Estep v. Hamilton

201 P.3d 331, 148 Wash. App. 246
Court of Appeals of Washington·Decided November 6, 2008·No. No. 26564-1-III·Published·Cited by 27 cases

Opinion

Brown, J.

¶1 Cynthia Estep appeals the summary dismissal of her legal malpractice claims against Gene E. Hamilton and his former law partners, Donald Hackney and Charles Carroll. She contends Mr. Hamilton was negligent when representing her in her divorce from Michael Raymond. She argues Mr. Hamilton failed to act to preserve her beneficiary interest in Mr. Raymond’s life insurance policy and misadvised her about the effect of the divorce on the beneficiary designation. Ms. Estep fails to show proximate cause for her claimed injury and fails to show apparent authority by acts flowing from the former partners directed toward her. We affirm.

FACTS

¶2 Mr. Hackney, Mr. Hamilton, and Mr. Carroll practiced in a general partnership. Hackney, Hamilton & Carroll dissolved on December 31, 2002. In January 2003, Mr. Hackney and Mr. Carroll began a practice together, while Mr. Hamilton began a solo practice as Hamilton Law Offices, PLLC, sharing space with his former partners until the end of 2004. In November 2002 during the partnership, [251] Ms. Estep briefly consulted Mr. Hamilton, but she apparently paid no fee and did not engage Mr. Hamilton.

¶3 On August 7, 2003, Ms. Estep signed a retainer agreement with Mr. Hamilton to dissolve her marriage with Mr. Raymond. Mr. Hamilton, inadvertently and without authorization from Mr. Hackney and Mr. Carroll, used a retainer form of Hackney, Hamilton & Carroll that retained solely Mr. Hamilton. No facts show Mr. Hackney or Mr. Carroll met Ms. Estep or knew of or had any involvement in her marriage dissolution. Mr. Raymond represented himself throughout the marriage dissolution.

¶4 One life insurance policy belonged to each party. Each policy named the other party as primary beneficiary. Temporary orders required maintaining the status quo. On April 16, 2004, the parties entered agreed findings of fact and conclusions of law and a dissolution decree. The decree awarded Mr. Raymond “[a]ny life insurance policies” he owned, and Ms. Estep was awarded “[a]ny life insurance policies” she owned. Clerk’s Papers (CP) at 151, 154, 156. The final papers were silent regarding any redesignation of insurance policy beneficiaries. After the divorce, neither party changed the beneficiary designations.

¶5 Mr. Hamilton later began representing Mr. Raymond in an unrelated matter, until Mr. Raymond died in October 2004. The proceeds of Mr. Raymond’s life insurance policy went to his estate by law, not to Ms. Estep. After Ms. Estep learned the estate would be shared equally by her two daughters with Mr. Raymond, and Mr. Raymond’s other daughter, she sued Mr. Hamilton,1 alleging negligence in failing to perfect for her the proceeds of Mr. Raymond’s life insurance policy.

¶6 Mr. Hackney and Mr. Carroll were later added as parties. Ms. Estep alleged Mr. Hackney and Mr. Carroll2 [252] were vicariously liable for Mr. Hamilton’s negligence. Tbe amended complaint reframed the claim against Mr. Hamilton, alleging he failed to exercise reasonable care by failing to preserve Ms. Estep as Mr. Raymond’s life insurance beneficiary. Mr. Hamilton and Mr. Hackney and Mr. Carroll moved for summary judgment.3

¶7 Mr. Hamilton deposed that at the temporary order stage he counseled Ms. Estep about Mr. Raymond’s life insurance policy after she asked to have it maintained for her; he responded that the court could order an amount to secure her “insurable interest” in child support. CP at 216. The subject was dropped until the preparation of final papers, when Ms. Estep again asked to remain as Mr. Raymond’s beneficiary. Mr. Hamilton then discussed it with Mr. Raymond, who “refused to have that in there.” CP at 216.

¶8 After Mr. Raymond signed the final papers, apparently concerned about the temporary order, he asked Mr. Hamilton if he could now change policy beneficiaries. Mr. Hamilton replied, “ ‘Well, of course. Why[?]’ ” CP at 217. After explaining that the temporary order would no longer prevent a beneficiary change, Mr. Hamilton expanded:

I asked him, would you agree to - - “This is important to [Ms. Estep]. Would you agree to leave the life insurance - - leave her name as beneficiary?”
He said, “I don’t think I’ll agree to that at this time.” That’s all he said.

CP at 217.

¶9 When asked why he did not act to secure the life insurance proceeds from Mr. Raymond’s policy for Ms. Estep, Mr. Hamilton deposed he had no authority: “[h]e did not agree to that. I had no way to act on it, no way to include in the decree a provision he would not agree to and would not sign if it was in there.” CP at 231. Mr. Hamilton denied failing to advise Ms. Estep that a policy change would be [253] necessary for her to receive the benefits. Mr. Hamilton declared, “I advised [Ms. Estep] that the issue would need to be decided by a judge but she declined to pursue the issue.” CP at 110.

¶10 Mr. Hamilton’s expert, attorney Martin L. Salina, opined, “Mr. Hamilton’s representation of Ms. Estep ... was within the standard of care for an attorney in the same or similar circumstances, in the state of Washington.” CP at 195. Mr. Salina opined that if litigated the court would at most have ordered life insurance to cover child support and maintenance obligations.

fll After Mr. Raymond’s death, Mr. Hamilton wrote a letter and a declaration in aid of Ms. Estep to attorney Peter Moye, the attorney for Mr. Raymond’s estate, that somewhat varied from his deposition. Mr. Hamilton partly declared:

[Mr. Raymond] mentioned to me that he had continued maintaining a significant life insurance policy for the benefit of [Ms. Estep] and his question to me was whether he would violate the Decree of Dissolution or statutory law by changing beneficiaries. I answered in the negative. However, [Mr. Raymond] then smiled at me and stated that he had no one else to leave the life insurance to and, further, that he knew [Ms. Estep] would use the money to take care of his two daughters from the marriage. When [Mr. Raymond] met with me . . . concerning the [unrelated matter] [h]e then smiled and told me that he had not even changed his life insurance beneficiary because he wanted [Ms. Estep] and their daughters to be taken care of.

CP at 165.

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Estep v. Hamilton, 201 P.3d 331, 148 Wash. App. 246 (Wash. Ct. App. 2008).

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