Kutil v. Floyd Valley Mfg. Co.

Decision Date03 April 1928
Docket Number39081
Citation218 N.W. 613,205 Iowa 967
PartiesMARY F. KUTIL, Appellant, v. FLOYD VALLEY MANUFACTURING COMPANY et al., Appellees
CourtIowa Supreme Court

Appeal from Woodbury District Court.--A. O. WAKEFIELD, Judge.

Action under the Workmen's Compensation Law of Iowa, commenced by the widow of S. F. Kutil against the Floyd Valley Manufacturing Company and its insurer, for compensation on account of the injury and death of her husband. Arbitration hearing was had, upon agreement of the parties, before the deputy industrial commissioner. Compensation was denied on the grounds that, at the time of the death of S. F. Kutil, he was holding an official position in the appellee company, and was also standing in a representative capacity of the employer, as defined by Subsection 3 of Section 1421, Code of 1924. The industrial commissioner, upon review, sustained the finding, and thereupon an appeal was taken to the district court, which affirmed the ruling of the industrial commissioner. Plaintiff appeals.

Affirmed.

R. A Oliver and W. L. Harding, for appellant.

Jepson Struble, Anderson & Sifford, for appellees.

DE GRAFF, J. STEVENS, C. J., and EVANS, MORLING, KINDIG, and WAGNER, JJ., concur.

OPINION

DE GRAFF, J.

The record facts disclose that the appellee company is a furniture manufacturing corporation, with its principal place of business at Sioux City, Iowa. The decedent, S. F. Kutil, had been active in the organization of the company, and was one of the members of the board of directors, and president of the corporation, at the time of his death.

The paid-in capital of the corporation was small, and in the year 1925, the business of the company required assistance, both in financial and in production and management matters. In November, 1925, an agreement was entered into between the company and another corporation, known as the Coomer & Small Company, wherein it was agreed that Coomer and Small should become members of the board of directors of the appellee corporation, and that the Coomer & Small Company should take an active management in the operations of the appellee company, in conjunction with the board of directors of the appellee company, and continue the same until all the obligations of the appellee company to the Coomer & Small Company, then owed or thereafter created, should be fully paid.

The Coomer & Small Company agreed, so far as it was able, to secure credit for the appellee company and render services, from time to time, as should be agreed upon between the parties. The Coomer & Small Company was to receive capital stock of the appellee company in payment for such services, under certain conditions and within certain limitations. Under this reorganization plan of the appellee company, S. F. Kutil, the president, was to devote his time and energy to the sale of the company's products, and act as the sales manager, although it is contended by the appellant that he did not exercise the functions of sales manager. The evidence does show that he personally engaged in the sale of the manufactured products, and performed other acts in the promotion of the company's business.

S. F. Kutil met his death in an automobile collision on or about November 30, 1926, while he was traveling in the state of South Dakota, engaged in the sale of the company's products. It is shown that he had been engaged in making personal sales of such products, both before and after the contract was made with the Coomer & Small Company.

There is nothing in the record that indicates that the structural organization of the company was changed by reason of the agreement entered into with the Coomer & Small Company. The members of the board of directors were selected by the stockholders, and the election of Mr. Coomer and Mr Small to the board was by the stockholders of the appellee company. In conjunction with the board of directors, the Coomer & Small Company were to render the services as defined in the contract; and, although the record is silent on the point, it is probable that such services were rendered through Mr. Coomer and Mr. Small in their official...

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