United States v. Klein

• Decision Date: 10 January 1946
• Docket Number: No. 13078.,13078.
• Citation: 153 F.2d 55
• Parties: UNITED STATES v. KLEIN et al.
• Court: U.S. Court of Appeals — Eighth Circuit

153 F.2d 55 (1946)

UNITED STATES v. KLEIN et al.

No. 13078.

Circuit Court of Appeals, Eighth Circuit.

January 10, 1946.

Paul A. Sweeney, Attorney, Department of Justice of Washington, D. C. (Francis M. Shea, Asst. Atty. Gen., Maurice F. Donegan, U. S. Atty., of Davenport, Iowa, William R. Sheridan, Asst. U. S. Atty., of Keokuk, Iowa, Cloid I. Level, Asst. U. S. Atty., of Des Moines, Iowa, and George F. Foley, Attorney, Department of Justice, and John F. Wolf, Attorney, Department of Justice, both of Washington, D. C., on the brief), for appellant.

Neill Garrett, of Des Moines, Iowa (Gibson, Stewart & Garrett and Ben J. Gibson, all of Des Moines, Iowa, on the brief), for appellees.

Before GARDNER, THOMAS and RIDDICK, Circuit Judges.

GARDNER, Circuit Judge.

This is an appeal from a judgment dismissing the complaint of the United States which sought to recover hospital and medical expenses which it had incurred in treating an injured Civilian Conservation Corps enrollee, together with compensation which was paid to him by the United States during the time he was incapacitated. The parties will be referred to as they were designated in the trial court.

Plaintiff's complaint alleged that Melvin F. Ward, an enrollee of the Civilian Conservation Corps, while absent from his camp on leave on May 9, 1937, was involved in an automobile accident wherein the automobile in which he was riding and the automobile of defendants collided, as a result of which Ward sustained serious personal injuries disabling him for 337 days; that plaintiff paid Ward during his disability $337 as compensation and $1252.50 hospitalization charges, together with $37.75 hospitalization charges in a private hospital and private medical services.

Defendants answered, denying that they were guilty of any negligence proximately causing injury to Ward, and as affirmative defenses pleaded that they had negotiated for a settlement with Ward and his parents and that the officers and representatives of plaintiff having charge of the matter knew and were fully advised of the negotiations for settlement, and that defendants were advised by such officers that the United States claimed only the sum of $37.75 paid for the emergency care of Ward, which amount defendants offered to pay. They also challenged the sufficiency of the allegations of the complaint to entitle plaintiff to any relief; that the action was barred by the Iowa statute of limitations, and that the complaint showed on its face that no privity existed between plaintiff and defendants; that plaintiff was estopped from maintaining the action because of settlements made with Ward with full knowledge and consent of the plaintiff.

The action by agreement of the parties was heard upon the defenses pleaded in bar. Certain letters and correspondence attached to the pleadings were admitted to be correct copies of letters and correspondence between the parties as indicated. The court determined the issues presented in favor of the defendants and as they were vital to the right to maintain the action the court dismissed the complaint on its merits, expressing the view that the plaintiff's complaint did not state sufficient facts to entitle plaintiff to any relief, and that there was no privity between plaintiff and defendants as to the asserted claims. The court did not pass upon the question as to whether the action was barred by the Iowa statute of limitations, nor upon the question as to whether the plaintiff should be estopped to maintain the action.

In seeking reversal plaintiff contends in effect: (1) that the complaint states a cause of action because the common-law relationship of master and servant existed between the United States and Melvin F. Ward and that plaintiff was entitled to recover for loss of services and for medical treatment and hospitalization; (2) that the Employees' Compensation Act does not provide an exclusive method or set up any scheme by which the United States could reimburse itself for the loss of services of Ward or for the sums expended for his hospitalization and medical care, and hence, plaintiff was entitled to maintain the action in its own name to recover for such loss.

The status of Ward, an enrollee in the Civilian Conservation Corps, must be determined by reference to the United States statutes. The Act establishing the Civilian Conservation Corps provided that in the event a member of the Corps suffered disability caused by traumatic injury in line of duty then the provisions of the United States Employees' Compensation Act of September 7, 1916, should apply. Title 5 U.S.C.A. § 751 et seq. The Civilian Conservation Corps was established by Act of June 28, 1937, Title 16 U.S.C.A. § 584 et seq., for the stated purpose of "providing employment, as well as vocational training, for youthful citizens of the United States who are unemployed and in need of employment." The Act designated the work projects to be performed and prescribed the compensation to be paid enrollees. Section 10 of the Act, Title 16 U.S.C.A. § 584i, reads in part as follows: "Enrollees shall be provided, in addition to the monthly rates of pay, with such quarters, subsistence, and clothing, or commutation in lieu thereof, medical attention, hospitalization, and transportation as the Director may deem necessary * * *; Provided further, That the provisions of section 796 of Title 5 relating to disability or death compensation and benefits shall apply to the enrolled personnel of the Corps."

By reason of this provision, an enrollee became entitled to medical care and hospitalization at camp in cases of temporary illness, injury or indisposition requiring ordinary attention and which were not of a disabling nature. The last provision of the section, it will be observed, makes applicable to enrollees Section 796 of Title 5, relating to disability compensation. That section contains the following: "The provisions of sections 751-791, 793 of this title, are hereby extended, so far as they may be applicable, to employees of the Federal Civil Works Administration only for disability or death resulting from traumatic injury while in the performance of duty, * * *; Provided further, That traumatic injury shall mean only injury by accident causing damage or harm to the physical structure of the body and shall not include a disease in any form except as it shall naturally result from the injury * * *."

This Section 796, by reference embodies Sections 751-791 and 793, which deal with compensation for injury to employees of the United States. The Employees' Compensation Act, Title 5 U.S.C.A. § 759, as amended June 26, 1926, provides as follows:

"Medical, surgical, and hospital service; transportation expenses. For any injury sustained by an employee while in the performance of duty, whether or not disability has arisen, the United States shall furnish to the employee all services, appliances, and supplies prescribed or recommended by duly qualified physicians which, in the opinion of the commission, are likely to cure or to give relief or to reduce the degree or the period of disability or to aid in lessening the amount of the monthly compensation. Such services, appliances, and supplies shall be furnished by or upon the order of United States medical officers and hospitals, but where this is not practicable they shall be furnished by or upon the order of private physicians and hospitals designated or approved by the commission. For the securing of such services, appliances, and supplies, the employee may be furnished transportation, and may be paid all expenses incident to the securing of such services, appliances, and supplies, which, in the opinion of the commission, are necessary and reasonable. All such expenses when authorized or approved by the commission shall be paid from the employees' compensation fund. Any award heretofore made by the commission on account of expenses incurred under this section prior to June 26, 1926, shall be valid, if such award would be valid if made on account of expenses incurred under this section after June 26, 1926. (As amended June 26, 1926, c. 695, § 1, 44 Stat. 772.)"

Ward at the time of the accident was carried as in line of duty and the injuries received by him were traumatic so that under the provisions of the Employees' Compensation Act above quoted, the United States could have recouped any expenses incurred. When Ward suffered a traumatic injury he was hospitalized away from his camp at the Army Hospital at Fort Des Moines, where he was carried as injured in line of duty. This was pursuant to a War Department regulation providing that, "A member who, during authorized absence from Camp is injured or becomes ill and who in consequence is confined to a hospital or to his home will be carried until his return as sick in line of duty, provided the injury or illness is not a result of his own misconduct, and provided further that an investigation discloses that the additional absence involved was unavoidable. During such absence from camp the member is entitled to pay."

In such circumstances the disability compensation and benefits provided for Civil Works Administration employees are made applicable to the members of the Civilian Conservation Corps.

Section 776, Title 5 U.S.C.A., provides a method by which the United States may recover expenditures made to a beneficiary where there is a legal liability upon a third party to pay damages. The section provides as follows.

"If an injury or death for which compensation is payable under this chapter is caused under circumstances creating a legal liability upon some person other than the United States to pay damages therefor, the commission may require the beneficiary to assign to the United States any right of action he may have to enforce such liability of such other person or any right which he may have to share in any money...