Nelson, Anvil v. QVS, Inc.

2023 TN WC App. 11
CourtTennessee Workers' Compensation Appeals Board
DecidedMarch 22, 2023
Docket2021-06-1121
StatusPublished

This text of 2023 TN WC App. 11 (Nelson, Anvil v. QVS, Inc.) is published on Counsel Stack Legal Research, covering Tennessee Workers' Compensation Appeals Board primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nelson, Anvil v. QVS, Inc., 2023 TN WC App. 11 (Tenn. Super. Ct. 2023).

Opinion

FILED Mar 22, 2023 10:55 AM(CT) TENNESSEE WORKERS' COMPENSATION APPEALS BOARD

TENNESSEE BUREAU OF WORKERS’ COMPENSATION WORKERS’ COMPENSATION APPEALS BOARD

Anvil Nelson, Jr. ) Docket No. 2021-06-1121 ) v. ) State File No. 26092-2021 ) QVS, Inc., et al. ) ) ) Appeal from the Court of Workers’ ) Heard February 22, 2023 Compensation Claims ) via Microsoft Teams Kenneth M. Switzer, Chief Judge )

Affirmed and Remanded

In this appeal, the employer contends the trial court erred when it disqualified counsel from joint representation of the employer and its insurer and ordered the insurer to retain independent counsel to represent the employer. The alleged injured worker, who is also the owner and president of the employer, filed a motion seeking to disqualify defense counsel altogether or, in the alternative, to compel the retention of independent counsel for the employer, asserting there is a concurrent conflict of interest. The court concluded a conflict existed, disqualified counsel from representing the employer, and ordered the insurer to hire independent counsel to represent the employer. The employer has appealed. Having reviewed the record on appeal, we affirm the trial court’s order disqualifying counsel from representing the employer and remand the case.

Judge Pele I. Godkin delivered the opinion of the Appeals Board in which Judge Meredith B. Weaver joined. Presiding Judge Timothy W. Conner filed a separate opinion concurring in part and dissenting in part.

Adam C. Brock-Dagnan, Knoxville, Tennessee, for the employer-appellant, QVS, Inc.

Steven Fifield, Nashville, Tennessee, for the employee-appellee, Anvil Nelson, Jr.

Factual and Procedural Background

Anvil Nelson, Jr. (“Employee”), owner and President of QVS, Inc. (“Employer”), asserts he sustained injuries arising out of and in the course and scope of his employment

1 when he tripped over a pallet and fell, landing on his face. 1 Employee was transported to Erlanger Hospital where he received medical treatment and, two days later, underwent multi-level cervical spine fusion surgery. 2 Employer’s workers’ compensation insurer, Wesco Insurance Company (“Insurer”), denied the claim and provided no workers’ compensation benefits.

On February 1, 2022, Employee filed a petition for workers’ compensation benefits, asserting his claim was wrongfully denied. He requested medical treatment, reimbursement for and payment of medical bills, and temporary total disability benefits. The day after the trial court entered an order setting discovery deadlines, Employee forwarded correspondence to Insurer’s third-party administrator, AmTrust North America, “in [his] capacity as the President and Owner of QVS, Inc., not in [his] capacity as the injured worker.” In that correspondence, he asserted it was Employer’s position that, “since the date of the injury, March 3, 2021, . . . this claim should be accepted.” Employee further stated:

I understand that you disagree and have denied the claim. I believe this is a clear conflict between QVS, Inc. and AmTrust North America/Wesco Insurance Company. I am formally requesting that conflict counsel be hired and assigned to represent QVS, Inc. in the . . . claim. I am not sure why this has not already been done, so I request that conflict counsel be brought in as quickly as possible after your receipt of this letter.

On October 24, Employee propounded requests for admission to Insurer and AmTrust North America, as well as requests for admission to Employer. 3 On October 26, counsel for Insurer confirmed receipt of Employee’s correspondence requesting conflict counsel and provided the following response:

I am in receipt of your client’s request for conflict counsel. However, after examining QVS, Inc.’s policy language and communicating with my client, we have elected to move forward with [Employee’s] deposition and independent medical examination. I have enclosed a notice of deposition and will provide you with an examination date within the next few business days.

1 The record indicates the corporation was dissolved at some point after the alleged work-related accident. 2 There are no medical records contained in the record; therefore, we glean the factual history of the claim from the documents included in the technical record. 3 Thus, Employee, in his capacity as the worker alleging an injury, served requests for admission upon Employer, for which he is the purported corporate representative. 2 In the letter, Insurer’s counsel also assured Employee that his client would “keep an open mind” regarding Employee’s request for conflict counsel and “reconsider said request upon new information.”

On November 1, Insurer’s counsel filed a motion to quash Employee’s requests for admission, contending, in part, that Employer and Insurer are “indistinguishable” and that Employee’s discovery requests were intended “to create a conflict of interest where one does not exist.” On November 4, Employee, in his capacity as both Employee and owner of Employer, filed his response in opposition to Insurer’s motion to quash, asserting that the requests for admission propounded were “proper under the Rules of Civil Procedure, are relevant to the issues involved in this litigation, and are in no way frivolous.”

That same day, Employee filed a motion to disqualify defense counsel entirely or, in the alternative, to compel the Insurer to retain independent counsel for Employer. In his motion, Employee argued that a conflict existed because Insurer and/or its third-party administrator had denied his claim, contrary to the wishes of Employer. Employee further argued that Insurer had refused to provide independent counsel when Employee, acting in his capacity as Employer, lodged a written request. 4 Employee attached the Rule 72 Declaration of Marco Sous, an individual who was working alongside Employee when he was injured, as one of the exhibits to his motion. In his affidavit, Mr. Sous stated that Employee “had been fine” prior to the fall and that he “observed [Employee’s] left foot trip over a pallet causing him to fall face down to the concrete floor.” Mr. Sous stated, “I specifically remember that [Employee] tripped over the pallet. Stated another way, the pallet caused [Employee’s] fall and injury.” Mr. Sous asserted that, when he was interviewed about the incident, he told the insurance adjuster that he witnessed Employee trip over the pallet and fall face down to the floor.

The Rule 72 Declaration of Employee was also attached as an exhibit to his motion, wherein he stated that he was the owner and president of QVS, Inc., in addition to being a covered employee under his workers’ compensation policy. Employee asserted that in his capacity as owner and president of the company, counsel for Insurer was also acting as his attorney and “despite being my lawyers, no [attorney] has attempted to obtain any information from [Employer] or made any effort to involve the company in any aspect of the claim, despite purporting to represent the Employer.” Employee further stated that counsel had noticed him to a deposition and was working “solely for the benefit of its other clients in this matter.” Employee reiterated his request for conflict counsel and confirmed he had not “signed any written waiver of the ongoing conflict of interest or provided written consent to be represented by [counsel for Insurer] while the conflict exists.”

4 Counsel for Insurer asserted that its initial decision not to provide conflict counsel was based upon policy language. During oral argument, counsel clarified that Insurer had provided only portions of the policy language at the time the decision was made; however, neither the policy nor relevant excerpts from the policy were offered into evidence. 3 In its response to Employee’s motion, Insurer asserted that no conflict existed.

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Cite This Page — Counsel Stack

Bluebook (online)
2023 TN WC App. 11, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nelson-anvil-v-qvs-inc-tennworkcompapp-2023.