Articles Posted in Louisiana Supreme Court

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Robert Murphy was operating his motorcycle on a two-lane stretch of Louisiana Highway in a southerly direction. At the same time, Shauntal Savannah was driving her Nissan Maxima in the northbound lane. As she pulled into the southbound lane with the intent to turn, she entered Murphy's lane of travel. Murphy’s motorcycle struck the passenger-side door of Savannah’s vehicle, causing him injury. Murphy and his wife (plaintiffs) filed the instant suit against the State of Louisiana through the Department of Development and Transportation (DOTD), alleging DOTD failed to warn of a dangerous condition and failed to remedy the defective design of the intersection. After discovery, DOTD filed a motion for summary judgment, relying on the affidavit of a DODT civil engineer who averred that at the time of the accident, DOTD did not have a record of any repairs, maintenance, or construction projects that were being performed in the section of the roadway located at or near the intersection. The engineer stated DOTD had no record of any complaints within 180 days prior to the accident with respect to the intersection. Additionally, DOTD attached Savannah’s deposition testimony in which she said she was familiar with the intersection, and admitted she was at fault for the accident because she did not see Murphy’s motorcycle before making her turn. Savannah also denied that a curve on the road prevented her from seeing the oncoming motorcycle. Plaintiffs appealed when DODT's motion for summary judgment was granted. The district court determined they failed to establish any genuine issues of material fact regarding whether the intersection at issue was unreasonably dangerous. Finding no error in the district court's judgment, the Louisiana Supreme Court affirmed, reversing the court of appeal's judgment to the contrary. View "Murphy v. Savannah" on Justia Law

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Plaintiff Kerry Simmons worked for Cintas Corporation No. 2, (“Cintas”), at its warehouse in Pineville, Louisiana. Plaintiff was working in the course and scope of his employment when he was injured while attempting to close a roll-up rear bay door that had become jammed. Plaintiff received workers’ compensation benefits from Cintas, including disability and medical expenses. The medical bills charged by Plaintiff’s healthcare providers totaled $24,435; this amount was reduced to $18,435 in accordance with the Louisiana Workers’ Compensation Act Medical Reimbursement Schedule. Thus, there is a “written off” amount of $6,000 at issue. Specifically, the issue this case presented for the Louisiana Supreme Court's review was whether, in a tort case against a third party tortfeasor, the lower courts erred in prohibiting a plaintiff from introducing the full amount of medical expenses billed and allowing only evidence of the amount actually paid by the employer through workers’ compensation. The Court granted certiorari to determine the applicability of the collateral source rule to the facts of this case, and concluded the amount of medical expenses charged above the amount actually incurred was not a collateral source and its exclusion from the purview of the jury was proper. View "Simmons v. Cornerstone Investments, LLC" on Justia Law

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This case concerned a disagreement over a claim for flood damage submitted by Plaintiff-Respondent Creekstone/Juban I, LLC (“Creekstone”), a Delaware limited liability company, under a commercial property and casualty insurance policy issued by Defendant-Appellant XL Insurance America, Inc. (“XL Insurance”), a Delaware corporation. The Policy was issued to named insured MRMG Commercial and delivered to MRMG Commercial in Lufkin, Texas. According to the parties, though not evident from the record, Creekstone was one of 20 unrelated additional insureds who obtained coverage under the Policy, which covered over 100 properties in more than 20 states. The Louisiana Supreme Court granted certiorari review to resolve the question of whether La. R.S. 22:868(A)(2) prohibited the enforcement of the forum selection clause in dispute. The Court determined the statute did not prohibit enforcement of the forum selection clause to which these parties contractually agreed. Accordingly, the Supreme Court reversed the ruling of the trial court and remanded the matter to the trial court for further proceedings. View "Creekstone Juban I, LLC v. XL Insurance America, Inc." on Justia Law

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Plaintiffs, two of the decedent’s children, brought wrongful death and survival actions under the Louisiana Medical Malpractice Act against a nursing home, alleging that injuries the decedent received when the nursing home’s employee dropped her while transferring her from a bath chair to her bed caused her to suffer injuries that ultimately resulted in her death. The decedent’s granddaughter, rather than plaintiffs, initially filed a request for a medical review panel ostensibly as the representative either of the decedent or her estate. The lower courts found that the granddaughter was a “claimant” within the meaning of the Medical Malpractice Act, namely La. R.S. 40:1231.1(A)(4) and (A)(16), and that her timely request had therefore suspended prescription with regard to the medical malpractice claims of the plaintiffs, even though they had not been named as claimants in the original request for a medical review panel. However, the Louisiana Supreme Court found the lower courts erred in concluding the granddaughter was a proper “claimant” under the language of the Act on the basis that she was a succession representative for the decedent’s estate. Because the initial request for the medical review panel was not made by a proper “claimant,” prescription was not tolled. Accordingly, because defendant’s exception of prescription should have been granted, the trial court’s ruling denying the exception of prescription was reversed. View "Guffey v. Lexington House, LLC" on Justia Law

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Louisiana, represented by its Attorney General, filed this lawsuit in 2014 against defendants, Molina Healthcare, Inc., Molina Information Systems, L.L.C. d/b/a Molina Medicaid Solutions, and Unisys Corporation. As described in the state’s petition, “[o]ver the last thirty (“30”) years, the Defendants have been the fiscal agent responsible for processing Louisiana’s Medical pharmacy provider reimbursement claims.” Pursuant to a contract to which the state itself was allegedly a party, “the Defendants assumed operational liability” of a “customizable” computerized system known as the Louisiana Medicare Management Information System (“LMMIS”). As part of defendants’ duties, they were “responsible for the operation and maintenance of LMMIS, as well as creating and implementing design changes to the LMMIS that comply with State and federal mandates.” The crux of the state’s allegations in this lawsuit is that Unisys caused the Louisiana Department of Health (“LDH”) to overpay Medicaid pharmacy providers through Unisys’ improper operation and management of LMMIS. The Louisiana Supreme Court granted certiorari review in this case to review the correctness of the appellate court’s ruling, sustaining an exception of no right of action for the Attorney General’s lawsuit against the defendants. By statute, the Louisiana Department of Health had the capacity to sue and be sued for programs that it administered, such as Medicaid. However, because the Louisiana Department of Health delegated–and defendants allegedly contractually accepted–some of the administrative functions of the state’s Medicaid program, the Supreme Court found the Attorney General had the capacity, and hence a right of action, to prosecute this lawsuit. View "Louisiana ex rel. Caldwell v. Molina Healthcare, Inc." on Justia Law

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The Louisiana Supreme Court accepted a certified question of Louisiana law presented by the U.S. District Court of Appeals for the Fifth Circuit. This case involves a dispute between two creditors, each of which attached the same pig iron owned by the common debtor, America Metals Trading L.L.P. (“AMT”). Daewoo International Corp. (“Daewoo”), a South Korean trading company, entered into a series of contracts with AMT in May 2012 for the purchase of pig iron, to be delivered in New Orleans. The sale contracts contained arbitration clauses. Although Daewoo made payments under the contracts, AMT never shipped the pig iron. Daewoo sued AMT in the United States District Court for the Eastern District of Louisiana seeking an order compelling AMT to arbitrate the dispute pursuant to the terms of the contract and also seeking a writ of attachment of AMT’s pig iron on board the M/V Clipper Kasashio under the Louisiana non-resident attachment statute, Louisiana Code of Civil Procedure article 3542. The writ was granted and served by the U.S. Marshals Service on December 22, 2012. Noting that La. C.C.P. art. 3542, Louisiana’s non-resident attachment statute, allows a party to obtain a writ of attachment in "any action for a money judgment, whether against a resident or a nonresident, regardless of the nature, character, or origin of the claim, whether it is for a certain or uncertain amount, and whether it is liquidated or unliquidated," the federal court stated the issue as "whether Daewoo’s suit to compel arbitration and obtain provisional relief is an 'action for a money judgment' to which Louisiana’s non-resident attachment statute applies." The Louisiana Supreme Court responded: "Louisiana Code of Civil Procedure article 3542 allows for attachment in aid of arbitration if the origin of the underlying arbitration claim is one pursuing money damages and the arbitral party has satisfied the statutory requirements necessary to obtain a writ of attachment." View "Stemcor USA Inc. v. CIA Siderurgica Do Para Cosipar" on Justia Law

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Bounce N’ Around Inflatables (“BNA”) is a party rental business that rents a variety of inflatables for social events. BNA hired Austin Griggs (“Austin”) as a helper to assist in the delivering and cleaning of the inflatables. Austin, then age fifteen, was standing on an inflatable as it was lifted to the rack by a forklift. Austin fell to the ground from the forklift, and was further injured when the inflatable fell and hit him on the back. Following the injury, BNA’s workers’ compensation insurer paid Austin workers’ compensation and medical benefits. Austin eventually returned to work at BNA, with his mother’s permission. The underlying litigation arose when Austin’s mother, individually and on behalf of Austin, filed suit against BNA, its owner and insurer, seeking to recover tort damages arising out of the injury. At the conclusion of trial, the district court awarded plaintiffs $125,000 in general damages and $24,517 in special damages, plus legal interest and costs. The district court found defendants illegally employed Austin because they failed to obtain an employment certificate, and that he was engaged in an illegal task (working with power-driven machinery) at the time of the accident. In finding the exclusive remedy provisions of the workers’ compensation law did not apply, the district court relied on Ewert v. Georgia Casualty & Surety Co., 548 So.2d 358 (1989), and Patterson v. Martin Forest Products, Inc., 787 So.2d 311, for the proposition that workers’ compensation exclusivity provisions did not control over child labor laws, and a minor’s illegal employment did not amount to an election of remedies under the workers’ compensation law. Defendants appealed. The Court of Appeal, First Circuit reversed in part and affirmed in part, dismissing plaintiffs’ tort claims with prejudice. The court of appeal found Austin’s claims were subject to the exclusive remedy provision contained in the workers’ compensation law. In reaching this conclusion, the court of appeal explicitly declined to follow the holdings of Ewert and Patterson, instead relying on Noble v. Blume Tree Services, Inc., 650 So.2d 252, which held that an illegally-hired minor was subject to the exclusivity provisions. The Louisiana Supreme Court granted certiorari to resolve this split in the circuits, and held that a minor who is illegally hired and engaged in a prohibited task at the time of his injury is subject to the exclusive remedy of the workers’ compensation law. View "Griggs v. Bounce N' Around Inflatables, LLC" on Justia Law

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At issue in this case was a post-divorce community property partition. The former husband, Daniel Webb, filed a claim for reimbursement and for the classification of a promissory note of $250,000 as a community obligation. The promissory note corresponded to a loan secured by a mortgage on the family home. Mr. Webb contended that Mrs. Webb owed reimbursement for loan payments and that the loan should be considered a community obligation because he borrowed the money to pay community debts. Mr. Webb admitted that he caused a forged signature for Mrs. Webb to be placed on the loan documents and that he concealed the existence of the loan and the mortgage on the family home from her. The forgery was eventually discovered, and formal attorney disciplinary charges were brought against him, a Louisiana-licensed attorney. In the ensuing disciplinary proceedings, Mr. Webb admitted his misconduct, but represented to this court that he was taking “sole financial responsibility” and“full responsibility” for the loan and was otherwise committed to “making right” what he had done. Shortly after the disciplinary order was issued, Mr. Webb returned to the district court where the community property partition was pending. There, Mr. Webb claimed that, although he personally incurred the $250,000 debt, responsibility for the loan should be an obligation shared by both Mr. and Mrs. Webb, rather than solely by Mr. Webb. The district court rejected Mr. Webb’s claim, finding that Mr. Webb’s representations in his attorney discipline case amounted to a judicial confession that he alone was responsible for the debt. Mr. Webb appealed, and the appellate court ruled in his favor by classifying the loan as a community obligation and ordering Mrs. Webb to personally reimburse Mr. Webb for loan payments he made after the community property regime was terminated. Mrs. Webb sought review by the Louisiana Supreme Court, arguing Mr. Webb's admission in his disciplinary hearing precluded him from making her partly responsible for his loan. Applying the doctrine of judicial estoppel, the Supreme Court held that in the community property litigation, Mr. Webb could not shift responsibility for his fraudulent loan to Mrs. Webb. View "Webb v. Webb" on Justia Law

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Plaintiff Brandon Forvendel was injured in a multi-vehicle accident in 2013. At the time of the accident, plaintiff was driving a Chevrolet Equinox owned by him and insured under a policy issued by State Farm Mutual Automobile Insurance Company (“State Farm”), which included uninsured motorist (“UM”) coverage. Plaintiff recovered the limits of his UM coverage under his State Farm policy. At the time of the 2013 accident, plaintiff lived in the household of his mother, Deborah Forvendel, who was also insured by State Farm. Plaintiff also sought to recover under his mother’s State Farm UM policy, which carried significantly higher policy limits. State Farm refused to allow him to recover under his mother's policy, citing the anti-stacking provisions of La. R.S. 22:1295(1)(c). In this case, the issue presented for the Louisiana Supreme Court’s review centered on whether the insurer waived its defenses to plaintiff’s current claim by paying on an earlier claim to him in error. The Court found the insurer did not waive its rights. Accordingly, the Court reversed the judgments of the courts below. View "Forvendel v. State Farm Mutual Automobile Insurance Co." on Justia Law

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In this workers’ compensation case, the issue presented for the Louisiana Supreme Court’s review centered on whether the employer’s appeal, taken with devolutive appeal delays but outside of the suspensive appeal delays, was timely under the special provisions of La. R.S. 23:1310.5(C). While the Court acknowledged La. R.S. 23:1310.5 “is not a model of legislative clarity,” the Court broadly interpreted the statute to find nothing specified the time period in which this appeal have to be filed. The Court found the appeal should have been maintained as timely, but because the appeal was devolutive in nature, the judgment awarding benefits was subject to immediate execution. View "Jackson v. Family Dollar Stores of Louisiana, Inc." on Justia Law