COMPENSATION CLAIM

Evening Post, Volume CXII, Issue 85, 7 October 1931, Page 11

COMPENSATION CLAIM

WIDOW AWARDED £1000

SALESMAN'S EXPENSES

Compensation for the death of hei1 husband, a motor-car salesman, was claimed by Florance May Badcliffe, widow, of Wellington, from the Canadian Knight and Whippet Motor Company, Ltd., in an action heard in the Arbitration Court to-day.

Mr. AY. Perry appeared for the plaintiff, and Mr. k Parry for the defendant company. The statement of claim set out that the plaintiff was tho widow of Wilson Harold Badcliffe, who was killed on 4th March, 1931, when a motor-car ho was driving from Wellington to Wanganui ran off the road and overturned. The accident, it was claimed, aroso but of, and in the course of, tho deceased's employment by the defendant company. His remuneration, was £5 17s a week, plus commission on sales, and his total annual earnings wore under £400. He was survived by the plaintiff and two infant children, all totally dependent upon him. No compensation had been paid by the company, which denied liability in respect of the accident. The plaintiff claimed £1000 compensation and £50 for funeral expenses.

The defeneo admitted the employment but contended that the deceased was not a worker within tho meaning of tho Workers' Compensation Act as his total annual remuneration was over £400 (salary £'329 11s, commission £121, a total of £450 11s.) It was agreed that the 'salary should be computed on tho basis of £5 17s a week or £304 4s a. year. . Mr. ' Perry argued that tho total amount of commission should be computed as earned during the six months prior to tho accident and the six months following. I the former period the deceased received £52, being entitled to an overriding commission of £1 on every used car sold, ami in the latter period he would have received £44. From tho total sum should bo deducted an amount for reasonable, expenses on the entertainment of prospective customers, an .expenditure which every salesman had to bear. Tho deduction of even 10s a week spent in such a. way would bring tho total remuneration.' to under £400.

On the basis that the salary, was £304, said Mr. Parry, the commission computed in respect of the twelve months prior to the accident made the total remuneration £425. He maintained that tho expenses -which the plaintiff sought to have deducted from the gross earnings had not been proved. Tho Court could not speculate as to what the deceased, might have earned by way of commission. . . At the conclusion of tho evidence, Mr. Parry, submitted that there had been no proof that the. deceased incurred any expenses, that the amount of any such- expenses had not been proved, and that, even if ascertained, tho expenses could not be termed reasonable expenses. Mr. Perry contended that there was some proof of expenditure on entertainment, which brought the total remuneration to under £400. In delivering the judgment of tho Court, Mr. Justice Frazor said that the question was purely ono of fact. They had come to the conclusion that they should take a figure half-way between the £425 stated by the defendant company and tho £406 claimed by the plaintiff us the total salary and commission. That mado the amount £415. There had been some proof of expenditure on entertainment. According to the secretary of the company, £50 a year would not bo out of the way for expenses, and £15 seemed to be on the low side. The Court was satisfied that the deceased had spent an amount which brought his remuneration bolow £400. As to whether the expenses were reasonable, the Court considered that it was reasonably necessary for a motor-ear salesman to entertain his prospective customers. Judgment was given for the plaintiff for the amounts claimed and costs.

Mr. Parry submited that there was a question of law involved as to whether tho Court could make deductions from a proved remuneration on the ground that it was usual'for a salesman to incur expenses. He asked if his Honour would state a case for the Supreme Court. His Honour stfid that once tho Court had given its decision there was no question of stating a case.- However, if Mr. Perry could find an authority on the matter he would certainly allow an opportunity of having the point discussed further.