De Gray v. Miller Bros. Const. Co.

• Decision Date: 01 May 1934
• Citation: 173 A. 556,106 Vt. 259
• Parties: MABEL P. DEGRAY v. MILLER BROTHERS CONSTRUCTION COMPANY, INC., ET AL
• Court: Vermont Supreme Court

173 A. 556

106 Vt. 259

MABEL P. DEGRAY v. MILLER BROTHERS CONSTRUCTION COMPANY, INC., ET AL

Supreme Court of Vermont

May 1, 1934

October Term, 1933.

Master and Servant---Workmen's Compensation Act---Jurisdiction of Commissioner of Industries---Workmen's Compensation Act Accepted by Parties as Part of Contract of Employment---Rights of Workman's Dependent Widow under Compensation as Limited to Rights of Decedent---Purpose of Compensation Act---Application of Act---Jurisdiction of State To Regulate Conduct of Industrial Employment within Borders---"Employee"---Sufficiency of Facts To Show Jurisdiction of Commissioner of Industries Where Workman Hired in Another State---Application of Rules of Comity To Situation Where Workman Injured in Vermont under Contract Made in Another State---Purpose of Requirement in Compensation Act as to Insurance---Public Policy of Vermont with Respect to Compensation Insurance---Duty of Commissioner of Industries as to Workman Injured in Vermont under Contract Made in Another State Where Latter's Restrictions as to Insurance Are against Public Policy of Vermont---Conclusiveness of Adjudication as to Compensation Where Parties Submit to Jurisdiction of Another State---Claimant under Workmen's Compensation Act as Entitled to but One Recovery---Estoppel---Liability of Insurance Carrier under Vermont Act---Effect of Claimant Submitting to Jurisdiction of Another State and Accepting Compensation There Awarded on Liability of Insurance Carrier To Pay under Vermont Act---Effect of Payment of Compensation by Employer on Insurance Carrier---Rights of Employer as Real Party in Interest Bringing Action under Vermont Compensation Act in Claimant's Name against Insurance Carrier.

1. Proceedings to administer Workmen's Compensation Act being wholly statutory, authority of commissioner of industries is limited to such powers as are conferred upon him by express legislative grant, or such as arise therefrom by implication as incidental and necessary to full exercise of powers granted, Court being without authority to extend commissioner's powers beyond such limits.

2. Provisions in Workmen's Compensation Act as to duties of commissioner of industries with regard to hearings and determination of questions, and as to making of awards and right of appeal therefrom, held clearly to show that it was intent of Legislature that commissioner of industries should have original jurisdiction to hear and determine all controverted questions of fact and law arising in the administration of act, except as otherwise provided.

3. Commissioner of industries held to have jurisdiction to entertain proceeding involving interpretation of certain provisions of Workmen's Compensation Act, where it did not appear that any other method is provided for hearing and determining questions raised.

4. When Workmen's Compensation Act has been accepted, either expressly or impliedly, by parties to contract of employment its provisions are to be construed as being written into contract, binding parties thereto, and the lex loci contractus governs construction of contract and determines legal obligations arising under it.

5. Dependent widow of deceased workman seeking compensation under Workmen's Compensation Act of Vermont by reason of his death caused by injury arising out of and in course of employment has only same rights to compensation thereunder that decedent had.

6. Purpose of Workmen's Compensation Act of Vermont is to regulate relation of employer and employee as to compensation for in-

juries received by employee arising out of and in course of his employment.

7. Compensation under Workmen's Compensation Act of Vermont is not confined to residents alone.

8. Such act applies to "every contract of hiring, verbal written or implied," and this was intended to mean wherever and by whomsoever made, and to apply to "all industrial employment," with certain exceptions therein specified, carried on in State "for the sake of pecuniary gain."

9. State has jurisdiction to regulate conduct of industrial employment within its borders and to prescribe, as one of conditions upon which performance of out-of-state contract of hiring shall be performed there, compliance with provisions of Workmen's Compensation Act.

10. Person working under contract of hire made in foreign state does not become "employee" under provisions of Vermont Workmen's Compensation Act until he renders service for his employer in State under such contract, but as soon as he does, act enters into and becomes part of contract and he is bound by provisions of act and he is then entitled to compensation thereunder for injury sustained in State's jurisdiction while rendering service under contract.

11. Where workman entered into contract with Connecticut employer for employment to be performed in that and other states, and subsequently was sent to Vermont to work for same employer and was there working when he received fatal injuries arising out of and in the course of his employment, and neither employer nor employee had given notice of refusal to accept Vermont Workmen's Compensation Act, but on the contrary employer had procured compensation insurance in accordance with such act, held that law thereby added provisions of act to contract and that commissioner of industries of Vermont had original jurisdiction to award compensation under Vermont Compensation Act to deceased workman's dependent widow if she had first applied therefor.

12. When employee is injured in Vermont while working under contract made in another State, ordinarily, upon principles of comity, or under full faith and credit clause of federal Constitution, Vermont courts will decline to take jurisdiction, and leave parties to their remedies in jurisdiction where contract of employment was made, if it does not conflict with law and public policy of Vermont.

13. Purpose of requirement in Workmen's Compensation Act that employer shall insure and keep insured payment of compensation thereunder with any corporation authorized to transact such insurance business in State, is not only to secure injured employee against financial irresponsibility of his employer, but also for benefit of employer by having insurer assume his obligation to pay compensation.

14. It is public policy of Vermont that liability of every employer to pay compensation to an employee injured in State in course of his employment shall be secured by insurance.

15. So far as Workmen's Compensation Act of another state permits restriction in policy of insurance issued under its provisions which excludes an employee injured in Vermont while working under contract of employment made in such other state, from its protection, it is in conflict with public policy of Vermont, and, in such exceptional cases, where employer has procured insurance in Vermont in accordance with provisions of its Workmen's Compensation Act, commissioner of industries of this State should, if application is first made therefor, exercise his jurisdiction and award compensation under its compensation act, so that no question can be raised as to liability of insurance carrier.

16. Where employee of construction company was fatally injured in Vermont while working under contract made in Connecticut, and his dependent widow as claimant and such company submitted themselves to jurisdiction of Connecticut compensation commissioner, and claimant received award of compensation under Connecticut Workmen's Compensation Act, which company paid and claimant accepted, held that adjudication of Connecticut compensation commissioner that claimant was entitled to receive and construction company liable to pay under provisions of Connecticut law, and as to amount of such compensation, all questions litigated before him, were conclusive upon parties in subsequent proceeding under Vermont Workmen's Compensation Act relating to same injury.

17. Under such circumstances, Vermont commissioner of industries did not err in ruling that claimant was not entitled to original award of compensation under Vermont Workmen's Compensation Act.

18. Claimant under Workmen's Compensation Act can have but one recovery, hence he cannot recover compensation under Workmen's Compensation Act of Connecticut where contract of employment was made, and also under act of Vermont where injury occurred.

19. Where employee of construction company was fatally injured in Vermont while working under contract made in Connecticut, and his dependent widow applied for and received compensation under Connecticut Workmen's Compensation Act, she is estopped from recovering compensation for same injury under Compensation Act of Vermont.

20. Liability of insurance carrier under Vermont Workmen's Compensation Act is more than that of an indemnitor, being primary liability to injured employee to extent of employer's liability to injured employee.

21. Where employee of construction company was fatally injured in Vermont while working under contract made in Connecticut, and his dependent widow elected to apply for compensation under Workmen's Compensation Act of latter state, and accepted, compensation thereunder, thereby becoming estopped from claiming compensation under Vermont act, such election discharged employer from any obligation to pay her compensation under Vermont act, and also discharged insurance carrier from obligation to pay her compensation under such act, since obligation assumed by it was obligation of employer to pay under provisions of Vermont act.

22. Under Vermont Workmen's Compensation Act, payment of compensation by an employer to an employee, to extent thereof, bars recovery against insurance carrier of amount so paid.

23. Where commissioner of industries correctly held that claimant was...