Giles v. Bozeman Public Schools

849 P.2d 180, 257 Mont. 289, 50 State Rptr. 273, 1993 Mont. LEXIS 70
CourtMontana Supreme Court
DecidedMarch 18, 1993
Docket91-549
StatusPublished
Cited by2 cases

This text of 849 P.2d 180 (Giles v. Bozeman Public Schools) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Giles v. Bozeman Public Schools, 849 P.2d 180, 257 Mont. 289, 50 State Rptr. 273, 1993 Mont. LEXIS 70 (Mo. 1993).

Opinion

JUSTICE GRAY

delivered the Opinion of the Court.

Tom Giles appeals the findings of fact, conclusions of law, and judgment of the Workers’ Compensation Court refusing to set aside a full and final compromise settlement agreement on the basis of a mutual mistake of material fact. EBI/Orion Group cross-appeals the court’s conclusion that the claim was not barred by the statute of limitations. We affirm.

On June 26, 1987, Tom Giles (Giles) repaired an overhead light ballast in the course of his employment as a custodian with Bozeman Public Schools. While dismounting a ladder, Giles swung his leg over a desk in order to place his foot on the floor. Giles felt a sharp pain shoot through his back and, later, a tingling sensation in his legs. Over the next several days Giles’ feet became completely numb; the numbness extended above his knees.

Giles reported the accident as an industrial injury. Giles’ employer was enrolled under Compensation Plan No. 2 of the Workers’ Compensation Act. Its insurer, EBI/Orion Group (EBI), accepted liability for the injury and paid $220.60 in weekly temporary total disability benefits.

Giles sought medical treatment and diagnosis from a number of physicians during the subsequent seventeen months. They were unable to conclusively diagnose his medical condition. Dr. Curt G. Kurtz, Giles’ family physician, assessed his condition as a nerve irritation secondary to a twisting motion, but noted that Giles should be evaluated for multiple sclerosis (MS) if the symptoms persisted. *291 According to neurologist Herbert E. Prussack, the symptoms suggested a bilateral nerve irritation, possibly caused by a midline disc protrusion. Dr. Donald See, a physiatrist, conducted neurologic, orthopedic, and electrodiagnostic examinations of Giles’ spine and extremities; the results were normal. Dr. James Johnson, a neurologist, had an MRI performed on Giles’ spine. The MRI indicated possible early disc degeneration, but did not reveal disc herniations. Neurologist James Harkness was unable to diagnosis Giles’ medical condition definitively.

In September of 1988, Giles requested a lump sum payment from EBI in the amount of $45,920 as a full and final settlement of permanent partial disability benefits. After subsequent negotiations, the parties settled the claim for a lump sum payment of $40,008.48. The Workers’ Compensation Court approved the full and final compromise settlement agreement on December 20,1988.

After the settlement was reached, Giles’ symptoms became more severe. Dr. Harkness referred Giles to Dr. Dale Peterson, a neurologist. On August 8, 1989, Dr. Peterson diagnosed Giles’ medical condition as MS based on the results of an MRI of the brain. The MS was mild to moderate in severity.

On August 9,1990, Giles requested that EBI reopen the settlement agreement; EBI refused. Giles subsequently filed a petition with the Workers’ Compensation Court requesting that the settlement agreement be set aside due to a mutual mistake of material fact. Giles alleged that at the time of settlement the parties mistakenly believed that Giles had injured his lower back and that he had obtained maximum medical improvement. In addition to the issues related to mutual mistake, the issues presented to the Workers’ Compensation Court for resolution included whether the injury caused the MS or caused it to become symptomatic, whether the MS was a compensable injury, and whether Giles’ petition was barred by the statute of limitations.

The hearing examiner found that there was no mutual mistake of fact regarding Giles’ medical condition. Furthermore, the examiner concluded that even if a mutual mistake existed regarding the MS, the mistake was not material to the settlement agreement because of the complete absence of medical testimony causally linking the multiple sclerosis to the injury. Finally, the examiner concluded that Giles’ petition was not barred by the statute of limitations. On October 25, 1991, the Workers’ Compensation Court adopted the *292 examiner’s findings of fact and conclusions of law and entered judgment accordingly. This appeal follows.

A full and final settlement agreement is a contract which can be set aside, under principles of contract law, if the parties to the agreement were operating under a mutual mistake of fact. Rath v. St. Labre Indian School (1991), 249 Mont. 433, 439, 816 P.2d 1061, 1064. A mistake of fact is statutorily defined:

Mistake of fact is a mistake not caused by the neglect of a legal duty on the part of the person making the mistake and consisting in:
(1) an unconscious ignorance or forgetfulness of a fact, past or present, material to the contract; or
(2) belief in the present existence of a thing material to the contract which does not exist or in the past existence of such a thing which has not existed.

Section 28-2-409, MCA. The statutory definition clearly requires that a mutual mistake concern a material fact before it can serve as a basis for setting aside the settlement agreement. Accordingly, we focus on whether the Workers’ Compensation Court erred in concluding that any mutual mistake regarding the MS would not be material to the settlement agreement because no causation was established between the MS and the injury. Because of our resolution of this issue, we need not address the remaining issues.

The Workers’ Compensation Court determined that even if Giles established a mutual mistake regarding his condition at the time the settlement agreement was entered into, the complete absence of medical testimony establishing a causal link between the MS and the injury precluded the reopening of the settlement agreement. According to the court, Dr. Peterson provided the only medical testimony regarding causation. He testified that it is not medically possible that the injury caused the MS to become symptomatic. Without a showing that the injury caused the MS, the court concluded that a mutual mistake regarding the MS was not material to the agreement and, therefore, would not serve as a basis for reopening the agreement.

Our standard for reviewing a decision of the Workers’ Compensation Court is to determine whether substantial evidence supports its findings and conclusions. When substantial evidence exists to support the Workers’ Compensation Court, this Court cannot overturn the decision. Eastman v. Transport, Ins. (1992), [255 Mont. 262], 843 P.2d 300, 302, 49 St.Rep. 936, 937. Accordingly, we are limited *293 to determining whether substantial evidence exists in the record to support the Workers’ Compensation Court’s conclusion of lack of causation.

Dr. Peterson provided the only medical evidence regarding whether Giles’ injury caused his MS. That testimony is as follows:

Q. [By Giles’ attorney] Is it medically possible that Tom’s accident on June 26, 1987, made his MS symptomatic?
A. No.
Q. Okay.

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Bluebook (online)
849 P.2d 180, 257 Mont. 289, 50 State Rptr. 273, 1993 Mont. LEXIS 70, Counsel Stack Legal Research, https://law.counselstack.com/opinion/giles-v-bozeman-public-schools-mont-1993.