KUHLMAN ELECTRIC CORPORATION v. STEPHEN R. CHAPPELL AND THOMAS M. COOPER, INDIVIDUALLY AND LANDRUM & SHOUSE, A KENTUCKY GENERAL PARTNERSHIP; LANDRUM & SHOUSE, A KENTUCKY GENERAL PARTNERSHIP; AND LANDRUM & SHOUSE, L. L. P., A KENTUCKY LIMITED LIABILITY PARTNERSHIP; AND GEORGE PARKER, JIM SMIRZ, CECIL DUNN, DAVID A. FRANKLIN, JOHN BURRUS, LIONEL A. HAWSE, STEPHEN M. O'BRIEN, SHEILA HIESTAND, WILLIAM SHOUSE, MARK MOSELEY, PIERCE HAMBLIN, LESLIE VOSE, JOHN MARTIN, JR., LARRY DEENER, MARK HINKEL, JOHN MCNEILL, SANDRA DAWAHARE, KENT WESTBERRY, DOUGLAS HOOTS, DANIEL MURNER, AND DAVID WHALIN, BEING THE REMAINING PARTNERS OF LANDRUM & SHOUSE, A KENTUCKY GENERAL PARTNERSHIP, BETWEEN AUGUST 18, 1991 AND JUNE 29, 2000, INDIVIDUALLY AND D/B/A LANDRUM & SHOUSE, A KENTUCKY GENERAL PARTNERSHIP; AND AMERISURE MUTUAL INSURANCE COMPANY (FORMERLY KNOWN AS MICHIGAN MUTUAL INSURANCE COMPANY)
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RENDERED:
DECEMBER 2, 2005; 2:00 P.M.
TO BE PUBLISHED
Commonwealth Of Kentucky
Court of Appeals
NO. 2003-CA-001232-MR
AND
NO. 2004-CA-000633-MR
KUHLMAN ELECTRIC CORPORATION
v.
APPELLANT
APPEAL FROM FAYETTE CIRCUIT COURT
HONORABLE JOHN R. ADAMS, JUDGE
HONORABLE MARY C. NOBLE, JUDGE
ACTION NO. 01-CI-03147
STEPHEN R. CHAPPELL AND
THOMAS M. COOPER, INDIVIDUALLY AND
AS PARTNERS AND/OR EMPLOYEES OF
LANDRUM & SHOUSE, A KENTUCKY GENERAL
PARTNERSHIP; LANDRUM & SHOUSE, A
KENTUCKY GENERAL PARTNERSHIP; AND
LANDRUM & SHOUSE, L. L. P., A
KENTUCKY LIMITED LIABILITY PARTNERSHIP;
AND GEORGE PARKER, JIM SMIRZ, CECIL DUNN,
DAVID A. FRANKLIN, JOHN BURRUS, LIONEL
A. HAWSE, STEPHEN M. O’BRIEN, SHEILA
HIESTAND, WILLIAM SHOUSE, MARK MOSELEY,
PIERCE HAMBLIN, LESLIE VOSE, JOHN MARTIN,
JR., LARRY DEENER, MARK HINKEL, JOHN
MCNEILL, SANDRA DAWAHARE, KENT WESTBERRY,
DOUGLAS HOOTS, DANIEL MURNER, AND DAVID WHALIN,
BEING THE REMAINING PARTNERS OF LANDRUM & SHOUSE,
A KENTUCKY GENERAL PARTNERSHIP, BETWEEN AUGUST
18, 1991 AND JUNE 29, 2000, INDIVIDUALLY AND
D/B/A LANDRUM & SHOUSE, A KENTUCKY GENERAL
PARTNERSHIP; AND AMERISURE MUTUAL INSURANCE
COMPANY (FORMERLY KNOWN AS MICHIGAN MUTUAL
INSURANCE COMPANY)
APPELLEES
OPINION
AFFIRMING
** ** ** ** **
BEFORE:
BUCKINGHAM, DYCHE, AND SCHRODER, JUDGES.
DYCHE, JUDGE:
Kuhlman Electric Corporation appeals from an
order of the Fayette Circuit Court granting appellees, Landrum &
Shouse, Landrum & Shouse, L.L.P., and various former and/or
current partners of Landrum & Shouse (collectively Landrum &
Shouse) summary judgment in a legal malpractice case wherein
Kuhlman Electric alleges various causes of action in connection
with litigation in a workers’ compensation case (Case No. 2003CA-001232-MR).
In a consolidated companion case, Kuhlman
Electric appeals from an order granting Amerisure Mutual
Insurance Company (f/k/a Michigan Mutual) (Amerisure), the
insurance company which retained Landrum & Shouse to represent
Kuhlman Electric in the workers’ compensation matter, summary
judgment upon the appellant’s various claims against the insurer
in connection with the workers’ compensation case. (Case No.
2004-CA-000633-MR.)
Kuhlman Electric alleges that the circuit
court erroneously granted summary judgment to Landrum & Shouse
and Amerisure.
Because Kuhlman Electric is unable to
demonstrate damages in either case, we affirm.
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PROCEDURAL BACKGROUND
Kuhlman Electric purchased and maintained a workers’
compensation insurance policy through Amerisure covering workrelated injuries sustained by its employees during at least the
period of April 15, 1977, through October 1, 1988.
Among other
things, the insurance policy provided that Amerisure would
provide legal representation and a defense to Kuhlman Electric
against any workers’ compensation claims brought against Kuhlman
Electric arising from injuries sustained during the policy
period.
On April 15, 1977, Kuhlman Electric employee, William
Burgess, suffered a work-related back injury.
Burgess
subsequently filed a claim seeking workers’ compensation
benefits.
Amerisure retained Landrum & Shouse to represent
Kuhlman Electric in the ensuing workers’ compensation
litigation.
On July 30, 1979, the Workers’ Compensation Board
(Board) entered an order awarding Burgess workers’ compensation
benefits for the April 15, 1977, injury.
On April 6, 1988, Burgess filed a motion to reopen his
workers’ compensation claim, asserting that there had been a
worsening of his condition.
Amerisure again retained Landrum &
Shouse to defend Kuhlman Electric in the action.
The motion to
reopen was initially granted by the Administrative Law Judge
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(ALJ), but, upon appeal, that determination was reversed by this
Court.
On October 1, 1988, Kuhlman Electric terminated its
workers’ compensation insurance coverage with Amerisure, and
became self-insured for workers’ compensation purposes.
Amerisure, however, had a continuing obligation to Kuhlman
Electric for claims arising from events occurring within the
policy period, including the Burgess injury.
On November 14, 1991, Burgess filed a second motion to
reopen his 1977 case, and Amerisure again retained Landrum &
Shouse to represent Kuhlman Electric.
On behalf of Kuhlman
Electric, Landrum & Shouse objected to Burgess’s motion to
reopen.
However, on February 26, 1992, the ALJ issued an order
granting Burgess’s motion to reopen his previous workers’
compensation claim based upon a change in his condition and an
increase in his occupational disability attributable to the
April 15, 1977 work-related injury.
On August 24, 1992, Landrum & Shouse, on behalf of
Kuhlman Electric as insured by Amerisure, filed a motion to join
Kuhlman Electric in its capacity as a self-insurer as a party to
the workers’ compensation action.
The motion argued that
Burgess had not, in August 1991, suffered a worsening of his
1977 injury (which would be subject to coverage by Amerisure)
but, rather, had suffered a new injury (which, if so, would be
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subject to coverage by Kuhlman Electric in its self-insured
capacity).
Kuhlman Electric, in its capacity as self-insured,
did not object to the joinder motion at that time.
On November
20, 1992, the ALJ entered an order granting the motion to add
Kuhlman Electric in its self-insured capacity as a party to the
workers’ compensation action.
The case languished, and it was not until 1996 that
Burgess filed a motion alleging that a new injury, rather than a
worsening of the original 1977 injury, had occurred in August
1991.
At this time Kuhlman Electric, as self-insured, objected
to the new injury claim based upon lack of notice and expiration
of the statute of limitations for bringing the new injury claim.
These defenses were rejected, however, based upon the ALJ’s
determination that Kuhlman Electric was estopped from raising
the defenses because the company itself (in the August 24, 1992,
motion filed by Landrum & Shouse) had originally suggested that
the August 1991 injury was a new injury rather than a worsening
of the 1977 injury.
Ultimately, the ALJ determined that Burgess had
incurred a new injury, and that he had suffered no increase in
occupational disability from the 1977 injury.
As a result,
Kuhlman Electric, in its self-insured capacity, was required to
pay workers’ compensation benefits to Burgess.
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The ALJ’s
decision was upheld by the Workers’ Compensation Board, this
Court, and the Supreme Court.
On August 22, 2001, Kuhlman Electric filed an action
in Fayette Circuit Court against Landrum & Shouse and Amerisure.
As amended, the complaint alleged causes of action against
Landrum & Shouse based upon professional negligence, breach of
contract, negligent and intentional breach of fiduciary duties,
gross negligence, and breach of implied covenant of good faith
and fair dealing.
As amended, the complaint stated causes of
action against Amerisure based upon breach of contract, breach
of fiduciary duties, aiding and abetting Landrum & Shouse in its
breach of fiduciary duties, and bad faith.
On March 14, 2003, Landrum & Shouse filed a motion for
summary judgment.
On May 12, 2003, the circuit court entered an
order granting the appellees summary judgment on all claims
against Landrum & Shouse.
Kuhlman Electric filed a motion to
alter, amend, or vacate, which was denied by order dated June 2,
2003.
Kuhlman Electric subsequently filed its notice of appeal
from these rulings (Case No. 2003-CA-001232-MR).
On July 8, 2003, Amerisure filed a motion for summary
judgment.
On March 1, 2004, the circuit court entered an order
granting summary judgment to Amerisure.
Kuhlman Electric
subsequently filed its notice of appeal from that ruling (Case
No. 2004-CA-000633-MR).
By order dated June 29, 2004, this
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Court ordered that Case Nos. 2003-CA-001232-MR and 2004-CA000633-MR be consolidated.
PRESERVATION OF ERROR
We begin with a procedural issue.
Landrum & Shouse
argues in its brief that Kuhlman Electric’s brief to this Court
fails to comply with the Kentucky Rules of Civil Procedure
(“CR”), and should be stricken from the record.
Landrum &
Shouse argues that Kuhlman Electric’s brief fails to provide
references to the record to support its factual statement of the
case (CR 76.12(4)(c)(iv)), and that it has failed to identify
how, and where in the record, it has preserved its issues for
appeal (CR 76.12(4)(c)(v)).
Landrum & Shouse is correct; the
initial brief of Kuhlman Electric in the action against Landrum
& Shouse makes no attempt whatsoever at compliance with the
rule.
Violation of this rule has been held to justify
dismissal of the appeal or summary affirmance.
As early as
1986, in Skaggs v. Assad, by and through Assad, 712 S.W.2d 947
(Ky. 1986), and continuing through numerous cases such as Elwell
v. Stone, 799 S.W.2d 46 (Ky.App. 1990), Phelps v. Louisville
Water Co., 103 S.W.3d 46 (Ky. 2003), and Parrish v. Kentucky
Board of Medical Licensure, 145 S.W.3d 401 (Ky.App. 2004), the
appellate courts of this Commonwealth have enforced the rule
requiring an appellant to specifically designate where and how
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the alleged errors were preserved for review, and explained its
purpose:
CR 76.12(4)(c)(iv) [now (v)] in providing
that an appellate brief's contents must
contain at the beginning of each argument a
reference to the record showing whether the
issue was preserved for review and in what
manner emphasizes the importance of the
firmly established rule that the trial court
should first be given the opportunity to
rule on questions before they are available
for appellate review. It is only to avert a
manifest injustice that this court will
entertain an argument not presented to the
trial court.
Massie v. Persson, 729 S.W.2d 448, 452 (Ky.App. 1987), overruled
on other grounds by Conner v. George W. Whitesides Co., 834
S.W.2d 652 (Ky. 1992).
When such a violation is brought to the offending
party’s attention, the defect can be cured in its reply brief.
Hollingsworth v. Hollingsworth, 798 S.W.2d 145, 147 (Ky.App.
1990) provides that “a reply brief may be used to both
supplement an appellant’s original brief and to correct a
procedural defect related to CR 76.12(4)(c)(iv)[now (v)].”
Kuhlman Electric has made a half-hearted effort at compliance in
its reply brief:
Appellant preserved the issue of whether
attorney-appellees represented Kuhlman in
the underlying litigation in its Motion to
Alter, Amend, or Vacate filed on May 22,
2003 which was overruled by the Court.
(ROA, Vol. 4, p. 564, 608).
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We will accept this as minimal compliance with the rule.
Kuhlman Electric’s brief filed in the action against
Amerisure attempts to comply with the rule by stating that each
contention of error is preserved by the filing of the Notice of
Appeal.
From the language in Massie, one can easily see that a
Notice of Appeal can serve no such purpose.
But, in case it is
not abundantly clear, we take this opportunity to state
unequivocally that a Notice of Appeal does not satisfy the
requirement of CR 76.12(4)(c)(v) as far as stating whether and
in what manner errors are preserved.
Because of the minimal compliance in its reply brief,
we will examine the merits of Kuhlman Electric’s contention that
Landrum & Shouse and Amerisure breached duties to it, and/or
violated the contract between them.
The issues raised by
Kuhlman Electric concerning the scope or timing of the trial
court’s ruling are unpreserved or without merit.
STANDARD OF REVIEW
Both appeals addressed in this opinion are from orders
granting summary judgment.
Summary judgment is proper only
"where the movant shows that the adverse party could not prevail
under any circumstances."
Steelvest, Inc. v. Scansteel Service
Center, Inc., 807 S.W.2d 476, 480 (Ky. 1991) (citing Paintsville
Hospital Co. v. Rose, 683 S.W.2d 255 (Ky. 1985)).
The trial
court must view the record "in a light most favorable to the
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party opposing the motion for summary judgment and all doubts
are to be resolved in his favor."
Steelvest, 807 S.W.2d at 480
(citing Dossett v. New York Mining & Manufacturing Co., 451
S.W.2d 843 (Ky. 1970), and Rowland v. Miller’s Adm’r, 307 S.W.2d
3 (Ky. 1956)).
However, "a party opposing a properly supported
summary judgment motion cannot defeat that motion without
presenting at least some affirmative evidence demonstrating that
there is a genuine issue of material fact requiring trial."
Hubble v. Johnson, 841 S.W.2d 169, 171 (Ky. 1992)(citing
Steelvest, supra at 480).
This Court has previously stated that
"[t]he standard of review on appeal of a summary judgment is
whether the trial court correctly found that there were no
genuine issues as to any material fact and that the moving party
was entitled to judgment as a matter of law.
There is no
requirement that the appellate court defer to the trial court
since factual findings are not at issue."
Scifres v. Kraft,
916 S.W.2d 779, 781 (Ky.App. 1996)(citations omitted).
CASE NO. 2003-CA-001232-MR
In Case No. 2003-CA-001232-MR, Kuhlman Electric
contends that the circuit court erred by granting summary
judgment to Landrum & Shouse on its complaint alleging causes of
action for professional negligence, breach of contract,
negligent and intentional breach of fiduciary duties, gross
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negligence, and breach of implied covenant of good faith and
fair dealing.
The record demonstrates that Landrum & Shouse
litigated the Burgess reopening with the objective of shifting
liability from Amerisure to Kuhlman Electric in its self-insured
capacity.
For example, in a letter from Landrum & Shouse to
Amerisure dated April 20, 1995, Landrum & Shouse stated as
follows:
On or about July 13, 1992, I tried to
convince plaintiff’s attorney to claim that
plaintiff’s current condition is at least
partially caused by work which plaintiff
performed in 1991 at Kuhlman. I did this
because it was my understanding that we were
no longer on the risk in 1991.
As explained by the enclosed motion to
remove this case from abeyance which
plaintiff’s attorney has filed, it looks
like plaintiff’s attorney has decided to go
with my theory. It will be hard to convince
ALJ Kerr to buy such an argument, but I
believe it is our best chance of having
additional liability apportioned to another
party other than the Special Fund. I will
try to accomplish the same thing for you in
this case that I accomplished in the Abner
vs. ASI case. This case, however, will be
much tougher.
Similarly, in a letter from Landrum & Shouse to Amerisure dated
April 29, 1996, Landrum & Shouse stated as follows:
I predict this is a 100% occupational
disability case because plaintiff has now
had two back fusions, has demonstrated his
determination to work by returning to work
for seven years after the first back fusion
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in 1984, and is now 54 years old and
believes he can no longer cut it due to back
pain. Our best chance is to place as much
liability as possible on Kuhlman as a selfinsured employer under the theory that
plaintiff’s work at Kuhlman after our risk
ended in October 1988 resulted in the
eventual breakdown of the first fusion. We
could lose this argument and get stuck with
a 100% occupational disability award
although any award would still be
apportioned 60% to the Special Fund and 40%
to us.
We will need to have good medical testimony
to support our theory. To this end, I had a
private conference with plaintiff’s attorney
at the conclusion of plaintiff’s deposition
of April 17. I suggested to plaintiff’s
attorney that we share the expense of having
a private conference with Dr. Bean and a
second private conference with Dr. Vaughn.
This will allow us to find out if either Dr.
Bean or Dr. Vaughn can support our theory of
this case. If either doctor supports our
theory, then plaintiff can go ahead and take
the required medical depositions, or I can
do so.
Plaintiff’s attorney is willing to consider
this approach because we share a common
interest in placing as much liability as
possible on Kuhlman as a self-insured
employer. Plaintiff gains from such a
result because any increase in occupational
disability benefits for which Kuhlman as a
self-insured employer may be found liable
will be calculated at a higher disability
rate since plaintiff has a higher average
weekly wage in 1991 than he had in 1977.
Finally, in a letter to Amerisure dated June 14, 1996, Landrum &
Shouse stated as follows:
Mike, I am fighting this case as hard as I
can. I assume you want me to keep fighting
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in spite of the Campbell decision which I
enclosed in my letter to you of May 20,
1996.
Also, I believe this is the very last case
which I am working for [Amerisure]. I would
really appreciate it if you could send me
additional cases because I need the work.
The above communications reflect that Landrum & Shouse
regarded its client in the 1991 Burgess reopening litigation to
be Amerisure rather than Kuhlman Electric.
The circuit court
determined likewise, stating in its order granting summary
judgment that “[t]he Landrum Defendants never, during these
proceedings, represented Kuhlman Electric Corporation as selfinsured, or the individual corporate entity, Kuhlman Electric
Corporation.”
Before us, Landrum & Shouse again argues in
support of this multiple-identity hypothesis, advocating the
legal fiction that the Kuhlman Electric which is a party to this
lawsuit is an altogether different entity than the Kuhlman
Electric entity it represented in the Burgess reopening, and
that, accordingly, Landrum & Shouse owed no duty to the Kuhlman
Electric entity which is a party to this lawsuit.
We recognize the quandary Landrum & Shouse was
confronted with upon being retained by Amerisure to represent
Kuhlman Electric after Kuhlman Electric became self-insured; we
cannot, however, endorse the view of Landrum & Shouse and the
circuit court regarding the status of Kuhlman Electric in the
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Burgess reopening matter.
Under the hypothesis advocated by
Landrum & Shouse and the circuit court, though Kuhlman Electric
was a client in the matter, it was proper for Landrum & Shouse
to subordinate the interests of the company to the interests of
the insurer, Amerisure.
This subordination of interests of the
insured to the insurer is against the weight of authority in
cases where an insurance company retains an attorney to
represent an insured, and Landrum & Shouse has cited us to no
authority that there is an exception to this principle in
workers’ compensation cases.
The attorney-client relationship is a fiduciary
relationship which imposes upon the attorney the duty to
exercise "the most scrupulous honor, good faith and fidelity" to
his or her client's interest.
12, 16 (Ky.App. 1978).
Daugherty v. Runner, 581 S.W.2d
“[C]ourts and commentators recognize
universally that the tripartite relationship between insured,
insurer, and defense counsel contains rife possibility of
conflict.”
Atlanta Intern. Ins. Co. v. Bell, 475 N.W.2d 294,
297 (Mich. 1991)(footnote omitted).
“The interest of the
insured and the insurer frequently differ.”
Id.
“Accordingly,
courts have consistently held that the defense attorney's
primary duty of loyalty lies with the insured, and not the
insurer.”
Id. (citations omitted).
“An attorney’s
representation of two or more clients with adverse or
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conflicting interests constitutes such misconduct as to subject
the attorney to liability for malpractice, unless the attorney
has obtained the consent of the clients after full disclosure of
all the acts concerning the dual representation.”
2d, Attorneys at Law § 213 (1997).
7 Am. Jur.
“[T]here are situations in
which a conflict of interest may arise between insurer and
insured represented by the same attorney.
If such a conflict
does exist, the attorney may continue to represent both clients
only after full disclosure and full consent; and if he fails to
make such full disclosure, he will be held liable in a
malpractice action.”
28 A.L.R.3d 389, Malpractice: Liability of
Attorney Representing Conflicting Interests § 6 (1969).
Further, our courts are under a duty to protect and preserve the
attorney-client relationship for the benefit of the general
public.
In re Gilbert, 274 Ky. 187, 118 S.W.2d 535 (1938);
American Continental Ins. Co. v. Weber & Rose, P.S.C., 997
S.W.2d 12, 13-14 (Ky.App. 1998).
The situation may arise in workers’ compensation cases
in which a company is represented by multiple workers’
compensation carriers.
See, e.g., Phoenix Manufacturing Company
v. Johnson, 69 S.W.3d 64 (Ky. 2001).
In the typical case the
insured company may be ambivalent regarding how liability is
apportioned among the multiple carriers.
In this case, however,
Kuhlman Electric had an interest in avoiding the shifting of
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liability away from Amerisure because the target of the shift
was to the company itself in its self-insured capacity.
The
client has the prerogative of determining the objectives of the
representation.
Rule 1.2.
Kentucky Rules of Supreme Court (SCR) 3.130,
Hence, the conflict-of-interest imposed upon Landrum
& Shouse in its representation of the company is patent.
In our view, there is no exception to an attorney’s
duties to his client in workers’ compensation cases, and an
attorney must be cautious in proceeding in such cases if he is
currently representing, or has formerly represented, the company
in the matter, and then advocates a position on behalf of the
insurance carrier which is adverse to the interests of the
company.
At minimum the attorney should disclose the conflict
to his company-client, and obtain its consent to the dual
representation.
SCR 3.130, Rule 1.7.
In summary, because Kuhlman Electric was a client of
Landrum & Shouse upon the 1991 reopening, and because Landrum &
Shouse sought on behalf of the insurer to shift liability to the
company in its self-insured capacity, we cannot, as a matter of
law, conclude that there was not a violation of the duties owed
by Landrum & Shouse to Kuhlman Electric.
Nevertheless, summary judgment was proper because
Kuhlman Electric is unable to show damages in connection with
the violation of any duties owed to it by Landrum & Shouse.
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In
order to succeed in a legal malpractice claim, the plaintiff
must show that his attorney's wrongful conduct has caused him to
lose something to which he would have otherwise been entitled.
Kirk v. Watts, 62 S.W.3d 37 (Ky.App. 2001).
In this respect, a
legal malpractice case must recognize and resolve the “‘suit
within a suit.’”
Marrs v. Kelly, 95 S.W.3d 856, 860 (Ky.
2003)(footnote omitted).
“To prove that the negligence of the
attorney caused the plaintiff harm, the plaintiff must show that
he/she would have fared better in the underlying claim; that is,
but for the attorney's negligence, the plaintiff would have been
more likely successful.”
Id.
Under the circumstances of this
case, Kuhlman Electric is unable to do this.
At the time of the 1991 reopening 803 KAR 25:010
provided that in workers’ compensation claims litigation “all
persons shall be joined as defendants against whom the ultimate
right to any relief pursuant to KRS Chapter 342 may exist,
whether jointly, severally, or in the alternative.”
original injury occurred in 1977.
occurred in August 1991.
The
Burgess’s disabling condition
Because of this time lapse from the
original injury, the question of whether the injury was a new
injury rather than a worsening of the 1977 injury was obvious.
And because Kuhlman was self-insured in August 1991, it was a
person against whom relief pursuant to Chapter 342 may exist.
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Thus 803 KAR 25:010 mandated that Kuhlman Electric as selfinsured be joined into the 1991 litigation.
If Landrum & Shouse, upon the joinder of Kuhlman
Electric as self-insured, instead of continuing its
participation had withdrawn or, in the alternative, had
advocated solely on behalf of Kuhlman Electric without regard to
the interests of Amerisure, nevertheless, Amerisure, as a
defendant also joined in the litigation under 803 KAR 25:010,
would have, as a matter of course, retained alternative counsel
to protect its position in the proceedings.
In the normal course of events, alternative counsel,
too, would undoubtedly have advocated the position that
Burgess’s August 1991 injury was a new injury as opposed to a
worsening of the 1977 injury.
Under the circumstances – the
original injury occurred in 1977 and the final disabling
condition occurred in 1991 – the theory that the August 1991
injury was a new injury and not a worsening of the old injury
was not a particularly novel theory.
Any competent counsel
retained by Amerisure would have been expected to argue this
position.
The theory having been interjected into the
litigation, there is no reason to suppose the same result would
not have occurred, i.e., the ALJ would have determined that
there was a new injury which was the responsibility of Kuhlman
Electric as self-insured, and this decision would have been
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upheld through the appeals process.
Hence, Kuhlman Electric
would have been no better off even if alternative counsel,
rather than Landrum & Shouse, had advocated the new injury
theory.
Because Kuhlman Electric is unable to show damages in
connection with its claims against Landrum & Shouse, the circuit
court properly granted summary judgment on all causes of action
alleged by the appellant.
Steelvest, supra.
CASE NO. 2004-CA-000633-MR
In Case No. 2004-CA-000633-MR, Kuhlman Electric
contends that the circuit court erred by granting summary
judgment on its claims against Amerisure for breach of contract,
breach of fiduciary duties, aiding and abetting the breach of
fiduciary duties, and bad faith.
As with the claims against Landrum & Shouse, however,
Kuhlman Electric cannot demonstrate damages associated with its
claims against Amerisure.
Again, in any event Amerisure would
have retained counsel to protect its position in the litigation,
in which event the interjection of the new injury theory would
have been inevitable, and in which event the same outcome would
have been expected.
Summary judgment was accordingly proper on
Kuhlman Electric’s claims against Amerisure.
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Steelvest, supra.
For the foregoing reasons the judgments of the Fayette
Circuit Court granting summary judgment to Landrum & Shouse and
Amerisure are affirmed.
SCHRODER, JUDGE, CONCURS.
BUCKINGHAM, JUDGE, CONCURS IN RESULT AND FILES
SEPARATE OPINION.
BUCKINGHAM, JUDGE, CONCURRING IN RESULT.
I agree with
the majority that the circuit court judgments should be
affirmed.
However, I agree for the reasons stated by the
circuit court rather than the reasons stated by the majority
herein.
I agree with the argument advanced by the appellees
that Kuhlman Electric as insured by Amerisure (Michigan Mutual)
is a different entity than Kuhlman Electric in its self-insured
capacity.
As such, Landrum & Shouse had no conflict of
interest.
Thus, I respectfully concur in the result only.
BRIEF FOR APPELLANT:
BRIEF FOR LANDRUM & SHOUSE:
John C. Morton
Samuel J. Bach
Morton & Bach
Henderson, Kentucky
Guy R. Colson
Elizabeth S. Feamster
Fowler, Measle & Bell, LLP
Lexington, Kentucky
ORAL ARGUMENT FOR APPELLANT:
ORAL ARGUMENT FOR LANDRUM AND
SHOUSE:
John C. Morton
Morton & Bach
Henderson, Kentucky
Guy R. Colson
Fowler, Measle & Bell, LLP
Lexington, Kentucky
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BRIEF FOR AMERISURE:
Robert E. Stopher
Robert D. Bobrow
Boehl Stopher & Graves, LLP
Louisville, Kentucky
ORAL ARGUMENT FOR AMERISURE:
Robert E. Stopher
Boehl Stopher & Graves, LLP
Louisville, Kentucky
-21-
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