Sprague v. Morgan

185 Cal. App. 2d 519, 8 Cal. Rptr. 347, 1960 Cal. App. LEXIS 1533
California Court of Appeal·Decided October 20, 1960·No. Civ. 19141·Published·Cited by 12 cases

Opinion

McGOLDRICK, J. pro tem. *

Barbara Lee Sprague instituted this action against attorney Victor H. Beauzay for general damages in the amount of $31,000, plus special damages in an undetermined amount, allegedly resulting from defendant’s negligence and unskillful handling of plaintiff’s claim before the Industrial Accident Commission, and his wilful and fraudulent concealment of said negligence, all of which caused her to lose medical treatment and awards of money for. her injuries, to which she claimed she would otherwise have been entitled. The court, sitting without a jury, found in favor of defendants and from this judgment plaintiff appeals.

It appears that on January 1, 1949, appellant suffered a back injury when she slipped and fell while pursuing her occupation of a ■ waitress. On December 13, 1951, the Industrial Accident Commission awarded her a permanent disability rating of 31 per cent, the amount of which was subsequently paid. On or about August 4, 1953, appellant consulted respondent, stating to him that her condition had *521 worsened and requested he secure an order for further medical treatment from the commission. On November 20, 1953, respondent filed a petition for such treatment, but made no request then or at any time for a change in her permanent disability rating, nor did he discuss the matter with her. The commission heard the petition for further medical benefits on May 12, 1954, and denied the same on July 27, 1954. Respondent acted as appellant’s counsel throughout the period from about August 4, 1953, to about August 7, 1954. She subsequently retained another attorney who on February 25, 1955, filed a petition before the Industrial Accident Commission requesting an increase in the 31 per cent permanent disability rating. The commission denied this petition for lack of jurisdiction on March 15, 1955, and the Supreme Court affirmed the commission’s act on appeal. (Sprague v. Industrial Acc. Com., 46 Cal.2d 414 [296 P.2d 548].)

The complaint in the instant case was filed on August 3, 1956. At the trial, respondent testified that when appellant had first consulted him, he was aware of the five-year limitation in connection with the petition for permanent disability rating; that because of her statements to him, he had believed that since the original disability rating her condition had grown worse. His explanation for not filing a petition for a change in the rating was that it was his opinion based on the state of the law as it then appeared, that it would be futile to do so until the issue of appellant’s eligibility for further medical treatment had been resolved. He postponed the making of such application in the belief that a decision on the request for further medical benefits was prerequisite thereto; that it was his opinion that the filing of the latter petition would protect his client’s position with regard to the former, despite the five-year limitation.

The trial court found that respondent had exercised reasonable skill and diligence in advising appellant and taking the action which he did before the Industrial Accident Commission; that had a petition for increased disability rating been filed, such a petition would have been denied for the reason that a permanent disability rating based on the then factors of disability would have been less than 31 per cent; that the instant action was barred by the statute of limitations (Code Civ. Proc., § 339, subd. 1), said statute not having been tolled by any fraud or concealment on the part of the respondent. It is appellant’s contention that the trial court erred in reaching each of these conclusions.

*522 Section 5804 of the Labor Code provides that no award of compensation shall be rescinded, altered or amended after five years from the date of the injury. Section 5410 of the same code provides that within said five-year period, an injured employee may institute proceedings for the collection of compensation upon the ground that the original injury has caused new and further disability. The five-year period in appellant’s case expired on January 1, 1954. This would fall within the time she was retaining respondent to represent her.

Appellant’s first argument is directed to the finding of the court that respondent had exercised reasonable skill in advising appellant and in taking the action which he did before the Industrial Accident Commission. She urges that since respondent was admittedly aware that the five-year period of limitations was applicable to her claim for an increased permanent disability rating, that he neither filed a petition therefor nor advised her of the existence of said limitation despite the fact that the period had expired during the time in which he represented her. This she contends is a “classic case of negligence.” Respondent’s reasons for failing to file such a petition prior to the expiration of the time provided for appears to be based upon his mistaken view of the law. It was his opinion that if additional medical treatment had been allowed and the contemplated surgery had been effective in relieving appellant’s worsened condition, any interim change in her rating would have had to be changed again.

In Douglas Aircraft Co., Inc. v. Industrial Acc. Com., (31 Cal.2d 853 [193 P.2d 468]) decided in 1948, just five years prior to the time when respondent reached his what now appears to be erroneous conclusion, the court held that the Industrial Accident Commission did not exceed its jurisdiction in making an award for permanent disability more than 245 weeks from the date of injury where, before the expiration of such period, the employee filed his application for adjustment of claim with a request for permanent disability rating, where the commission in its original award erroneously assumed that the prescribed period had not elapsed and failed to find on the issue of permanent disability and where the award for permanent disability, made after the employee filed a request for further hearing, was the first decision of the commission on that issue. The court upheld the latter determination as against the argument that the commission had acted without jurisdiction even though said determination *523 was reached at a time subsequent to the expiration of the period prescribed by sections 5804 and 5410 of the Labor Code.

It is elementary that an attorney may be held liable to his client for damages resulting from his failure to exercise ordinary judgment, care, skill and diligence in the performance of the task he undertakes. However, the degree of the care and skill thus required is only that which a lawyer of ordinary skill and capacity commonly shows and exercises. (6 Cal.Jur.2d, § 146, p. 325.) “It has frequently been held that a lawyer is not liable for lack of knowledge as to the true state of the law where a doubtful or debatable point is involved.” (45 A.L.R.2d, p. 15.)

Appellant has furnished us with no authorities that had been decided at the time in question which would necessarily have disabused respondent of his legal analysis. Moreover, that this point is debatable or in doubt at the time clearly appears from Mr.

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Sprague v. Morgan, 185 Cal. App. 2d 519, 8 Cal. Rptr. 347, 1960 Cal. App. LEXIS 1533 (Cal. Ct. App. 1960).

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