Court Opinion

ID: 9643231
Source: CourtListenerOpinion
Date Created: 2023-08-22 20:23:17.75409+00
Date Added: 2024-06-11T18:10:58.580941
License: Public Domain

Neil, Chief Justice.
I cannot agree that the policy of insurance, which is the basis of this suit, was intended to cover farm labor employees. To my mind it is a dual policy, one covering compensation cases (employees entitled to compensation) and the other to indemnify the employer against the payment of damages under a suit at common laAV.
It cannot be seriously doubted but that an insurance company could by appropriate expressions bind itself to pay compensation to an injured employee although he may not, as a matter of law, come within the provisions of our compensation statute, but the intention should be unmistakable. The right of recovery in the instant case seems to rest upon inference. No reason is given as to why the employer should bind himself to pay compensation to farm employees when they are expressly excluded under our Workmen’s Compensation Law.
No question is made but that William J esse Eidson was a farm laborer at the time he sustained an injury which caused his death. The policy, the original being filed as an exhibit in the case, provides as to workmen’s compensation payments the following: “to pay promptly to any person entitled thereto under Workmen’s Compensation Laws’’ as provided therein. (Emphasis supplied.) The Workmen’s Compensation Law is by express agreement between the parties made a part of the contract. It further provides, “ Nothing herein contained shall operate to so extend this policy as to include within its terms any Workmen’s Compensation Law, scheme or *441plan not cited in an endorsement hereto attached”. The only endorsement on the policy is headed “Tennessee Workmen’s Compensation Endorsement”. Paragraph 1 provides: “The obligations of Paragraph 1 (a) of the policy to which this endorsement is attached include such Workmen’s Compensation Laws as are herein cited and described and none other”. There is no scheme or plan whereby farm laborers were to be included and covered by this policy. They are expressly excluded under the terms of our statute. The policy before us covers all employees other than farm laborers and obligates the insurance carrier to pay compensation claims as provided in our compensation statute.
The policy, in a large measure, is for the benefit of employees, whereas the indemnity provision of the policy is for the sole benefit of the employer- — the policy holder. The company obligates itself, as follows, to defend in the name of the employer any suits which may at any time be instituted against him “although such suits, other proceedings, allegations or demands are wholly groundless, false or fraudulent”. The carrier further obligates itself “to pay all costs taxed against the employer in any legal proceedings etc., including all expenses incurred by the company for investigation, negotiation or defense”.
The limit of the insurer under the foregoing is not in excess of $25,000 “as a result of one or more claims arising out of a single accident”. The mere fact that there may have been no liability at common law to pay damages in the instant case could not convert the policy from one of indemnity to that of Workmen’s compensation liability.
*442The dependents of the deceased employee are not in a position to plead the doctrine of estoppel. As I understand it, the majority view does not base its conclusions upon any such principle. In Cornet v. City of Chattanooga, 165 Tenn. 563, 56 S. W. (2d) 742, it was held: “A city which accepted the provisions of the Compensation Act and in its notice of acceptance referred to members of the police force as within the provisions of the Act is not estopped to deny liability on account of the death of a policeman, when it is not shown that such policeman or the petitioner had knowledge of the fact prior to the accident.”
While the payment to the widow of $7.20 following the accident might indicate to some extent an admission of liability by the insurance carrier to pay compensation it is not conclusive of the fact as against the express terms of the policy. Moreover, the fact that the agent and servant of the company may have been mistaken as to the claimant’s rights under the policy should not prejudice the Court in construing it. For these reasons I must respectfully dissent.