Aetna Cas. & Sur. Co. v. Hanover Ins. Co.

569 So. 2d 1078, 1990 La. App. LEXIS 2493, 1990 WL 174176
CourtLouisiana Court of Appeal
DecidedNovember 7, 1990
DocketW90-585
StatusPublished
Cited by3 cases

This text of 569 So. 2d 1078 (Aetna Cas. & Sur. Co. v. Hanover Ins. Co.) 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
Aetna Cas. & Sur. Co. v. Hanover Ins. Co., 569 So. 2d 1078, 1990 La. App. LEXIS 2493, 1990 WL 174176 (La. Ct. App. 1990).

Opinion

569 So.2d 1078 (1990)

AETNA CASUALTY & SURETY COMPANY, et al., Plaintiffs-Appellees,
v.
HANOVER INSURANCE COMPANY, et al., Defendants-Appellants.

No. W90-585.

Court of Appeal of Louisiana, Third Circuit.

November 7, 1990.

Stafford, Stewart, Russell L. Potter, Alexandria, for plaintiffs-appellees.

Bolen, Erwin, Gwenda R. Lamb, Alexandria, Howard P. Elliott, Jr., Baton Rouge, for defendants-appellants.

Before DOMENGEAUX, C.J., and STOKER and YELVERTON, JJ.

STOKER, Judge.

This is a suit for reimbursement of worker's compensation paid. We granted a writ in this case to consider this question: If an employee is injured through the fault of a third party and brings a tort suit against the third party and his insurer, may the employee's employer or compensation carrier then seek reimbursement of compensation *1079 paid the employee where (1) the employer and carrier have never been notified of the employee's suit, (2) the employer and carrier have not intervened in the employee's suit, and (3) the employee and third party compromise the tort suit.

Following filing of the plaintiffs' suit for reimbursement, the defendants, Rhea A. McGehee and Allstate Insurance Company, filed a motion for summary judgment grounded on the theory that the answer to the legal question stated above was in the negative. The trial judge denied the motion for summary judgment, holding that there was a genuine issue of fact as to whether the employee notified the employer or insurer of the suit against the third party tort-feasor as required by LSA-R.S. 23:1102. Thus, the trial court did not reach the legal issue. We granted a writ in this matter and called the case up for review of the legal issue.

We reach the same result as the trial court but for different reasons. Therefore, we affirm the denial of the motion for summary judgment and remand the case for further proceedings.

FACTS

Oliver Droze, Jr. sustained injuries in an automobile accident on September 23, 1988 while in the employment of Joe Christiana Food Distribution Company, Inc. (Christiana). Aetna Casualty & Surety Company (Aetna) was the worker's compensation insurer of Christiana. Rhea A. McGehee was the driver of the other vehicle involved in the accident of September 23, 1988. The accident gave rise to claims by Droze for worker's compensation against Christiana and Aetna and for damages in tort against McGehee and his liability insurer, Allstate Insurance Company (Allstate). (In the reimbursement suit of Aetna and Christiana, they also made Hanover Insurance Company a defendant as the underinsured motorist carrier of Christiana providing such coverage to Droze, but Hanover is not involved in this stage of the litigation.)

On March 31, 1989, Oliver Droze, Jr. filed a tort suit against the adverse driver, McGehee, and Allstate and Hanover. Droze made a settlement of his worker's compensation claim and compromised with Aetna and Christiana on August 22, 1989. Droze settled his tort suit on July 13, 1989 for Allstate's policy limits and he dismissed his tort suit on August 1, 1989. Aetna and Christiana filed the suit now before us for reimbursement of worker's compensation paid to Droze on September 22, 1989. In this suit Aetna and Christiana (plaintiffs-respondents) seek reimbursement from McGehee, Allstate and Hanover (defendants-relators).

PROCEDURAL POSTURE OF THE CASE

In response to the reimbursement suit Allstate and McGehee filed a motion for summary judgment. (Hanover does not appear to be involved in this motion.) The relators did not particularize the grounds on which they base their motion for summary judgment. However, in their memorandum in support of the motion filed with the trial court they gave two reasons: (1) Allstate had paid its policy limits of $100,000 to Droze and his wife (this issue has not been pursued), and (2) Aetna had "received notice and failed to avail itself of the remedy provided to it by LSA-R.S. 23:1101 et seq. when it failed to file a petition of intervention in a timely manner." Relators stated in their memorandum that Droze gave notice to Aetna "on July 6, 1989 as evidenced by the plaintiff's attorney's letter to Aetna Casualty & Surety Company to Allstate's attorney, which letters are attached." No such letters were attached to the memorandum. In fact, there were no attachments of any kind.

Aetna and Christiana denied receiving any notice of Droze's suit or proposed compromise and submitted affidavits in support of the denial. The trial court evidently focused on the notice issue by reason of a lengthy discussion in the memorandum submitted to the trial court in opposition to the motion for summary judgment. After noting that Allstate and McGehee failed to attach any letters evidencing notice to Aetna and Christiana, the plaintiffs-respondents set forth in their memorandum considerable *1080 discussion concerning a certain letter which Aetna and Christiana assumed was the only letter which the writers of the memorandum of Allstate and Droze might have had in mind which they referred to as attached to their memorandum. The letter in question was dated July 1, 1989 and was addressed to Aetna by Howard P. Elliott, Jr., the attorney for Droze and his wife as plaintiffs in their tort suit. It may be questionable as to whether the content of the letter actually gave Aetna notice, but it may have convinced the trial court that a material fact existed as to whether Droze gave Aetna any notice. We take a view of the notice matter different from that of the trial court.

NOTICE AS A NONFACT

In alleging in support of their motion for summary judgment that Droze gave Aetna notice of the Droze tort suit, and grounding that allegation on letters said to be attached which were not attached, relators have simply failed to support their contentions. The speculations of Aetna and Christiana as to what letter relators may have relied on does not supply support for relators' motion for summary judgment. Therefore, in our view we do not have a situation in which there is an issue as to whether or not notice was sent. We simply have no evidence at all. Relators' allegation in their memorandum that notice was given as shown by "attached letters" not in fact attached is nothing more than an unsupported allegation. This circumstance would justify denying the motion for summary judgment were it not for the legal position, as opposed to the fact of notice position, now taken by Allstate and Droze in their writ application filed in this court.[1] We move to a consideration of that legal position (the reason for which we granted the writ) and hold that the notice issue is not pertinent to the consideration we now make.

RELATORS' PRESENT POSITION

In effect relators now take the position that their motion for summary judgment should be granted because they were under no duty to give Aetna and Christiana notice of Droze's tort suit. This is a legal question. Relators now contend that the trial court, in denying the motion for summary judgment on the notice fact issue, "never reached the issue presented, i.e. does the third party have a duty to give notice." In taking this position the relators abandon the position (for this motion for summary judgment, at least) that any notice was ever given. The position relators now take is that notice in this context is immaterial insofar as a third party and its liability insurer are concerned. Thus, in this court of appeal the relators seek to have the suit for reimbursement dismissed on motion for summary judgment on a question of law. Relators urge that this question is res nova and we think that it is.

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Bluebook (online)
569 So. 2d 1078, 1990 La. App. LEXIS 2493, 1990 WL 174176, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aetna-cas-sur-co-v-hanover-ins-co-lactapp-1990.