Title: United States Steel Corporation v. Baker
Citation: 97 So. 2d 899
Docket Number: N/A
State: Alabama
Issuer: Alabama Supreme Court
Date: October 31, 1957

97 So. 2d 899 (1957)
UNITED STATES STEEL CORPORATION
v.
Nannie H. BAKER, as Administratrix.
6 Div. 96.

Supreme Court of Alabama.
October 31, 1957.
*900 Burr, McKamy, Moore &amp; Thomas, Birmingham, for appellant.
Lipscomb, Brobston, Jones &amp; Brobston, Bessemer, for appellee.
GOODWYN, Justice.
This is a workmen's compensation case. It is here on certiorari from the circuit court of Jefferson County, Bessemer Division.
The parties have stipulated as follows: While the plaintiff's intestate was employed in defendant's mine, he sustained a compensable accident resulting in a 35% permanent partial disability from silicosis. Under a court-approved settlement the employer agreed to pay the employee $18.85 a week for 300 weeks making a total claim of $5,646. Payments of compensation were made from the date of the employee's injury in December, 1954, until his death on September 4, 1955. It is agreed that the employee's death had no relation to his injury. The employer refused to make further payments after the death of the employee. The plaintiff in this case is the employee's dependent widow and the administratrix of his estate. She instituted this proceeding to require the employer to pay to her husband's estate the unpaid weekly installments under the settlement agreement which would have been paid to her husband if he had remained alive.
Both parties agree that a single question of law, of first impression in Alabama, is presented. That question is whether or not, under the law of Alabama as it existed on September 4, 1955, the unmatured installments payable under a court-approved workmen's compensation settlement agreement (Code 1940, Tit. 26, § 278, as amended by Act No. 661, § 3, appvd. July 10, 1940, Gen.Acts 1939, p. 1036) between an employer and an employee, whereby the employer agrees to pay the employee compensation for a permanent partial disability, survive the employee's death and pass to his estate or dependents when his death results from a cause not connected with the injury giving rise to the compensation agreed upon.
The problem is one of statutory construction and effect.
Although we have held that the Workmen's Compensation Act should be liberally construed to the end that its beneficent objects may be advanced (Baggett Transp. Co. v. Holderfield, 260 Ala. 56, 61, 68 So. 2d 21; Hamilton Motor Co. v. Cooner, 254 Ala. 422, 426, 47 So. 2d 270; Birmingham Post Co. v. Sturgeon, 227 Ala. 162, 169, 149 So. 74) we have also held that it should not be extended beyond its legitimate scope and contrary to the clear legislative purpose and *901 intent (Nichols v. St. Louis &amp; S. F. R. Co., 227 Ala. 592, 594, 151 So. 347, 90 A.L.R. 842; Birmingham Post Co. v. Sturgeon, supra). A careful analysis and consideration of the provisions of the Act, as it existed on September 4, 1955, (which controls in this case), convinces us that the legislative intent was to limit payment of installments of a compensation award to those falling due during the lifetime of the employee, and that installments accruing after his death do not survive in favor of his personal representative or his widow and dependent children. This, of course, applies in a case where the employee's death is from a cause unconnected with the injury for which compensation has been awarded. Provision is made for payment of compensation to the widow and dependent children where the employee's death is attributable to the injury made the basis of the award. Sections 279 (F) and 283, Tit. 26, Code 1940, as amended by Act No. 563, appvd. Aug. 29, 1951, effective Oct. 28, 1951, Acts 1951, p. 978.
We proceed to a discussion of pertinent provisions of the Act which we think clearly show the legislative intent, viz.:
Section 279, Tit. 26, Code 1940, as amended supra (the law existing on September 4, 1955; however, it was further amended by Act No. 355, appvd. Sept. 7, 1955, Acts 1955, p. 855, to which reference will be made hereinafter), prescribes the schedules for compensation. Schedule (A) covers "Temporary Total Disability" and provides for maximum and minimum weekly payments. It also contains the following provisions: "This compensation shall be paid during the time of such disability, not, however, beyond three hundred weeks. Payments are to be made at the intervals when the earnings were payable, as nearly as may be."
Schedule (B) prescribes compensation payable for "Temporary Partial Disability" and contains in subdiv. 1 the following provision: "This compensation shall be paid during the period of such disability, not, however, beyond three hundred weeks, payments to be made at the intervals when the earnings were payable, as nearly as may be, and subject to the same maximum as stated in subsection (A)."
Schedule (C) provides for compensation in case of "Permanent Partial Disability". Subdiv. 1 provides that "for permanent partial disability the compensation shall be based upon the extent of such disability." It also prescribes the compensation payable for the loss of members of the body and for a "serious disfigurement, not resulting from the loss of a member or other injury specifically compensated, materially affecting the employability of the injured person." Subdiv. 6 provides that "in all other cases of permanent partial disability not above enumerated, the compensation shall be fifty-five percent of the difference between the average weekly earnings of the workman at the time of the injury and the average weekly earnings he is able to earn in his partially disabled condition subject to the same maximum as stated in subsection (A)." The award of compensation to the employee in the case before us was under this subdivision. Subdiv. 7 provides that "compensation shall continue during disability, not however, beyond three hundred weeks." (This obviously has reference to cases of permanent partial disability under subdiv. 6, for under subdiv. 1 provision is made for payment during four hundred weeks. See also, the original Workmen's Compensation Act, appvd. Aug. 23, 1919, effective Jan. 1, 1920, Gen.Acts 1919, p. 206, subsec. (c), on page 214, where the location of this provision in the Act makes its meaning clear.)
Schedule (D) covers "Permanent Total Disability". It provides in subdiv. 1 that compensation therefor "shall be paid during such permanent total disability, not exceeding five hundred and fifty weeks * * *; payment to be made at the intervals when the earnings were payable, as nearly as may be" and that "such payments, with the approval of the circuit judge, may be monthly or quarterly". Subdiv. 2 provides that where "an employee, who is permanently *902 and totally disabled becomes an inmate of a public institution, then no compensation shall be payable unless he has wholly dependent on him for support a person or persons named in sections 280 and 281 of this title, whose dependency shall be determined as if the employee were deceased, in which case the compensation * * * shall be paid for the benefit of such person so dependent, during dependency, in the manner ordered by the court, while the employee is an inmate in such institution."
Schedule (E) defines "Permanent Total Disability". Subdiv. 3 fixes the amount of compensation for such disability other than as defined in Schedule (E) and provides that "this compensation shall be paid during the period of such permanent disability not exceeding four hundred weeks; payments to be made at the intervals when the earnings were payable as nearly as may be", and, "with the consent of the circuit judge, may be made monthly or quarterly."
Schedule (F) provides for "Compensation for Death after Disability" as follows: "In case a workman sustained an injury occasioned by an accident arising out of and in the course of his employment and during the period of disability caused thereby death results proximately therefrom, all payments previously made as compensation for such injury shall be deducted from the compensation, if any, due on account of death." This schedule was amended by Act No. 355, appvd. and effective on September 7, 1955, Acts 1955, p. 855, by adding the following paragraph:
It is to be noted that Act No. 355 became law after the employee's death on September 4, 1955. Hence the amendment has no bearing on this case except such relevancy as it may have in determining the intent of the legislature with respect to the Workmen's Compensation Act as it existed prior to the amendment. Appellee argues that the amendment simply had the effect of intercepting the balance of the judgment in favor of the "widow and/or dependent children" instead of said balance going to the deceased employee's personal representative. In other words, the amendment should not be taken as a legislative recognition that there was no right of survivorship in the unpaid balance prior to the amendment but rather that its purpose was to take away an already existing survivorship in favor of the personal representative and give it to the widow and dependent children. This argument necessarily presupposes a legislative intent, in the absence of such amendment, that unaccrued installments of an award survive in favor of the personal representative. We are unable to agree with this interpretation of the Act.
Schedule (G) provides that average weekly earnings shall be the basis of benefits.
Schedule (H) prescribes a percentage increase for a dependent wife and dependent child or children and provides that such increase "shall be paid only during the dependency of the dependent upon whom such increase is based."
Section 283, as amended by Act No. 563, § 2, appvd. Aug. 29, 1951, effective Oct. 28, 1951, Acts 1951, p. 978 (also amended by Act No. 356, appvd. Sept. 7, 1955, Acts 1955, p. 864, and by Act No. 338, appvd. Aug. 21, 1957, but the changes made have no significance in this case), provides for compensation to dependents of an employee where his death "results proximately from the accident within three years." Subsection A, par. 11, is as follows:
Subsection B of § 283, as amended, prescribes the maximum and minimum death compensation and provides that "this compensation shall be paid during dependency, not exceeding three hundred weeks, payments to be made at the intervals when the earnings were payable, as nearly as may be."
Section 284, as amended by Act No. 661, § 4, appvd. July 10, 1940, effective January 1, 1941, Gen.Acts 1939, pp. 1036, 1037, provides that "in case of remarriage of a widow of an employee who had dependent children, the unpaid balance of compensation, which would otherwise become due her, shall be paid to such children", or to some other person designated by the court for the use and benefit of such children.
Section 286 provides that compensation to children is limited to those "under eighteen years of age, or those over eighteen years of age, who are physically or mentally incapacitated from earning"; and it is provided that the former are to "receive compensation only during the time they are under eighteen, the latter for the time they are so incapacitated, within the period of three hundred weeks."
Section 290 provides that compensation being paid to a dependent "shall cease upon the death or marriage of such dependent."
Section 297 provides for submission to the circuit court of a controversy with respect to the right to compensation. In this connection see § 278, as amended by Act No. 661, § 3, appvd. July 10, 1940, effective Jan. 1, 1941, Gen.Acts 1939, pp. 1036, 1037, which provides for settlements between the parties and contains the following provision: "Upon such settlements being approved, judgment shall be rendered thereon and duly entered on the records of said court in the same manner and to have the same effect as other judgments or as an award if the settlement is not for a lump sum." This seems to us to be a clear legislative purpose to make a distinction between the effect of a lump sum award and an award payable in installments. Thus, when there is a lump sum award it has the same effect as the usual judgment for money, that is, it becomes vested on rendition of the judgment just as would be the situation if all compensation installments to which an employee is entitled shall have accrued at the time of an award. See Goodyear Tire &amp; Rubber Company of Alabama v. Downey, Ala., 96 So. 2d 278, 287(8). In such cases the awards are vested and not subject to the contingencies prescribed by the Act when payment is made in installments.
As bearing on the question before us, it should be noted that the provisions of § 284, as amended, supra, and §§ 286 and 290 clearly indicate that future-due installments of an award do not become vested in the dependent-payee. It is noteworthy, too, that all of the provisions of the Workmen's Compensation Act with reference to payment of an award to dependents in installments are to the effect that such payments continue only so long as the widow and children are dependent. In other words, the widow, on remarriage or death, ceases to be a dependent; a child, on reaching the age of eighteen years (if not physically or mentally incapacitated from earning, §§ 280, 286, Tit. 26) or dying, ceases to be a dependent. It seems to us that the provisions of the Act itself manifest a clear legislative intent that the right of dependents to accuring *904 installments continue only during dependency. Although this is not the question before us it is relevant in determining the overall legislative purpose and scheme.
Section 299, as amended by Act No. 36, § 8, appvd. June 2, 1949, Acts 1949, p. 47, provides for commuting of periodic payments to one or more lump sum payments. (This section was also amended by Act No. 335, appvd. Aug. 20, 1957, but the amendment is of no significance here.) This section has consistently been construed as requiring the agreement of the parties in order for a lump sum payment to be made. Edwards v. Doster-Northington Drug Co., 214 Ala. 640, 108 So. 862; County Coal Co. of Alabama v. Bush, 215 Ala. 25, 109 So. 151; Richardson Lumber Co. v. Pounders, 254 Ala. 285, 48 So. 2d 228. In other words, if the employer and employee agree to a lump sum payment, and such payment is approved by the court, the obvious inference to be drawn is that the right thereto becomes vested in the employee; this because, by commuting, all installments are made presently due. On the other hand, if there is no commutation, the logical inference is that only those installments accruing during the employee's lifetime become vested in him. What happens to unaccrued installments when the employee's death results proximately from the compensated injury is specifically provided for in §§ 279(F) and 283, Tit. 26, as amended, supra. But no provision is made for anyone to get any interest in unaccrued installments when the employee's death is from a cause unconnected with such injury. Moreover, it is specifically provided that compensation shall be paid only during disability (§ 279, Tit. 26, as amended, supra) except, of course, where death results from the compensated injury. On the death of an employee compensation being paid him by installments comes to an end unless his death results proximately from the injury for which compensation is being paid.
Section 300 provides as follows:
In view of the provision there made for modifying an award, how can it be said, with good reason, that installments falling due after an employee's death become so fixed and finally determined as to survive in favor of his personal representative or dependents? When an employee's death results proximately from the accident there is, as already noted, express provision for payment of compensation to his dependents (§ 283, as amended, supra), it being further provided that "all payments previously made as compensation for such injury shall be deducted from the compensation, if any, due on account of death" (§ 279(F), as amended by Act No. 563, appvd. Aug. 29, 1951, effective Oct. 28, 1951, Acts 1951, p. 978, supra). There is no corresponding provision for continuing the payment of unaccrued installments when the employee's death is not attributable to the injury.
Section 301, as amended by Act No. 36, § 9, appvd. June 2, 1949, Acts 1499, p. 47, provides, in pertinent part, as follows:
The last clause, it seems to us, significantly provides, in effect, that installments of an award to an employee, handled under said section, which have not accrued at the time of the employee's death shall be returned to the employer.
Appellee directs attention to §§ 306, 307 and 308 as showing a legislative intent that an award of compensation is, in effect, the same as any other judgment. Although these sections refer to an award of compensation as a judgment we are unable to agree that they should be construed as over-riding the other provisions of the Act clearly showing, we think, that an award of compensation is limited to the injured employee during his lifetime (except when an inmate of a public institution, § 279(D) 2, as amended, supra) and, at his death, to his dependents, who are entitled to compensation only when his death results proximately from a compensable injury.
Although there are differences between the Minnesota and Alabama Workmen's Compensation Laws, we have recognized that our law in material respects was modeled after that of Minnesota, M.S.A. § 176.01 et seq. Swift &amp; Co. v. Rolling, 252 Ala. 536, 539, 42 So. 2d 6; Alabama By-Products Corporation v. Winters, 234 Ala. 566, 569, 176 So. 183. The Supreme Court of that state, in Tierney v. Tierney &amp; Co., 176 Minn. 464, 465-467, 223 N.W. 773, 774, held that where an employee, who had been awarded compensation at a specified sum per week for a period of 100 weeks, as the result of an accidental injury, died 13 weeks after the allowance was made from a cause other than the injury, his wife, who was wholly dependent upon him, was his sole heir, and was appointed special administratrix of his estate, was not, in any of these capacities, entitled to the weekly compensation for the remainder of the period during which her husband would have been entitled thereto, had he lived. It seems to us that the reasoning in that case is significantly applicable here, viz.:
The Supreme Court of Mississippi, in M. T. Reed Const. Co. v. Martin, 215 Miss. 472, 61 So. 2d 300, 63 So. 2d 528, 531-532, had this to say:
The following from 58 Am.Jur., Workmen's Compensation, §§ 577, 578 and 579, pp. 931-932, is also pertinent, viz.:
Without doing some legislating on the subject, we see no escape from the conclusion that an award of compensation to an employee made payable in installments is unenforceable as to installments accruing after an employee's death, when his death results from a cause in no way connected with the injury upon which the award was based. We are at the conclusion, therefore, that the judgment of the trial court was laid in error and is due to be reversed. It is so ordered.
Reversed and rendered.
LIVINGSTON, C. J., and SIMPSON and COLEMAN, JJ., concur.