Ainsworth v. Government Employees Ins. Co.

427 So. 2d 1220
CourtLouisiana Court of Appeal
DecidedFebruary 3, 1983
Docket82-232
StatusPublished
Cited by6 cases

This text of 427 So. 2d 1220 (Ainsworth v. Government Employees 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
Ainsworth v. Government Employees Ins. Co., 427 So. 2d 1220 (La. Ct. App. 1983).

Opinion

427 So.2d 1220 (1983)

Jack AINSWORTH in his Capacity as the Administrator of the Estate of his minor child, Denise Ainsworth, Plaintiff-Appellee,
v.
GOVERNMENT EMPLOYEES INSURANCE COMPANY, et al., Defendants-Appellants.

No. 82-232.

Court of Appeal of Louisiana, Third Circuit.

February 3, 1983.
Rehearing Denied March 22, 1983.

*1221 George R. Privat, Lafayette, for defendants-appellants.

Joseph A. Koury, Lafayette, for plaintiffs-appellees.

Onebane & Associates, Keith Borne, Voorhies & Labbe, William Bass, Mouton, Roy, Carmouche, Bivins, Judice & Henke, Harmon F. Roy, Lafayette, for defendants-appellees.

Before GUIDRY, CUTRER and LABORDE, JJ.

GUIDRY, Judge.

This is an action for damages, arising out of an automobile accident, brought by Jack Ainsworth in his capacity as administrator of the estate of his minor child, Denise Ainsworth. Denise was injured in a two vehicle collision. She was a guest passenger in a car being driven by Simone E. Mouton when it collided with a car owned by T & N Lone Star Warehouse Company d/b/a Southwest Scrap and Salvage, Inc. (hereafter T & N Lone Star), and being driven by its employee, Charles F. Gautreaux.

Made defendants were Robert Mouton, father of the minor Simone E. Mouton, and his insurer, Government Employees Insurance Company (GEICO); T & N Lone Star and its insurers, Employers Casualty Company and Houston General Insurance Company; Maryland Casualty Company, the liability insurer of the City of Lafayette; and, Aetna Casualty and Surety Company, the uninsured motorist insurer of the plaintiff. Robert Mouton and GEICO filed a third party demand against the City of Lafayette and its insurer, Maryland Casualty. Aetna filed a third party demand against Mouton, GEICO and T & N Lone Star.

Prior to trial, the plaintiff settled with and released all defendants except Mouton, GEICO and Aetna. Upon trial of the matter, the trial judge found that the sole cause of the accident was the negligence of Simone E. Mouton. He awarded the plaintiff $23,510.09 in special damages and $250,000.00 in general damages, rendering judgment against Mouton, against GEICO to its policy limit of $10,000.00, and against Aetna to its policy limit of $100,000.00. He dismissed the third party demand of Mouton and GEICO against the City of Lafayette and Maryland Casualty. He also dismissed Aetna's third party demand against Mouton, GEICO, and T & N Lone Star. Mouton, GEICO and Aetna appeal.

The issues on this appeal are (1) whether the amount awarded to the plaintiff should be reduced as a result of the release of other defendants prior to trial; (2) whether the trial court erred in awarding interest against Aetna, the plaintiff's uninsured motorist insurer, from date of judicial demand; (3) whether the trial court erred in dismissing Aetna's third party demand for indemnification; and, (4) whether the award to plaintiff was excessive.

FACTS

The accident in question occurred on October 17, 1978, at the intersection of Evangeline Drive and Simcoe Street in Lafayette. Denise Ainsworth was a passenger in the 1969 Volkswagen being driven by Simone Mouton. As they travelled north on Evangeline Drive, Miss Mouton failed to heed a stop sign, entering the intersection in the path of the vehicle being driven by Gautreaux, which struck the passenger side of the Mouton vehicle.[1]

*1222 EFFECT OF RELEASE OF DEFENDANTS PRIOR TO TRIAL

The plaintiff released all defendants except Mouton, GEICO, and Aetna five days before the commencement of trial. The plaintiff did not amend his petition, which alleged that all defendants were joint tortfeasors. Aetna asserts that when a plaintiff releases defendants so close to trial, he is bound by his pleadings, which amount to a judicial confession of the negligence of the released defendants. Aetna argues that in such a situation, the remaining defendants are entitled to a reduction in the amount awarded.

It is well settled that when a joint tortfeasor is released by the plaintiff, the total awarded to the plaintiff must be reduced proportionately. Harvey v. Travelers Insurance Company, 163 So.2d 915 (La.App. 3rd Cir.1964). However, if an alleged tortfeasor is released prior to trial, the negligence of the released defendants remains an issue at the trial, since the remaining defendant is only entitled to a reduction if it is determined that the parties released were in fact joint tortfeasors. Harvey v. Travelers Insurance Company, supra; Wall v. American Emp. Ins. Co., 386 So.2d 79 (La.1980).

Under certain circumstances, the plaintiff's allegations of negligence and liability on the part of the released defendants may become binding on him. In Danks v. Maher, 177 So.2d 412 (La.App. 4th Cir.1965), the plaintiff brought a medical malpractice action against her doctor, the hospital, and their respective insurers. During the trial, just prior to the submission of the case to the jury, the plaintiff settled with and released the doctor and his insurer, reserving all rights against the hospital and its insurer. The Fourth Circuit held that the dismissal of the doctor so near the end of the trial unfairly shifted the burden of proving the negligence of the doctor from the plaintiff to the remaining defendants. Accordingly, the court found that the plaintiff was bound by her allegations of negligence on the part of the released defendant, and the judgment rendered against the hospital was reduced by one-half.

In the recent case of Raley v. Carter, 412 So.2d 1045 (La.1982) the Supreme Court made it clear that the reduction afforded the remaining defendants in Danks v. Maher, supra, is a remedy which should be granted in limited circumstances. In Raley, supra, the plaintiff brought a tort action against the job supervisor, safety officer, plant manager, and project manager of the company to whom his employer was under contract. On the morning of trial, the plaintiff, Raley, settled with and released all defendants except the job supervisor, Carter, and his insurer.

At trial, no evidence was presented to prove or negate negligence on the part of the released co-defendants. The trial court rendered judgment against Carter. Carter sought reduction of the judgment by 75% due to the fact that three of the four defendants had been released. The First Circuit held that the defendant was entitled to the requested reduction because the plaintiff was bound by his pleadings that the released co-defendants were joint tortfeasors. The Supreme Court reversed, finding that the defendants had a fair opportunity to establish fault on the part of the released co-defendants. The court held that the result reached in Danks, supra, was harsh and its application should be strictly limited to cases in which settlement is reached only after the commencement of trial.

In the present case, the remaining defendants, like those in Raley v. Carter, supra, had a fair opportunity to establish negligence on the part of the released codefendants. The settlement and release was given by the plaintiff five days before the commencement of trial, at which time the remaining defendants were notified of the release. The remaining defendants were not prejudiced by the release and the trial court was correct in disallowing a reduction of the judgment against the defendants.

AWARD OF INTEREST AGAINST AETNA FROM DATE OF JUDICIAL DEMAND

The trial judge awarded interest against Aetna, the plaintiff's uninsured motorist *1223 carrier, from date of judicial demand.

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Bluebook (online)
427 So. 2d 1220, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ainsworth-v-government-employees-ins-co-lactapp-1983.