Kolb v. Texas Employers' Insurance Ass'n

585 S.W.2d 870
CourtCourt of Appeals of Texas
DecidedJuly 24, 1979
Docket8690
StatusPublished
Cited by55 cases

This text of 585 S.W.2d 870 (Kolb v. Texas Employers' Insurance Ass'n) 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
Kolb v. Texas Employers' Insurance Ass'n, 585 S.W.2d 870 (Tex. Ct. App. 1979).

Opinion

CORNELIUS, Chief Justice.

The appeal is from a summary judgment rendered against Ronald Kolb in his suit to set aside a worker’s compensation settlement agreement. Mr. Kolb injured his back on January 22, 1976, while he was employed by Kenneth Whitlock, Inc., a worker’s compensation subscriber whose coverage was provided by Texas Employers’ Insurance Association. Over the next few weeks he was examined by Drs. Swann, Zanetti and Barnes. Their reports essentially stated that he was not seriously injured but only had a lumbrosacral sprain. On June 23,1975, after a settlement conference attended by Mr. Kolb and his attorney, as well as representatives of the insurance carrier and the Industrial Accident Board, Mr. Kolb entered into a compromise settlement agreement by the terms of which he was paid $3,500.00 compensation, in addition to some $400.00 he had previously been paid, and was provided with one year’s future medical benefits. After the claim was settled, Mr. Kolb’s condition became worse. He saw another physician, Dr. Ross, who after diagnosing his condition as a herniated nucleus pulpus at lumbar 4 and lumbar 5 intervertebral disc level, performed surgery to correct the condition. In spite of the surgery, Dr. Ross concluded that Mr. Kolb was totally and permanently disabled. The insurance company does not controvert the fact that Mr. Kolb’s actual condition was much more serious than thought at the time his claim was settled.

The pleaded basis for Mr. Kolb’s suit was that, in making the settlement, he had relied upon representations concerning his *872 medical condition given to him by Drs. Barnes, Zanetti and Swann, all of whom were the agents of Texas Employers’ and that those representations were false.

Texas Employers’ moved for summary judgment. The motion was not based upon affidavits, but simply relied upon the pleadings, the settlement agreement, and deposition testimony by Mr. Kolb. Mr. Kolb presented an affidavit in opposition, but because it was presented some two months after the filing of the motion and was served on Texas Employers’ only three days prior to the date which had been set for hearing the motion, the trial judge ordered the affidavit stricken and rendered summary judgment in favor of Texas Employers’.

To succeed in a case of this type, the claimant must establish that (1) false representations concerning his claim or his medical condition were made by the carrier’s agents; (2) he believed such representations to be true; (3) he was materially induced by such belief to enter into the settlement agreement; and, (4) he has a meritorious claim for compensation in an amount greater than the amount paid. Graves v. Hartford Accident & Indemnity Co., 138 Tex. 589, 161 S.W.2d 464 (1942); Alvarez v. Employers’ Fire Ins. Co., 531 S.W.2d 218 (Tex. Civ.App. Amarillo 1975, no writ). Mr. Kolb contends that summary judgment was not proper in this case because genuine issues of fact exist as to each of those material elements of his cause of action. Texas Employers’ argues that even if genuine issues of fact exist as to the other elements of Mr. Kolb’s cause of action, his own deposition testimony establishes that he did not rely upon the representations of its physicians in agreeing to the settlement.

Texas Employers’, as a defendant moving for summary judgment on the whole case, had the negative burden to show as a matter of law that Mr. Kolb had no cause of action against it. It could discharge that burden only by showing, through competent summary judgment proof, that the cause of action was barred by some legal barrier, or that there was no genuine issue as to the existence of one or more of the material facts necessary to establish the cause of action. Tex.R.Civ.P. 166-A; 4 McDonald’s, Texas Civil Practice, Sec. 17.26.2, pp. 133, 134, and cases there cited.

As noted earlier, Texas Employers’ did not support its motion for summary judgment with affidavits, but relied principally upon the deposition testimony. While tacitly conceding that Mr. Kolb’s deposition itself does not conclusively negate the allegations that the physicians were its agents and that the representations of those physicians were factually incorrect, yet Texas Employers’ contends that the deposition testimony does conclusively establish that Mr. Kolb did not rely upon those representations, but relied instead upon the conclusions of physicians of his own choosing and upon the advice of his attorney. In support of this contention, Texas Employers’ points to cases such as M. L. Mayfield Petroleum Corporation v. Kelly, 450 S.W.2d 104 (Tex. Civ.App. Tyler 1970, writ ref’d n. r. e.) and Marcus v. Kinabrew, 438 S.W.2d 431 (Tex. Civ.App. Tyler 1969, no writ), which apply the rule that where a person makes his own investigation of the facts, or relies upon expert opinions he has himself obtained, he cannot sustain a cause of action based upon misrepresentations made by others. We agree with the rule stated by those cases, but we cannot agree that Mr. Kolb’s deposition testimony conclusively establishes that he made his own investigation or that he did not rely upon the reports of the physicians who allegedly were the agents of Texas Employers’. It is true that, at one point in his deposition, Mr. Kolb stated that he agreed to settle the case because of the opinion he had from his doctor that he was “okay”, but it is not clear from the deposition which doctor he meant, and in his affidavit he clearly states that in making the settlement he relied upon the representations of the named doctors whom he alleged were agents of Texas Employers’. In this connection it must be remembered that, for the purpose of a motion for summary judgment, the opponent does not have the burden to establish that there is an issue of *873 fact; the movant has the burden to conclusively negate the existence of one or more of the essential facts necessary to sustain the opponent’s cause of action. In addition, the court must accept as true all evidence which tends to support the opponent’s contentions, and must resolve in his favor all conflicts in his testimony or in other summary-judgment evidence, giving him the benefit of all intendments reasonably deducible in his behalf. 4 McDonald’s, Texas Civil Practice, Sec. 17.26.12, p. 172. Moreover, summary judgment should not be granted when the issues are inherently those for a jury or trial judge, as' in cases involving intent, reliance, reasonable care, uncertainty and the like. Ibid., Sec. 17.26.-12, p. 177. And, a claimant should not be deprived of his day in court if there is the slightest doubt as to the truth of a material allegation. Ibid., Sec. 17.26.12, p. 175. The fact that Mr. Kolb was represented by an attorney would not necessarily defeat his cause of action. He was not attempting to avoid the settlement because of misrepresentations of law or of the legal consequences of the agreement, but because of misrepresentations of his medical condition by agents of the insurance carrier.

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Bluebook (online)
585 S.W.2d 870, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kolb-v-texas-employers-insurance-assn-texapp-1979.