Hanover Ins. Co. v. Jones

• Decision Date: 28 November 1978
• Docket Number: 56413,Nos. 56411,s. 56411
• Parties: HANOVER INSURANCE COMPANY v. JONES et al. JONES v. GRANITE STATE INSURANCE COMPANY et al.
• Court: Georgia Court of Appeals

Page 60

251 S.E.2d 60

148 Ga.App. 236

HANOVER INSURANCE COMPANY v. JONES et al.

JONES v. GRANITE STATE INSURANCE COMPANY et al.

Nos. 56411, 56413.

Court of Appeals of Georgia.

Argued Sept. 6, 1978.

Decided Oct. 30, 1978.

Rehearing Denied Nov. 28, 1978.

Brackett, Arnall & Stephens, H. P. Arnall, H. A. Stephens, Jr., Atlanta, for appellant (Case No. 56411).

Neely, Neely & Player, Andrew J. Hamilton, Savell, Williams, Cox & Angel, John M. Williams, Raymond P. Carpenter, Michael Jablonski, Atlanta, for appellees (Case No. 56411).

Raymond P. Carpenter, Atlanta, for appellant (Case No. 56413).

John M. Williams, Andrew J. Hamilton, H. A. Stephens, Jr., Michael Jablonski, Atlanta, for appellees (Case No. 56413).

QUILLIAN, Presiding Judge.

This is an appeal from a judgment of the superior court reversing an award of the State Board of Workers' Compensation.

On March 28, 1974, the State Board of Workers' Compensation awarded benefits to Annie Jones and her minor children due them as a result of the death of Sam Jones, on March 5, 1974, which arose out of and in the course of his employment. The agreement was executed by Pearson Mills, Inc. as the employer. Payments were made pursuant to this agreement until Pearson Mills ceased to do business.

On August 24, 1973, which was prior to the time the agreement to pay compensation was approved by the board, Pearson Mills, Inc. ceased to exist as a corporate entity because it was merged with Rivers Industries, Inc. Rivers Industries, Inc. became responsible for the obligations of Pearson Mills, Inc. on that date.

Annie Jones filed for a hearing before the State Board of Workers' Compensation to determine whether the workers' compensation insurance carriers of Rivers Industries, Inc. were either jointly or individually liable for the payment of the compensation provided for in the approved agreement between Pearson Mills, Inc. and Annie Jones.

Subsequent to a hearing the board made findings of fact and conclusions of law that at the time of his death Sam Jones was an employee of Rivers Industries, Inc. because on the date of his death Pearson Mills, Inc. had merged with Rivers Industries, Inc.; that on the date of Sam Jones' accident Rivers Industries, Inc. had valid workers' compensation insurance policies with the Travelers Insurance Company and Granite State Insurance Company; that subsequent to the merger Rivers Industries, Inc. because obligated to promote workers' compensation insurance for the employees of Pearson Mills, Inc.; that Rivers Industries, Inc. was liable for the compensable injury suffered by Sam Jones, an employee of Pearson Mills; that Pearson Mills, Inc. ceased to be a self-insurer on the date its corporate existence expired.

This holding by the board had the effect of releasing Hanover Insurance Company from liability on a bond which it had posted for Pearson Mills, Inc. when it was a self-insurer.

The board then issued an award which directed Rivers Industries, Inc. and its insurers, the Travelers Insurance Company and Granite State Insurance Company to pay Annie Jones the compensation due as a result of her husband Sam Jones' death.

The award was appealed to the superior court where it was reversed. Held :

1. When the original agreement between Annie Jones and Pearson Mills, Inc. was approved by the State Board of Workers' Compensation it became a final award of the board. Wiley v. Bituminous Cas. Co., 76 Ga.App. 862, 863(3), 47 S.E.2d 652. The award not having been appealed it is res judicata as to the issues therein determined. "The board is an administrative body, having no jurisdiction beyond that granted to it by the provisions of the Workmen's Compensation Act. It has heretofore been held that the jurisdiction granted under the act does not extend to the board power to vacate or set aside such an order, or to modify it in the absence of a 'change of condition.' Teems v. American Mut. Liab. Ins. Co., 41 Ga.App. 100(1), 151 S.E. 826; Simpson v. Liberty Mut. Ins. Co., 99 Ga.App. 629(2), 109 S.E.2d 876; Liberty Mut. Ins. Co. v. Simpson, 101 Ga.App. 480(3), 114 S.E.2d 141; National Union Ins. Co. v. Mills, 99 Ga.App. 697, 109 S.E.2d 830; Arnold v. Indemnity Ins. Co., 94 Ga.App. 493(3), 95 S.E.2d 29; Dempsey v. Chevrolet Division, 102 Ga.App. 408, 116 S.E.2d 509; U. S. Cas. Co. v. Smith, 34 Ga.App. 363(1), 129 S.E. 880; Gravitt v. Georgia Cas. Co., 158 Ga. 613(1), 123 S.E. 897; Liberty Mut. Ins. Co. v. Morgan, 199 Ga. 179, 181, 33 S.E.2d 336. Cf. Hasty v. Carter, 105 Ga.App. 139(1), 141, 123 S.E.2d 563 . . ."

"Much merit can be found in the position...