Abshire v. State, Through Dept. of Ins.

636 So. 2d 627, 1994 WL 113120
CourtLouisiana Court of Appeal
DecidedApril 6, 1994
DocketW93-923
StatusPublished
Cited by15 cases

This text of 636 So. 2d 627 (Abshire v. State, Through Dept. of Ins.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abshire v. State, Through Dept. of Ins., 636 So. 2d 627, 1994 WL 113120 (La. Ct. App. 1994).

Opinion

636 So.2d 627 (1994)

Donald W. ABSHIRE, et al., Plaintiffs-Respondents,
v.
STATE of Louisiana, Through DEPT. OF INSURANCE, et al., Defendants-Applicants.

No. W93-923.

Court of Appeal of Louisiana, Third Circuit.

April 6, 1994.

*628 John Gregory Odom, New Orleans, Dan B. McKay Jr., Bunkie, David Peter Smith, Alexandria, for Donald W. Abshire.

Scott Holland Crawford, James Russell Lewis, John Rodney Ryan Jr., Laura Claverie Poche, Baton Rouge, for State Through Dept. of Ins.

Glenn Louis Langley, Herschel Erskine Richard Jr., Shreveport, for Standard Analytical Service.

Jack Pierce Brook, Michael Allyn Stroud, New Orleans, for Office of Financial Institutions.

Before GUIDRY and LABORDE JJ., and CULPEPPER[1], J. Pro Tem.

LABORDE, Judge.

The questions are of venue and ancillary jurisdiction. Should venue in Rapides Parish stand against state defendants sued for alleged failure to perform ministerial duties? Second, must plaintiffs' claims against a private party codefendant be cumulated with the claims against the state and follow them to the appropriate venue for the state claim, when jurisdiction and venue unquestionably attach to the private party claim, and its outcome turns on distinguishable facts and law?

We answer each question in the negative, and reverse in part on that basis. First, because it is their ministerial actions that are called into question, we conclude that the only venue which is proper as to the state entities is the Parish of East Baton Rouge. Second, we sever the claims alleged against the private party due to the distinctive factual and legal questions germane to them: the suit against the private foreign corporation may continue in Rapides Parish.

Finally, we defer to our sister jurisdiction consideration of whether plaintiffs complied with the administrative procedures act before filing suit against the public defendants in these proceedings.

PUBLIC PARTIES DEFENDANT

In the aftermath of the enormous losses sustained by individuals as a consequence of the collapse of the affiliated Public Investors Life Insurance Company, Midwest Life Insurance Company, and Public Investors, Inc., more than one thousand policyholders, annuity holders, and shareholders have filed suit against the Department of Insurance, the Office of Financial Institutions, and through them, the State of Louisiana.

In response to the suit filed against them in Rapides Parish, each of the public bodies has filed declinatory exceptions on three grounds. First, the public defendants argue that the suits against them cannot lie in Rapides Parish, an improper venue owing to their public nature and where the alleged causes of action arose; second, they claim they were improperly joined in suit with a private codefendant to preempt their natural venue defense; third, they argue that plaintiffs' suit against them is premature, as plaintiffs were required to exhaust their administrative remedies before filing suit against them.

Improper Venue

Plaintiffs believe that Rapides Parish, as the domicile of the insurers and place where many of the aggrieved plaintiffs are domiciled, constitutes an appropriate venue, although their claims of mismanagement, gross negligence, incompetence, and fraud are levelled against senior state officials domiciled in Baton Rouge. The state defendants contend that claims emanating from ministerial activities performed at the state capital can only be brought there.

Our state's Code of Civil Procedure does not address itself directly to the question of whether public entities may be sued for ministerial negligence in a venue other than Baton Rouge when they are named as codefendants with a private party against whom venue properly lies.

*629 SECTION 1. GENERAL DISPOSITIONS

Art. 41. Definition

Venue means the parish where an action or proceeding may properly be brought and tried under the rules regulating the subject.

Art. 42. General rules

The general rules of venue are that an action against:
(1) An individual who is domiciled in the state shall be brought in the parish of his domicile; or if he resides but is not domiciled in the state, in the parish of his residence.
Art. 43. Exceptions to general rules
The general rules of venue provided in Article 42 are subject to the exceptions provided in Articles 71 through 85 and otherwise provided by law.

None of the excepted civil procedure articles cited above govern suits which call into question the official administrative actions of public entities. Thus, we consider exceptions "otherwise provided by law."[2]

Our research discloses LSA-R.S. 13:5104 to be the sole statutory authority of the various state entities pertaining to the proper venue as it concerns the suits against the state. It provides as follows:

§ 5104. Venue

A. All suits filed against the state of Louisiana or any state agency may be instituted before the district court of the judicial district in which the state capitol is located or in the district court having jurisdiction in the parish in which the cause of action arises.
B. All suits filed against a political subdivision of the state or against an officer or employee of a political subdivision for conduct arising out of the discharge of his official duties or within the course and scope of his employment shall be instituted before the district court of the judicial district in which the political subdivision is located or in the district court having jurisdiction in the parish in which the cause arises.

The language contained in LSA-R.S. 13:5104 has produced among the circuits some differences of interpretation. For instance, the First Circuit has concluded that LSA-R.S. 13:1504 A does not require that a suit be filed against the state in Baton Rouge or the parish in which the cause of action arises; due to the permissive language employed in that provision, it believes suits against the state can also be brought elsewhere. See, e.g., James v. State Farm Mut. Auto Ins. Co., 597 So.2d 555, 558 (La.App. 1st Cir.1992) (Tangipahoa Parish appropriate forum for cause of action arising in Washington Parish; suit against DOTD could have been brought in Washington or East Baton Rouge Parish, but could be brought elsewhere). Another circuit has attributed at least some significance to use of the phrase "cause of action" found in 5104 A, compared with the word "cause" contained in 5104 B. Urban Mgt. v. Shreveport Airport Auth., 602 So.2d 1055, 1057 (La.App. 2d Cir.1992).

We need not resort to such linguistic comparisons in light of the nature of the claims made against the state. Venue is only proper as to the public defendants in Baton Rouge. We are mindful that LSA-R.S. 13:5104 A provides that venue would be proper either in Baton Rouge or in the parish where the cause of action arose; however, we conclude that when it is their ministerial actions that are called into question, Baton Rouge offers the only appropriate forum. The language and intendment of LSA-R.S. 13:5104 A permits of no other interpretation. Although LSA-R.S. 12:5104 A nominally provides for some choice of venue, the facts of this case effectively rules out venue anywhere besides the Parish of East Baton Rouge.

State entities frequently may be sued in parishes other than that of the domicile of their headquarters, but the language contained in LSA-R.S.

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Bluebook (online)
636 So. 2d 627, 1994 WL 113120, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abshire-v-state-through-dept-of-ins-lactapp-1994.