American Motorist v. American Rent-All

579 So. 2d 429, 1991 WL 71487
CourtSupreme Court of Louisiana
DecidedMay 6, 1991
Docket90-C-2293, 90-C-2291
StatusPublished
Cited by168 cases

This text of 579 So. 2d 429 (American Motorist v. American Rent-All) 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
American Motorist v. American Rent-All, 579 So. 2d 429, 1991 WL 71487 (La. 1991).

Opinion

579 So.2d 429 (1991)

AMERICAN MOTORIST INSURANCE COMPANY
v.
AMERICAN RENT-ALL, INC., Bruce Lee, and the Hanover Insurance Company.
Rose Ann WALTON
v.
AMERICAN RENT-ALL, INC., Bruce Lee, and the Hanover Insurance Company.

Nos. 90-C-2293, 90-C-2291.

Supreme Court of Louisiana.

May 6, 1991.

*431 Cerio A. DiMarco, Edward J. Lassus, New Orleans, for plaintiff-applicant American Motorist Ins. Co.

Charles W. Schmidt, Christovich & Kearney, New Orleans, for defendants-respondents American Rent-All, Bruce Lee, Hanover, Massachusetts Bay.

Leonard J. Cline, Metairie, Joseph H. McCusker, New Orleans, for defendant-respondent Rose Walton.

MARCUS, Justice.

On February 5, 1985, Rose Ann Walton was injured when the vehicle driven by her and owned by her employer, American Waste and Pollution Control Company (American Waste), was rear-ended by a pick-up truck owned by American Rent-All, Inc. and operated by its employee, Bruce Lee. She filed suit against American Rent-All, Bruce Lee, and The Hanover Insurance Company, the liability insurer of American Rent-All. American Motorists Insurance Company (American Motorists), the worker's compensation insurer of Mrs. Walton's employer, American Waste, brought a separate suit against the same defendants for recovery of compensation benefits and medical expenses paid and to be paid to Mrs. Walton. The two suits were consolidated for trial. Mrs. Walton amended her petition to add Jeffrey Walton as a party plaintiff and to include a claim by him for loss of consortium. Defendants stipulated Bruce Lee was an employee of American Rent-All, he was in the course and scope of his employment when the accident occurred, the vehicle he was driving was owned by American Rent-All and insured by The Hanover Insurance Company, and Mr. Lee was liable for the accident. After a bench trial, judgment was rendered in favor of Rose Ann Walton and against American Rent-All and Bruce Lee in solido for the total sum of $1,538,628.93 and against Massachusetts Bay Insurance Company (incorrectly identified in the pleadings as The Hanover Insurance Company) to the extent of its policy limits of $500,000. The damage awards were itemized as follows:

Past Medicals.....................   $   63,996.93
Future Medicals...................   $   10,500.00
Future Psychiatric Cost...........   $  148,000.00
Vocational Rehabilitation
Center Cost.......................   $  135,000.00
Past Lost Wages...................   $   62,439.00
Past and Future Physical
Pain and Suffering................   $  300,000.00
Past and Future Mental Anguish
and Distress......................   $  300,000.00
Future Lost Wages.................   $  518,693.00
                                     _____________
        TOTAL.....................   $1,538,628.93

Judgment was further rendered in favor of Jeffrey Walton and against defendants for the sum of $55,000 for loss of consortium. Judgment was also rendered in favor of American Motorists and against defendants for recovery of compensation benefits and medical expenses as prayed for.

American Rent-All and Bruce Lee appealed. The court of appeal reversed the awards in favor of Rose Ann Walton for future psychiatric cost and for future vocational rehabilitation center cost, reduced the award for past and future physical pain and suffering and for past and future mental anguish and distress to $50,000 each, reduced the award for future lost wages to $324,298 and reduced the award in favor of Jeffrey Walton for loss of consortium to $10,000. The awards in favor of Rose Ann Walton for past medicals, future medicals *432 and past lost wages were affirmed.[1] The effect of the judgment of the court of appeal was to reduce the judgment in favor of Mrs. Walton from $1,538,628.93 to $561,233.93 and in favor of Jeffrey Walton from $55,000 to $10,000. Upon separate applications by Rose Ann Walton and American Motorists, we granted certiorari and consolidated the applications for hearing before this court.[2]

The issue presented for our review is whether the injuries sustained by Mrs. Walton were caused by the accident, and if so, the proper award for damages.

Rose Ann Walton was forty-one years old at the time of the accident in February of 1985. She was married to her second and present husband, Jeffrey Walton, in 1978, and a son was born in 1979. She began working for American Waste in 1972 doing accounting and secretarial work. In 1978 she was promoted to outside salesperson, and by 1985, she was making twelve to fifteen customer service calls a day. In 1985 she earned about $27,458 including $9,225 in commissions, and she was provided with fringe benefits including the use of a company car. She was on her way to make a sales call when the accident occurred. The impact of the rear-end collision threw her vehicle forward about fifty feet and jerked her body forward and backward causing a headache and neck and back pain. Later that same day, Mrs. Walton consulted her family physician, Dr. Russell Rawls. He diagnosed a cervical sprain with associated headaches and prescribed muscle relaxants and analgesics. From March to September of 1985, Mrs. Walton was treated by Dr. Mark Juneau, Jr., an orthopedist, who recommended treatment of her neck pain with physical therapy and medication. When this treatment failed to provide relief, Mrs. Walton consulted a neurosurgeon, Dr. Raymond Llewellyn, in October of 1985. Testing revealed a rupture at the C 5-6 and C 6-7 vertebral levels. Although Dr. Llewellyn recommended surgery, Mrs. Walton opted for continued conservative treatment because she did not want to undergo the trauma of surgery. She continued to work for American Waste under increasing physical discomfort. She became depressed, and testified that she could no longer perform her household duties and take care of her child. Her weight went from about 115 pounds at the time of the accident to 175 pounds a year later. She was taking pain killers, weight control medication and tranquilizers. In July of 1986, Mrs. Walton left her employment at American Waste. Finally, in March of 1987, Dr. Llewellyn performed a two-level diskectomy on Mrs. Walton resulting in a 15% anatomical disability.

Despite successful surgical results, Mrs. Walton continued to complain of neck pain. In January of 1988, she attempted to return to work at American Waste as a telephone salesperson but left after two weeks complaining that she could not perform her duties. She continued taking various medications and at the time of trial (June, 1988) she weighed about two hundred pounds.

Dr. Elodie Braud, a psychiatrist who treated plaintiff periodically from 1971 to 1984, was called as a witness by the defense. Dr. Braud testified that plaintiff was hospitalized in 1971 for six weeks when she suffered a depressive episode following the death of her father and two sisters. She was again hospitalized for six months in 1977 for treatment for depression following the breakup of a romantic relationship. According to Dr. Braud, she made a good recovery from both episodes. Dr. Braud diagnosed Mrs. Walton as having what is currently known as a borderline personality disorder, a condition which would manifest itself when there were stresses and losses in her life. Dr. Braud prescribed Stelazine, a tranquilizer, on a regular basis and saw Mrs. Walton periodically. She last saw Mrs. Walton in 1984 when Mrs. Walton came to her to talk about ordinary family problems. Dr. Braud testified that while Mrs. Walton could handle everyday stresses in her life, *433

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Cite This Page — Counsel Stack

Bluebook (online)
579 So. 2d 429, 1991 WL 71487, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-motorist-v-american-rent-all-la-1991.