Lee-Benner Ex Rel. Mills v. Gergely (In Re Gergely)

186 B.R. 951, 1995 WL 573412
CourtUnited States Bankruptcy Appellate Panel for the Ninth Circuit
DecidedAugust 31, 1995
DocketBAP No. CC-94-1111-VJO. Bankruptcy No. LA 92-49989-AA. Adv. No. 93-01432-AA
StatusPublished
Cited by4 cases

This text of 186 B.R. 951 (Lee-Benner Ex Rel. Mills v. Gergely (In Re Gergely)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Appellate Panel for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lee-Benner Ex Rel. Mills v. Gergely (In Re Gergely), 186 B.R. 951, 1995 WL 573412 (bap9 1995).

Opinion

AMENDED OPINION

VOLINN, Bankruptcy Judge:

After the opinion was filed, appellant filed a motion for rehearing. The panel has reviewed and considered all of the additional pleadings from both the appellant and appel-lee. Taking note of these arguments we file this amended opinion in which we have made certain minor changes or deletions and discuss, in Part IV below, the primary contention of appellant relating to amendment of the original complaint. Consequently, we withdraw the opinion filed on June 12, Í995, and file in its stead this amended opinion.

I. Background

On May 23, 1982, the mother of Jordan Alexander Lee-Benner, Ms. Karen Mills, consulted with Dr. Robert Z. Gergely concerning the treatment and care he would provide during pregnancy and delivery of her child. Since Jordan was born on November 1, 1982, the professional consultation and care occurred between May 23 and that date. During pregnancy Dr. Gergely performed an amniocentesis. Jordan at birth was blind in one eye. Ms. Mills contended that the blindness was caused by misdirection of the amniocentesis needle which had pierced Jordan’s eye.

By statute (Cal.Fam.App. § 29, cited below) she had six years from birth to bring an action for malpractice on behalf of the child. On October 28, 1988, she filed a complaint entitled “Complaint for Damages for Personal Injury (Medical Negligence).” The complaint in its description of Dr. Gergely’s conduct spoke specifically in terms of negligence. In paragraph 9 of the complaint, the plaintiff stated that Dr. Gergely et al., “so negligently examined, diagnosed, treated and cared for the plaintiff, JORDAN ALEXANDER LEE-BENNER, causing Plaintiff to suffer permanent injuries.... ” The same paragraph stated that Dr. Gergely “failed to exercise that degree of skill, care and/or treatment common to medical providers treating patients in a like or similar circumstance, including, but not limited to, performing an unnecessary amniocentesis without proper informed consent....”

Paragraph 10 alleged the injuries arose “[a]s a direct and proximate result of the negligence of said defendants.... ”

Paragraph 7 of the complaint stated that: Defendants, and each of them, were the agents, servants, employees, co-conspirators, joint venturers and/or partners ... acting within the course, scope, purpose and authority of said agency and employment, conspiracy or relationship; that each and every Defendant, as aforesaid, when acting as a principal, was negligent in the selection and/or hiring of, and/or ratified the actions of each and every defendant. ...

This paragraph, while using the word “co-conspirators,” alleges no factual context for the use of the word as it might relate to any factor affecting the relationship of Dr. Gergely to the mother or to the child. In sum, in *954 characterizing Dr. Gergely’s conduct, the complaint speaks only to negligence.

The proceedings initiated by the complaint led to a trial and ultimately a tentative decision by the state court judge on November 1, 1989 (Jordan’s seventh birthday). This decision on page two concluded that “Each of plaintiffs theories of recovery (lack of informed consent and negligence) are viable.” On December 11, 1989, a judgment was entered accordingly against Dr. Gergely in the sum of $708,202.00, plus interest at 10%. There is no language in the tentative decision or the judgment which states expressly or by inference that Dr. Gergely’s wrongful action or inaction was intentional.

It turned out that Dr. Gergely’s insurance company was insolvent. Ultimately, on October 19, 1992, nearly ten years after Jordan was born, the debtor filed his bankruptcy, listing plaintiff as an unsecured creditor. On January 25, 1993, Jordan (through his mother, as Guardian ad litem) filed a “Complaint to Determine Dischargeability and to Object to the Discharge of the Debtor” (11 U.S.C. §§ 523 and 727). 1

The dischargeability allegations of the complaint refer to 11 U.S.C. § 523(a)(2)(A) for fraud; 2 § 523(a)(4) for breach of fiduciary duty; 3 and § 523(a)(6) for willful and malicious injury. 4

These allegations relating to intentional wrongs, stated for the first time some ten years after the critical event, bring us to the threshold issue, which is application of the statute of limitations. As noted, by statute California allows actions for personal injury to a fetus before or during birth to be brought no later than six years after the date of birth, in this ease, November 1,1988. The statute states in pertinent part:

A child conceived, but not yet born, is to be deemed an existing person, so far as may be necessary for its interest in the event of its subsequent birth; but any action by or on behalf of a minor for personal injuries sustained prior to or in the course of its birth must be brought within six years from the date of birth of the minor....

Cal.Fam.App. § 29 (West 1994) (formerly Cal.Civ.Proc.Code § 29, repealed 1994). 5

The original complaint, filed near the limit of this period, made no reference to an intentional tort nor to wanton or malicious conduct. Ultimately the state court judgment was entered, as indicated, on December 11, 1989. The state court judge found and concluded in his tentative decision that “Each of plaintiffs theories of recovery (lack of informed consent and negligence) are viable.”

It is clear that on the basis of the state court tentative decision and judgment, pursuant to the complaint, that the debt would have been dischargeable as matters stood on the date the judgment was entered in 1989 and on the date bankruptcy was filed. *955 Taken by itself, the judgment does not provide a basis for collateral estoppel in that the claim and the court’s ruling are not directed to any provision in § 523 relating to nondis-chargeability. Nor is Brown v. Felsen, 442 U.S. 127, 99 S.Ct. 2205, 60 L.Ed.2d 767 (1979), applicable here. Brown ruled that the doctrine of res judicata did not apply to the facts in that case, holding that where a creditor sued on certain causes of action (contract and fraud) which went to judgment only in the issue of contract, the separate cause of action for fraud could be pursued in a bankruptcy court discharge proceeding. 6

II. The Trial Court’s Ruling

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Bluebook (online)
186 B.R. 951, 1995 WL 573412, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lee-benner-ex-rel-mills-v-gergely-in-re-gergely-bap9-1995.