Employers' Mut. L. Ins. Co. v. Empire Nat. Bank. & T. Co.

• Decision Date: 12 October 1934
• Docket Number: No. 29931.,29931.
• Citation: 256 N.W. 663,192 Minn. 398
• Parties: EMPLOYERS' MUT. LIABILITY INS. CO. v. EMPIRE NAT. BANK & TRUST CO.
• Court: Minnesota Supreme Court

256 N.W. 663

192 Minn. 398

EMPLOYERS' MUT. LIABILITY INS. CO. v. EMPIRE NAT. BANK & TRUST CO.

No. 29931.

Supreme Court of Minnesota.

October 12, 1934.

Appeal from District Court, Ramsey County; Gustavus Loevinger, Judge.

Action by the Employers' Mutual Liability Insurance Company against the Empire National Bank & Trust Company. From an order sustaining a demurrer to plaintiff's complaint, plaintiff appeals.

Affirmed.

Orr, Stark, Kidder & Freeman, of St. Paul, for appellant.

Kerr, Nelson, O'Neill, Mohan & Dudley, of St. Paul, for respondent.

LORING, Justice.

Appeal from an order of the district court of Ramsey county sustaining a demurrer to plaintiff's complaint.

One George Chartier, an employee of Siems, Helmers & Schaffner, Inc., while engaged in the performance of his duties, under a contract of employment with the Siems Company, received injuries which resulted in his death. Both the employer and the employee had, prior to Chartier's death, elected to come under the provisions of part II of the Workmen's Compensation Act of this state (Mason's Minn. St. 1927, § 4268 et seq.). The employer was insured against loss under the act with the plaintiff company.

Chartier left surviving him his wife, Elizabeth, who made application for compensation. A stipulation between the widow, the Siems, Helmers & Schaffner, Inc., and the plaintiff herein was entered into whereby the plaintiff, as insurer, agreed to pay to the widow the sum of $7,500, less some payments made prior to the stipulation. It was further agreed that the present value of the balance then due the widow, computed at 4 per cent., should be deposited with the National Exchange Bank of St. Paul to be held in trust by that bank and paid to the widow at the rate of $78 per month until the full amount was paid. The Industrial Commission approved the agreement, and further ordered: "That the unpaid balance of compensation due the above named dependent Elizabeth Chartier, consisting of the sum of $7,248.00 (that sum of $252 having heretofore been paid) be paid in one lump sum calculated at its present value on a 4% basis or the sum of $6,251.61. That the said sum of $6,251.61 be deposited with the National Exchange Bank of the City of St. Paul as trustee and that said trustee pay to the above dependent, Mrs. Elizabeth Chartier, the sum of $78.00 on the 15th day of each and every month until the total sum of $6,251.61 together with interest accumulations thereon at the rate of 4% making in all a total sum of $7,248 shall have been paid, or until the further order of this commission; and that upon filing of receipts evidencing the payment of said sum of $6,251.61 as hereinbefore directed, the employer and insurer to be released from all further payment of compensation subject to the provisions of the workmen's compensation law of the state of Minnesota." (Italics ours.)

Plaintiff, pursuant to this stipulation, deposited with the named trustee the amount specified, and payment to the dependent widow was made each month for about three years, until she died. At the time of her death the defendant, as successor to the National Exchange Bank, had remaining in the trust fund $4,338. Several years later the plaintiff was advised of Elizabeth Chartier's death. Demand for the return of the balance of the trust fund was made of defendant by plaintiff, and was refused. This action was then commenced.

It is the contention of the plaintiff: (1) That the general purpose of the Workmen's Compensation Act is that compensation payment is to be made to no one except the injured employee or his dependents; (2) that the general purpose of the act is at all times to protect the employee against the diversion of any compensation payments provided by the act; (3) that the payments made to Mrs. Chartier from this fund were compensation payments under the act, and that upon her death the balance of the fund reverted to the employer and insurer who had established the fund, since the right of compensation did not survive her death.

The case is one of first impression in this state. No authorities directly in point are cited to us, and none can be found. The cases in which survivability of the right to compensation upon the death of the person entitled to the award has been in question have all been determined according to the provisions of the several state acts. It seems, however, to be quite uniformly held that, where an injured workman, who is receiving compensation due to an injury, dies from causes other than the injury, his right of compensation terminates with his death, and his heirs are entitled only to the amount of installments accumulated during his lifetime. Tierney v. Tierney & Co., 176 Minn. 464, 223 N. W. 773. Plaintiff contends that the cited case is determinative of the one at bar. The question here presented is not the same. We agree that, if Mrs. Chartier had been receiving uncommuted compensation payments for the death of her husband directly from plaintiff, upon her death the plaintiff would have been relieved of further liability.

1 Mason's Minn. St. 1927, §§ 4285, 4286, provides as follows:

"4285. The amounts of compensation payable periodically hereunder may be commuted to one or more lump sum payments only by order of the commission and on such terms and conditions as the commission...