Holycross & Nye, Inc. v. Nye
Decision Date | 25 September 1933 |
Docket Number | 14,925 |
Citation | 186 N.E. 915,97 Ind.App. 372 |
Parties | HOLYCROSS & NYE, INC. v. NYE |
Court | Indiana Appellate Court |
From Industrial Board of Indiana.
Proceedings under the Workmen's Compensation Act by David A. Nye claimant for compensation, against Holycross & Nye, Inc., of which claimant was vice-president and majority stockholder. From an award granting compensation, defendant appealed.
Reversed.
Henry L. Humrichouser, for appellant.
Eli F Seebirt, Lenn J. Oare, Orlo R. Deahl and George W. Omacht for appellee.
This is an appeal from an award made by the full Industrial Board of Indiana in which the board ordered that the appellant pay to appellee his necessary medical, hospital, and nurse service for the first thirty days following an injury, received in an accident arising out of and in the course of his employment, on the 5th day of February, 1932.
The error assigned and relied upon for reversal is that the award of the full Industrial Board is contrary to law.
The case was submitted to the Industrial Board upon an agreed statement of facts, and no further evidence was introduced.
A summary of the facts as agreed upon is: That appellee is 45 years of age, a resident of the city of South Bend, Indiana; that appellant, Holycross & Nye, Inc., is an Indiana corporation with its principal office and place of business in the city of South Bend, Indiana; that it was organized for and engaged in the business of selling and repairing automobiles, and buying and selling used automobiles; that it was capitalized at $ 40,000, with 400 shares at $ 100 per share; that appellee owned 199 shares, Albert W. Holycross, 199 shares, and one Nila Brown, 2 shares; that since June, 1930, when the corporation started business, no dividends have ever been paid because the earnings have never been sufficient; that appellee was vice-president, and general manager of the corporation; that Albert W. Holycross was president and sales manager of the corporation, and Nila Brown, secretary-treasurer; that the corporation employed an average of 40 persons in conducting its business; that, as general manager, the duties of appellee were to supervise the work of the repair shop, to attend to the financial affairs of the business, to supervise the selling of used cars, and to sell new and used cars; that his duties as vice-president of the corporation were nominal, and he devoted practically no time to the discharge of said duties; that appellee devoted not to exceed 25 per cent of his time in supervising the repair shop, and attending to the financial matters, including collections, and supervising sales of used cars; that at least 75 per cent of his time has been devoted to the sale of new and used cars, and that during the past year he had personally sold approximately 55 automobiles; that for the last year appellee had been paid a wage of $ 100 per week, and that no part of said wage was for his services as vice-president, but that all of said wage was for his service rendered as general manager and salesman of the corporation, and that he has depended upon said wage for the maintenance of himself and family.
The agreed statement of facts further shows that on the 5th day of February, 1932, appellee, together with one Albert W. Holycross, the president and sales manager of the corporation, was driving an automobile to Elkhart, Indiana, to see another automobile dealer for the purpose of getting additional names of prospects; and, while they were en route to Elkhart, their automobile collided with a tractor and trailer resulting in injuries to appellee from which he was confined in the hospital for one week, was disabled for a period of ten days, and partially disabled for a longer period; that during the period of disability appellee was paid his regular wages by appellant, but that he has not been reimbursed for medical, hospital, or nurse expense, or any part thereof.
The sole and only question presented for consideration is, Was the appellee, at the time he received his injuries, an employee as contemplated by the Workmen's Compensation Act of this state?
A corporation is a separate entity, and, of course, may be an employer under the Workmen's Compensation Act. At the beginning, let it be understood that we adhere to the principle as laid down in this state, and many other jurisdictions, that one may be an officer, director and stockholder, or any of them, of a corporation, and still be an employee, and entitled to compensation under the Workmen's Compensation Act of this state. This rule has been announced by this court, and we now re-affirm it.
The difficulty in laying down a hard and fast rule defining just when an officer, director and stockholder, or any of them, may be an employee within the Workmen's Compensation Act, lies in the fact that each individual case must depend largely upon its own particular facts and circumstances.
In this case, appellee and one Albert W. Holycross owned all the corporate stock in this corporation, except two shares, and while the record does not disclose the fact, it may be that these two shares were issued for the purpose of forming the corporation. Substantially all of the profits, if any, of the corporation go to appellee and said Holycross. It is significant that both appellee and his associate, Holycross, were injured in this same accident, and both filed claims with the Industrial Board in which the same order was entered in both claims, and an appeal taken therefrom. It is further significant that appellee did not ask for compensation for loss of services, but only that his medical, hospital, and nurse bills be paid. It is not disclosed by the record whether appellant corporation, which was managed and...
To continue reading
Request your trial