Title: Scammahorn v. Gibraltar Savings & Loan Assn.
Citation: 195 Kan. 273, 404 P.2d 170
Docket Number: 44,146
State: Kansas
Issuer: Kansas Supreme Court
Date: July 10, 1965

195 Kan. 273 (1965)
404 P.2d 170
DALE F. SCAMMAHORN, Plaintiff-Appellee,
v.
GIBRALTAR SAVINGS &amp; LOAN ASSOCIATION, Defendant-Appellant.
No. 44,146

Supreme Court of Kansas.
Opinion filed July 10, 1965.
Alan W. Farley, of Kansas City, argued the cause and was on the briefs for the appellant.
Joseph T. Carey, of Kansas City, argued the cause, and David W. Carson, John K. Dear, Ernest N. Yarnevich, John William Mahoney and John H. Fields, all of Kansas City, were with him on the briefs for the appellee.
The opinion of the court was delivered by
SCHROEDER, J.:
This is a workmen's compensation case in which the respondent appeals from an order of the district court dismissing its appeal from the director's award, on the ground that it had become moot by reason of an action pursuant to K.S.A. 44-512a which went to judgment in the district court.
The instant workmen's compensation case, docketed as case No. 15,892-B in the district court, was duly appealed to this court and assigned No. 44,146. The companion case resulting from the 44-512a demand, docketed as case No. 16,257-B in the district court, was duly appealed to this court and assigned No. 44,127, Scammahorn v. Gibraltar Savings &amp; Loan Assn., 195 Kan. 220, 404 P.2d 165.
The respondent, Gibraltar Savings &amp; Loan Association (defendant-appellant) was engaged in the ordinary business of a savings *274 and loan association. One of the homes upon which it had made a construction loan was repossessed, and the respondent undertook to complete the construction before putting it on the market. In so doing it employed the claimant, Dale F. Scammahorn (plaintiff-appellee) as a carpenter to do work at an hourly wage to complete the construction of the dwelling which the respondent had repossessed. On May 2, 1962, while installing a ledge on a swimming pool located in the basement of this dwelling, the claimant fell into the deep end of an empty pool, suffering serious injuries.
A workmen's compensation claim was filed and tried. On October 28, 1963, the examiner awarded the claimant forty-six weeks of temporary total disability, a 25% permanent partial disability and medical benefits of $1,937.20. Upon respondent's petition the director reviewed the award, and on November 20, 1963, affirmed the examiner's decision. On November 22, 1963, the respondent filed an appeal to the district court of Wyandotte County (No. 15,892-B).
On the 5th day of December, 1963, the claimant filed a demand for all compensation due to date under the award. The respondent refused to pay all sums due under the award, but did pay the $1,937.20 medical benefits and tendered checks for the ten weeks next preceding the director's decision and the weeks up to the date of demand. The claimant accepted the medical benefits but refused and returned the other compensation checks.
On the 24th day of January, 1964, the claimant filed suit under 44-512a, supra, for the full amount of the award in the district court of Wyandotte County (No. 16,257-B). This 44-512a action went to judgment in the district court before the appeal in the workmen's compensation case in the district court was heard. (See, Scammahorn v. Gilbraltar Savings &amp; Loan Assn., supra, [No. 44,127].)
The primary question presented to the district court by the respondent's appeal in the workmen's compensation case (No. 15,892-B) was whether the workmen's compensation act governed the employment of the claimant by the respondent. This was recognized by the district court in its memorandum opinion, when it stated that upon the evidence it would have no difficulty in making an award of compensation were it not for two unusual questions presented, the first of which is italicized above, and the second of which it said arose by reason of the following circumstances:
In its journal entry the trial court found:
It also found, among other things, concerning the 512a demand:
The trial court in its journal entry, among other things, concluded:
On the appeal to this court in the 512a action it was held the district court erred in holding the respondent was not a "self-insurer" under K.S.A. 44-556. The court said:
Under all of the facts, conditions and circumstances presented by the instant case (including the companion case) it could hardly be said the legislature under 44-556, supra, intended to provide no forum for an employer to litigate whether or not the employment of a workman was governed by the workmen's compensation act.
The reasons assigned by the trial court for its dismissal of the workmen's compensation appeal, as moot, made its finding No. 8 immaterial. Such finding was unnecessary to the decision and it is not binding upon the parties.
The rule of estoppel applied by the district court to the respondent was likewise erroneous. The respondent by making payments and tender pursuant to the provisions of G.S. 1961 Supp., 44-556 *277 (now K.S.A. 44-556), where the procedure for self-insurers is outlined on appeal in workmen's compensation cases to the district court, is not an acquiescence in the award. It is merely a compliance with the procedure outlined by the statute where appeal is taken. (See, Scammahorn v. Gibraltar Savings &amp; Loan Assn., supra, [No. 44,127].)
We hold the decision of the district court dismissing the workmen's compensation appeal, as moot, is erroneous, and the appeal should be reinstated to determine the issues presented.
The judgment of the lower court is reversed.
WERTZ and FATZER, JJ., dissent for the reason stated in the dissenting opinion of Justice Fatzer in Scammahorn v. Gibraltar Savings &amp; Loan Assn., 195 Kan. 220, 404 P.2d 165.