Cain v. Robinson Lumber Co.

Decision Date12 November 1956
Docket NumberNo. 44829,44829
Citation295 S.W.2d 388,365 Mo. 1238
PartiesLendell CAIN, Employee, Respondent, v. ROBINSON LUMBER COMPANY, Employer, Highway Casualty Company, Alleged Insurer, Appellant.
CourtMissouri Supreme Court

Luke, Cunliff & Wilson, St. Louis, for appellant Highway Casualty Co., Dearing & Matthes, Hillsboro, of counsel.

Samuel Richeson, Hillsboro, Edgar & Edgar, Ironton, for employer.

LEEDY, Chief Justice.

This workmen's compensation case was consolidated for the purposes of argument with Harris v. Pine Cleaners, Mo., 296 S.W.2d 27. Here the Instrial Commission made an award in favor of the employee Cain and against appellants O. A. Robinson and R. B. Robinson, d/b/a Robinson Lumber Company as employers and Highway Casualty Company as insurer. The insured claimed that the policy covering the liability of the employers had been cancelled prior to the accidental injury. The Commission found to the contrary. The Circuit Court affirmed, and the employer and insurer appealed to the St. Louis Court of Appeals where the judgment of the Circuit Court affirming the award was reversed and remanded with directions. See 273 S.W.2d 741.

The opinion in the Harris case on the present submission settles the jurisdictional question (which prompted transfer of the case to this court), and sustains the holding of the St. Louis Court of Appeals that the Commission had the power and authority to determine whether or not the policy had been cancelled; but in view of the employers' supplemental brief in this court, which more fully develops the question on which the opinion of the Court of Appeals turned, we are constrained to disagree with the action of the Court of Appeals in upsetting the finding of the Commission that the policy had not been cancelled.

The policy was issued as of September 13, 1951, for a period of one year. It provided that the premiums were based on the entire remuneration paid to the employees of the insured. The amount of the premium was to be paid in quarterly installments, and was subject to adjustment to be made quarterly. The original policy stipulated that it was subject to the following conditions, among others:

'This policy may be canceled at any time by either of the parties upon written notice to the other party stating when, not less than ten days thereafter, cancelation shall be effective. The effective date of the cancelation shall then be the end of the Policy Period. * * * Notice of cancelation shall be served upon this Employer as the law requires, but, if no different requirement, notice mailed to the address of this Employer herein given shall be a sufficient notice, and the check of the Company, similarly mailed, a sufficient tender of any unearned premium.'

Appended to the policy was a 'Periodical Premium Adjustment Endorsement,' reading as follows:

'Effective September 13, 1951, and notwithstanding anything contained in the policy to the contrary, it is understood and agreed that the premium stated in the policy to which this endorsement is attached, is an estimated advance deposit premium which the Assured agrees to pay on or before inception date of the policy and is to guarantee prompt payment of the earned premiums for each period designated herein. The advance deposit premium will be retained by the Company until termination of the policy, at which time the advance deposit premium will be credited to the last and final settlement only. In consideration of the advance deposit premium stated, it is understood and agreed that this policy is issued and accepted by the Assured subject to a quarterly premium adjustment based upon payrolls expended during each three month period from the effective date of the policy, the first report is to become due on the 13th day of December and future reports to become due on the last day of each following third month. Payroll reports must reach the Company on or before the 15th of the month following the close of each reporting period for the purpose of computing the earned premium during such period, and the Assured shall immediately pay to the Company the premium earned thereon, based upon the rate or rates stated in the policy.

'If the Assured shall fail to make such statement of wages expended or pay such earned premiums as provided in the foregoing paragraphs such failure entitles the Company, at its option, and upon proper written notice to the Assured, to cancel the policy.

'Nothing herein contained shall be held to vary, waive, alter or extend any of the Declarations, Schedule of Coverages, Insuring Agreements, Exclusions and Conditions of the policy mentioned in this endorsement, other than as above stated.' (Emphasis ours.)...

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    ...Rule 73.01(d); V.A.M.S. § 510.310(4). The judgment for plaintiff is affirmed. HOGAN and TITUS, JJ., concur. 1 Cain v. Robinson Lumber Co., 365 Mo. 1238, 295 S.W.2d 388, 391(3); Soukop v. Employers' Liability Assur. Corp., 341 Mo. 614, 626, 108 S.W.2d 86, 91(5), 112 A.L.R. 149; Hammontree v.......
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