Alma Hardy v. Horace Mann Ins. Co.

CourtLouisiana Court of Appeal
DecidedMay 2, 2007
DocketCA-0006-1428
StatusUnknown

This text of Alma Hardy v. Horace Mann Ins. Co. (Alma Hardy v. Horace Mann 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
Alma Hardy v. Horace Mann Ins. Co., (La. Ct. App. 2007).

Opinion

STATE OF LOUISIANA

COURT OF APPEAL, THIRD CIRCUIT

06-1428

ALMA HARDY, ET AL.

VERSUS

HORACE MANN INSURANCE COMPANY, ET AL.

*************** APPEAL FROM THE CITY COURT OF ALEXANDRIA PARISH OF RAPIDES, DOCKET NO. 101,156 HONORABLE RICHARD E. STARLING, DISTRICT JUDGE

*************** SYLVIA R. COOKS JUDGE ***************

Court composed of Sylvia R. Cooks, Billy H. Ezell, and James T. Genovese, Judges.

AFFIRMED.

Byron O’Neal O’Neal Law Firm P.O. Box 247 Alexandria, Louisiana 71309 (318) 487-8787 COUNSEL FOR PLAINTIFFS/APPELLEES: Alma Hardy, et al.

Daniel G. Brenner Christina S. Slay Bolen, Parker & Brenner, LTD A Professional Law Corporation P.O. Box 11590 Alexandria, Louisiana 71315-1590 (318) 445-8236 COUNSEL FOR DEFENDANTS/APPELLANTS: Horace Mann Insurance Company Esaw Owens and Esaw Owens, Jr. COOKS, Judge.

STATEMENT OF THE CASE

This case arises out of an automobile accident between Alma Hardy and Esaw

Owens. Mrs. Hardy and her husband, Chauncey Hardy, filed suit against Mr. Owens

and his insurer, Allstate Insurance Company and Horace Mann Insurance Company

(Horace Mann), the excess carrier. Trial was held in the Alexandria City Court. The

trial court awarded $37,000 in general damages to Mrs. Hardy, which was reduced

to the jurisdictional amount of $35,000, and $5,000 to Mr. Hardy for loss of

consortium. Allstate paid its policy limits of $10,000 and Horace Mann tendered

$25,000. Horace Mann now appeals the award of $5,000 to Mr. Hardy, asserting the

loss of consortium claim is a derivative claim, not the separate claim of Mr. Hardy,

and should be included in the jurisdictional amount. The sole issue for our review is

whether the city court judge exceeded its jurisdictional authority by awarding an

additional $5,000 to Mr. Hardy for loss of consortium.

LAW AND DISCUSSION

The jurisdictional limit of the City Court of Alexandria is provided for in La.

Code Civ.P. art. 4843(K)1 which provides, in relevant part:

In the City Court of Alexandria, the civil jurisdiction is concurrent with the district court in cases where the amount in dispute, or the value of the property involved, does not exceed thirty-five thousand dollars.”

Horace Mann contends the loss of consortium claim is not the separate claim

of Mr. Hardy, rather it is derivative of Mrs. Hardy’s primary claim for personal

injuries and is intended to be included in the jurisdictional limit. In support of this

position, Horace Mann relies on cases holding a loss of consortium claim is included

in the per person limit in insurance policies (See Ferrell v. Fireman’s Fund Ins. Co.,

1 La.Code Civ.P. art. 4843 has since been amended by 2006 La.Acts. No. 365, § 1. This amendment does not affect the disposition of this case.

2 96-3028 (La. 7/1/97), 696 So.2d 569; Shepard v. State Farm Mut. Auto. Ins., 545

So.2d 624 (La.App. 4 Cir. 1989), writ denied, 550 So.2d 627 (La.1989) and included

in the limitation on recovery provisions of the Medical Malpractice Act (See Williams

v. Enriquez, 40,305 (La.App. 2 Cir. 11/17/05), 915 So.2d 434). However, these cases

are interpreting the special provisions unique to insurance contracts and to the MMA,

and are not necessarily controlling on the issue of the jurisdictional limitations of city

courts.

In Book v. State Farm Mutual Automobile Insurance Company., 02-1348

(La.App. 3 Cir. 4/2/03), 843 So.2d 515, the issue presented was whether a consortium

award in excess of the $50,000 limit for a jury trial was permissible. The trial court

awarded general and special damages to Mr. Book in the amount of $55,439, which

amount was reduced to $50,000. The trial court then awarded Mrs. Book $5,000 for

loss of consortium. State Farm appealed, asserting the loss of consortium claim

exceeded the limit for denial of jury trial contained in La.Code Civ.P. art. 1732. This

court noted La.Code Civ.P. art. 1732(1) provides a jury trial is not available in cases

“where the amount of no individual petitioner’s cause of action exceeds fifty

thousand dollars.” The court characterized Mrs. Book’s loss of consortium claim as

her “individual . . . cause of action,” apart from her husband’s claim, and held since

neither party’s claim exceeded $50,000, a jury trial was not available.

Horace Mann contends the rationale in Book with regard to a jury trial should

not be applied here because La.Code Civ.P. art 1732(1) focuses on an “individual

petitioner’s cause of action” while La.Code Civ.P. art. 4843(K) refers to “amount in

dispute.” Horace Mann argues awarding an additional $5,000 for loss of consortium

raises the total “amount in dispute” above the jurisdictional limit. It is undisputed if

Mr. and Mrs. Hardy had each suffered general damages below the jurisdictional

3 amount, they would be entitled to bring their cause of action in city court and both

would be entitled to recover the full amount of general damages up to $35,000.

Horace Mann’s argument with regard to the “amount in dispute” can only succeed if

we do not characterize a loss of consortium claim as a separate and distinct claim

belonging to Mr. Hardy. Rather, Horace Mann’s theory requires us to treat Mr.

Hardy’s claim as part of the total recovery of Mrs. Hardy. We do not believe

La.Code Civ.P. art. 4843(K) expressly mandates that in determining the “amount in

dispute,” we are compelled to treat Mr. and Mrs. Hardy’s claim as one. We agree

with the rationale of the court in Book, characterizing a claim for loss of consortium

as a separate and distinct claim for purposes of determining the right to a jury trial.

By analogy, then, it follows that a claim for loss of consortium is not added to the

primary victim’s claim in determining if the damage award is within the jurisdictional

amount in city court. In fact, a panel of this court recently reached that conclusion

in an identical situation involving the Alexandria City Court.

In Bailey v. AIG Insurance, et al., an unpublished opinion bearing docket

number 06-0924 (La.App. 3 Cir. 12/6/06), this court held the loss of consortium claim

is separate and distinct from that of the primary claimant and is not included in the

jurisdictional amount. This court looked for guidance in Landry v. Avondale

Industries, Inc., 03-719, 03-993, 03-1002, (La. 12/3/03), 864 So.2d 117. In Landry,

the supreme court distinguished those cases interpreting insurance policies, cited by

Horace Mann, and characterized a claim for loss of consortium as a separate and

distinct claim apart from the primary victim’s. The supreme court stated:

In Ferrell,2 we were interpreting the single person policy limits of an insurance policy and held that, because the loss of consortium claim

2 In Ferrell, the supreme court concluded the loss of consortium claim of the wife was derivative of her husband’s claim for damages and is included in the per person bodily injury limits of the insurance policy.

4 was “derivative of the primary victim’s injury,” it was restricted to the single person policy limits of the defendant’s policy. As one commentator has aptly explained, “this limitation to the single person policy limits occurs because of the construction the courts have given the relevant liability insurance policy provisions, not because the derivative nature of the loss of consortium claim makes it merely a part of a single claim or cause of action (i.e., the primary victims’s).” Crawford, Developments in the Law 1993-1994, supra at 658.

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Related

Williams v. Enriquez
915 So. 2d 434 (Louisiana Court of Appeal, 2005)
Ferrell v. Fireman's Fund Ins. Co.
696 So. 2d 569 (Supreme Court of Louisiana, 1997)
Shepard v. State Farm Mut. Auto. Ins. Co.
545 So. 2d 624 (Louisiana Court of Appeal, 1989)
Taylor v. Giddens
618 So. 2d 834 (Supreme Court of Louisiana, 1993)
Landry v. Avondale Industries, Inc.
864 So. 2d 117 (Supreme Court of Louisiana, 2004)

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