Anderson v. Avondale Industries, Inc.

798 So. 2d 93, 2001 WL 1223176
Supreme Court of Louisiana·Decided October 16, 2001·No. 2000-CC-2799·Published·Cited by 34 cases

Opinion

798 So.2d 93 (2001)

John ANDERSON and Eva Washington Anderson
v.
AVONDALE INDUSTRIES, INC.

No. 2000-CC-2799.

Supreme Court of Louisiana.

October 16, 2001.

*95 Janis W. Lemle, Janet L. MacDonell, Joseph L. McReynolds, Deutsch, Kerrigan & Stiles, New Orleans, Counsel for Applicant.

Gerolyn P. Roussel, Perry J. Roussel, Jr., Roussel & Roussel, La Place, Counsel for Respondent.

Tyson B. Shofstahl, New Orleans, Counsel for American Chemistry Council (Amicus Curiae).

Martha Y. Curtis, James M. Garner, Keith A. Kornman, New Orleans, Counsel for Murphy Oil U.S.A. (Amicus Curiae).

VICTORY, J.[*]

At issue in this case is whether former La. C.C. art. 2315.3, allowing recovery of punitive damages for injuries caused by the wanton and reckless disregard for public safety in the storage, handling, and transportation of hazardous substances, applies to this wrongful death case in which the cause of action arose after September 1, 1984, the effective date of La. C.C. art. 2315.3, but the conduct giving rise to the injuries occurred before that date. After reviewing the record and the applicable law, we reverse the judgment of the court of appeal and hold that the application of La. C.C. art. 2315.3 to the facts of this case would be an impermissible retroactive application of the law.

FACTS AND PROCEDURAL HISTORY

From 1968 to 1980, John Anderson ("Anderson") worked for Avondale Industries, Inc. ("Avondale") where he was allegedly exposed to asbestos. On March *96 15, 1994, Anderson was diagnosed with lung cancer and died on October 25, 1994. On August 29, 1994, Anderson and his wife filed suit against Avondale, certain Avondale executive officers, and numerous manufacturers of asbestos products that were sold to Avondale (the "manufacturer defendants"), seeking damages for injuries Anderson allegedly sustained due to his exposure to asbestos. After his death, the suit was amended to seek damages for Anderson's wrongful death, including a claim for punitive damages under La. C.C. art. 2315.3. Certain of the manufacturer defendants filed a peremptory exceptions of no cause of action, claiming that plaintiffs were not entitled to punitive damages under La. C.C. art. 2315.3 because that article did not apply to the facts of this case. The trial court denied the exceptions and the Fourth Circuit Court of Appeal denied a writ application. Anderson v. Avondale Industries, Inc., 00-0775 (La. App. 4 Cir. 9/6/00), 769 So.2d 653. This Court granted the writ and remanded it to the court of appeal for briefing, argument and full opinion. Anderson v. Avondale Industries, Inc., 00-0933 (La.4/3/00), 759 So.2d 78.

On remand, the court of appeal affirmed the judgment of the trial court. Anderson v. Avondale Industries, Inc., 00-0775 (La. App. 4 Cir. 9/6/00), 769 So.2d 653. Relying on Walls v. American Optical Corp, 98-0455 (La.9/8/99), 740 So.2d 1262, the court of appeal held that because a wrongful death cause of action arises at the time of death, which in this case was October 25, 1994, and because former La. C.C. art. 2315.3 was in effect from September 1, 1984 through April 16, 1996, the claim for punitive damages was viable. Further, the court held that "punitive damages are not `new legal consequences to past conduct' as envisioned under [Article 6]" as "punitive damages were available for a number of torts at the time of Mr. Anderson's exposures as well as at the time of his death" and "were also available in most other states including the domiciles of all the defendants in the instant case." Id. at 655-656. We granted the defendants' writ to consider this purely legal issue of first impression.[1]Anderson v. Avondale Industries, Inc., 00-2799 (La.4/12/01), 788 So.2d 1196.

DISCUSSION

Former La. C.C. art. 2315.3, which went into effect on September 4, 1984 and which was in effect at the time of Anderson's death on October 25, 1994, provided in pertinent part:

In addition to general and special damages, exemplary damages may be awarded, if it is proved that plaintiff's injuries were caused by the defendant's wanton or reckless disregard for public safety in the storage, handling, or transportation of hazardous or toxic substances.

La. C.C. art. 2315.3 (added by 1984 Acts No. 335, Section 1, effective September 4, 1984; repealed by Acts 1996, 1ST Ex.Sess. No. 2, Section 1 effective April 16, 1996). *97 The issue presented is whether former La. C.C. art. 2315.3, which allowed recovery of punitive damages, applies to this wrongful death action where the conduct giving rise to the damages occurred prior to the enactment of the statute, but the wrongful death cause of action did not arise until after the enactment of the statute.

The Legislature did not express its intent as to the prospective or retroactive application of this law. Civil Code Article 6 provides:

In the absence of contrary legislative expression, substantive laws apply prospectively only. Procedural and interpretive laws apply both prospectively and retroactively, unless there is a legislative expression to the contrary.

La. C.C. art. 6; see also La. R.S. 1:2 (stating that no statute therein may be applied retroactively unless it is expressly so stated). "Substantive laws," for purposes of determining whether a law should be applied retroactively, are those which establish new rules, rights, and duties, or change existing ones. Aucoin v. State Through Dept. of Transp. and Dev't, 97-1938, 97-1967 (La.4/24/98), 712 So.2d 62, 67. La. C.C. art. 2315.3 was clearly a substantive law as it created a right to punitive damages against a party who displayed wanton and reckless disregard for public safety in the storage, handling or transportation of hazardous or toxic substances. Because La. C.C. art. 2315.3 was a substantive law and the legislature did not expressly provide that it should be applied retroactively, Civil Code Article 6 requires that it be given prospective application only.

However, citing Walls, plaintiffs argue that because their wrongful death cause of action arose at death (October 25, 1994), and La. C.C. art. 2315.3 was in effect when the cause of action arose, there is no retroactive application. In Walls, we were faced with the issue of whether the Workers Compensation Act, specifically La. R.S. 23:1032 as amended in 1976, which extends tort immunity to executive officers, bars a wrongful death action against the executive officers when the decedent's occupational exposures occurred entirely before the statute was amended, but his death from silicosis did not occur until years after the amendment's effective date.[2]Walls, supra. In Walls, we recognized that:

[d]etermining whether a statute operates retroactively can be difficult when the statute must be applied to a case in which some operative facts pre-date the law while others occurred after the law's effective date. It is imperative to understand that a law may permissibly change the future consequences of an act and even the consequences of acts committed prior to the law's enactment without operating retroactively. 1 M. Planiol, Treatise on the Civil Law, Sec. 243 (La.St.L.Inst.Trans.1959).

Id. at 1266.[3]

In Walls, we adopted the formula set out by Planiol "for identifying the only two situations in which a law operates retroactively:

*98

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Anderson v. Avondale Industries, Inc., 798 So. 2d 93, 2001 WL 1223176 (La. 2001).

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