Blain v. Doctor's Co.

222 Cal. App. 3d 1048, 272 Cal. Rptr. 250, 1990 Cal. App. LEXIS 870
CourtCalifornia Court of Appeal
DecidedAugust 10, 1990
DocketC004782
StatusPublished
Cited by79 cases

This text of 222 Cal. App. 3d 1048 (Blain v. Doctor's Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blain v. Doctor's Co., 222 Cal. App. 3d 1048, 272 Cal. Rptr. 250, 1990 Cal. App. LEXIS 870 (Cal. Ct. App. 1990).

Opinion

Opinion

BLEASE, Acting P. J.

This appeal tenders the question whether the doctrine of unclean hands precludes an action for legal malpractice predicated upon injuries caused when Raymond L. Blain, a physician-defendant in a medical malpractice action, followed the advice of his lawyer to lie at a deposition. We shall conclude that it does.

The appeal arises from a judgment of dismissal following the sustaining of general demurrers to Blain’s complaint. The complaint is founded upon the claim that insurance defense counsel advised Blain, the insured, to lie at his deposition in the medical malpractice action, which advice Blain followed. This resulted in the filing of an amended complaint against Blain seeking punitive damages. That action was later settled. The insurance company, the Doctor’s Company (Doctor’s), paid the policy limits and Blain paid nothing. Blain contends that in these circumstances he has stated a cause of action on the theory that defense counsel’s improper strategy exposed him to greater liability, caused him emotional distress, and precluded his further work as a physician.

We will affirm the judgment.

*1053 Facts and Procedural Background

A.

The First Amended Complaint

This case arises upon an order granting a demurrer to Blain’s first amended complaint. For that reason the facts under review are those alleged in the plaintiff’s pleadings, viewed favorably to him, and facts judicially noticed. (See Blank v. Kirwan (1985) 39 Cal.3d 311 [216 Cal.Rptr. 718, 703 P.2d 58].) 1

The first amended complaint is organized into five counts styled as causes of action. We set forth the essential allegations by reference to count.

1. First Count

Blain was an insured under a policy of insurance obliging Doctor’s to defend him and to indemnify him for damages (to $1 million) recovered in any medical malpractice action brought against him. In April 1983 a medical malpractice action was filed on behalf of Stacy Marchand against Blain, Robert Achtel (another physician), and others. Doctor’s retained a law firm for Blain’s defense. In that role defense counsel “fail[ed] to exercise reasonable care and skill and/or negligently advis[ed] plaintiff . . . .”

The core allegations concerning this malpractice are contained in paragraph 14, which alleges that counsel erred in the following respects. “1. failing to advise [Blain] that [defense counsel] had a dual responsibility to [Doctor’s] and to [Blain] so that [Blain] could understand the relationship of the parties and employ personal counsel if necessary, 2. failing to represent the interests of [Blain] in deference to the interests of [Doctor’s], 3. giving improper legal advise [sic] to [Blain] regarding [his] testimony and conduct at [his] deposition in the [Marchand] action, with the intent of benefiting the insurer and/or other defendants, as opposed to the insured, 4. giving improper advise [sic] regarding the defenseability [sic] of [Blain’s] *1054 position in the [Marchand] action subsequent to [his] deposition in said action, 5. improperly advising [Blain] to sue attorneys for plaintiffs Marchand in the [Marchand] action for abuse of process and/or malicious prosecution for suing Blain for punitive damages, 6. failing to advise [Blain] as to his rights to demand settlement of the underlying action, 7. failure to advise [Blain] of his rights to independent and/or Cumis counsel in the [Marchand] action subsequent to, [Blain] being sued for punitive damages in the [Marchand] action, and/or demands for settlement within policy limits, 8. failing to cross-complain against co-defendant Achtel in the [Marchand] action, 9. failing to advise [Blain] that a failure to disclose, in his deposition in the [Marchand] action, all facts known to him concerning the conduct of Dr. Achtel would increase the liability as against [Blain] in the [Marchand] action and other actions, unknown representations and conduct not set forth herein consistent with the allegations herein-above set forth and in addition thereto, unknown conduct of [defense counsel].”

It is further alleged that Blain relied on or followed this advice or acted in the absence of advice and consequently suffered injuries of the following kind. He was exposed to greater liability in the Marchand action. He suffered severe emotional distress requiring medical treatment. “[He] will be prevented from attending to his usual occupation, indefinitely into the future . . . .”

Doctor’s, defense counsel, and the other defendants “acted in concert and/or civilly conspired for profit motive to engage in the conduct herein-above set forth. Said conduct was engaged in with the intent to reduce the likelihood of success of plaintiffs Marchand recovering in the [Marchand] action.”

2. Second Through Fifth Counts

The plaintiff follows a reiterative style of pleading. The allegations of the first count are incorporated by reference into the succeeding count. The allegations of the second count including the incorporated allegations of the first count are incorporated into the subsequent counts, and so on for each succeeding count. The additional allegations are as follows.

In the second count it is alleged that the conduct alleged in the first count was “intentional, outrageous, reckless, oppressive, malicious, [and] despicable” and Blain is entitled to punitive damages.

In the third count it is alleged that such conduct breached the duties of good faith and fair dealing owed by all defendants to Blain and was a breach *1055 of fiduciary duties owed by all defendants to Blain. On this ground Blain is entitled to punitive damages.

In the fourth count the defendants, in violation of contractual and fiduciary duty to Blain, are alleged to have engaged in the following course of conduct: “(1) failure to pay, in a timely manner, insurance benefits to a third party, when the third party was entitled to said benefits under the terms and conditions of said insurance policy; (2) unreasonably delaying payment to a third party knowing that said delay would cause [Blain] to incur personal damage and/or greater liability; (3) unreasonably withholding [sic] payments from third party knowing requests for payments and settlement under [Blain’s] policy were reasonable and valid; (4) providing legal counsel for [Blain] who did negligently represent [him] and cause him to incur greater liability and refusing to provide independent counsel or pay independent counsel for [Blain]; and continuing to date; to refuse to provide independent counsel and/or pay independent counsel for [Blain]; (5) not attempting in good faith to effectuate a prompt, fair and equitable settlement of third party claims against [Blain]; (6) failure to provide a reasonable explanation of [the] basis relied on the insurance policy, in relation to applicable facts, for the denial of third party claims against [Blain].” By engaging in these acts the defendants “have violated their statutory duties contained within California Insurance Code section 790.03.”

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Cite This Page — Counsel Stack

Bluebook (online)
222 Cal. App. 3d 1048, 272 Cal. Rptr. 250, 1990 Cal. App. LEXIS 870, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blain-v-doctors-co-calctapp-1990.