Case Title: Sizemore v. ET Barwick Industries, Inc.

Citation: 465 S.W.2d 873

Docket Number: 

State: tennessee

Court: Tennessee Supreme Court

Date: 1971-04-05T00:00:00Z

Document:
465 S.W.2d 873 (1971) Anna Ruth SIZEMORE, Plaintiff-in-Error, v. E. T. BARWICK INDUSTRIES, INC., Defendant-in-Error. Supreme Court of Tennessee. April 5, 1971. John H. Cary, Knoxville, for plaintiff in error; Haynes, Gilreath & Cary, Knoxville, of counsel. William Groover, Knoxville, for defendant in error; Cheek, Taylor & Groover, Knoxville, of counsel. CHATTIN, Justice. This is a workmen's compensation proceeding on a direct appeal from an order of the trial judge sustaining the plea of the statute of limitations of defendant-in-error. We will refer to the parties as they appeared in the trial court; that is, Anna *874 Ruth Sizemore as petitioner, and E.T. Barwick Industries as defendant. Petitioner alleged on October 4, 1968, she fell down a flight of stairs during the course of her employment at defendant's plant and injured her back. She further alleged defendant's insurance carrier made voluntary payments of temporary total benefits to her and certain medical expenses; and that the last such payment being made to Dr. Robert Whittle on February 14, 1969. Petitioner further averred she was unable to work at her regular employment; and is, therefore, entitled to additional benefits. Defendant filed the following plea: Petitioner joined issue on the plea. Defendant offered the testimony of Mr. Henry Morton, Claim Manager of defendant's insurance carrier, in support of the plea which comprises the bill of exceptions filed in the case. Morton testified the draft to Dr. Whittle was issued and mailed on February 12, 1969; and that all other payments to petitioner and Dr. Whittle had been made through the mail. It was stipulated Dr. Whittle's office was closed on February 13, 1969; and that the draft had been indorsed by Dr. Whittle and cashed on February 14, 1969. The trial judge found defendant ceased making payments on February 12, 1969, when the draft to Dr. Whittle was mailed rather than when it was received and cashed by him. He further found suit was not filed until February 14, 1970; and, therefore, the action was barred by the one year statute of limitations as provided by T.C.A. Section 50-1003 and dismissed the suit. Petitioner excepted to the order and prayed an appeal to this Court which was perfected. Petitioner assigns as error the action of the trial judge in holding defendant ceased making payments on February 12, 1969. We are of the opinion the assignment must be sustained and the cause reversed and remanded. T.C.A. Section 50-1003 provides, in part: The sole issue to be resolved in this Court is whether petitioner brought her action within the statutory period. We hold payments ceased when the last draft was received by Dr. Whittle on February 14, 1969. *875 In doing so, we recognize the following rule: The word "payment" has a well defined meaning in law; as said in Sullivan v. Tigert, 1 Tenn. App. 262 (1925): We observe Mr. Morton referred to the instrument as a draft while Counsel for both parties refer to it as a check. It is common knowledge the terms are sometimes used interchangeably. While we recognize a draft is distinguishable from a check by the fact that the drawee of a check is a bank, while the drawee of a draft may be any person or firm, we think the following rules as to payment apply by either means. It is fundamental a check is not money but is a mere order to the drawee bank to pay a sum of money at some future time. "That a check for money is not money until it has been paid is too self-evident to admit of argument ____." Lytle v. Etherly, 18 Tenn. 389 (1837). When a check is given and accepted the presumption is that it is not accepted by the creditor as absolute payment. Whether it is so accepted or not is a question of fact. Springfield v. Green, 66 Tenn. 301 (1874). The generally accepted rule is that where a check delivered to a creditor is paid in due course, the debt is discharged pro tanto as of the time the check was received. 70 C.J.S. Payment sec. 24, page 235. In the case of Sturgill Lumber Company v. Maynard, 447 S.W.2d 638 (Ky. 1969), the employer's insurance carrier made voluntary payments of compensation to the claimant, the last of which was made by check issued on September 10, 1965, for the period from July 30, to August 31, 1965. The claimant filed his application for compensation with the Workmen's Compensation Board on September 9, 1966. The employer's argument was that voluntary payment ceased as of the last day of the period for which the last payment was made. Under the Kentucky statute requiring that application for compensation be filed with the Board "within one year after the cessation of voluntary payments, if any have been made," the Court of Appeals of Kentucky held: In the case of Seliga v. American Mutual Liability Insurance Company, 174 So. 2d 878 (La. App. 1965) voluntary payments were made to the claimant by check, the last such check being dated November 21, 1961. Suit was filed on November 23, 1962. The trial court sustained the defendant's plea of the statute of limitations and dismissed the case. The Court of Appeals of Louisiana reversed and remanded. The Louisiana statute of limitations provides that where an employer makes voluntary compensation payments, the limitation period for bringing a workmen's compensation claim "shall not take effect until the expiration of one year from the time of making the last payment." Under this statute the Louisiana Court of Appeals held: Defendant's sole authority for its position that voluntary payments ceased on the date the last draft was issued and mailed to petitioner's doctor is the case of Brandtjen and Kluge, Inc. v. Pope, 28 Tenn. App. 679, 192 S.W.2d 496 (1946), wherein the court quoted the following from 48 C.J., Section 9, page 594: However, we think the facts in that case are distinguishable from those of the instant case. Pope, a resident of Shelby County, purchased a printing press and other equipment from Brandtjen and Kluge, a foreign corporation, under a conditional sales contract and executed notes to cover the deferred balance. Pope mailed checks as the notes became due to the company which were accepted. The company later filed a replevin suit on ground of default in the payment of certain notes. The suit was tried in Chancery Court before the Chancellor and a jury. At the trial, the evidence showed all notes had been paid by Pope by checks deposited in the mail, the last two of which had been returned to Pope, on the ground Pope had failed to purchase insurance on the equipment payable to complainant in case of loss. The Chancellor charged the jury: "The only ground that has been produced that would warrant the complainant to repossess the property iswere the monthly payments in default, and in default more than ten days." He further charged: "The mailing is sufficient payment. The depositing of the check in the mail is delivery under the law and within the time." The company assigned this charge as error on the contention the place of payment was at the home office of the company, and this place of payment having been agreed on, the payments to be valid must have been made there. *877 After quoting the above rule from 48 C.J., supra, the Court of Appeals said: It is clear the court did not hold the mere depositing of a check in the mail amounted to an absolute payment as of the date of mailing. Reversed and remanded at the cost of defendant. DYER, C. J., and HUMPHREYS and McCANLESS, JJ., and JENKINS, Special Justice, concur.