Pacific Indemnity Co. v. Industrial Accident Commission

PULLEN, P. J.

On May 27, 1932, Pacific Indemnity Company, petitioner herein, issued h standard policy of Workmen’s Compensation Insurance to Florence Blanche Lounsbury, administratrix employer. At that time the insured was the duly appointed, qualified and acting administratrix of the estate of her deceased husband, and as such was operating a garage business in the city of Merced.

On March 10, 1933, the estate of C. E. Lounsbury, deceased, was finally distributed by order of court, and among other properties, the garage business and all fixtures and appurtenances were distributed to Earl R. Lounsbury, who immediately assumed personal charge thereof, and thereafter had full control of the operation of the business, with authority to employ and discharge all employees, and to fix their compensation and terms and conditions of employment. On April 5, 1933, a release was signed by Earl R. Lounsbury, acknowledging the receipt of all properties coming to him from the estate of C. E. Lounsbury, and releasing Florence Blanche Lounsbury of all liability in connection with the administration of the estate of C. E. Lounsbury, deceased.

Thereafter, on April 12, 1933, Charles Thur, an employee in the garage, was injured in the course of his employment. No notice of change of ownership or of the final distribution had been given to the insurance company, and upon the coming in of the proof of injury the company furnished medical treatment to the injured employee. Shortly thereafter it was noted in the report of the accident that the injured employee was in the service of Earl R. Lounsbury and not employed by Florence Blanche Lounsbury. Thereupon the company denied liability, and an application was filed with respondent Industrial Accident Commission to establish a lien for the medical treatment

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furnished and to obtain an adjudication that the policy in question did not cover the insured employee. After a hearing thereon, respondent commission held that the injured workman was an employee of Bari R. Lounsbury and that Pacific Indemnity Company was the insurance carrier for said employer Earl R. Lounsbury, and the employee was entitled to compensation and medical treatment. Upon the grounds that the evidence did not justify the finding and award a writ to review the holding of the commission was obtained and is now before us for consideration.