Amalgamated Roofing Co. v. Travelers Insurance
Amalgamated Roofing Co. v. Travelers Insurance, 300 Ill. 487 (1921)
Winning Party
Amalgamated Roofing Company
Key Issue
Breach of Insurance Contract
Case Type
CIVIL
Facts
•
Amalgamated Roofing Company contracted with J. N. Colvin to lay the roof of a new warehouse.
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The policy allowed the insurer to examine the employer's books related to employee remuneration.
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The policy provided that the premium was based on the entire remuneration earned by all employees.
•
Rhoda Frame, the administratrix of Walter M. Frame's estate, filed a claim for compensation with the Industrial Commission.
•
The Industrial Commission made an award against the employer for Frame's death.
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Travelers Insurance Company had issued a liability insurance policy to Amalgamated Roofing Company.
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The Industrial Commission made an award against Amalgamated Roofing Company.
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Travelers Insurance Company ultimately disclaimed any liability under the contract.
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The insurance policy included a provision to defend the employer against suits for employee injuries.
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Frame sustained an injury on June 1, 1918, which resulted in his death the same day.
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The total premium could not be ascertained until the end of the policy year.
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Walter M. Frame was employed by Colvin to work on the roofing job.
•
Travelers Insurance Company denied liability under its policy but initially defended Amalgamated Roofing Company in the proceedings before the Industrial Commission.
•
The insurance company initially defended the employer but later disclaimed liability.
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Key Holdings
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No, the liability of the appellee on the policy is not limited, because the total premium which it was entitled to collect could not be ascertained under the policy until after the end of the policy year.
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Yes, the insurance company, having contracted to defend proceedings brought against the employer on account of injuries to employees and to indemnify the employer against loss by reason of liability imposed by law, is bound by the Industrial Commission's award.
Citations
Amalgamated Roofing Co. v. Travelers Insurance, 300 Ill. 487, 133 N.E. 259 (1921)
Legal Reasoning
The court reasoned that the insurance company, by agreeing to defend the employer in proceedings for employee injuries and to indemnify the employer against liability imposed by law, was bound by the Industrial Commission's award. The court also held that the insurance company's liability was not limited by the remuneration paid to employees as shown on the employer's payroll until the end of the policy year. The court emphasized that the Industrial Commission's decision, not having been reviewed, was conclusive on the appellant as an award of compensation against it as Frame’s employer.
Outcome
The judgments of the Appellate Court and the municipal court were reversed, and the cause was remanded to the municipal court.
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