Tegman v. Accident & Medical Investigations, Inc.

107 Wash. App. 868
CourtCourt of Appeals of Washington
DecidedAugust 13, 2001
DocketNos. 45837-0-I; 45885-0-I; 45886-8-I; 46085-4-I
StatusPublished
Cited by8 cases

This text of 107 Wash. App. 868 (Tegman v. Accident & Medical Investigations, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tegman v. Accident & Medical Investigations, Inc., 107 Wash. App. 868 (Wash. Ct. App. 2001).

Opinion

Becker, J.

When a paralegal performs legal services with knowledge that there is no supervising attorney responsible for the case, the paralegal will be held to an attorney’s standard of care. Attorneys have a duty to keep [872]*872their clients informed about material developments in their cases. The trial court found that Deloris Mullen, a paralegal, and Lorinda Noble, an attorney, while employed by a nonlawyer who represented accident victims, breached this duty and caused harm to the plaintiffs when they failed to advise them of the risk involved with allowing a nonlawyer to settle their cases. We affirm the judgments.

The trial court’s findings of fact present the following account of the events surrounding this dispute. Between 1989 and 1991, plaintiffs Maria Tegman, Linda Leszynski, and Daina Calixto were each injured in separate and unrelated automobile accidents. After their accidents, each plaintiff retained G. Richard McClellan and Accident & Medical Investigations, Inc. (AMI), for legal counsel and assistance in handling their personal injury claims. McClellan and AMI purported to represent each plaintiff in seeking compensation from insurance companies for their injuries. Each plaintiff signed a contingency fee agreement with AMI, believing that McClellan was an attorney and AMI a law firm. McClellan has never been an attorney in any jurisdiction.

McClellan and AMI employed Camille Jescavage and Lorinda Noble, both licensed attorneys. Jescavage and Noble learned that McClellan entered into contingency fee agreements with AMI’s clients and that McClellan was not an attorney. They settled a number of cases for AMI, and learned that McClellan processed settlements of AMI cases through his own bank account. Noble resigned from AMI in May 1991, after working there approximately six months.

In July 1991, McClellan hired Deloris Mullen as a paralegal. Mullen considered Jescavage to be her supervising attorney though Jescavage provided little supervision. Jescavage resigned from AMI in the first week of September 1991. McClellan told Mullen that her new supervising attorney would be James Bailey. Mullen did not immediately contact Bailey to confirm that he was her supervising attorney. He later told her he was not.

While at AMI, Mullen worked on approximately 50-60 [873]*873cases, including those of plaintiffs Tegman, Leszynski and Calixto. Mullen was aware of some of McClellan’s questionable practices and knew that there were substantial improprieties involved with his operation. Mullen stopped working at AMI on December 6,1991, when the situation became personally intolerable to her and she obtained direct knowledge that she was without a supervising attorney. When she left, she did not advise any of the plaintiffs about the problems at AMI.

After Mullen left, McClellan settled each plaintiff’s case for various amounts without their knowledge or consent, and deposited the funds in his general account by forging their names on the settlement checks.

In 1993, Calixto, Leszynski, and Tegman each individually sued McClellan, AMI, Mullen, and Jescavage. Tegman also sued Noble. Their complaints sought damages on various theories. The cases were consolidated. Discovery took place between 1993 and 1998. In the interim, McClellan pleaded guilty to mail fraud in United States District Court in 1997 and was sentenced to two years imprisonment. Also, this court affirmed a judgment by the same trial court in another case where McClellan settled a client’s case without authorization and stole the proceeds. Bullard v. Bailey, 91 Wn. App. 750, 959 P.2d 1122 (1998). That judgment apportioned 20 percent fault to attorney James Bailey who, like Noble and Jescavage, had associated himself with AMI and failed to warn his clients of McClellan’s improprieties.

In the present matter, the court entered summary judgment against McClellan and AMI on the issue of liability. After a six-day trial, the court held Mullen, Noble, and Jescavage liable for negligence and legal negligence, and awarded damages. Only Mullen and Noble appeal. Their appeals have been consolidated.

STANDARD OF REVIEW

An appellate brief must include argument in support of issues presented for review, together with citations to [874]*874legal authority. See RAP 10.3(a)(5). Assignments of error not argued in a brief are deemed abandoned. Valley View Indus. Park v. City of Redmond, 107 Wn.2d 621, 630, 733 P.2d 182 (1987); Pappas v. Hershberger, 85 Wn.2d 152, 153, 530 P.2d 642 (1975). Accordingly, we review only those assignments of error that are supported by argument in appellants’ briefs.

Our review of a trial court’s findings of fact and conclusions of law is a two-step process. We first determine whether the trial court’s findings of fact were supported by substantial evidence in the record. Landmark Dev., Inc. v. City of Roy, 138 Wn.2d 561, 573, 980 P.2d 1234 (1999). Substantial evidence is evidence which, viewed in the light most favorable to the party prevailing below, would persuade a fair-minded, rational person of the truth of the finding. State v. Hill, 123 Wn.2d 641, 644, 870 P.2d 313 (1994). If the findings are adequately supported, we next decide whether those findings of fact support the trial court’s conclusions of law. Landmark Dev., 138 Wn.2d at 573.

PARALEGAL NEGLIGENCE

Mullen, a paralegal, contends the court erred in finding her negligent. To establish the elements of an action for negligence, a plaintiff must show: (1) the existence of a duty owed, (2) breach of that duty, (3) a resulting injury, and (4) a proximate cause between the breach and the injury. Iwai v. State, 129 Wn.2d 84, 96, 915 P.2d 1089 (1996).

Nonattorneys who attempt to practice law will be held to the same standards of competence demanded of attorneys and will be liable for negligence if these standards are not met. Bowers v. Transamerica Title Ins. Co., 100 Wn.2d 581, 586-89, 675 P.2d 193 (1983); Hogan v. Monroe, 38 Wn. App. 60, 65, 684 P.2d 757 (1984) (realtor who drafted addendum that substantially altered the rights of property buyers held to the standard of care of a reasonably prudent attorney).

[875]*875In Bowers, sellers sold property to buyers who had persuaded a nonattorney escrow agent to prepare an unsecured promissory note in favor of the sellers. After the deed was delivered to the buyers, the sellers learned the significance of the fact that the note was unsecured. They discovered that the buyers had departed for places unknown after using the property as security for a substantial loan. The sellers sued the escrow agent and obtained summary judgment on liability for negligence. Our Supreme Court affirmed, holding the escrow agent to an attorney’s standard of care. The escrow agent breached a duty to inform the sellers of the advisability of obtaining independent counsel. Bowers, 100 Wn.2d at 590.

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Bluebook (online)
107 Wash. App. 868, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tegman-v-accident-medical-investigations-inc-washctapp-2001.