Wells v. Mix

512 P.2d 788, 266 Or. 188, 1973 Ore. LEXIS 345
CourtOregon Supreme Court
DecidedJuly 19, 1973
StatusPublished
Cited by3 cases

This text of 512 P.2d 788 (Wells v. Mix) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wells v. Mix, 512 P.2d 788, 266 Or. 188, 1973 Ore. LEXIS 345 (Or. 1973).

Opinion

HOWELL, J.

Plaintiff filed this action for malpractice against his former attorney, who had represented him in an action for personal injuries under the Employers’ Liability Law, ORS 654.305 to 654.335. The action, tried before the court without a jury, resulted in a judgment for defendant, and plaintiff appeals.

The facts are important. On September 22, 1965, the plaintiff sustained an industrial accident while in the employ of Evans Products Company. On October 5, 1965, while the plaintiff was in a hospital being treated for Ms injuries, he signed a compensation agreement and covenant not to sue. The agreement provided that plaintiff would receive compensation at a rate established by the Oregon Work[190]*190men’s Compensation Law. In consideration thereof he agreed not to bring an action against his employer. Pursuant to the agreement, the plaintiff received payments of $290 per month plus compensation for various medical expenses.

In July, 1966, the defendant attorney in the instant case was appointed counsel for the plaintiff in a criminal proceeding pending against plaintiff in the circuit court for Benton County. During the course of defendant’s employment the plaintiff and defendant discussed the possibility of plaintiff having a claim against his former employer, Evans Products Co. In the meantime plaintiff continued to accept payments under the compensation agreement.

In October, 1966, the plaintiff filed an action under the Employers’ Liability Law against Evans Products Co. The latter denied liability and alleged that plaintiff “with knowledge” of the compensation agreement had accepted benefits of $7,500 and therefore ratified the agreement. The plaintiff’s reply alleged that the compensation agreement was executed while plaintiff was under the influence of drugs and medication and plaintiff was therefore “incompetent” to understand the agreement.

The action was tried before a jury and a substantial verdict rendered in favor of plaintiff. The defendant Evans Products appealed. Wells v. Evans Products Co., 252 Or 17, 446 P2d 108 (1968). This court found it unnecessary to pass upon the validity of the compensation agreement because the plaintiff, by his acceptance of benefits after he had retained an attorney and after he had filed his action, had ratified the compensation agreement as a matter of law.

Subsequently the plaintiff filed this action for [191]*191malpractice against the defendant, alleging that the defendant was negligent in advising and permitting plaintiff to accept the payments under the compensation agreement. The defendant filed an answer denying the charges of negligence and alleging as affirmative defenses contributory negligence, the statute of limitations, and the fact that the plaintiff, by his acceptance of the payments, had ratified the compensation agreement before he retained defendant as his attorney.

After the trial in the instant case was concluded, the trial judge announced his decision that defendant was negligent but plaintiff’s acceptance of benefits after the execution of the compensation agreement made plaintiff’s case a “lost cause” before he retained the defendant as his attorney.

The court entered detailed findings of fact, stating that defendant was negligent in several particulars: he was aware that plaintiff had signed a compensation agreement and accepted benefits, but failed to advise plaintiff to refuse and reject the payments; he advised plaintiff to accept the payments; and he failed to advise plaintiff of the consequences of accepting the payments. The court stated, also as a finding of fact, that defendant’s negligence was not the proximate cause of plaintiff’s damage. No facts are stated to support this finding.

In the former case, Wells v. Evans Products Co., supra, we held that plaintiff ratified the compensation agreement as a matter of law by acceptance of benefits after he had retained counsel. Clearly, the opinion did not decide—nor was it necessary to do so ■—whether ratification occurred before counsel was retained. The opinion states that plaintiff knew when [192]*192lie signed the compensation agreement that he had given up some rights, but that he did not know until he talked with his attorney that he had given up the right to sue for damages. After talking with his attorney he learned of the possibility of challenging the validity of the compensation agreement. The court stated that, given only the facts that all plaintiff knew when he was accepting the benefits and before he retained counsel was that he had given up some rights when he signed the compensation agreement, but did not know that he had given up the right to sue for damages, “the question [of ratification] might have been a proper one for the jury.” 252 Or at 20.

Eatification occurs when the releasor, with full knowledge of the facts entitling him to rescind, engages in unequivocal conduct giving rise to a reasonable inference that he intended the conduct to amount to ratification. Union Pacific v. Zimmer, 87 Cal App 2d 524, 197 P2d 363 (1948). See also 66 Am Jur 2d 703, Eelease § 27. Eeeeipt of money in itself is not ratification unless accepted after the releasor knew or should have known that he had a ease against his employer and the money was paid in satisfaction. Allison v. Chicago Great Western Ry. Co., 240 Minn 547, 62 NW2d 374 (1954); 66 Am Jur 2d, supra at 703.

Generally, the question of whether ratification has occurred is a question of fact. 76 CJS 720, Release § 72; Union Pacific v. Zimmer, supra.

Among the factors to be considered in deciding whether the agreement was subsequently ratified are whether the agreement was understandable by a person of ordinary intelligence, the length of time the benefits under the agreement were accepted, whether the releasor knew that he had given up the right [193]*193to sue Ms employer, and when he acquired this knowledge.

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

Related

Haslach v. Security Pacific Bank Oregon
779 F. Supp. 489 (D. Oregon, 1991)
Thorstenson v. ARCO Alaska, Inc.
780 P.2d 371 (Alaska Supreme Court, 1989)
Campbell v. Stagg
596 P.2d 1037 (Utah Supreme Court, 1979)

Cite This Page — Counsel Stack

Bluebook (online)
512 P.2d 788, 266 Or. 188, 1973 Ore. LEXIS 345, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wells-v-mix-or-1973.