Zenith Star Insurance Co. v. Wilkerson

150 S.W.3d 525, 2004 WL 579848
CourtCourt of Appeals of Texas
DecidedApril 29, 2004
Docket03-03-00586-CV
StatusPublished
Cited by27 cases

This text of 150 S.W.3d 525 (Zenith Star Insurance Co. v. Wilkerson) 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
Zenith Star Insurance Co. v. Wilkerson, 150 S.W.3d 525, 2004 WL 579848 (Tex. Ct. App. 2004).

Opinion

OPINION

BEA ANN SMITH, Justice.

This case requires us to consider to what lengths an attorney must go to zealously represent his client and avoid legal-malpractice liability. It involves a claim by Zenith Star Insurance Company (Zenith) that its lawyer, Glen Wilkerson, 1 committed legal malpractice in a suit seeking workers’ compensation benefits by failing to advance two theories — that venue under the workers’ compensation scheme *528 is jurisdictional and that a plaintiffs mis-identification of a defendant is an affirmative defense. In the original suit seeking benefits, Zenith initially prevailed on a plea to the jurisdiction in a Guadalupe County district court. The Fourth Court of Appeals upheld that decision, but Zenith lost on remand after the court of appeals reversed its decision sua sponte and a jury found in favor of the worker on the merits of the case. Zenith alleges that Wilkerson’s negligence proximately caused its damages in the form of losing at trial on remand. The district court granted summary judgment in favor of Wilkerson. We conclude as a matter of law that Wilkerson was not negligent in failing to assert the jurisdiction and misidentification theories and that such failure was not the proximate cause of Zenith’s injury. Therefore, we affirm the summary judgment granted by the district court.

BACKGROUND

While driving his employer’s vehicle, Leon Galpin suffered injuries that rendered him a quadriplegic. He brought a claim to recover lifetime benefits before the Texas Workers’ Compensation Commission (the Commission) under the labor code. See Tex. Lab.Code Ann. § 409.003 (West 1996). Zenith is the workers’ compensation insurance carrier for Galpin’s employer, and Wilkerson represented Zenith in the administrative proceedings before the Commission. After a contested-case hearing, the Commission appeals panel affirmed the conclusion of the hearing officer denying benefits to Galpin. In July 1997, Galpin timely filed a suit for judicial review in the district court of Bexar County against “Zenith Insurance Company.” See id. § 410.252(a) (West Supp.2004) 2 (to seek judicial review of Commission ruling, party must file suit no later than fortieth day after date on which decision of appeals panel was filed with division of hearings). Zenith’s original answer, prepared by Wilkerson, acknowledged that “Zenith Star Insurance Company,” not “Zenith Insurance Company,” was the proper defendant, and that Galpin had sued the wrong defendant. Galpin eventually moved to substitute Zenith Star Insurance Company for Zenith Insurance Company as the proper party defendant pursuant to stipulation of the parties.

On Zenith’s behalf, Wilkerson filed a plea to the jurisdiction based on Galpin’s failure to “simultaneously” file a copy of his petition with the Commission, see id. § 410.253 (West Supp.2004), and a motion to transfer venue because Galpin had not filed suit in the county where he resided at the time of the injury, see id. § 410.252(b)(1) (West Supp.2004) 3 (party bringing judicial-review suit must file petition with appropriate court in county *529 where employee resided at time of injury or death). The Bexar County court granted the venue transfer to Guadalupe County pursuant to an agreed order but did not dispose of Zenith’s plea to the jurisdiction, noting that Zenith did not waive or abandon its plea by virtue of the transfer. The Guadalupe County district court granted Zenith’s motion to dismiss for lack of subject-matter jurisdiction in March 1998.

Galpin appealed the Guadalupe County court’s final judgment to the Fourth Court of Appeals in San Antonio. On January 27, 1999, that court affirmed the dismissal of Galpin’s suit for want of jurisdiction, holding that the requirements of section 410.253 of the labor code, requiring a copy of the petition to be simultaneously filed with the Commission, were mandatory and jurisdictional. See Galpin v. Zenith Ins. Co., 993 S.W.2d 146, 146-47 (Tex.App.-San Antonio 1999, no pet.). On February 4, 1999, the Texas Supreme Court issued an opinion in Albertson’s, Inc. v. Sinclair, 984 S.W.2d 958, 958-59 (Tex.1999), holding that failure to timely file a copy of the petition with the Commission does not deprive a trial court of jurisdiction to review the denial of benefits. In light of Albert-son’s, the Fourth Court of Appeals on its own motion withdrew its original opinion in Galpin and substituted a new opinion on February 26, 1999, remanding the cause to the trial court. See Galpin, 993 S.W.2d at 147. On remand, a jury found in favor of Galpin, and Zenith was ordered to pay him lifetime benefits.

About sixteen months later, Galpin filed suit in Bexar County alleging that Zenith was acting in bad faith by failing to pay the benefits ordered under the final judgment. The case was transferred to Travis County. Zenith responded by fifing a motion for summary judgment, seeking a declaration that the final judgment rendered by the district court in Guadalupe County was void because the court lacked jurisdiction on two grounds: failure to timely file suit in the proper county and failure to timely file suit against the proper defendant. The Travis County court denied Zenith’s motion. That suit is still pending.

Zenith then filed this legal-malpractice action against Wilkerson in Travis County, asserting that it would have prevailed in the underlying litigation but for Wilkerson’s failure to plead or otherwise raise the following defensive legal theories: the Guadalupe County district court lacked jurisdiction because (1) the suit was initially filed in the wrong county, and (2) the suit was initially brought against the wrong defendant. Wilkerson filed a motion for summary judgment, which the trial court granted. In one issue, Zenith appeals the summary judgment, asserting that the evidence created a fact issue on negligence and that, therefore, Wilkerson was not entitled to judgment as a matter of law.

DISCUSSION

Standard of review

Because the propriety of a summary judgment is a question of law, we review *530 the trial court’s decision de novo. Natividad v. Alexsis, Inc., 875 S.W.2d 695, 699 (Tex.1994); Texas Dep’t of Ins. v. American Home Assurance Co., 998 S.W.2d 344, 347 (Tex.App.-Austin 1999, no pet.).

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Bluebook (online)
150 S.W.3d 525, 2004 WL 579848, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zenith-star-insurance-co-v-wilkerson-texapp-2004.