Pacific Indemnity Co. v. Industrial Accident Commission

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…