Allstate Ins. Co. v. Theriot

376 So. 2d 950
CourtSupreme Court of Louisiana
DecidedOctober 8, 1979
Docket63466
StatusPublished
Cited by80 cases

This text of 376 So. 2d 950 (Allstate Ins. Co. v. Theriot) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allstate Ins. Co. v. Theriot, 376 So. 2d 950 (La. 1979).

Opinion

376 So.2d 950 (1979)

ALLSTATE INSURANCE COMPANY (Melvin Moore), Intervenor-Appellant-Relator,
v.
Cyrus A. THERIOT et al., Defendants-Appellees-Respondents.

No. 63466.

Supreme Court of Louisiana.

October 8, 1979.
Rehearing Denied November 1, 1979.

*951 Robert N. Ryan, H. F. Foster, III, Bienvenu, Foster, Ryan & O'Bannon, New Orleans, for defendant-respondent Empire Fire & Marine Ins. Co.

James L. Donovan, Porteous, Toledano, Hainkel & Johnson, New Orleans, for defendants-respondents.

Gerald J. Martinez, Metairie, for applicant-intervenor, Melvin Moore.

TATE, Justice.

Two principal issues are presented to us concerning the intervention under La.C. Civ.P. arts. 1091-94, an incidental action permitted by Article 1031 of the Louisiana Code of Civil Procedure of 1960:

I. If the principal action is dismissed, does the intervention fall also?

II. If the principal action in tort is filed within the prescriptive year but does not state a cause of action for the plaintiff, is an intervention that does state a cause of action for the intervenor prescribed, even though the action arises out of the conduct or occurrence set forth in the petition and even though the intervenor is closely connected in claim and relationship with the original plaintiff?

We answer both questions in the negative. Accordingly, we reverse the court of appeal and district court holdings to the contrary and remand the intervention for trial on its merits.

I.

The plaintiff ("Allstate") sued the defendants ("Theriot") in tort. Moore intervened, seeking personal injury damages arising out of the same accident. The court of appeal affirmed the dismissal of Allstate's suit, as stating no cause of action. Without discussion, it also held that the *952 intervention (which did state a cause of action) likewise fell because the principal action had been dismissed. 362 So.2d 1214 (La.App. 4th Cir. 1978).

We granted certiorari, 366 So.2d 559 (La. 1979), because the dismissal of the intervention on this ground was erroneous.

Prior to the enactment of the Code of Civil Procedure of 1960, the dismissal of the principal action did indeed result in the dismissal of an intervention. Chrysler Corporation v. City of New Orleans, 243 La. 498, 145 So.2d 11 (1962). However, as Chrysler notes, 145 So.2d 15, the pleadings in that suit were adopted prior to the enactment of the 1960 Code, especially Article 1039. Article 1039 deliberately changed this former rule. It provides that the dismissal of the principal action "shall not in any way affect the incidental action, which must be tried and decided independently of the principal action."

Comparing the pre-Code practice with that enacted by the 1960 Code, Dean McMahon stated that "an important change in the procedure governing the intervention" is made by Article 1039: "The dismissal of the principal demand does not affect any incidental demand in any way." McMahon, Summary of Procedural Changes in Chapter 6 ("Incidental Actions"), 3 West's LSA-Code of Civil Procedure 323, 324 (1960).

The intermediate court was therefore in error in dismissing the intervention simply because the principal action fell.[1]

II.

The trial court sustained an exception of prescription to the intervention by Moore.[2] Essentially, it did so because Moore's intervention, although based on the same facts and alleged negligence as the timely-filed principal action by Allstate, was instituted subsequent to the expiration of the prescriptive year for tort actions. La.Civ.C. art. 3536.

Allstate, alleging it was obligated to Moore for workmen's compensation benefits, initially sued Theriot in tort for certain injuries sustained by Moore. La.R.S. 23:1101.[3] Allstate alleged that Theriot's negligence in an automobile accident of March 6, 1974 had caused these personal injuries to Moore when Moore was returning from medical treatment for an earlier work-related injury. Allstate sought these damages on the basis that Theriot's negligence had aggravated the initial back injury suffered by Moore at work for his employer, Allstate's insured, and that Theriot's negligence had thus required Allstate to pay additional compensation benefits and medical expenses for this tort-caused aggravation of the initial injury. See 1 Larson on Workmen's Compensation Law, Section 13.13 (1978).

Moore intervened in this action. La.R.S. 23:1102. Based upon the same accident, the same negligence of Theriot, and the same injuries thereby received, Moore sought recovery *953 for his personal injuries and medical expenses resulting from this accident.

The intermediate court affirmed the dismissal of Allstate's principal demand, holding that it had no right or cause of action for aggravation of injuries resulting to Moore through the independent negligence of a third person. 362 So.2d 1214 (La.App. 4th Cir. 1978). We denied Allstate's petition for certiorari, 366 So.2d 599 (La.1979), three justices dissenting.

Allstate's original action was filed (on January 22, 1975) within the prescriptive year of the accident. La.Civ.C. art. 3536. Moore's intervention in Allstate's suit sought recovery of damages for the same personal injuries, based on the same facts of Theriot's negligence; it was filed (on August 17, 1976) after expiration of the prescriptive year.

The precise question before this court is whether the timely petition by Allstate against Theriot for damages arising out of the March 6, 1974 accident interrupted prescription in favor of the intervenor Moore, in spite of the fact that Allstate's petition was eventually held not to have stated a cause of action. We hold that prescription was indeed interrupted in favor of Moore.

III.

In National Surety Corporation v. Standard Accident Ins. Co., 247 La. 905, 175 So.2d 263 (1965), we held that a timely-filed tort suit by an employer's compensation insurer under La.R.S. 23:1101-03 affords notice by legal demand as to the tort cause of action of both employer and employee. It thus interrupts prescription. The injured employee is therefore permitted, by post-year intervention in the employer's suit to assert his own claim for damages arising out of the same facts that gave rise to the tortious cause of action.

We there held that, for purposes of prescription and of La.R.S. 23:1101-03, there is only one principal cause of action. This is based on the facts of the tort-caused injury to the employee. Thus, the initial suit by either the employer or the employee interrupts prescription as to this cause of action, insofar as an intervention by the other in the principal suit is concerned. See also Marquette Casualty Company v. Brown, 235 La. 245, 103 So.2d 269 (1958).

The defendant contends, however, that in the instant case the initial suit by the insurer did not state a cause of action and thus did not interrupt prescription. The defendant relies on dicta in Callendar v. Marks, 185 La. 948, 171 So. 86 (1936), to the effect that prescription is not interrupted where an exception of no cause of action is sustained and the subsequent pleading sets forth another demand based on different (i. e., unrelated) grounds.

As the actual holding in Callendar illustrates, this dicta is inapposite to the present case. Prescription was there held to have been interrupted by the initial petition, which did not show negligence and fault and was thus dismissed as not stating a cause of action in tort.

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376 So. 2d 950, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allstate-ins-co-v-theriot-la-1979.