United Pacific Insurance Co. v. Zardenetta

661 S.W.2d 244, 1983 Tex. App. LEXIS 5200
CourtCourt of Appeals of Texas
DecidedOctober 20, 1983
Docket04-83-00444-CV
StatusPublished
Cited by29 cases

This text of 661 S.W.2d 244 (United Pacific Insurance Co. v. Zardenetta) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Pacific Insurance Co. v. Zardenetta, 661 S.W.2d 244, 1983 Tex. App. LEXIS 5200 (Tex. Ct. App. 1983).

Opinion

OPINION

CANTU, Justice.

United Pacific Insurance Company, Relator, seeks the issuance of a Writ of Mandamus compelling Judge Antonio A. Zardenet-ta, Respondent, to order the disqualification of attorney Jack Latson and the law firm of Flahive and Ogden in a suit against Relator that is presently pending in the 111th District Court of Webb County. Latson and the firm of Flahive and Ogden are presently the attorneys of record for plaintiff, Josephine Saba Harfoush in the Webb County action, styled Josephine Saba Harfoush, Individually, as Guardian of Cale Joseph Har-foush a minor, and as Administratrix of the Estate of Joseph Said Harfoush v. United Pacific Insurance Company.

The underlying pending suit originally arose out of a fatal automobile accident involving plaintiffs decedent which occurred on March 29, 1980, in Medina County. A suit was filed on behalf of plaintiff Josephine Saba Harfoush and Cale Joseph Harfoush seeking worker’s compensation death benefits. That lawsuit ultimately resulted in an Agreed Judgment and Settlement Agreement.

Thereafter, a claim for uninsured motorist benefits was made for bodily injuries sustained as well as for property damage to the vehicle decedent was driving at the time of the accident. The claim initially took the form of a demand letter dated July 6, 1981 from Jack Latson to Jill Morgan of Planet Insurance Company. A lawsuit was subsequently filed by plaintiff against Planet Insurance Company (“Planet”) and Bidal Corona.

Planet Insurance Company is the sister company of Relator and both companies are part of Reliance Insurance Company. Corona is the other party involved in the accident and was uninsured at the time of the accident.

Prior to Planet filing an answer to the suit, Relator tendered to plaintiff the policy limit of $25,000 in satisfaction of all liability under the bodily injury coverage of the uninsured motorist coverage. This sum was twice refused by plaintiff’s attorney Latson.

Latson returned the tendered checks to Relator and demanded an additional $10,-000, the policy limit for property damage. Because the vehicle decedent was driving at the time of the accident was owned by decedent’s employer, the $10,000 was never paid to plaintiff. Plaintiff eventually accepted the $25,000.

After accepting the $25,000 paid by Relator for the bodily injury coverage, plaintiff’s petition was amended to assert a claim for only the $10,000 limit for property damage under the uninsured motorist coverage. Moreover plaintiff now asserted a claim for damages based on allegations of fraud and/or intentional infliction of emotional distress as well as treble damages for Deceptive Trade Practices Act (DTPA) violations in connection with the settlement of the uninsured motorist claim.

A third amended petition was subsequently filed by plaintiff on August 6, 1982 in which Relator was retained as a defendant and Planet and Corona were dropped. Plaintiff’s allegations in the latest pleading include those set out in plaintiff’s second amended petition, except that recovery is no longer sought for property damage to the vehicle driven by decedent. Relator responded with a counterclaim for attorney’s fees, urging that the DTPA allegation was groundless and brought in bad faith for purposes of harassment. The trial court subsequently ordered plaintiff’s DTPA allegation stricken.

The record before us discloses a sixth amended petition filed by plaintiff which essentially parallels the third amended petition.

The posture of plaintiff’s latest petition reflects reliance upon a theory of actionable fraud in which misrepresentations were allegedly made to plaintiff (Mrs. Harfoush) *246 about facts and circumstances surrounding the accident in which decedent was killed. Plaintiff alleges certain misrepresentations were made by Relator’s employee, who was supervising the investigation of the accident, to her insurance agent processing the claim. Specifically, plaintiff alleges that her agent was advised by an employee of Relator that at the time of the accident her husband, the decedent, was traveling at an excessive speed and that he may have been under the influence of alcohol. Plaintiff contends that the alleged misrepresentations caused her to sustain damages in (1) necessitating the employment of Latson’s law firm and the payment of a contingent fee payable out of the uninsured motorist benefits and (2) physical pain, mental anguish and embarrassment.

The record discloses at least two motions to disqualify plaintiff’s attorneys of record, an order disqualifying attorney Latson, an order rescinding the order disqualifying Latson and numerous other motions seeking to reconsider the trial court’s position.

The first motion to disqualify was filed on April 29,1982 by defendants Corona and Planet, in which it was alleged that Latson was a person with knowledge of facts relevant to plaintiff’s claim as set forth in plaintiff’s amended petition relating to the alleged bad faith of defendant and the handling of both of plaintiff’s insurance claims. Defendants further alleged that because of Latson’s knowledge of the circumstances surrounding both of the claims Latson was a potential defense witness. This motion was granted by the trial court and an order was entered on September 14,1982 disqualifying Latson as plaintiff’s attorney of record. The law firm of Flahive and Ogden was, however, not disqualified. The order of disqualification specifically was predicated upon the applicability of Disciplinary Rules 5-101 and 5-102. 1

In response to the third amended petition filed by plaintiff and a motion to reconsider the order of disqualification, the trial court on September 14, 1982, rescinded the order disqualifying Latson reasoning that Latson as a witness possessed no knowledge of relevant facts. 2

The second motion to disqualify was filed on August 17, 1983, in which Relator reurged the materiality of Latson’s testimony.

Between the period of time from September 14, 1982, when the order disqualifying Latson was rescinded until August 17,1983, when Relator filed its second motion to disqualify, plaintiff’s petition was amended three additional times. In response to the various amended petitions Relator amended its answer twice. In its third and latest answer Relator alleges that the Deceptive Trade Practices violation urged by plaintiff is groundless and brought in bad faith. Attorney fees are sought by Relator as reasonable and necessary expenses of defending against these allegations. Relator raises the defense of accord and satisfaction arising out of a settlement agreement and release executed during a period of time when attorney Latson and his law firm were representing plaintiff in a claim for Worker’s Compensation benefits accruing as a result of decedent’s death. Relator also alleges that any misunderstanding regarding the release executed by plaintiff is attributable to the negligence of Latson and his law firm in failing to advise plaintiff with regard to the effect of the release.

Other defenses not material to the disqualification of Latson and his law firm are also urged.

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Bluebook (online)
661 S.W.2d 244, 1983 Tex. App. LEXIS 5200, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-pacific-insurance-co-v-zardenetta-texapp-1983.