Tegman v. Accident & Medical Investigations

75 P.3d 497
CourtWashington Supreme Court
DecidedAugust 28, 2003
Docket71811-3
StatusPublished
Cited by27 cases

This text of 75 P.3d 497 (Tegman v. Accident & Medical Investigations) is published on Counsel Stack Legal Research, covering Washington Supreme Court 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, 75 P.3d 497 (Wash. 2003).

Opinion

75 P.3d 497 (2003)
150 Wash.2d 102

Maria TEGMAN, Linda Leszynski and Diana Calixto, Respondents,
v.
ACCIDENT & MEDICAL INVESTIGATIONS, INC., a Washington corporation, Richard McClellan and Jane Doe McClellan, individually and as husband and wife, and the marital community composed thereof; Joy A. Brown and John Doe Brown, individually and as wife and husband, and the marital community composed thereof; Michael D. Hoyt and Jane Doe Hoyt, individually and as husband and wife, and the marital community composed thereof; James P. Bailey and Jane Doe Bailey, individually and as husband and wife, and the marital community composed thereof; Camille H. Jescavage and John Doe Jescavage, individually and as husband and wife, and the marital community composed thereof, Defendants,
Delores M. Mullen and John Doe Mullen, individually and as wife and husband, and the marital community composed thereof; Lorinda S. Noble and John Doe Noble, individually and as wife and husband, and the marital community thereof, Petitioners.

No. 71811-3.

Supreme Court of Washington, En Banc.

Argued May 29, 2002.
Decided August 28, 2003.

Lorinda Noble, Colville, Floyd Fulle, Clinton, for petitioners.

Gregory Lucas, Mona Smith, Bellevue, for respondents.

MADSEN, J.

The issue we decide is whether negligent defendants are jointly and severally liable for damages resulting from both negligent and intentional acts. We hold that under RCW 4.22.070 the damages resulting from negligence must be segregated from those resulting from intentional acts, and the negligent defendants are jointly and severally liable only for the damages resulting from their negligence. They are not jointly and severally liable for damages caused by intentional acts of others. We reverse the Court of Appeals and remand for segregation of damages and redetermination of petitioner Lorinda Noble's liability.

*498 FACTS

On April 26, 1989, plaintiff-respondent Maria Tegman sustained injuries in an automobile accident. She retained G. Richard McClellan and Accident and Medical Investigations, Inc. (AMI) for legal counsel and assistance in handling her personal injury claims. She signed a contingency fee agreement with AMI, believing that McClellan was a licensed attorney. McClellan has never been an attorney in any jurisdiction.

During their representation of Tegman, McClellan and AMI advanced funds for her therapy. Settlement offers were submitted on her behalf, although she only learned of these after the fact.

McClellan and AMI employed Camille Jescavage and Lorinda Noble, both licensed attorneys. McClellan entered into contingency fee agreements with AMI's clients and processed settlements of AMI cases through his own bank account rather than a legal trust account. Jescavage and Noble knew this, and knew that when they settled cases for AMI, the proceeds were placed into McClellan's account. Both attorneys also knew that McClellan was not a licensed attorney.

Noble resigned her position in May 1991, after being employed approximately six months. During her employment, she also represented Ms. Tegman in connection with her personal injury claim. She never advised Tegman that McClellan engaged in the unauthorized practice of law, that McClellan had taken her files, that settlements were processed through his personal account and not an attorney's trust account, that clients were not being properly advised of the status of their cases, and that fees were being shared with nonlawyers.

In July 1991, McClellan hired Delores Mullen as a paralegal. She quit working for McClellan and AMI in December 1991. During her period of employment, Mullen considered Jescavage to be her supervising attorney, while Jescavage worked for AMI, although Jescavage did little supervision. After Jescavage left in September 1991, McClellan advised Mullen to consider James Bailey, another attorney, as her supervising attorney. She did not confirm that Bailey was her supervising attorney, but continued to perform legal services for AMI clients while aware of some of McClellan's questionable practices and knowing of substantial improprieties. Bailey later advised her that he was not her supervising attorney. Mullen worked on 50 to 60 cases, including Tegman's. When she left, she did not advise Tegman of McClellan's and AMI's improper practices.

In December 1991, McClellan settled Tegman's case without her knowledge or consent, forged her signature, and placed the $35,000 settlement funds into his general bank account. Later he obtained a "release" from her, and sent her a check for what he determined was the balance of her share of the settlement proceeds.

In 1993, Tegman and two other individuals who had retained McClellan and AMI to represent them in pursuing personal injury claims sued McClellan, AMI, Mullen, and Jescavage. Tegman also sued Noble. The plaintiffs sought damages on numerous grounds. Their cases were consolidated, and discovery occurred from 1993 to 1998.[1] The trial court entered summary judgment against McClellan and AMI on the issue of liability for "negligence, the unauthorized practice of law, legal malpractice, breach of fiduciary relationship, fraud, misrepresentation, conversion, breach of contract, violation of the Consumer Protection Act [chapter 19.86 RCW], and criminal profiteering." Clerk's Papers (CP) (conclusion of law 179) at 776. Following a six-day bench trial, the court held Mullen, Noble, and Jescavage liable for negligence and legal malpractice in Tegman's case, held that Tegman herself was not at fault, and awarded damages.

Noble appealed.[2] She argued, among other things, that the trial court erred in holding her jointly and severally liable to Tegman for compensatory damages in the amount of *499 $15,067.25 (the amount representing compensatory damages after deducting amounts Tegman had already received). She maintained the trial court erroneously imposed joint and several liability for both negligent and intentional torts, rather than imposing joint and several liability only as to the negligent torts. The Court of Appeals affirmed, reasoning that the trial court had in fact held Noble, Jescavage, and Mullen jointly and severally liable only for the actual damages caused by their negligence. Tegman v. Accident & Med. Investigations, Inc., 107 Wash. App. 868, 883, 30 P.3d 8 (2001), review granted, 145 Wash.2d 1034, 43 P.3d 21 (2002). The Court of Appeals said the trial court treated the action against McClellan and AMI as functionally separate from the action against Noble, Jescavage and Mullen. Id.

This court granted Noble's petition for review on the issue of joint and several liability. She maintains that the actual compensatory damages due to intentional torts must be segregated, and that under RCW 4.22.070(1)(b) she is jointly and severally liable only for the remainder, i.e., that portion of the damages resulting from negligent acts.

ANALYSIS

In 1986, the legislature enacted the tort reform act of 1986, declaring its purpose to "enact further reforms in order to create a more equitable distribution of the cost and risk of injury and increase the availability and affordability of insurance." Laws of 1986, ch. 305, § 100.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Anderson v. Grant County
Washington Supreme Court, 2026
Judith Cruz, V. Jeremy Jon Cheung
Court of Appeals of Washington, 2025
Robin Stanley v. Sierra Pacific Land & Timber
Court of Appeals of Washington, 2025
Christy Perez And Jason Sherrell, V. Eric Steever
Court of Appeals of Washington, 2023
Velasquez v. King County
W.D. Washington, 2020
State v. Yishmael
456 P.3d 1172 (Washington Supreme Court, 2020)
Beltran-Serrano v. City of Tacoma
442 P.3d 608 (Washington Supreme Court, 2019)
State/wa Dept Of Transportation, Res. v. Mullen Trucking 2005 Ltd., Pets.
428 P.3d 401 (Court of Appeals of Washington, 2018)
Smelser v. Paul
Washington Supreme Court, 2017
Shalisa Hayes v. Bill's Towing And Garage, Inc.
Court of Appeals of Washington, 2016
Trident Seafoods Corp. v. Commonwealth Insurance
850 F. Supp. 2d 1189 (W.D. Washington, 2012)
Rollins v. King County Metro Transit
148 Wash. App. 370 (Court of Appeals of Washington, 2009)
Fleming v. Church of Latter Day Saints
275 F. App'x 626 (Ninth Circuit, 2008)
Doe v. CORPORATION OF PRESIDENT OF LDS CHURCH
167 P.3d 1193 (Court of Appeals of Washington, 2007)
Hickly v. Bare
145 P.3d 433 (Court of Appeals of Washington, 2006)
Gould v. Clippard
340 B.R. 861 (M.D. Tennessee, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
75 P.3d 497, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tegman-v-accident-medical-investigations-wash-2003.