Pacific Gas & Electric Co. v. Industrial Accident Commission

THE COURT. Petition for writ of review for the purpose of having annulled an order issued by respondent Industrial Accident Commission denying credit to an employer against liability to its injured employee. From the petition it appears that respondent Walter Bolin Johnson, a foreman in the gas department of petitioner Pacific Gas and Electric Company, sustained an injury occurring in the course of and arising out of his employment in the following manner: Johnson was engaged with other employees in laying a temporary gas main in a street in San Francisco, which work was necessitated by reason of a change of grade. At the same time Piombo Bros., a grading firm, was endeavoring to move a power pole located near by. The pole fell and struck Johnson in the back, causing a comminuted fracture of the right scapula and. a compression fracture of the eighth dorsal vertebra, which injuries are permanent. Petitioner assumed liability under the Workmen’s Compensation Act and placed its injured employee in a hospital -for the cure and relief of his injuries. It also paid him compensation in the total sum of $1671.18. Shortly after the accident Johnson filed suit against Piombo Bros., alleging that he sustained his injuries by reason of their negligence. The attorney who represented Johnson, ascertaining that the public liability carried by Piombo Bros, was limited to $10,000, endeavored to negotiate a settlement, and a figure of $8,250 was .eventually [501]agreed upon. A controversy then arose between the representative of petitioner, Pacific Gas and Electric Company, and the attorney for the injured employee as to the former’s lien on this sum for its expenditures, the amount of which at that time was the sum of $2,400. Upon ascertaining this fact, Johnson refused to agree to a settlement of his suit against Piombo Bros. Thereafter further conferences were had between the parties the culmination of which was that petitioner, Pacific Gas and Electric Company, agreed to accept $1200 for its expenditures out of the sum of $8,250 to be received by the employee. In consideration of its waiver to the balance of the $8,250, petitioner, Pacific Gas and Electric Company, sought to be relieved from all further liability for compensation, medical or other treatment to which respondent Johnson would otherwise be entitled by reason of the Workmen’s Compensation Act. The Industrial Accident Commission refused to approve this agreement. Thereafter further negotiations ensued, with the final result that a settlement between the employee and Piombo Bros, was completed, the petitioner Pacific Gas and Electric Company agreeing to waive its right of lien for advancements to its injured employee upon the agreement that the employee would relinquish his right against petitioner for all benefits under the Compensation Act. This being understood, petitioner joined with Johnson in the release and settlement agreement with Piombo Bros. Thereafter, and notwithstanding this agreement, Johnson filed an application with respondent Industrial Accident Commission for adjustment of the claim against petitioner. The commission, after hearing, issued its findings and award granting Johnson compensation at the rate of $24.22 weekly until the sum of $5,812.80 was paid, and thereafter a life pension of $14.91 weekly, continuing during the remainder of the life of employee, and also directed petitioner Pacific Gas and Electric Company to provide the employee medical treatment as might reasonably be required during such period. A petition for rehearing was made and denied. At the same time petitioner filed an “Application for Allowance of Credit” as provided for by section 26 of the Workmen’s Compensation Act in the sum of $8,250 to be applied against its liability for compensation. This petition was denied as was also a petition for rehearing.