Levo v. General-Shea-Morrison

MR. JUSTICE ANDERSON:

This is an appeal from a judgment of the district court affirming an order of the industrial accident board, which order denied the appellant Levo recovery under the Workmen’s Compensation Act because of Ms failure to file a claim within one year after the happening of the accident as is provided for by R. C. M. 1947, sec. 92-601.

The conclusions of law adopted by the industrial accident board which were sustained by the judgment of the district court are as follows:

(1) That claimant suffered an injury as defined by the Workmen’s Compensation Act entitling him to compensation upon the filing of a proper claim within one year following said injury:

(2) That by reason of his failure to file claim for compensation within one year following his injury the claimant’s claim is barred by the Statute of Limitations and his claim should be denied and dismissed by reason thereof.

Unless there is something in the record which excuses the claimant from his failure to file his claim within a year we must sustain the district court and the industrial accident board.

This court has held that equitable estoppel may prevent a defendant from contending that a claim was not filed in time. McCoy v. Mike Horse Min. & Mill Co., 126 Mont. 435, 252 Pac. (2d) 1036; Lindblom v. Employers’ Liability Assurance Corp., 88 Mont. 488, 295 Pac. 1007.

In the instant case the claimant knew the extent of his injuries and in this respect the facts differ from the McCoy case, supra, and it is argued that for that reason the doctrine of equitable estoppel does not lie, yet we find language used in the McCoy case which is most cogent here in determing the results hereinafter announced. Quoting from this case it is said [126 Mont. 435, 252 Pac. (2d) 1039] : “A liberal construction of the Compensation Act is commanded in order that the humane purposes of the legislation shall not be defeated by narrow and technical construction, and the intention of such requirement is for the benefit and protection of the injured workman and his beneficiaries. Twedie v. Industrial Accident Board, 101 Mont. 256, 53 Pac. (2d) 1145; Edwards v. Butte & Superior Min. Co., 83 Mont. 122, 270 Pac. 634.”

It becomes important to point out that the record leaves no doubt but what Mr. Levo, the claimant, General-Shea-Morrison, the employer, Liberty National Insurance Company, the insurer, and the industrial accident board, all believed at the time the accident occurred, that the injury which Mr. Levo sustained was not compensable as contemplated by the Workmen’s Compensation Act. A few excerpts from the record bear this out.

The date of the accident was November 18, 1951, about which there was no dispute. To a claim filed by the claimant February 18, 1953, the Liberty National Insurance Company, through its agent, said among other things: “We are liable only for accidental injuries arising out of and in the course of employment. There is nothing in your claim to substantiate accidental injury, rather your condition would appear to be one the result of disease. ’ ’

There is also evidence in the record to the effect that Mr. Levo was presented with an ambulance bill, the payment of which had been turned down by Liberty National Insurance Company. This bill was presented to Mr. Levo shortly after the accident occurred and before any claim for compensation had been filed with the industrial accident board.

The claimant, Mr. Levo, testified in part as follows when asked about what he had done about filing a claim: “I was wondering about compensation. He [Mr. Duffy, a friend and agent of claimant] said he would go up there for me and find out. .He went up to the'dam and contacted Mel Hord [the assistant project manager], and Mel Hord told him there wasn’t a thing in the world they could do for it at all. Q. Did he provide Mr. Duffy with a claim blank for filing ? A. No, Mr. Duffy asked for them, he didn’t give him any] said ‘No use, nothing we could do.’ ”

Mel Hord was the personnel manager and assistant project manager for the employer. Mr. Duffy corroborated what was said by claimant and Mr. Hord had the following to say when asked the following question: “Q. Now you said that on Mr. Duffy’s testimony which reads, ‘Jim, that doesn’t come under compensation, nothing we can about this, there is no accident about that. ’ That was approximately a correct statement of the conversation that occurred that referred to compensation, is that true ? A. I would say in general language, yes. ’ ’

The record leaves little doubt but what Mr. Mel Hord had the unqualified right to speak for the employer General-Shea-Morrison.

R. C. M. 1947, sec. 92-808, states that every employer of labor and every insurer is required to file with the board a full and complete report of every accident to an employee. This section of the Code is just as compelling as section 92-601 under which the employer and the insurer now seek to avoid payment of the compensation. Yet no such report has ever been filed so far as the record shows. We may draw the conclusion that the employer thought the injury to claimant to be one without the purview of the Workmen’s Compensation Act.

Some of the testimony by Mr. Duffy should be referred to here.

“Q. Did you have a conversation with Mel Hord about Mr. Levo’s complaint? A. I did right there.

‘ ‘ Q. Tell us what the conversation was. A. I told him he was just the man I wanted to see. Wanted to see him about Art Levo. He said, ‘How is Art getting along?’ I said nobody knew just how he was making it. At the same time was better today. I was interested in getting the necessary blanks to file a claim. His sister was going to take care of filing a claim. He said: ‘Jim, that doesn’t come under the compensation. Nothing we can do about this. There is no accident about that.’

‘ ‘ Q. Did he indicate he knew Mr. Levo had suffered this heart attack? A. Yes, he did. He asked me how he was getting along and what I thought his chances were. I asked him again for the blanks. He said, ‘Won’t do any good, just a waste of time monkeying with them.’ I took him at his word and reported to Art and his sister.

“Q. Did you report to Art the substance of the conversation as you told us ? A. I did.

“Q. Was it your conclusion compensation was not allowable for Art’s attack under the circumstances? A. I got the belief that that must be the fact. I thought he knew what he was talking about.”

Mel Hord testified that in any event the claim blanks were not kept by him but were at the first aid station. This of course in no way refutes what was said to Duffy.

The claimant, Mr. Levo, was asked:

“Q. Were you satisfied with Mr. Duffy’s report on that to you? A. No, I wasn’t.

“Q. What did you do? A. I had Dan Korn come up to the hospital.

“Q. Do you know whether he was representing General-Shea-Morrison as their attorney? A. I am quite sure he was. I was under the impression that he was General-Shea-Morrison’s lawyer.

“Q. Is that the reason you talked to him? A. That’s right.

“Q. That convex-sation occurred ixi the hospital? A. Right in the hospital.

‘ ‘ Q. Do you know when that was ? A. Shortly after I was in there, I believe I was still taking oxygexi, if I remember right.

‘ ‘ Q. What was the conversation ? A. I asked bim what could be done about compensation? He said, ‘Not a thing, there isn’t a thing in the world, just one of those things. Too damn bad nothing we could do about it.’ ”

Dan Korn’s advice in no way justifies a different conclusion than the one reached by claimant and the fact that he was not on a retainer but a mere fee lawyer for the employer gives no reason why the claimant, a workman, should not draw the conclusion that he did. We would be giving the Act a narrow construction if we concluded that a workman would be bound to differentiate between a fee basis lawyer and one on a retainer basis.

As to the period following the conversation with Mr. Dan Korn, the lawyer, Mr. Levo was asked:

“Q. Did you make any further effort to file a claim? A. I figured it was no use, took them at their word after the lawyer told me there was nothing I could do. That is the reason I didn’t file a claim.

“Q. How did you come to file a claim when you did? A. I heard about a case, that is how I happened to file.

“Q. As soon as you heard about the Mapston Case you had Mr. Byers of the electrician’s union contact me? A. That’s right. Also asked him if he could get forms to fill out from the company. I was afraid if I went up they wouldn’t give them to me. So he went up and got the forms for me.

“Q. And how long after you heard of the Mapston Case was that done ? A. Oh, within a week, I think, maybe a little longer. ’ ’

The testimony of Daniel Korn caused the claimant to believe that heart attacks were not covered by compensation, that Mr. Korn knew they weren’t covered by compensation because he was a company lawyer, that not a thing could be done about compensation, that “There isn’t a thing in the world, just one of those things, too damned bad, nothing we could do about it.”

Although the record is silent insofar as it does not tie Dan Korn closely enough to the company so that it could be claimed under the doctrine of equitable estoppel that the company was bound by his advice to the claimant, nonetheless Mel Hord’s comments were ones for which the company was responsible and coupled with those of Dan Korn little else could be expected of the claimant than for him to rely upon them.

We hold that as a matter of law, Arthur Levo had a right to conclude what he did and that his failure to file a claim within the statutory time was brought about by the direct intervention of the employer’s agents and notwithstanding some differences in the testimony of the various witnesses these were not sufficient to sustain the results reached by the triers of fact- and for this reason we are not bound by their findings when they are considered in the light of the statute commanding liberality.

To say the very least, the information that was conveyed to Mr. Levo by the personnel director and the assistant project manager, Mr. Hord, and the further information which was conveyed to him by Mr. Daniel Korn, would be sufficient to put Mr. Levo in a position where he could and did rely on them.

Paraphrasing language used in the case of Great American Indemnity Co. v. Britton, 86 U. S. App. D. C. 44, 179 F. (2d) 60, the advice here given by the assistant project manager and personnel director and the advice given by a lawyer who the claimant thought to be a company lawyer did not permit the claimant in good consieence to file a claim. Ignorance based on completely erroneous advice from persons who are directly connected with the affairs of the employer can even be more profound and dangerous in its consequence than ignorance based on no advice at all. Such advice effectively prevents a conscientious employee from filing a claim for an award or at least until different advice of equal or higher standing is received. According to the record the conclusion is inescapable that claimant was actually dissuaded from filing a claim by the agents of defendant.

We find that the doctrine of equitable estoppel should be applied under the facts in this cause.

The vital principle is that he, who by his language or conduct leads another to do what he would not otherwise have done, shall not subject such person to loss or injury by disappointing the expectations upon which he acted. Dickerson v. Colgrove, 100 U. S. 578, 580, 25 L. Ed. 618, 619.

The doctrine of equitable estoppel is a flexible one, founded in equity and good conscience; its object is to prevent a party from taking an unconscionable advantage of his own wrong while asserting his strict legal right. Seemingly the only strict legal right that we are asked to adhere to is the statute which was passed solely for the benefit of the employer and the insurance carrier, i. e., the Statute of Limitations.

From the evidence adduced at the hearing in the instant case the several elements of equitable estoppel are sufficiently present.

It is contended that there is involved a question of law as opposed to a question of fact and that the claimant is as responsible for knowing the law regarding the situation as were the insurance company, the employer the industrial accident board and those others involved. However, even if we were to ascribe to the contention that it is solely a question of law, it would be a very narrow construction of the statutes regarding Workmen’s Compensation if this court were to say that a claimant should find it his duty to examine all the technicalities concerning the Workmen’s Compensation Act and come to a right conclusion while the employer and the insurance carrier, whose responsibilities are far greater, should be excused because of their misinterpretation of the Act itself, which misinterpretation the employer in turn foisted off upon the claimant. The only question involved is whether or not the condition arising from a heart failure is one for which compensation must be paid. The employer at the time of the accident thought that such a condition was not one which whs compensable as is evidenced by the witness Hord. The insurance company had the same thought and Daniel Korn, the attorney who advised the claimant, likewise had the same thought.

It was held in Robins v. U. S., 21 F. Supp. 403, 86 Ct. Cl. 39, that the doctrine of equitable estoppel or quasi estoppel has been extended to prevent a wrong being done wherever in good conscience and honest dealing a party ought not to be permitted to repudiate a previous statement, declaration or action. Certainly if there is any circumstance wherein the doctrine of equitable estoppel should be extended, it is in matters concerning an injured workman, where the law itself says that the Workmen’s Compensation Act shall be construed liberally.

The judgment of the district court denying claimant’s appeal is reversed and the holding of the industrial accident board to the effect that the claimant’s claim for compensation is barred by the Statute of Limitations is reversed with directions to enter judgment according to the other findings of said board which are not inconsistent with this opinion.

MR. CHIEF JUSTICE ADAIR, and MR. JUSTICES ANGSTMAN and BOTTOMLY concur.