Fidelity & Casualty Co. of New York v. Northeast Drywall Co.

NIMMONS, Judge.

Fidelity and Casualty Company of New York (Fidelity) appeals from an order in which the deputy commissioner ordered Fidelity to pay compensation benefits to the claimant, Frank G. Carpenter, the deputy ruling that Fidelity was estopped to deny coverage. We reverse.

At the time of the subject accident on June 12, 1984, and for several years prior thereto, Claimant Carpenter was employed as a drywall finisher for the employer, Northeast Drywall Company (Northeast). In 1981, Northeast’s president and his insurance agent, Karl Tramer, devised a plan whereby Northeast would buy…