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GEORGE NELSON v. CHICAGO & NORTHWESTERN RAILWAY COMPANY

Minnesota Supreme Court1910-06-03No. Nos. 16,438—(12)
111 Minn. 193

Summary

Holding. The court affirmed the judgment for the railroad, holding that a release is not rendered void merely because both parties were mutually mistaken about the time required for recovery from an injury, particularly when the physician's mistaken opinion preceded settlement negotiations and involved no fraudulent misrepresentation.

George Nelson sued the Chicago & Northwestern Railway Company for injuries he sustained due to the railroad's negligence. The railroad defended itself by asserting that Nelson had signed a release of his claim. Nelson countered that the release should be voided because both parties had made a mutual mistake—they both incorrectly believed his injury would heal more quickly than it actually did. A jury found in favor of the railroad, and Nelson appealed the trial court's denial of his motion for a new trial.

The court examined whether the physician's mistaken prediction about recovery time could void the release. While the court acknowledged that releases obtained through fraudulent misrepresentations by a company physician can be voidable, it found no fraud here since the doctor had honestly, though incorrectly, predicted the recovery timeline. The physician's opinion was offered before any settlement negotiations began and was not connected to discussions about resolving the claim. The court also determined that the mistake did not involve a misstatement of existing fact but rather an incorrect prediction about future recovery duration.

The court concluded that this case resembled an ordinary mutual mistake—comparable to parties agreeing on the sale of property based on a mistaken belief about its value. The trial court had properly instructed the jury that even if both parties were mistaken about the recovery timeline, such a mistake alone would not invalidate the release.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether a release can be voided based on mutual mistake regarding the severity or duration of recovery from an injury
  • Whether a physician's honest but mistaken prediction about recovery time constitutes fraud or fraudulent inducement
  • The legal consequences of a physician acting in a dual capacity as both treating doctor and claim agent

Procedural posture

Nelson appealed from the trial court's order denying his motion for a new trial following a jury verdict in favor of the railroad on its affirmative defense of release.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Jaggabb, J.

Plaintiff and appellant was injured, it was for present purposes admitted, by the negligence of defendant. Defendant claimed, among other things, that plaintiff had released his claim against defendant. Plaintiff replied, alleging that the release was void because of mutual mistake, due to the mutual belief of the parties that the injury was. less serious than it actually was. • The jury returned a verdict for defendant. Plaintiff appealed from the order of the court denying his motion for a new trial.

Undoubtedly, as was pointed out by Collins, J., in Hedin v. Minneapolis M. & S. Institute, 62 Minn. 146, 64 N. W. 158, 35 L. R. A. 417, 54 Am. St. 628, “false statements and representations, to warrant an action for deceit, must be, generally speaking, as to & material fact or facts, susceptible of knowledge, and, if they appear to be mere expressions of opinion upon matters of conjecture nnd uncertainty, they are not actionable; but there are many cases .In which the false assertion of an opinion will amount to fraud.” It is equally well established that releases of claims for personal injuries, executed in reliance on fraudulent and false representations of probability of recovery, made to the injured person by an attending physician in the employ of the persons sought to be charged, are voidable. Plaintiff has referred us to many authorities of this kind.

The courts, moreover, have generally viewed releases by the physician, acting as assistant claim agent, with extreme suspicion, and in many cases in which the physician has acted in the dual capacity of claim agent and doctor, or in which he has violated the proprieties of the situation and has expressed his opinion with reference to or in connection with a settlement then pending, the courts have avoided releases on the ground of mutual mistake, where subsequent experience has shown that the physician was in fact wrong. See, for example, Lumley v. Wabash R. Co., 16 Fed. 66, 22 C. C. A. 60; Great Northern Ry. Co. v. Fowler, 136 Fed. 118, 69 C. C. A. 106; Gulf v. Huyett (Tex. Civ. App.) 108 S. W. 502; Viallett v. Consolidated, 30 Utah, 260, 84 Pac. 496, 5 L. R. A. (N. S.) 663. It does not at all follow, in every case wherein there Is a subsequent discovery of mutual mistake made by defendant’s physician as to the subsequent course of plaintiff’s injury, that a release executed after the mistake has been made is void. See, for example, Doty v. Chicago, St. P. & K. C. Ry. Co., 49 Minn. 499, 52 N. W. 135; Nelson v. Minneapolis St. Ry. Co., 61 Minn. 167, 63 N. W. 486; Chicago & N. W. Ry. Co. v. Wilcox, 116 Fed. 913, 54 C. C. A. 14. Cf. Farwell v. Colonial Trust Co., 147 Fed. 480, 78 C. C. A. 22.

Into which class a particular case under consideration should! properly fall must depend upon its peculiar circumstances. In the instant case there is no basis for any claim of fraud, nor is it made. It is frankly admitted that the doctor gave an honest, but mistaken, opinion. The authorities as to fraud are not relevant. Nor do the authorities as to mutual mistake apply. The opinion here expressed! had, at the time it was uttered, no connection with nor reference to-a settlement, or to negotiations for settlement. It was made before-they had been commenced. That it subsequently became the basis-of the settlement is not legally significant. Before the release was-signed, plaintiff talked with his wife, sent for his son-in-law, an, assistant cashier of a bank, and advised with him, while the claim agent was excluded from the room.

The mistake related to the length of time probably required for recovery for a broken leg. It was not a misrepresentation or a misstatement relating to a past or a present existing fact. In Great-Northern Ry. Co. v. Fowler, supra, for example, there was a mistake-of fact as to the nature of the injury; here there was a question as to when plaintiff would recover from a familiar and definitely known injury. We are unable to see wherein this case differs on principle from the ordinary mutual mistake, where property is sold and is believed by both parties to be of about a certain value, and; where it subsequently appears to have been of much greater or less-value.

We conclude the trial court properly charged the jury that, “even though you find that at the time of making the release either or both of the parties were mistaken as to the time when plaintiff would recover, such a mistake wouldn’t justify you in holding the release void.”

Affirmed.