Perrillo v. Picco & Presley

70 Cal. Rptr. 3d 29, 157 Cal. App. 4th 914, 2007 Cal. App. LEXIS 1999, 1 Cal. WCC 1013
CourtCalifornia Court of Appeal
DecidedDecember 6, 2007
DocketB182561
StatusPublished
Cited by6 cases

This text of 70 Cal. Rptr. 3d 29 (Perrillo v. Picco & Presley) 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
Perrillo v. Picco & Presley, 70 Cal. Rptr. 3d 29, 157 Cal. App. 4th 914, 2007 Cal. App. LEXIS 1999, 1 Cal. WCC 1013 (Cal. Ct. App. 2007).

Opinion

Opinion

MALLANO, Acting P. J.

Employees who are injured in the course of employment are typically barred by the exclusive remedy doctrine from suing their employer for the injury and are limited to workers’ compensation. (Lab. Code, §§ 3600, subd. (a), 3602; section references are to the Labor Code unless otherwise indicated.) The employees may, however, bring a civil suit against any person other than their employer who proximately caused the injury. (§ 3852.)

Here, the employees pursued relief in both forums: They filed individual workers’ compensation cases and together brought a civil suit against a third party. The employees’ attorneys retained a psychologist as an expert. He wanted to be paid in advance. Instead, the attorneys agreed to pay him from the recovery in the civil suit. The psychologist evaluated the employees. He filed his bills in the workers’ compensation cases. The employers’ carriers made payments on some of the bills.

The civil suit settled. The psychologist expected to receive the unpaid balance on his bills, but the attorneys refused to pay, asserting that the exclusive remedy doctrine barred payment out of the settlement. The psychologist then withdrew his remaining bills from the workers’ compensation cases and filed this action against the attorneys, seeking payment for his services. A jury found in his favor. We reverse, concluding that, because the psychologist’s work was compensable through the workers’ compensation system, he had no right to payment in the civil suit.

*920 I

BACKGROUND

The following facts are taken primarily from the evidence presented at trial, viewed in the light most favorable to the prevailing party. (See Estate of Leslie (1984) 37 Cal.3d 186, 201 [207 Cal.Rptr. 561, 689 P.2d 133].)

In 1996, several individuals filed suit against Bechtel Group, alleging that while working as employees of other companies, they had sustained injuries at Elk Hills Naval Petroleum Reserve No. 1 (Elk Hills) due to Bechtel’s toxic contamination of the site (Fanska v. Bechtel Group (Super. Ct. S.F. City & County, 1996, No. 975205) {Bechtel suit)). Some of the employees’ wives joined in the Bechtel suit, alleging claims for loss of consortium. The employees and wives (collectively, Bechtel plaintiffs) were represented by Gregory Picco and Eileen McGruder, with the firm of Picco & Presley, as well as Joseph Iacopino and Michael Goch (collectively, attorneys or civil suit attorneys).

The employees also filed workers’ compensation cases. In those proceedings, the employees were represented by Margaret Presley, also with Picco & Presley. Because the wives’ claims for loss of consortium were not compensable through workers’ compensation, they sought relief only in the civil suit.

The Bechtel plaintiffs retained Cranford Scott, M.D., as a medical expert. For the workers’ compensation cases, Dr. Scott performed physical examinations and medical tests on the employees. He provided written reports to Presley, outlining each employee’s work history and assessing whether the employee had any diseases that might be associated with working at Elk Hills. In his practice, Dr. Scott would sometimes recommend that an employee see a specialist to obtain additional support for a workers’ compensation claim.

Some of the Elk Hills employees suffered from memory impairment, cognitive dysfunction, numbness, or dizziness, leading Dr. Scott to conclude that a neurological evaluation was appropriate. In that regard, he had lunch with Richard J. Perrillo, a neuropsychologist, and mentioned that the Elk Hills employees might benefit from his involvement. Later, Dr. Scott recommended that Attorney McGruder have Dr. Perrillo examine the employees. When Dr. Scott was asked at trial, “So every person that you referred over to Dr. Perrillo’s office was strictly for workers’ compensation cases,” he answered, “That is correct.”

Dr. Scott also participated in preparing summaries of his workers’ compensation reports for submission in the civil suit. The summaries, commonly *921 called physician statements, were drafted in large part by the civil suit attorneys, but Dr. Scott would review and sign them.

From the outset, Dr. Scott understood he would be paid through the workers’ compensation system, not the civil suit, for the services he provided to the employees. In Dr. Scott’s words, “[W]hen you see workers’ comp, patients, you only get paid once. . . . You submit a bill to workers’ comp. . . . [][] You are not supposed to get paid by the civil [suit] if you get paid by workers’ comp.”

Dr. Scott knew that the payment arrangement for the wives would be different because they had no workers’ compensation cases. He evaluated them on a “personal injury basis.” To get paid with respect to the wives, Dr. Scott had each one sign a “civil hen,” which, as of 1998, provided in part: “To Attorney: [][] I hereby authorize and direct you, my attorney to pay directly to said doctor such sums as may be due and owing him for medical service rendered me both by reason of this accident and by reason of any other bills that are due his office . . . and to withhold such sums from any settlement, judgment or verdict which may be paid to you, my attorney, or myself as a result of the injuries for which I have been treated or injuries in connection therewith.

“I fully understand that I am directly and fully responsible to said doctor for all medical bills submitted by him for service rendered and that this agreement is made solely for said doctor’s additional protection and in consideration of his awaiting payment. I further understand that such payment is not contingent on any settlement, judgment, or verdict by which I may eventually recover said fee.” Each lien was signed by the wife and McGruder.

In the spring of 1998, McGruder called the director of Dr. Perrillo’s office, Keith Whiteman. She explained that her firm was working on a case involving a number of patients, mostly men, who had been exposed to chemicals in the process of cleaning oil wells. Some of their wives had been harmed through secondary exposure, primarily through contact with the men’s clothing. McGruder said there might be a workers’ compensation component to the litigation. She wanted Dr. Perrillo to serve as an expert. Whiteman replied that Dr. Perrillo did not take workers’ compensation cases but would be happy to prepare the paperwork so the patients could use it in both the civil suit and the workers’ compensation cases. Whiteman knew that it would be difficult to get paid “up front” and that Dr. Perrillo would have to take a civil lien. He said he would talk to Dr. Perrillo about taking the case.

Whiteman relayed this information to Dr. Perrillo, who then spoke directly with McGruder. They discussed the civil suit and the workers’ compensation *922 cases. Perrillo said he would do a neuropsychological profile on the men and a psychological profile on the women. The profile for the men would cost approximately $5,000 to $7,000, and for the women, around $3,000.

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Cite This Page — Counsel Stack

Bluebook (online)
70 Cal. Rptr. 3d 29, 157 Cal. App. 4th 914, 2007 Cal. App. LEXIS 1999, 1 Cal. WCC 1013, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perrillo-v-picco-presley-calctapp-2007.