Fireman's Fund American Insurance Co. v. Patterson & Lamberty, Inc.

528 S.W.2d 67
CourtCourt of Appeals of Texas
DecidedJuly 31, 1975
Docket837
StatusPublished
Cited by7 cases

This text of 528 S.W.2d 67 (Fireman's Fund American Insurance Co. v. Patterson & Lamberty, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fireman's Fund American Insurance Co. v. Patterson & Lamberty, Inc., 528 S.W.2d 67 (Tex. Ct. App. 1975).

Opinions

MOORE, Justice.

This is an appeal from an order granting a summary judgment. Appellant, Fireman’s Fund American Insurance Company,1 brought suit against Patterson & Lamberty, Inc., a Professional Corporation for the practice of law, and attorneys J. Redwine Patterson and Edwin J. Lamberty, Jr., individually, for damages in the amount of $9,093.50 allegedly sustained by Fireman’s Fund as a result of legal malpractice on the part of Edwin J. Lamberty. As grounds for a cause of action, Fireman’s Fund alleged that on April 14, 1970, it was the insurance carrier for Ramada Inns, Inc. of Irving, Texas, insuring Ramada against loss from fire as well as public liability coverage; that a fire occurred in one of Ramada’s motel rooms causing damages to the motel and that as a result of the damage it paid the sum of $3,384.31 in settlement of the claim and took a subrogation agreement authorizing it to recover against those responsible for the fire. Upon investigation, it was determined that the fire was caused by a defective television set manufactured by General Electric Company. Fireman’s alleged that it employed appellees for the purpose of prosecuting its subrogation claim against General Electric. Thereafter, a compromise settlement was reached whereby General Electric paid Fireman’s the sum of $3,000.00. Fireman’s alleged that in consummating the agreement, Edwin J. Lamberty, Jr. exceeded his authority and was guilty of negligence in executing- and delivering to General Electric a release which contained an indemnity agreement; that thereafter on September 13, 1971, Sadie Coughlin, a tenant in the room damaged by fire, brought suit against Ramada and General Electric seeking to recover $16,-985.61 for clothing and personal effects destroyed by the fire and that as a result of the Coughlin suit judgment was rendered against Ramada and General Electric jointly and severally for $9,000.00, which Fireman’s in its capacity as liability carrier for Ramada paid, thereby discharging Ramada and General Electric of liability. Fireman’s Fund further alleged that the negligent conduct of appellee, Lamberty, in giving General Electric an indemnity agreement deprived Ramada (and Fireman’s as subro-gee of Ramada) from recouping from General Electric the sum of $9,093.50 paid by Fireman’s in discharging the Coughlin judgment. Appellees answered with a general denial and affirmatively alleged that Fireman’s suffered no loss by reason of appellees’ alleged malpractice because Fireman’s (as subrogee of Ramada) filed a cross-claim in the Coughlin suit and recouped its loss by recovering a judgment over and against General Electric, and having refused to levy execution thereon, Fireman’s was not entitled to recover against appellees.

The case came on for hearing before the trial court upon appellees’ motion for summary judgment under Rule 166-A, Texas Rules of Civil Procedure. As grounds for a summary judgment, appellees alleged that the pleadings, depositions, exhibits and other summary judgment evidence conclusively establishes that despite the indemnity agreement, Fireman’s Fund recovered a judgment over and against General Electric in the Coughlin suit, and since Fireman’s deliberately refused to levy execution thereon, the evidence conclusively shows that Fireman’s suffered no damage as a result of the alleged malpractice. Therefore, appellees alleged that since Fireman’s suffered no damages, one of the essential [69]*69elements of its cause of action was lacking and that appellees were entitled to a judgment as a matter of law. After a hearing, the trial court entered an order granting appellees a summary judgment, from which judgment Fireman’s Fund perfected this appeal.

We affirm.

Appellant, Fireman’s Fund, seeks a reversal on the ground that the record creates numerous disputed fact issues which can be determined only by the court or jury. In reply, appellees maintain that the judgment may be sustained on the ground that the summary judgment proof establishes as a matter of law that no genuine issue of fact exists upon one of the essential elements of Fireman’s cause of action since the proof conclusively shows Fireman’s suffered no damages.

The last sentence of paragraph (c) of Rule 166-A, Texas Rules of Civil Procedure, providing for summary judgments provides as follows: .

“ * * * The judgment sought shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that, except as to the amount of damages, there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.”

In determining the propriety of a summary judgment in favor of a defendant, the question to be determined on appeal is whether the summary judgment proof establishes as a matter of law that there is no genuine issue of fact as to one or more of the essential elements of the plaintiff’s cause of action. Gibbs v. General Motors Corporation, 450 S.W.2d 827 (Tex.Sup., 1970).

The ordinary rule that negligence is actionable only where it is the proximate cause of the damages complained of is usually applied in actions against attorneys for malpractice. Lynch v. Munson, 61 S.W. 140 (Tex.Civ.App., 1901); Patterson and Wallace v. Frazer, 79 S.W. 1077 (1904), 45 A.L.R.2d Sec. 5, pp. 19-22. A client claiming negligence on the part of his attorney has the burden of proving that damages resulted. Lynch v. Munson, supra. The specific question to be determined in the instant case is whether the summary proof negates this essential element of Fireman’s cause of action.

The facts are not in dispute. They are essentially the same as the facts set forth in the pleading delineated above. In order to properly understand the situation, a detailed discussion of some facets of the case will be necessary.

The record reveals that several months after appellee Lamberty delivered to General Electric the release containing the indemnity agreement, a suit was instituted in the 116th District Court of Dallas County by Sadie Coughlin and Paul Coughlin against Ramada Inns and General Electric. In that suit, the plaintiffs sought judgment against Ramada and General Electric for damages in the amount of $16,985.61 for the loss of clothing and other personal effects caused by the fire in the motel room. Fireman’s Fund, being the liability carrier for Ramada and the indemnitor of General Electric by reason of the contract executed ■by its attorney Lamberty, assumed the defense of the case on behalf of both Ramada and General Electric, being represented by Mr. Richard Bernays, Fireman’s attorney in the cause.

Thereafter, Mr. Bernays filed a “First Supplemental Answer” in the Coughlin case, alleging that the General Electric television set was defective and unreasonably dangerous and was the cause of Mrs. Coughlin’s damages, so that,

“ * * * if any judgment be had against Ramada Inns herein it should recover over and against General Electric Company the full amount thereof for which it prays.”

On March 23, 1972, the Coughlin suit came on for trial. What transpired is set out in the judgment, as follows:

[70]

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Fireman's Fund American Insurance Co. v. Patterson & Lamberty, Inc.
528 S.W.2d 67 (Court of Appeals of Texas, 1975)

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Bluebook (online)
528 S.W.2d 67, Counsel Stack Legal Research, https://law.counselstack.com/opinion/firemans-fund-american-insurance-co-v-patterson-lamberty-inc-texapp-1975.