Ricks v. Teslow Consolidated

512 P.2d 1304, 162 Mont. 469, 1973 Mont. LEXIS 552
Montana Supreme Court·Decided July 26, 1973·No. No. 12419·Published·Cited by 27 cases

Opinions

MR. JUSTICE CASTLES

delivered the Opinion of the Court.

This is an appeal from an amended judgment of July 30, 1971, and a supplementary judgment entered on October 17, 1972, entered by the district court in Gallatin County on findings of fact and conclusions of law in favor of a claimant for workmen’s compensation.

[471] Through a hearing before the Industrial Accident Board on June 3, 1970, claimant Jimmy A. Ricks sought workmen’s compensation, based upon his claim for compensation which had been filed with the Board over three years and seven month after the date of his accident. The Industrial Accident Board (hereinafter called the Board) denied compensation.

Claimant appealed to the district court and was awarded compensation for 500 weeks, at the rate of $50 per week, payable in a lump sum. Subsequently, the district court entered an amended order nunc pro tunc which awarded compensation for a period not to exceed 500 weeks and deleted the provision for payment in a lump sum. Defendants appealed the amended judgment to this Court.

The appeal resulted in a per curiam order, dated February 7, 1972, wherein this Court stated:

“IT IS ORDERED that the cause be remanded to the State Industrial Board and that said Board conduct a hearing into the element of estoppel based upon the action or inaction of the attorneys for Teslow Consolidated while representing claimant’s interests.”

A second hearing was held before the Board on May 19, 1972, pursuant to this Court’s order. On June 7, 1972, the hearings officers entered a memorandum opinion and findings of fact and conclusions of law denying compensation. The decision of the hearings officer was adopted by the Board by order dated July 12, 1972.

On claimant’s second appeal to the district court, that court entered additional findings of fact and conclusions of law and a supplementary judgment which reversed the decision of the Board and awarded compensation for a period not to exceed 500 weeks. Defendants appeal from the district court’s amended judgment of July 30, 1971, and from the court’s supplementary judgment of October 17, 1972.

The sole issue here is: Did the district court err in reversing the decision of the Board and in entering judgment for payment of 500 weeks of workmen’s compensation?

[472] On or about April 27, 1966, while in the employ of Teslow Consolidated, claimant Jimmy A. Ricks sustained an accidental injury in the nature of a puncture wound below his left patella. He also complained of a foreign body in his right eye. The knee was cleansed and dressed by Dr. J. M. Brooke of Ronan, Montana, and claimant’s eye was examined, but no foreign body was found. Dr. Brooke indicated claimant would possibly be off work one day, but would not incur any permanent disability.

On April 29, 1966, Ricks was seen by Dr. A. L. Yadheim of Bozeman, who indicated Ricks would be partially disabled for two weeks. Ricks was seen periodically following April 29, 1966, by Dr. Yadheim and ultimately by Dr. Francis Kelly, an orthopedic surgeon, in consultation on February 10, 1967, following which physical therapy was recommended. Dr. Kelly diagnosed Rick’s difficulty as an inflammation of the left kneecap, termed chondromalacia patella, involving the back surface lining of the kneecap and he injected the knee several times with cortisone.

Sometime after August 1, 1966, Ricks contacted Mr. H. A. Bolinger, an attorney and stockholder for two of the four Teslow Companies that owned Teslaw Consolidated, who then was preparing a suit for damages against the other party or parties involved in the accident. At the time of either the first or second visit with Mr. Bolinger, Ricks engaged Bolinger to look after his legal interests in connection with the accident. Ricks was made a party plaintiff in the suit for damages along with his employer, Teslow Consolidated. This suit was eventually settled to the advantage of plaintiffs, with Ricks receiving a net amount (after attorneys’ fees and costs of some $4,100 to $4,700) of $8,800 to $8,900.

During the statutory time for filing a claim for compensation there was only one attorney (Mr. Bolinger) for Teslow Consolidated involved with claimant Ricks. Two other attorneys entered the case at varying times later, but neither was in the case within one year after the accident. Mr. Andriola became involved when he became associated with Bolinger in July or August of 1967. [473] Mr. Wellcome, also upon becoming associated with Mr. Bolinger, was not involved until 1969.

On December 1, 1969, over three years and seven months after the date of the accident, Ricks filed a claim for workmen’s compensation.

Defendants, Argonaut Insurance Co., paid medical benefits through May 20, 1970, totaling $231. This sum represents all medical bills submitted on the claim with the exception of one bill from Dr. Kelly in the amount of $25 for a report to the Department of Labor and Industries in the state of Washington.

On April 5, 1971, the Board entered its first findings of fact and conclusions of law. In its conclusions numbered II and III, the Board held specifically:

“II. That the claimant filed a claim for compensation after the statutory period as set forth in Section 92-601, R.C.M. 1947, had expired.

“III. That the evidence is insufficient to establish that the djefendant carrier because of their actions in this instant case are equitably estopped from raising the defense of the statute of limitations.”

Upon the first appeal the matter was submitted to the district court on the transcript from the Industrial Accident Board and no new evidence was offered.

On June 23, 1971, the district court entered its findings of fact, and conclusions of law, reversing the Board. As a basis of reversal, the court held that defendant Argonaut Insurance Co. was equitably estopped from raising the defense of the statute of limitations, as set forth in section 92-601, R.C.M. 1947. The court further held that defendant Argonaut Insurance Co. had a duty to obtain a claim for compensation from the plaintiff and to advise him it must be filed within one year from the date of the accident.

The facts upon which the court based its conclusions relate to the actions of Argonaut’s agent, George Wood. The court found that Wood had a certain expertise in the workmen’s compensation field and that his office normally followed a procedure of [474] sending a claim for compensation form to a claimant and advising claimant he must file his claim within twelve months of the date of the accident in cases where the physician’s first report of the employer’s report indicates a loss of time in excess of seven days. The court found this procedure was not followed in the instant case. It further found that Wood failed to send a copy of Dr. Yadheim’s first report to the Board, although Wood normally would have done so. The court did not explain how the failure to forward Dr. Yadheim’s report in any way prejudiced or affected the claimant. Finally, the court based its conclusion of equitable estoppel on the fact that defendant Argonaut Insurance Co. had “notice of the continuing difficulty which the plaintiff was experiencing by and through medical reports # * *

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Ricks v. Teslow Consolidated, 512 P.2d 1304, 162 Mont. 469, 1973 Mont. LEXIS 552 (Mo. 1973).

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