Ricks v. Teslow Consolidated

No. 12419 I N THE SUPKEME COURT O THE STATE OFPDNTANA F JIMMY A. RICKS, P l a i n t i f f and Respondent, TESLOW CONSOLIDATED and ARGONAUT INSURANCE COMPANY, Defendants and A p p e l l a n t s . Appeal from: D i s t r i c t Court of t h e E i g h t e e n t h J u d i c i a l D i s t r i c t , Honorable W. W . Less l e y , J u d g e p r e s i d i n g . Counsel o f Record: For Appellants : H a r r i s , J a c k s o n and U t i c k , H e l e n a , Montana. Vern H a r r i s a r g u e d , Helena, Montana. For Respondent : B o l i n g e r and Wellcome, Bozeman, Montana. Page Wellcome a r g u e d , Bozeman, Montana. - Submitted: A p r i l 25, 1973 Decided : J ~ 26ln L g Filed : JUL 2 6 1975 Mr. J u s t i c e C a s t l e s d e l i v e r e d t h e Opinion of t h e Court. This i s an appeal from a n amended judgment of J u l y 30, 1971, and a supplementary judgment e n t e r e d on October 17, 1972, e n t e r e d by t h e d i s t r i c t c o u r t i n G a l l a t i n County on f i n d i n g s of f a c t and conclusions of law i n f a v o r of a c l a i m a n t f o r workman's compensa- tion. Through a h e a r i n g b e f o r e t h e I n d u s t r i a l Accident Board on June 3 , 1970, claimant Jimmy A. Ricks sought workmen's compensa- t i o n , based upon h i s c l a i m f o r compensation which had been f i l e d w i t h t h e Board over t h r e e y e a r s and seven months a f t e r t h e d a t e of h i s a c c i d e n t . The I n d u s t r i a l Accident Board ( h e r e i n a f t e r c a l l e d t h e Board) denied compensation. Claimant appealed t o t h e d i s t r i c t c o u r t and was awarded compensation f o r 500 weeks, a t t h e r a t e of $50 per week, payable i n a lump sum. Subsequently, t h e d i s t r i c t c o u r t e n t e r e d an amended o r d e r nunc pro tunc which awarded compensation f o r a p e r i o d n o t t o exceed 500 weeks and d e l e t e d t h e p r o v i s i o n f o r payment i n a lump sum. Defendants appealed t h e amended judgment t o t h i s Court. The appeal r e s u l t e d i n a p e r curiam o r d e r , d a t e d February 7, 1972, wherein t h i s Court s t a t e d : "IT I S ORDERED t h a t t h e cause be remanded t o t h e S t a t e I n d u s t r i a l Accident Board and t h a t s a i d Board conduct a h e a r i n g i n t o t h e element of e s t o p p e l based upon t h e a c t i o n o r i n a c t i o n of t h e a t t o r n e y s f o r Teslow Consolidated w h i l e r e p r e s e n t i n g c l a i m a n t ' s i n t e r e s t s . I' A second h e a r i n g was h e l d b e f o r e t h e Board on May 19, 1972, pursuant t o t h i s c o u r t ' s o r d e r . On June 7 , 1972, t h e h e a r i n g s o f f i c e r e n t e r e d a memorandum opinion and f i n d i n g s o f f a c t and c o n c l u s i o n s of law denying compensation. The d e c i s i o n of t h e h e a r i n g s o f f i c e r was adopted by t h e Board by o r d e r d a t e d J u l y 12, 1972. O c l a i m a n t ' s second appeal t o t h e d i s t r i c t c o u r t , t h a t n c o u r t e n t e r e d a d d i t i o n a l f i n d i n g s o f f a c t and conclusions of law and a supplementary judgment which r e v e r s e d t h e d e c i s i o n o f t h e Board and awarded compensation f o r a p e r i o d n o t t o exceed 500 weeks. Defendants appeal from t h e d i s t r i c t c o u r t ' s amended judgment of J u l y 3 0 , 1971, and from t h e c o u r t ' s supplementary judgment of October 17, 1972. The s o l e i s s u e h e r e i s : Did t h e d i s t r i c t c o u r t e r r i n r e v e r s i n g t h e d e c i s i o n of t h e Board and i n e n t e r i n g judgment f o r payment of 500 weeks of workmen's compensation? O o r about A p r i l 27, 1966, w h i l e i n t h e employ of Teslow n Consolidated, claimant Jimmy A. Ricks s u s t a i n e d an a c c i d e n t a l i n j u r y i n t h e n a t u r e of a puncture would below h i s l e f t p a t e l l a . He a l s o complained of a f o r e i g n body i n h i s r i g h t eye. The knee was cleansed and d r e s s e d by D r . J.M.Brooke of Ronan, Montana, and c l a i m a n t ' s eye was examined, b u t no f o r e i g n body was found. D r . Brooke i n d i c a t e d c l a i m a n t would p o s s i b l y b e o f f work one day, b u t would n o t i n c u r any permanent d i s a b i l i t y . O A p r i l 29, 1966, Ricks was seen by D r . A. L. Vadheim of n Bozeman, who i n d i c a t e d Ricks would be p a r t i a l l y d i s a b l e d f o r two weeks. Ricks was seen p e r i o d i c a l l y following A p r i l 29, 1966, by D r . Vadheim and u l t i m a t e l y by D r . F r a n c i s Kelly, an orthopedic surgeon, i n c o n s u l t a t i o n on February 10, 1967, following which p h y s i c a l t h e r a p y was recommended. D r . Kelly diagnosed Ricks' d i f f i c u l t y a s an i n f l a m a t i o n o f t h e l e f t kneecap, termed chondro- malacia p a t e l l a , i n v o l v i n g t h e back s u r f a c e l i n i n g of t h e kneecap and he i n j e c t e d t h e knee s e v e r a l times w i t h c o r t i s o n e . Sometime a f t e r August 1, 1966, Ricks c o n t a c t e d M r . H.A. Bolinger, a n a t t o r n e y and s t o c k h o l d e r f o r two of t h e f o u r Teslow Companies t h a t owned Teslow Consolidated, who then was p r e p a r i n g a s u i t f o r damages a g a i n s t t h e o t h e r p a r t y o r p a r t i e s involved i n the accident. A t t h e time of e i t h e r t h e f i r s t o r second v i s i t w i t h Mr. Bolinger, Ricks engaged Bolinger t o look a f t e r h i s l e g a l i n - t e r e s t s i n connection w i t h t h e a c c i d e n t . Ricks was made a p a r t y lai in tiff i n t h e s u i t f o r damages along w i t h h i s employer, Teslow Consolidated. This s u i t was e v e n t u a l l y s e t t l e d t o t h e advantage of p l a i n t i f f s , w i t h Ricks r e c e i v i n g a n e t amount ( a f t e r a t t o r n e y s ' f e e s and c o s t s of some $4,100 t o $4,700) of $8,800 t o $8,900. During t h e s t a t u t o r y time f o r f i l i n g a c l a i m f o r compensation t h e r e was only one a t t o r n e y (Mr. Bolinger) f o r Teslow Consolidated involved w i t h claimant Ricks. Two o t h e r a t t o r n e y s e n t e r e d t h e c a s e a t varying times l a t e r , b u t n e i t h e r was i n t h e c a s e w i t h i n one y e a r a f t e r t h e a c c i d e n t . M r . Andriolo became involved when he became a s s o c i a t e d w i t h Bolinger i n J u l y o r August of 1967. M r . Wellcome, a l s o upon becoming a s s o c i a t e d w i t h M r . Bolinger, was n o t involved u n t i l 1969. O December 1, 1969, over t h r e e y e a r s and seven months a f t e r n t h e d a t e of t h e a c c i d e n t , Ricks f i l e d a c l a i m f o r workmen's com- pensation. Defendant, Argonaut Insurance Co., paid medical b e n e f i t s through May 20, 1970, t o t a l i n g $231. This sum r e p r e s e n t s a l l medical b i l l s submitted on t h e c l a i m w i t h t h e exception of one b i l l from D r . Kelly i n t h e amount of $25 f o r a r e p o r t t o t h e Department of Labor and I n d u s t r i e s i n t h e s t a t e of Washington. On A p r i l 5 , 1971, t h e Board e n t e r e d i t s f i r s t f i n d i n g s o f f a c t and conclusions o f law. I n i t s conclusions numbered I1 and 111, t h e Board h e l d s p e c i f i c a l l y : "11. That t h e c l a i m a n t f i l e d a c l a i m f o r compen- s a t i o n a f t e r t h e s t a t u t o r y p e r i o d as s e t f o r t h i n S e c t i o n 92-601, R.C.M. 1947, had e x p i r e d . "111. That t h e evidence i s i n s u f f i c i e n t t o e s t a b - l i s h t h a t t h e defendant c a r r i e r because of t h e i r a c t i o n s i n t h i s i n s t a n t c a s e a r e e q u i t a b l y estopped from r a i s i n g t h e defense of t h e s t a t u t e of l i m i t a - t ions. II Upon t h e f i r s t a p p e a l t h e m a t t e r was submitted t o t h e d i s t r i c t c o u r t on t h e t r a n s c r i p t from t h e I n d u s t r i a l Accident Board and no new evidence was o f f e r e d . On June 23, 1971, t h e d i s t r i c t c o u r t e n t e r e d i t s f i n d i n g s of and f a c t , / c o n c l u s i o n s of law, r e v e r s i n g t h e Board. A s a b a s i s of r e v e r s a l , t h e c o u r t h e l d t h a t defendant Argonaut Insurance Co. was e q u i t a b l y estopped from r a i s i n g t h e defense of t h e s t a t u t e of l i m i t a t i o n s , a s s e t f o r t h i n s e c t i o n 92-601, R.C.M. 1947. The c o u r t f u r t h e r h e l d t h a t defendant Argonaut Insurance Co. had a duty t o o b t a i n a c l a i m f o r compensation from t h e p l a i n t i f f and t o a d v i s e him i t must be f i l e d w i t h i n one y e a r from t h e d a t e of t h e a c c i d e n t . The f a c t s upon which t h e c o u r t based i t s conclusions r e l a t e t o t h e a c t i o n s of ~ r g o n a u t ' sa g e n t , George Wood. The c o u r t found t h a t Wood had a c e r t a i n e x p e r t i s e i n t h e workmen's compensation f i e l d and t h a t h i s o f f i c e normally followed a procedure of sending a c l a i m f o r compensation form t o a c l a i m a n t and a d v i s i n g c l a i m a n t he must f i l e h i s c l a i m w i t h i n twelve months of t h e d a t e of t h e a c c i d e n t i n c a s e s where t h e p h y s i c i a n ' s f i r s t r e p o r t o r t h e employer's r e p o r t i n d i c a t e s a l o s s of time i n excess o f seven days. The c o u r t found t h i s procedure was n o t followed i n t h e i n s t a n t c a s e . I t f u r t h e r found t h a t Wood f a i l e d t o send a copy of D r . Vadheim's f i r s t r e p o r t t o t h e Board, although Wood normally would have done so. The c o u r t d i d n o t e x p l a i n how t h e f a i l u r e t o forward D r . ~ a d h e i m ' sr e p o r t i n any way p r e j u d i c e d o r a f f e c t e d t h e claimant. F i n a l l y , t h e c o u r t based i t s conclusion of e q u i t a b l e e s t o p p e l on t h e f a c t t h a t defendant Argonaut Insurance Co. had " n o t i c e of t h e c o n t i n u i n g d i f f i c u l t y which t h e p l a i n t i f f was e x p e r i e n c i n g by and through medical r e p o r t s ** *.If Defendants f i l e d formal e x c e p t i o n s t o t h e c o u r t ' s f i n d i n g s and c o n c l u s i o n s , which were subsequently denied. The testimony i s undisputed t h a t c l a i m a n t Ricks had never had any c o n t a c t whatsoever w i t h anyone connected w i t h Argonaut Tnsurance Co. up t o t h e d a t e o f t h e h e a r i n g b e f o r e t h e Board. There was n o t h i n g between claimant and t h e Argonaut Insurance Co. o r t h e Board toward making a claim, p r i o r t o t h e a c t u a l f i l i n g of t h e claim. Counsel f o r claimant made some obscure r e f e r e n c e s i n t h e f i r s t h e a r i n g t o something between claimant and a t t o r n e y s f o r t h e employer, Teslow Consolidated, who were a l s o a t t o r n e y s f o r c l a i m a n t , b u t any c o n t e n t i o n of a n y t h i n g i n t h e n a t u r e of an e s t o p p e l i n t h i s r e s p e c t was abaondoned u n t i l a f t e r t h i s C o u r t ' s order of February 7, 1972. Counsel's letter of January 21, 1971, to the chairman of the Board stated: "* * Jc we will withdraw the contention which we made before the Board pertaining to an element of estoppel being based upon any action or inaction of the attor- neys for Teslow, Inc. * * *" After this court's order of February 7, 1972, claimant reasserted an issue of estoppel based upon the actions or inactions of claimant's and employert counsel. s At the second hearing before the Board on my' 19, 1972, Mr. Bolinger testified: "Q. Then at that time, when these notes were made, did you agree to represent Mr. Ricks with any legal problems he might have as a result of the accident? "A. 1'm sure I did. He was a party-plaintiff in the accident case, and 1'm sure I was representing him in whatever there was, yes. "Q. Do you have any specific recollection at this time as to any further discussion of the industrial accident claim? "A. I don't have any distinct recollection of it. He was off 11 days, it seems to me, and I thought he wasn't off long enough to present a claim, and he had this large family he was having to support, is all I remember about it. I I On cross-examination, Mr. Bolinger testified: "Q. In answer to Mr. Wellcome's question as to whether or not you discussed workmen's compensation with Mr. Ricks, that phase of this accident,'you said, I believe, you must have discussed it to some extent'. Do I understand correctly you meant to the extent of these notes in Exhibit No. l? 'A. Yes, there's a couple things in that that would have pertained to it, like the time he was off, and the reference at the bottom. I would have had to have talked about industrial accident or workmen's compen- sation to have written those notes. "Q. Of course, those matters could also have pertained to any claim against the driver and owner of the tractor, could they not, loss of time and claim for medical bene- fits? "A. Well, yes, but the reference there that 1 Industrial paid bills', means an industrial accident had to be mentioned at the time. "Q. But you might have been interested in that from the standpoint of a claim against the third party as owner of the tractor and driver of the tractor? "A. That would be true. "Q. And do I understand c o r r e c t l y t h a t you d o n ' t have any independent r e c o l l e c t i o n of d i s c u s s i n g t h e i n d u s t r i a l a c c i d e n t phase w i t h M r . Ricks a t t h e time t h e s e n o t e s were made? "A. Other than I remember him t e l l i n g m he e had so much family h e ' d have t o go back t o work sooner than he thought he should because he c o u l d n ' t g e t by on what compensation he could g e t . I do remember t h a t . II Q. You d i d n ' t make any n o t e on t h a t on E x h i b i t No. l ? 'A. No. "Q. And t h a t ' s t h e only t h i n g you r e c a l l i n - dependently of t h i s memorandum t h e n ? "A. I t h i n k t h a t ' s c o r r e c t , t h a t ' s t h e only independent r e c o l l e c t i o n I have of i t . 1 ' m i n c l i n e d t o t h i n k t h a t when he was only o f f 1 days, I t o l d him i t wasn't worth p u t t i n g i n 1 a claim. "Q. y o u ' r e n o t s u r e whether you t o l d him t h a t or not7 "A. Well, I would t h i n k I d i d , b u t I c a n ' t remember s a y i n g t h e words. I remember d e f i n i t e l y h i s talking about h i s l a r g e f a m i l y , I remember t h a t . 11 c l a i m a n t ' s r e c o l l e c t i o n of any d i s c u s s i o n of a compensation c l a i m w i t h M r . Bolinger was a l s o extremely hazy a s t o p r e c i s e l y what was s a i d and when. I n f a c t , claimant had t e s t i f i e d a t t h e f i r s t Board h e a r i n g t h a t he had d i s c u s s e d t h e s u b j e c t of t h e claim f i l i n g requirement w i t h i n a year of t h e a c c i d e n t d a t e w i t h Mr. Andriolo and M. Andriolo had advised him a s t o t h e f i l i n g r e - r A t t h e second h e a r i n g , claimant changed h i s s t o r y and s t a t e d t h a t he had n o t d i s c u s s e d t h e f i l i n g requirements u n t i l a f t e r t h e f i l i n g p e r i o d had e x p i r e d . Also, a t t h e second h e a r i n g , claimant changed h i s s t o r y a s t o how he came t o s e e M r . Bolinger i n t h e f i r s t place. Under cross-examination a t t h e f i r s t h e a r i n g , c l a i m a n t f i n a l l y admitted t h a t i t was h i s i d e a t o c o n t a c t M r . Bolinger and use t h e same lawyer a s Teslow Consolidated. A t t h e second h e a r i n g , claimant t e s t i f i e d t h a t he f i r s t saw Bolinger a t t h e r e q u e s t of someone w i t h Teslow Consolidated. There i s no d i s p u t e , however, t o t h e f a c t t h a t claimant r e t a i n e d M r . Bolinger t o r e p r e s e n t him i n connection w i t h h i s injuries within the one year claim filing period. On June 7, 1972, the Board entered its findings of fact and conclusions of law: "FINDINGS OF FACT "I. That there is no dispute that the Claimant suffered an accidental injury arising out of and in the course of his employment with Teslow, Inc. on April 27, 1966, in Lake County, Montana. "11. That the Claimant received medical benefits pursuant to the provisions of Section 92-706, R.C.M. 1947. "111. That no Claim for Compensation was filed within the statutory time for filing as required by Section 92-601, R.C.M. 1947. "IV. That the Claimant was summoned to the office of Mr. H. A. Bolinger, an attorney at Law, for the purpose of providing eye witness information to be used in preparation of a suit for damages in a Court of Law on behalf of the Claimant's employer, Teslow, Inc . "V. That Bolinger was a stock holder in two of the four corporations that owned Teslow, Inc., and further that Bolinger was and had been an attorney on a retainer and additional fee basis for the Teslow interests for a number of years prior to and at the time of his association with the Claimant. "VI. That the Claimant, subsequent to his meeting with Bolinger, became a party plaintiff along with Teslow, Inc. in a suit for damages filed in the 4th Judicial District, Polson, Montana, on November 9, 1967, against another party or other parties, and that Bolinger acted as attorney in the common interests of both the Claimant and Teslow, Inc. and further that the Claimant retained Bolinger to represent his legal interests in connection with the accident. "VII. That Bolinger pursued the interests of his clients, the Claimant and Teslow, Inc., to the point of a settle- ment without the necessity of a court decision. "~111. That the Claimant lost eleven (11) days work due to the injuries received in the accident Ghich occurred on April 27, 1966. "IX. That Pursuant to the provisions of Section 92-701, R.C.M. 1947 as this section stood in April 1966 the Claimant would have been entitled to four ( ) days of 4 compensation at the rate of $56.00 per week or a total of $32.00 for temporary total disability had a timely claim been filed. "X. That the matter of Workman's Compensation was only briefly discussed between the Claimant and Attorney Bolinger and that Bolinger mistakenly believed that the Claimant had not lost sufficient time from work to be entitled to receive compensation. "XI. That Atcorney Andriolo, an a s s o c i a t e of Rolinger, d i d n o t e n t e r t h e c a s e o r d i s c u s s t h e c a s e w i t h t h e Claimant u n t i l a f t e r t h e s t a t u t o r y time f o r f i l i n g a c l a i m had run. "XII, That t h e preponderance of evidence f a i l s t o r e v e a l t h a t any of t h e elements of e q u i t a b l e e s t o p p e l , o r e s t o p p e l i n p a i s , a r e o r were p r e s e n t d u r i n g t h e s t a t u t o r y twelve (12) month p e r i o d subsequent t o t h e d a t e of t h e a c c i d e n t . "I. That t h e Claimant w a s e n t i t l e d t o medical b e n e f i t s under t h e p r o v i s i o n s of S e c t i o n 92-706, R.C.M. 1947. "11. That no Claim f o r Compensation was f i l e d by t h e Claimant o r someone l e g a l l y a u t h o r i z e d t o a c t i n h i s b e h a l f w i t h i n t h e time period d e s c r i b e d i n S e c t i o n 92-601, R.C.M. 1947 and a s a r e s u l t t h e Claimant i s n o t e n t i t l e d t o compensation under t h e p r o v i s i o n s of t h e workman's Compensation Act, I' Upon t h e second a p p e a l t o t h e d i s t r i c t c o u r t , t h e m a t t e r was a g a i n submitted t o t h e c o u r t on t h e t r a n s c r i p t from t h e Board and no new evidence was o f f e r e d . O October 11, 1972, t h e d i s t r i c t c o u r t e n t e r e d i t s f i n d i n g s n of f a c t and c o n c l u s i o n s of law, r e v e r s i n g t h e Board. The c o u r t adopted i t s previous f i n d i n g s and c o n c l u s i o n s and added t h e r e t o an a d d i t i o n a l ground f o r e q u i t a b l e e s t o p p e l based on t h e " a c t i o n s , s t a t e m e n t s and assurances" of t h e a t t o r n e y s f o r t h e defendant, Teslow Consolidated, who a l s o r e p r e s e n t e d t h e claimant. The c o u r t , i n i t s amended o r d e r of J u l y 27, 1971, and r e - a f f i r m e d i n i t s supplementary judgment of October 17, 1972, h e l d t h a t c l a i m a n t w a s permanently d i s a b l e d a s a r e s u l t of h i s a c c i d e n t a l i n j u r y and was thereby e n t i t l e d t o compensation f o r a p e r i o d n o t t o exceed 500 weeks. This holding was based upon t h e c o u r t ' s f i r s t f i n d i n g s of f a c t t h a t c l a i m a n t had s u s t a i n e d f u r t h e r i n j u r i e s i n a d d i t i o n t o t h e puncture wound below h i s l e f t p a t e l l a . The c l a i m a n t ' s o t h e r i n j u r i e s r e l i e d on by t h e c o u r t a r e s e t f o r t h i n i t s f i n d i n g s of f a c t a s "sand i n h i s eye", "a t e n d e r l e f t second toe1', "a c o n t u s i o n of t h e l e f t thigh", and "a mental c o n d i t i o n * Jc * which manifested i t s e l f i n h i s being a f r a i d t o d r i v e a t r u c k and f e e l i n g t h a t o t h e r v e h i c l e s coming towards him were i n t h e process of c r o s s i n g over t h e c e n t e r l i n e s o a s t o s t r i k e t h e t r u c k which he was d r i v i n g . 11 D r . ~ r o o k e ' sf i r s t r e p o r t , a s w e l l a s c l a i m a n t ' s own t e s t i - mony, i n d i c a t e s t h a t t h e sand i n c l a i m a n t ' s eye was nothing of significance. Claimant t e s t i f i e d t h a t he had a piece of g l a s s i n h i s eye which h e removed himself. D r . ~ r o o k e ' sf i r s t r e p o r t i n d i c a t e s t h a t he examined c l a i m a n t ' s eye and found no f o r e i g n body. Claimant, on cross-examination, t e s t i f i e d : "Q. You haven't had any t r o u b l e with your eye s i n c e t h i s a c c i d e n t ? "A. NO. II The only r e f e r e n c e s i n t h e record t o a tender l e f t second t o e and a contusion of t h e l e f t t h i g h occur i n t h e i n i t i a l r e p o r t s and b i l l i n g s of D r . Vadheim. A examination of D r . ~ e l l y ' st e s t i - n mony before t h e Board r e v e a l s t h a t c l a i m a n t ' s only complaint t o him was t h e problem with h i s l e f t knee. I n f a c t , claimant's attorney stated: "Q. (By M . H a r r i s ) Maybe I can shorten m r y cross-examination of t h e doctor, i f I ask M r . Wellcome one question---are you claiming any- t h i n g i n t h i s procedure f o r any i n j u r y o t h e r than t o t h e knee? "MR. IELLCOME: Only i n s o f a r a s t o what M r . Ricks has a l r e a d y t e s t i f i e d t o about t h e emotional problems which he has had i n d r i v i n g a t r u c k and t h e f e a r t h a t o t h e r t r u c k s o r c a r s a r e coming a c r o s s t h e c e n t e r l i n e which a f f e c t s h i s a b i l i t y t o d r i v e a l s o , a s a r e s u l t of t h i s accident. 1I A s t o t h e "mental problem", t h e only evidence i n t h e record i s t h e unsubstantiated, s e l f - s e r v i n g testimony of t h e claimant. There i s no i n d i c a t i o n whatsoever t h a t claimant ever sought t r e a t - ment f o r h i s "problem", o r , f o r t h a t m a t t e r , t h a t he ever mentioned i t t o h i s doctors. There i s no medical testimony corroborating t h e e x i s t e n c e of t h i s "problemf'. I n f a c t , t h e record i s completely devoid of any medical testimony connecting t h i s "problem" t o t h e a c c i d e n t of A p r i l 27, 1966. I t i s apparent t h e Board f e l t t h e evidence i n s u f f i c i e n t t o support a f i n d i n g of any o t h e r i n j u r i e s when i t found: "That t h e medical evidence r e v e a l s t h e claimant i s s u f f e r i n g from an inflamation of t h e knee, termed Chrondromalacia p a t e l l a , which max possibly n e c e s s i - t a t e surgery a t some f u t u r e time. 4s set out h e r e t o f o r e , t h e i s s u e i s whether t h e d i s t r i c t c o u r t e r r e d i n r e v e r s i n g t h e d e c i s i o n of t h e Board and i n e n t e r i n g judgment f o r payment of 500 weeks of workmen's compensation. I t i s defendants' p o s i t i o n t h a t t h e d i s t r i c t c o u r t e r r e d i n g r a n t i n g any compensation whatsoever because a c l a i m f o r compensa- t i o n was n o t f i l e d u n t i l long a f t e r t h e s t a t u t e o f l i m i t a t i o n s s e t f o r t h i n s e c t i o n 92-601, R.C.M., had e x p i r e d ; and t h e r e a r e a b s o l u t e l y no f a c t s i n t h e c a s e which would j u s t i f y t h e i m p o s i t i o n of an e q u i t a b l e e s t o p p e l a g a i n s t t h e i n s u r e r . T h i s Court i n Becktold v. I n d u s t r i a l Accident Board, 137 Mont. 119, 125, 350 P.2d 383, s a i d : "1f t h e evidence does n o t c l e a r l y preponderate a g a i n s t t h e f i n d i n g s of t h e Board, t h e d i s t r i c t c o u r t must a f - f i r m t h e ~ o a r d ' so r d e r . Moffett v. Bozeman Canning Co., 95 Mont. 347, 26 Pac.2d 973." Here, t h e q u e s t i o n i s , i n thelanguage of s e c t i o n 92-834, R.C.M. 1947: l'* ** whether o r n o t t h e f i n d i n g s of t h e board ought t o b e s u s t a i n e d , and whether o r n o t such f i n d i n g s a r e r e a s o n a b l e under a l l t h e circumstances of t h e c a s e . I I I n M o f f e t t v. Bozeman Canning Co., 95 Mont. 347, 351, 26 P.2d 973, we s a i d : "The c a s e came t o t h e d i s t r i c t c o u r t w i t h t h e DresumD- t i o n t h a t t h e board had decided c o r r e c t l y . [ c i i i n g c a s e s ] I' See a l s o : Kerns v. Anaconda Copper Mining Co., 87 Mont. 546, 289 P. 563. Was t h e Board a r b i t r a r y i n f i n d i n g t h a t t h e evidence was i n s u f f i c i e n t t o e s t a b l i s h an equitable estoppel against the defendant c a r r i e r ? T h i s Court i n Meznarich v. Republic Coal Co., 101 Mont. 78, 9 3 , 53 P.2d 82, s a i d : "The b o a r d ' s d e c i s i o n on t h i s q u e s t i o n can only be r e v e r s e d i f a r b i t r a r y and founded on no s u b s t a n t i a l evidence. I I c l a i m a n t ' s a c c i d e n t of A p r i l 27, 1966 d i d n o t r e s u l t i n any c l a i m f o r compensation b e i n g f i l e d u n t i l December 1, 1969, o r over t h r e e y e a r s and seven months t h e r e a f t e r . The Montana workmen's Compensation Act has two requirements : (1) s e c t i o n 92-807, R.C.M. 1947, which r e q u i r e s n o t i c e i n s i x t y days a f t e r t h e a c c i d e n t ; and (2) s e c t i o n 92-601, R.C.M. 1947, which p r o v i d e s : II I n t h e c a s e of p e r s o n a l i n j u r y *** a l l claims s h a l l be f o r e v e r b a r r e d u n l e s s p r e s e n t e d i n w r i t i n g *** w i t h i n twelve months from t h e d a t e of t h e happening of t h e a c c i d e n t , e i t h e r by t h e c l a i m a n t o r someone l e g a l l y a u t h o r i z e d t o a c t f o r him. I I This Court, deeming s e c t i o n 92-601, R.C.M. 1947, t o b e a I1 s r a t u t e of l i m i t a t i o n s " has developed a n exception known a s II estoppel1'. This d o c t r i n e of e s t o p p e l a p p l i e s where employer, i n s u r e r , o r Board a s t h e c a s e may b e , has taken some p o s i t i v e a c t i o n which e i t h e r p r e v e n t s t h e c l a i m a n t from making a c l a i m o r l e a d s him reasonably t o b e l i e v e he need n o t f i l e such a claim. This Court h a s seen f i t t o apply t h e d o c t r i n e of e s t o p p e l only where t h e r e have been a f f i r m a t i v e a c t s b e f o r e t h e s t a t u t o r y period has run which e i t h e r prevent t h e claimant from f i l i n g o r l e a d him t o b e l i e v e h e need n o t do so. The f i r s t c a s e i n Montana d e a l i n g w i t h e s t o p p e l was Lindblom v. ~ m ~ l o ~ e Etc.' Assur. Corp., 88 Mont. 488, 295 P.2d 1007, rs where i t was h e l d t h a t an e s t o p p e l would b e a p p l i e d a s t o t h e f a i l u r e t o f i l e a c l a i m where t h e a g e n t of an i n s u r a n c e company l e d t h e worker t o b e l i e v e h i s c l a i m would be s e t t l e d , I n McCoy v. Mike Horse Mining Co., 126 Mont. 435, 252 P.2d 1036, t h e i n j u r e d workman was t o l d by t h e company d o c t o r t h a t he had n o t been i n j u r e d . I n Levo v. Gen.-Shea-Morrison, 128 Mont. 570, 280 P.2d 1086, t h e i n j u r e d worker was t o l d by a company lawyer and t h e company person- n e l manager t h a t h i s c l a i m was n o t covered f o r workmen's compensa- tion. I n Gugler v. I n d u s t r i a l Accident Board, 117 Mont. 38, 157 P. 2d 89, t h e c i t y c l e r k and mayor o f t h e c i t y of Hamilton informed p l a i n t i f f t h a t i t was n o t n e c e s s a r y f o r him t o f i l e a c l a i m w i t h the Board. In Yurkovich v. I n d u s t r i a l Accident Board, 132 Mont. 77, 314 P.2d 866, a Plan 1 1 c a s e , t h e c l a i m a n t wrote t o t h e Board, 1 i n q u i r i n g a s t o what he should do about h i s i n j u r y and t h e Board l e d him t o b e l i e v e i t was n o t necessary t o f i l e a claim. Tn t h e i n s t a n t c a s e , claimant was never misled by anyone connected w i t h t h e Board o r t h e i n s u r e r . The undisputed evidence shows t h e r e was never any communication between t h e c l a i m a n t and anyone r e p r e s e n t i n g t h e i n s u r e r . Claimant's c o n d i t i o n was f u l l y diagnosed by D r . Kelly w i t h i n one y e a r of t h e a c c i d e n t , and claimant knew of h i s c o n d i t i o n . A review of t h e medical evidence shows t h e d o c t o r ' s d i a g n o s i s has n o t changed and c l a i m a n t ' s c o n d i t i o n h a s n o t worsened. In o t h e r words, t h e c l a i m a n t knew, w i t h i n one y e a r , t h e f u l l e x t e n t of h i s i n j u r y . The only a f f i r m a t i v e a c t t h e i n s u r a n c e c a r r i e r took i n t h i s m a t t e r a f t e r t h e a c c i d e n t w a s t o pay f o r medical expense i n c u r r e d by t h e claimant. Before t h e Board and t h e d i s t r i c t c o u r t , claimant r e l i e d h e a v i l y on Gugler v. I n d u s t r i a l Accident Board, 117 Mont. 38, 157 P.2d 89. Although t h e f a c t s s u b s t a n t i a t i n g an e s t o p p e l o r waiver were p r e s e n t i n Gugler, t h e Court based i t s d e c i s i o n upon a t h e o r y t h a t t h e f i l i n g of a claim by a d o c t o r f o r h i s s e r v i c e s was t h e e q u i v a l e n t of t h e f i l i n g of a c l a i m by t h e i n j u r e d work- man, which dispensed w i t h t h e n e c e s s i t y o f any f u r t h e r c l a i m by t h e workman. I n i t s h a s t e t o a b r o g a t e t h e t h e o r y of Gugler, t h e l e g i s l a t u r e amended t h e Workmen's Compensation Act t o provide t h a t medical b e n e f i t s were "an a d d i t i o n a l b e n e f i t s e p a r a t e and a p a r t from compensationf', b u t n e g l e c t e d t o have t h e l e g i s l a t i v e b i l l p r i n t e d . By r e a s o n o f t h i s , t h e Court i n O'Bannon v. Gustafson, 130 Mont. 402, 303 P.2d 938, h e l d t h e amendment u n c o n s t i t u t i o n a l . I n O'Ban- non -9 i t was recognized t h a t t h e 1945 l e g i s l a t i v e amendment would have chznged t h e Gugler r u l e had t h e amendment been c o n s t i t u t i o n a l . The p e r t i n e n t s e c t i o n s have s i n c e been r e e n a c t e d and r e c o d i f i e d numerous times, so t h e c o n s t i t u t i o n a l d e f e c t of ~ ' B a n n o nno longer exists. I t i s now c l e a r t h a t medical b e n e f i t s a r e a n a d d i t i o n a l b e n e f i t s e p a r a t e and a p a r t from compensation. N c l a i m f o r medical o b e n e f i t s need be made and t h e medical b e n e f i t s w i l l be p a i d d u r i n g t h e f i r s t t h i r t y - s i x months a f t e r t h e a c c i d e n t . I n Vetsch v. Helena T r a n s f e r & Storage Co., 154 Mont. 106, 460 P.2d 757, t h e i s s u e was r a i s e d a s t o whether payment of medical claims would t o l l t h e s t a t u t e of l i m i t a t i o n s s e t f o r t h i n s e c t i o n 92-601, R.C.M. 1947. The Court held t h a t e s t o p p e l was i n a p p l i c a b l e , thereby a f f i r m i n g t h e r u l e t h a t payment of medical b i l l s does n o t dispense with t h e n e c e s s i t y of a claim f o r compensation by an i n j u r e d workman. I n r e v e r s i n g t h e r u l i n g of t h e Board i n the i n s t a n t c a s e , t h e d i s t r i c t c o u r t p a r t i a l l y based i t s decision on t h e f a i l u r e of Argonaut's a g e n t , George Wood, t o follow h i s own ordinary i n t e r n a l o f f i c e procedure. The c o u r t decided i n e f f e c t , t h a t Argonaut had a duty t o o b t a i n a claim f o r compensation from t h e claimant. This i s d i r e c t l y c o n t r a r y t o t h e p l a i n , simple, un- ambiguous language of s e c t i o n 92-601, R.C.M. 1947: "* * * a l l cladms s h a l l be forever barred u n l e s s resented i n w r i t i n n * * w i t h i n twelve months Thus, the duty i s upon t h e claimant t o f i l e h i s claim, n o t upon t h e i n s u r e r t o s o l i c i t claims. The Workmen's Compensation Act has n o t changed t h e p r i n c i p l e t h a t he who a s s e r t s a r i g h t has t h e burden of proof o r t h e burden of proceeding. I n Nicholson v. Roundup Coal Mining Co., 79 Mont. 358, 374, 257 P. 270, t h e Court s a i d : 1' The burden i s t h e r e f o r e upon t h e claimant t o prove i n j u r y , a s above defined, r e s u l t i n g from (1) an i n - d u s t r i a l a c c i d e n t , (2) a r i s i n g o u t of and (3) i n t h e course of t h e employment, and, a s t h e s e terms a r e used conjunctively and n o t d i s j u n c t i v e l y i n t h e s t a t u t e , u n l e s s a l l t h r e e of t h e s e necessary elements a r e proved by a preponderance of t h e evidence, no l i a b i l i t y rests upon t h e employer t o pay compensation. [Citing c a s e s ] . I I Other cases holding t h a t t h e burden of e s t a b l i s h i n g a r i g h t t o compensation i s t h e c l a i m a n t ' s a r e : Landeen v. Toole County Refining Co., 85 Mont. 41, 277 P. 615; Woin v. Anaconda Copper Min. Co., 99 Mont. 163, 43 P.2d 663. In - Yurkovich which was a plan I11 c a s e , the Court d i d hold t h a t t h e Board had a duty t o f u l l y a d v i s e an i n j u r e d workman of t h e claim f i l i n g requirements. But i n Yurkovich t h e claimant wrote t o t h e Board asking f o r information a s t o what he should do. I n t h e i n s t a n t c a s e t h e r e i s no such r e q u e s t from t h e claimant. There was no communication whatsoever between claimant and t h e i n s u r e r o r t h e Board. I n f a c t , claimant was represented by counsel who s u r e l y should have known of t h e claim f i l i n g requirements. The f a c t s of t h e i n s t a n t c a s e a r e c e r t a i n l y d i s t i n g u i s h a b l e from Yurkovich. I n addition, Yurkovich was decided on t h e theory t h a t t h e Board was a t r u s t e e of t h e s t a t e fund, t h a t i t a c t e d i n a dual c a p a c i t y and, therefore,had a g r e a t e r duty toward claimants. Defendant Argonaut i s n o t i n t h e same p o s i t i o n a s t h e Board. A s pointed o u t , t h e d i s t r i c t c o u r t p a r t i a l l y based i t s r u l i n g on what i t f e l t was t h e f a i l u r e of George Wood t o follow h i s own i n t e r n a l o f f i c e procedure. I n i t s f i n d i n g s of f a c t of A p r i l 5 , 1971, t h e d i s t r i c t c o u r t found t h a t Wood d i d n o t f i l e u n t i l 1970 a medical r e p o r t with t h e Board which he had received i n 1966 from D r . Vadheim. This i s immaterial t o any i s s u e of e s t o p p e l . There i s no proof claimant had any knowledge t h a t t h e r e p o r t was n o t sent. Thus i t was impossible f o r t h e claimant t o have been pre- judiced o r misled. Even i f t h e r e p o r t had been s e n t , i t i s i m - p o s s i b l e t o see how t h i s would have a f f e c t e d the s i t u a t i o n i n any way. I n i t s f i n d i n g s of f a c t of A p r i l 5 , 1971, t h e d i s t r i c t c o u r t found t h a t under Wood's "standard procedure" i f a d o c t o r ' s r e p o r t i n d i c a t e d a claimant would be d i s a b l e d , a l e t t e r would be s e n t advising t h e claimant t o f i l e a claim w i t h i n one year. There i s no l e g a l requirement t h a t t h e c a r r i e r must send such a l e t t e r . The - burden i s on t h e claimant t o f i l e a claim, n o t on t h e i n s u r e r t o s o l i c i t claims. A t t h e f i r s t hearing, claimant attempted t o make something of t h e f a c t t h a t h i s former counsel was t h e same a s t h e employer's counsel. However, a s pointed out h e r e t o f o r e , any contention of e s t o p p e l i n t h i s r e s p e c t was abandoned u n t i l a f t e r t h i s Court's order of February 7, 1972. A t t h e f i r s t hearing, c l a i m a n t ' s a t - torney s t a t e d : "m, ITELLCOME: Yes, let me make this clear for the record, for the ~oard'srecord. We are not contending that there was any overt misleading by anyone, either Teslow or any representative of Teslow. II After hearing additional testimony on May 19, 1972, the hearings officer observed: "At the time the claimant engaged Bolinger to repre- sent his legal interests in connection with the acci- dent, he, Bolinger, became an agent of the claimant while at the same time he was an agent for Teslow Consolidated. (Section 2-101, R.C.M. 1947) "The interests of the two principals were parallel and the same in the pursuit of the action for damages, while at the same time the interests of the two princi- pals could have been in conflict in the pursuit of any action relative to a workman's Compensation Claim. "A review of the evidence in the file and the testi- mony at the hearings fails to disclose any indication that this possible conflict had any influence whatsoever on ~olinger'sfailure to file a Claim for Compensation on behalf of his client and principal. He mistakenly believed that the claimant was not entitled to compen- sation payments and apparently gave no thought to pos- sible future complications that may arise. II If Mr. Bolinger made a mistake in his understanding of the law at the time or in dismissing a possible compensation claim as not worth the effort, such mistake is attributable to claimant and acts as a bar to any assertion of an equitable estoppel by claimant. Section 2-209, R. C.M. 1947, states : * * a principal is responsible to third persons ''ik for the negligence of his agent in the transaction of the business of the agency, including wrongful acts committed by such agent in and as a part of the transaction of such business, and for his willful omission to fulfill the obligations of the principal. 11 Tn the instant case, claimant is the principal, Bolinger is the agent, and the employer and Argonaut Insurance Co. are the third persons. This Court stated the essential elements of equitable estoppel in Lindblom v. ~mployers' Etc. Assur.Corp., 88 Mont. 488, 494, 295 "Generally speaking, the following are the essential elements which must enter into and form a part of an equitable estoppel in all of its applications: '1. There must be conduct---acts, language, or silence--amounting to a representation or a concealment of material facts. 2. These facts must be known to the party estopped at the time of his said conduct, or at least the circumstances must be such that knowledge of them is necessarily imputed to him. 3. The truth concerning these facts must be unknown to the other party claiming the bene- fit of the estoppel, at the time when it was acted upon by him. 4 The conduct must be done with the . intention, or at least with the expectation, that it will be acted upon by the other party, or under such circumstances that it is both natural and probable that it will be so acted upon. * * * 5. The conduct must be relied upon by the other party, and, thus relying, he must be led to act upon it. 6. He must in fact act upon it in such a manner as to change his position for the worse; in other words, he must so act that he would suffer a loss if he were compelled to surrender or forego or alter what he has done by rea- son of the first party being permitted to repudiate his conduct and to assert rights inconsistent with it. I I I (Emphasis added) Thus, it is essential to establish an equitable estoppel that the party sought to be estopped have knowledge that he is misleading the claimant and an intention to mislead the claimant to his detriment. Here, Mr. Bolinger testified that at the time he talked to the claimant he had a mistaken impression of the law. He did not know that he was mistaken and he had no intention of misleading the claimant. Therefore, an equitable estoppel has not been established. Before the Board, claimant relied on the case of Levo v. Gene-Shea-Morrison,128 Mont. 570, 280 P.2d 1086. However, Levo is clearly distinguishable in that there a "company" attorney gave advice to the claimant; he was not an agent of the claimant as Bolinger was in the instant case. The Board was correct in ruling that claimant was not entitled to compensation because no timely claim for compensation had been filed. The district court erred in reversing that decision. Accordingly, we reverse and order the case dismissed. /Chief Justice Mr. Justice Gene B. Daly dissenting: I respectfully dissent to the view of the majority. Simply, stated, the doctrine of equitable estoppel, as applied to the Montana workmen's Compensation Act, creates an exception to the one year statute of limitations stated in section 92-601, R.C.M. 1947, if the claimant is misled or otherwise prevented from filing his claim by ( ) the employer or its agent (McCoy v. Mike Horse 1 Mining Co., 126 Mont. 435, 252 P.2d 1036 [company doctor]; Levo v. Gene-Shea-Morrison,128 lont. 570, 280 P.2d 1086 [company lawyer and company personnel manager& (2) the insurer or its agent (Lindblom v ~mployer's Etc. Assur. Corp. 88 Mont. 488, 295 P . @ 1007 [insurance company agent]); or (3) the Industrial Accident Board or its agent (~urkovichv. Industrial Accident Board, 132 Mont. 77, 314 P.2d 866 [agent of the board]]. The testimony of Mr. Bolinger, in hearing before the Board, quoted in the majority opinion, demonstrates that claimant Ricks relied upon Mr. Bolinger to resolve his industrial accident case. The following additional testimony by Mr. Bolinger in the hearing before the Board demonstrates the misrepresentation made to Ricks: "Q. Did Mr. Ricks ask you to file a claim. "A. I wouldn't think he asked me to file a claim. I don't think he would have known whether he should or not. The thing was discussed, but when he filed a claim I don't think he said that. He didn't have an- other attorney, and I was the one that knew the facts about his case. I did discuss workmen's compensation to the extent of whether or not he wasn't relying on anybody else as far as a claim was concerned, and actually I thought---I was under the impression, unless you were off 2 weeks, it wasn't worth filing a claim. That's the recollection I have about it. "Q. You think you may have advised him that it was hardly worth fooling with? "A. Yes. II The quotation in the majority opinion from Lindblom enumerating the essential elements of equitable estoppel is misleading because of the omission of the remaining five sentences in the quoted para- graph. They are: "'It will be seen that fraud is not given as an essential requisite in the foregoing statement. It is not absolutely necessary that the conduct mentioned in the first subdivision be donewith - a fraudulent purpose or intent, or with an actual and fraudulent intention of deceiving the other party; nor is this meaning implied by any of the language which I have used, The adoption of such an element as always essential would at once strike out some of the most familiar and best established instances of equitable estoppel. Undoubtedly a fraudulent design to mislead is often present as an ingredient of the conduct working an estoppel; but this only renders the result more clearly just, and, if I may use the expression, more conclusive. I (2 ~omeroy's Eq.Jur., 4th ed. 1644.) This language does not conflict in any way with what was said by this court in Waddell v. School District, supra. 1 I (Emphasis added) The district court, in its disposition of this case, recognized the advice given to Ricks by the attorney representing both Ricks and Teslow concerning his workmen's compensation claim was a misrepresentation of material legal facts. It does not appear that this misrepresentation was made intentionally nor fraudulently, but that is not a necessary component for the application of the equitable estoppel principle. Ricks did not know the true facts of the law concerning his claim, and he reasonably and predictably relied on the misrepresentation made to him, to his substantial detriment. The attorney-client relationship existent between the attorney and the defendants herein, at the time the misrepresenta- tion was made, precludes them from taking advantage of the conse- quences of that misrepresentation. This Court in its application of the law of estoppel in Levo v. Gen.-Shea-Morrison, 128 Mont. 570, 576, 280 P.2d 1086, stated: "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 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. Statute of Limitations. * * * "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. " This Court i n Newman v. Kamp, 140 Mont. 487, 490, 374 P.2d 100, s t a t e d : "In l i g h t of t h e foregoing f i n d i n g s of f a c t , we must keep i n mind t h e following w e l l - e s t a b l i s h e d r u l e s concerning scope of review. Te have h e l d t h a t J t h i s court w i l l n o t reverse the finding of t h e dis- t r i c t c o u r t except where t h e evidence c l e a r l y prepon- d e r a t e s a g a i n s t i t . [ C i t i n g c a s e s ] S i m i l a r l y , we s t a t e d i n R i r n i e v. United S t a t e s Gypsum Co., 134 Mont. 39, 44, 328 P.2d 133 (1958), t h a t our duty i s t o determine whether t h e r e i s any s u b s t a n t i a l evidence i n t h e r e c o r d t o j u s t i f y t h e conclusion of t h e c o u r t . 11 I f i n d t h e d e c i s i o n of t h e d i s t r i c t c o u r t t o b e supported by ample and s u b s t a n t i a l evidence and I would a f f i r m t h e judgment