselves freely in each other's territory.
'Citizens of the United States in Serbia and Serbian subjects in the United States shall reciprocally, on conforming to the laws of the country, be at liberty freely to enter, travel or reside in any part of the respective territories, to carry on their business, and shall enjoy in this respect for their persons and property the same protection as that enjoyed by natives or by the subjects of the most favored nation.
'They shall be at liberty to exercise their industry and trade, both by wholesale and by retail, in the whole extent of both territories, without being subjected as to their persons or property, or with regard to the exercise of their trade or business, to any taxes, whether general or local, or to any imposts or conditions of any kind other or more onerous than those which are or may be imposed upon natives or upon the subjects of the most favored nation.
'In like manner in all that relates to local taxes, customs, formalities, brokerage, patterns or samples introduced by commercial travellers, and all other matters connected with trade, citizens of the United States in Serbia and Serbian subjects in the United States shall enjoy the treatment of the most favored nation, and, all the rights, privileges, exemptions and immunities of any kind enjoyed with respect to commerce and industry by the citizens or subjects of the high contracting parties, or which are or may be hereafter conceded to the subjects of any third power, shall be extended to the citizens or subjects of the other.'

The question here presented turns upon the construction to be given to the convention between the two countries. It is important to note that article 1 of the convention contains the 'most favored nation' clause, which provision is well known in international law, and occurs in many treaties which concern the rights of nationals of the respective high contracting parties while residing in the territory of the other. Generally speaking, the effect of this clause is to grant to the nationals of the contracting parties, while within the territorial limits of the other, all rights, privileges, and immunities which in the past have been granted by treaty or which may in the future be so granted to the nationals of other nations along the same lines covered in the treaty in question. It follows then that nationals of Yugoslavia are entitled to the benefit of the application of the 'most favored nation' clause of the convention between the United States and Yugoslavia upon which respondent relies, subject to the rules governing the construction of treaties.

It appears that during the past fifteen years the United States has entered into treaties with European nations in several of which appears a provision by the terms of which a person occupying the position of respondent here would be entitled to receive the full benefits accruing under the Workmen's Compensation Act of this state without diminution, as provided in the portion of Rem. Rev. Stat. § 7684, above quoted. So far as we have been able to ascertain, this clause is contained in treaties of 'Friendship, Commerce and Consular Rights,' and appellant argues that the 'most favored nation' clause contained in the agreement between the United States and Yugoslavia, which agreement is entitled a 'Convention of Commerce and Navigation,' is limited in its effect to agreements between the United States and other nations of similar import, and that its scope is not enlarged by clauses contained in treaties of friendship, commerce, and consular rights between the United States and other nations.

The Workmen's Compensation Act is an exercise of the police power of the state. This power, never having been relinquished by the states to the federal government, remains with the states (12 C.J. 910, § 417), and it will not be held that a treaty infringes upon the complete exercise of this power by the state unless it clearly appears that such a construction is required by the language of the treaty to be construed. It is also true that a treaty should be liberally construed to effectuate its manifest purpose. In re Stixrud's Estate, 58 Wash. 339, 348, 109 P. 343, 33 L. R. A. (N. S.) 632, Ann. Cas. 1912A, 850.

By the portion of Rem. Rev. Stat. § 7684, above quoted, the paramount authority of treaties between the United States and foreign nations is recognized, so no question of conflict of laws is here presented.

The Supreme Court of the United States has upheld the validity of state statutes denying to nonresident parents the right to receive compensation under workmen's compensation acts in cases where the parents were citizens of...

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7 cases
  • Winn-Dixie Stores, Inc. v. FTC, 73-863-Civ-J-S.
    • United States
    • United States District Courts. 11th Circuit. United States District Court of Middle District of Florida
    • May 17, 1974
    ...strictly construed. Kolopret Kolovrat v. Oregon, 266 366 U.S. 187 81 S.Ct. 922, 6 L.Ed.2d 218 (1961); Lukrich Lukich v. Department of Labor and Industry, 176 Wash. 221, 29 P.2d 388 288 (1934). However, such provisions have always been construed from the four corners of the agreement. See, S......
  • Ivancevic v. Artukovic, 13552.
    • United States
    • United States Courts of Appeals. United States Court of Appeals (9th Circuit)
    • February 19, 1954
    ...1910) 1613 is now in full force and effect between Yugoslavia and the United States", citing Lukich v. Department of Labor and Industries, 1934, 176 Wash. 221, 223, 29 P.2d 388, 389; Urbus v. State Compensation Com\'r, 1933, 113 W.Va. 563, 169 S.E. That Serbia was the nucleus around and to ......
  • Micaz v. Comp. Comm'r, 9162.
    • United States
    • Supreme Court of West Virginia
    • January 28, 1941
    ...254 U.S. 433, 41 S.Ct. 158, 65 L.Ed. 344; Brown v. Daly's Estate, 172 Iowa 379, 154 N.W. 602; Lukich v. Department of Labor and Industry, 176 Wash. 221, 29 P.2d 388; Dobrin v. Mallory S. S. Co., D.C., E.D.N.Y, 298 F. 349. It follows that claimants can have no recourse to the treaty with Hun......
  • Micaz v. Compensation Com'r
    • United States
    • Supreme Court of West Virginia
    • January 28, 1941
    ......Daly's Estate, 172 Iowa 379,. 154 N.W. 602; Lukich v. Department of Labor and. Industry, 176 Wash. 221, 29 ......
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