Freeman v. American Motorists Insurance Co.

53 S.W.3d 710, 2001 Tex. App. LEXIS 5040, 2001 WL 840371
CourtCourt of Appeals of Texas
DecidedJuly 26, 2001
Docket01-00-00935-CV
StatusPublished
Cited by29 cases

This text of 53 S.W.3d 710 (Freeman v. American Motorists Insurance Co.) 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
Freeman v. American Motorists Insurance Co., 53 S.W.3d 710, 2001 Tex. App. LEXIS 5040, 2001 WL 840371 (Tex. Ct. App. 2001).

Opinion

OPINION

HEDGES, Justice.

Plaintiffiappellant, Stanley Freeman, sued defendant/appellee, American Motorists Insurance Company (AMIC), to set aside a compromise settlement agreement based on AMIC’s alleged fraud and mis *712 representations. The trial court rendered summary judgment for AMIC. We affirm.

Background

Freeman was injured on November 3, 1989, in the course and scope of his employment, when the turnbuekle from a trash dumpster broke loose and struck him in the head. AMIC was the employer’s workers’ compensation insurance carrier. Freeman filed a notice of injury and claim form with the Industrial Accident Board. The parties signed a compromise settlement agreement during a prehearing conference on February 20, 1990. The Industrial Accident Board 1 approved the agreement on March 7, 1990, ordering that AMIC pay $1,500 to Freeman and $500 attorney’s fees to Freeman’s attorney. AMIC was also ordered to pay Freeman’s reasonable and necessary medical treatments until February 13,1991.

Almost nine years later, on April 28, 1999, Freeman sued AMIC to set aside the compromise settlement agreement based on AMIC’s alleged fraud and misrepresentations. AMIC moved for summary judgment, arguing that: (1) the fraud claim was barred by the applicable limitations period; (2) there was no evidence of legal disability; and (3) there was no evidence of fraud or misrepresentations. On May 22, 2000, the trial court rendered summary judgment for AMIC based on the statute of limitations.

Freeman contends that the trial court erred in rendering summary judgment because (1) Freeman’s legal disability tolled the statute of limitations and (2) there is evidence of AMIC’s misrepresentations. AMIC contends that the trial court erred in overruling AMIC’s motion to strike Freeman’s response to the motion for summary judgment.

Standard of Review

To prevail on a motion for summary judgment, a defendant must establish that no material fact issue exists and that it is entitled to judgment as a matter of law. See Rhone-Poulenc, Inc. v. Steel, 997 S.W.2d 217, 222 (Tex.1999). If a defendant moves for summary judgment on the basis of an affirmative defense, it has the burden to prove conclusively all the elements of the affirmative defense as a matter of law. See KPMG Peat Marwick v. Harrison County Hous. Fin. Corp., 988 S.W.2d 746, 748 (Tex.1999). In conducting our review of the summary judgment, we take as true all evidence favorable to the nonmovant, and we make all reasonable inferences in the nonmovant’s favor. See id.

Statute of Limitations

In his first point of error, Freeman contends that the trial court erred in rendering summary judgment because his legal disability tolled the statute of limitations.

The statute of limitations for a fraud action is four years after the day the cause of action accrues. Tex. Civ. PRAC. & Rem.Code Ann. § 16.004(a)(4) (Vernon 2001). In this case, the limitations period began to run on the date the Industrial Accident Board approved the compromise settlement agreement, or on March 7, 1990. See Brooks v. Lucky, 308 S.W.2d 273, 276 (Tex.Civ.App.—Beaumont 1957, writ ref'd n.r.e.); see also Brannam v. Texas Employers’ Ins. Ass’n, 151 Tex. 210, 248 S.W.2d 118, 119 (1952). Thus, Freeman had four years from March 7, 1990, or *713 until March 7, 1994, to file suit. It is undisputed that he did not file suit until over five years later, on April 28, 1999.

Unsound Mind Tolling Theory

Freeman contends the statute of limitations was tolled because he was legally disabled according to section 16.001(a)(2) of the Civil Practice and Remedies Code, which states that a person is under a legal disability if the person is of “unsound mind.” Tex. Civ. PRAc. & Rem.Code Ann. § 16.001(a)(2) (Vernon Supp.2001). If a person entitled to bring a personal action is under a legal disability when the cause of action accrues, the time of the disability is not included in a limitations period. Tex. Civ. PRAC. & Rem.Code Ann. § 16.001(b) (Vernon Supp.2001). A disability that arises after a limitations period starts does not suspend the running of the period. Tex. Civ. PRAC. & Rem.Code Ann. § 16.001(d) (Vernon Supp.2001).

Generally, persons of unsound mind and insane persons are synonymous. Hargraves v. Armco Foods, Inc., 894 S.W.2d 546, 548 (Tex.App.—Austin 1995, no writ). The term “unsound mind” refers to a legal disability, although it is not limited to persons who are adjudicated incompetent. Casu v. CBI Na-Con, Inc., 881 S.W.2d 32, 34 (Tex.App.—Houston [14th Dist.] 1994, no writ). The limitations period is tolled for persons of unsound mind for two reasons: (1) to protect persons without access to the courts and (2) to protect persons who are unable to participate in, control, or understand the progression and disposition of their lawsuit. Ruiz v. Conoco, Inc., 868 S.W.2d 752, 755 (Tex.1993); Hargraves, 894 S.W.2d at 548.

To prevail on the unsound mind tolling theory, Freeman had to produce either (1) specific evidence that would enable the court to find that he “did not have the mental capacity to pursue litigation” or (2) a fact-based expert opinion to that effect. See Grace v. Colorito, 4 S.W.3d 765, 769 (Tex.App.—Austin 1999, pet. denied); see also Porter v. Charter Med. Corp., 957 F.Supp. 1427, 1438 (N.D.Tex.1997) (applying Texas law).

Summary Judgment Evidence

To establish an unsound mind, Freeman’s response, to the motion for summary judgment relied on three doctors: (1) Dr. Charles Covert; (2) Sheila Jenkins, Ph.D.; (3) and Dr. Cyrus Sajadi.

The first and second doctors did not specifically opine that Freeman lacked the mental capacity to pursue litigation. First, Dr. Covert diagnosed Freeman with a “major depressive disorder with mood congruent psychotic features” and a “chronic pain syndrome from muscoskele-tal injuries.” Second, Dr. Jenkins stated that Freeman was “severely depressed” with reading and math disabilities. However, she stated that his “thought processes were logical and coherent,” and that he was “in the borderline range of intellectual functioning.” She also noted that Freeman could, without any assistance, dress himself, put his shoes on the correct feet, brush his teeth, bathe, tell time, know emergency telephone numbers, and understand denominations of money. Neither Dr. Covert nor Dr.

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Bluebook (online)
53 S.W.3d 710, 2001 Tex. App. LEXIS 5040, 2001 WL 840371, Counsel Stack Legal Research, https://law.counselstack.com/opinion/freeman-v-american-motorists-insurance-co-texapp-2001.