Masters v. San Bernardino County Employees Retirement Ass'n

32 Cal. App. 4th 30, 37 Cal. Rptr. 2d 860, 95 Cal. Daily Op. Serv. 937, 1995 Cal. App. LEXIS 91
CourtCalifornia Court of Appeal
DecidedJanuary 19, 1995
DocketE012014
StatusPublished
Cited by52 cases

This text of 32 Cal. App. 4th 30 (Masters v. San Bernardino County Employees Retirement Ass'n) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Masters v. San Bernardino County Employees Retirement Ass'n, 32 Cal. App. 4th 30, 37 Cal. Rptr. 2d 860, 95 Cal. Daily Op. Serv. 937, 1995 Cal. App. LEXIS 91 (Cal. Ct. App. 1995).

Opinion

Opinion

DABNEY, Acting P.

J.

Plaintiff and appellant Deborah Masters (appli-

cant) sued defendants San Bernardino County Employees Retirement Association (Association), the individual members of the Association’s retirement board, the board’s medical advisor and an administrator for the Association for alleged wrongful conduct in initially denying and failing to promptly award her a disability retirement pension. She alleged she was damaged in various ways by a delay of 19 months between the time she applied for and the time she was ultimately awarded the disability pension. The Association and the individual defendants demurred to applicant’s complaint, asserting governmental immunity and other grounds. The trial court sustained the demurrer without leave to amend and entered judgment for the Association and the other defendants. Applicant appeals. We affirm in part.

*35 Facts and Procedural History 1

On appeal after a demurrer is sustained without leave to amend, we deem all well-pleaded factual allegations of the complaint to be true, (Frances T. v. Village Green Owners Assn. (1986) 42 Cal.3d 490, 496, fn. 2 [229 CaLRptr. 456, 723 P.2d 573, 59 A.L.R.4th 447]; Alcorn v. Anbro Engineering, Inc. (1970) 2 Cal.3d 493, 496 [86 Cal.Rptr. 88, 468 P.2d 216].)

Applicant was employed as a custodian/housekeeper at the San Bernardino County Medical Center and was a member of the Association. Applicant applied for a disability retirement pension on April 9, 1989, alleging she had suffered a back injury at work. Applicant alleged she submitted medical reports of Dr. Brodie, Dr. Heppenstall, Dr. Watkin, Dr. Lobley and Dr. Dean in support of her application.

The Association’s administrator, Sylvia Miller, allegedly “caused to be withheld from consideration by the Association’s Medical Advisor” the medical reports substantiating applicant’s claim. 2 The medical adviser, without benefit of the reports and without himself examining applicant, reported to the board on August 23, 1989, that, although applicant was disabled, there was insufficient medical evidence to establish the service connection of the injury to applicant’s employment.

*36 On September 7, 1989, “the defendants” denied applicant’s application, on the ground of a lack of evidence of disability. Applicant alleged that, at that time, all the competent medical evidence clearly showed she was disabled and that the disability was service connected.

Applicant requested reconsideration of her application; the request was denied on November 2, 1989.

Applicant thereupon filed an administrative appeal from the decision denying her disability retirement. Defendants scheduled applicant for a medical evaluation by Dr. Lobely on June 18, 1990. Dr. Lobely reported on July 11, 1990, that applicant was disabled from her position. Applicant alleged defendants “did nothing” about Dr. Lobely’s report, and that she had several times requested prompt action on her claim.

On September 19, 1990, a hearing on applicant’s administrative appeal was held before a hearing officer. The report of Dr. Lobely and the other medical reports were all received in evidence at that time. Applicant asserts that all the medical reports “established the unanimous opinion of the doctors that [applicant] was disabled.” On October 15, 1990, the hearing officer issued findings of fact, conclusions and a recommendation in the case, reporting that applicant was disabled and that applicant’s claim “her employment contributed] to her incapacity was both real and measurable and substantial. . . . Although she may have had some other predisposing factors nevertheless her condition was brought about and precipitated by her work activities.” The hearing officer recommended that applicant’s appeal be granted and that she be awarded a service-connected disability retirement, effective as of the day after her last regular compensation. The Association on November 1, 1990, adopted the hearing officer’s report finding applicant entitled to a service-connected disability retirement. Applicant received her first disability pension check in early 1991.

Applicant thereafter sued the Association, Sylvia Miller, an administrator of the Association, Dr. Owen J. O’Connor, the medical adviser, and the nine *37 individuals who were members of the Association’s board of retirement, alleging causes of action for breach of fiduciary duty, promissory fraud, negligent misrepresentation, violation of federal due process rights under 42 United States Code section 1983, and intentional infliction of emotional distress.

The first cause of action, for breach of fiduciary duty, was apparently based on allegations that defendant Miller, the administrator, had “caused [applicant’s medical reports] to be withheld from consideration” by the medical advisor, who, in the absence of applicant’s medical evidence, apparently reported to the board that there was insufficient evidence of service-connected disability. Applicant further alleged the conclusion that the medical adviser “misrepresented the medical evidence concerning the causation of [applicant’s] disability,” although the complaint provides no allegations of fact to support or explain this conclusion.

Otherwise, the first cause of action simply details the progress of applicant’s application, from submission in April 1989, through the report of the medical adviser (Aug. 23,1989) and initial denial of her application (Sept. 7, 1989), to her requests for reconsideration (den. Nov. 2, 1989) and administrative appeal, culminating in a medical evaluation on June 18, 1990, in preparation for a hearing before a hearing officer (held Sept. 19, 1990) and ultimately an award of the disability pension on November 1, 1990. Applicant urged that defendants breached their fiduciary obligations in that they “failed ... to act on the application within a reasonable time,” and that they “failed ... to act reasonably, and not arbitrarily, in considering the medical evidence concerning [applicant’s] application.”

Applicant asserted that she suffered damages consisting of (a) anger, frustration, humiliation, pain, emotional distress and mental anguish, (b) $8,000 in attorney fees to process her application, (c) denial of the use of disability pension funds for 20 months, (d) the cost of borrowing funds, diminishment of her credit rating, and payments for private medical insurance while the disability pension was denied, and (e) bankruptcy. Applicant further alleged defendants breached their fiduciary duties maliciously so as to entitle her to punitive damages.

The second cause of action, for promissory fraud, was based on allegations that defendants told applicant her application would be ruled upon fairly and within three to five months, but that these representations were false.

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Bluebook (online)
32 Cal. App. 4th 30, 37 Cal. Rptr. 2d 860, 95 Cal. Daily Op. Serv. 937, 1995 Cal. App. LEXIS 91, Counsel Stack Legal Research, https://law.counselstack.com/opinion/masters-v-san-bernardino-county-employees-retirement-assn-calctapp-1995.