Employers Liability Assurance Corporation, Limited of London, England v. Cook

• Decision Date: 14 April 1930
• Docket Number: No. 81,81
• Citation: 281 U.S. 233,50 S.Ct. 308,74 L.Ed. 823,1930 AMC 760
• Parties: EMPLOYERS' LIABILITY ASSURANCE CORPORATION, LIMITED, OF LONDON, ENGLAND, v. COOK et al
• Court: U.S. Supreme Court

281 U.S. 233

50 S.Ct. 308

74 L.Ed. 823

EMPLOYERS' LIABILITY ASSURANCE CORPORATION, LIMITED, OF LONDON, ENGLAND,

v COOK et al.

No. 81.

Argued and Submitted Jan. 14, 1930.

Decided April 14, 1930.

Messrs. Clyde A. Sweeton and Wm. A. Vinson, both of Houston, Tex., for petitioner.

Messrs. Sam C. Polk and D. A. Simmons, both of Houston, Tex., for respondent.

Mr. Justice McREYNOLDS delivered the opinion of the Court.

In January, 1927, while regularly employed by the Ford Motor Company and 'open for any kind of work' Hal Cook was instructed as 'a part of his contract of em- ployment to assist in unloading cargo off' the steamship Lake Gorian, lately arrived at Houston, Tex., from the high seas and then tied up at the dock. While at work in the hold of the vessel, he received serious injuries, from which it is asserted he died March 28th.

The Ford Motor Company carried a policy of workmen's compensation insurance with the petitioner, Employers' Liability assurance Corporation, Limited, of London, England, which undertook to protect the assured against loss by reason of injuries to its employees.

Purporting to proceed under the Workmen's Compensation Act of Texas (Rev. St. Tex. 1925, arts. 8306-8309) respondents presented to the Industrial Accident Board a claim for compensation because of Cook's death against both the motor company and the insurer. This was denied upon the ground that the death 'was due to a condition in no way incident to or associated with his employment.' As permitted by the statute, respondents refused to abide by the action of the board and brought suit in the state court.

They alleged: 'While in the course of his employment, said Hal Cook was instructed by said Ford Motor Company to assist in unloading a ship or vessel belonging to the said Ford Motor Company then anchored at the Wharves at Houston Ship Channel at Houston, Texas, and while so engaged said Hal Cook suffered severe injuries in that while he and other employees of the said Ford Motor Company were unloading from said ship the cargo thereon, consisting of axles and various other parts of automobiles and transferring the same to the wharves where said ship was anchored, the said Hal Cook while lifting said automobile parts, received a severe strain to the internal muscles of his back, * * *' which caused his death.

They asked for judgment setting aside the award of the board and for compensation as provided by the statute.

The cause was removed to the United States District Court. It heard the evidence, denied a motion for an instructed verdict in favor of the petitioner, submitted the matter to a jury, and, upon a verdict in respondents' favor, entered judgment. Appeal was taken to the Circuit Court of Appeals for the Fifth Circuit which held: 'We think it fairly can be said that the matter of unloading these two ships of the Ford Motor Company at rare intervals was 'of mere local concern, and its regulation by the state will work no material prejudice to any * * * feature of the general maritime law."

The record plainly discloses that, while in the course of his employment and at work in the hold assisting in unloading a vessel afloat on navigable waters, Cook received injuries out of which this suit arose. There is nothing in principle to differentiate this case from Northern Coal Co. v. Strand, 278 U. S. 142, 49 S. Ct. 88, 73 L. Ed. 232, and the judgment of the Circuit Court of Appeals must be reversed. See Nogueira v. New York, N. H. & H. R. Co., 281 U. S. 128, 50 S. Ct. 303, 74 L. Ed. —, decided this day.

The proceeding to recover under the State Compensation Act necessarily admitted that the decedent was employed by the insured when injured. Any right of recovery against the insurance carrier depends upon the liability of the assured. Whether Cook's employment contemplated that he should work regularly in unloading vessels...