Ansalve v. State Farm Mut. Auto. Ins. Co.

669 So. 2d 1328, 95 La.App. 4 Cir. 0211, 1996 La. App. LEXIS 177, 1996 WL 67620
CourtLouisiana Court of Appeal
DecidedFebruary 15, 1996
Docket95-CA-0211
StatusPublished
Cited by9 cases

This text of 669 So. 2d 1328 (Ansalve v. State Farm Mut. Auto. 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
Ansalve v. State Farm Mut. Auto. Ins. Co., 669 So. 2d 1328, 95 La.App. 4 Cir. 0211, 1996 La. App. LEXIS 177, 1996 WL 67620 (La. Ct. App. 1996).

Opinion

669 So.2d 1328 (1996)

Michael and Denise ANSALVE
v.
STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY.

No. 95-CA-0211.

Court of Appeal of Louisiana, Fourth Circuit.

February 15, 1996.

*1329 Victor J. Gonzalez, Metairie, for plaintiffs/appellants, Michael and Denise Ansalve.

Wayne R. Maldonado, Caroline Ibos, Lobman, Carnahan and Batt, Metairie, for defendant/appellee, State Farm Mutual Automobile Insurance Co.

Before BYRNES, LOBRANO and MURRAY, JJ.

MURRAY, Judge.

The issues raised in this appeal involve the effect a state court may give to rulings by a federal district court in a case over which the federal court determined it had no subject *1330 matter jurisdiction. Plaintiffs Michael and Denise Ansalve appeal three adverse rulings by the district court in Plaquemines Parish following remand of their civil suit against State Farm Mutual Automobile Insurance Company (State Farm) by the federal district court.

FACTS

On March 12, 1992, Michael and Denise Ansalve filed suit in state district court in Plaquemines Parish, claiming that State Farm had wrongfully cancelled their auto insurance policy. The Ansalves asserted that the cancellation was wrongful because it was based upon two incidents that had occurred more than three years earlier, as well as two accidents in which they were not at fault. The petition alleged that State Farm's conduct constituted unfair trade practices, breach of contract, breach of fiduciary duty, and breach of the duty of good faith owed to its insureds. The Ansalves sought reinstatement of coverage at their old rates plus compensatory and punitive damages.

State Farm filed a Notice of Removal in the state court on April 1, 1992, alleging that there was diversity of citizenship and that the amount in controversy exceeded fifty thousand dollars, exclusive of interest and costs. No motion for remand was filed, and discovery proceeded in federal court. Pursuant to Fed.R.Civ.P. 12(b)(6), State Farm sought and obtained dismissal of two of the Ansalves' claims. It subsequently filed a motion for summary judgment seeking dismissal of the single remaining claim. The federal district court did not rule on the summary judgment motion. Rather, since the court found that State Farm's "bare averment" of the amount in dispute in its removal petition was insufficient to carry its burden of establishing subject matter jurisdiction, it analyzed the claims as of the time the case was removed, including the previously dismissed claims, and determined that the amount in controversy could not support an award greater than fifty thousand dollars, exclusive of interest and costs. Therefore, the court remanded the case.

On February 1, 1993, a certified copy of the three-page remand order was filed in the state court record. Following remand, the trial court held a status conference, and, in October 1993, it issued a scheduling order. On December 6, 1993, State Farm filed a "Motion to Supplement the Record and Adopt Rulings of the Federal Court". The Motion asserted that "a certified copy of the pleadings and Minute Entries filed in the United States District Court ... (is) attached hereto and made a part hereof." However, contrary to this assertion, State Farm did not file the pleadings and rulings, which were the object of its motion, in the record.[1]

Both parties submitted memoranda on the motion, which was argued on January 19, 1994. A written judgment was rendered the same day, stating that "the Motion ... is granted and this Court accepts the captioned case as it stood at the time it was remanded, without prejudice to any parties' right to file subsequent pleadings." The Ansalves appealed this judgment. They also filed an amending petition in order to cure a deficiency in their original petition.[2]

*1331 In response to the amended petition, State Farm filed exceptions of prescription, res judicata and no cause of action, arguing that it was too late for the Ansalves to cure or in any way resurrect the claims dismissed by the federal court. A copy of the federal court's partial dismissal entered in July 1992 was attached to State Farm's supporting memorandum. State Farm also obtained a hearing date for its motion for summary judgment which had been filed and argued, but not decided, in federal court. Neither the summary judgment motion, the supporting memorandum nor any evidence in support of the motion was filed in this record.

State Farm's exceptions and the motion for summary judgment, seeking dismissal of the Ansalves' remaining claim, were argued on March 8, 1994. A written judgment maintaining the exception of res judicata[3] and thus dismissing the claim raised in the Ansalves' amending petition was signed March 29, 1994. On July 7, 1994, a judgment granting State Farm's motion for summary judgment was signed. The Ansalves timely appealed both decisions.

ARGUMENTS

On appeal, the Ansalves argue that since the copy of the federal proceedings was not formally filed for record in the court below, that material cannot be considered by either the trial court or this court in deciding any issues in this case. Also, although conceding that this court has previously given effect to federal pleadings in Bolden v. Brazile, 172 So.2d 304 (La.App. 4th Cir.1965), they assert that the "adoption" of federal rulings by the trial court went beyond that precedent. The Ansalves further contend that "adoption" of the federal court judgment dismissing some of their claims was impermissible because of the differences between federal and state civil procedure. Finally, they argue that the actions by the federal court cannot have res judicata effect because the court did not have jurisdiction of their claims.

In response, State Farm contends that plaintiffs' counsel knew that copies of the materials from federal court would not be filed into the state court record. Further, State Farm notes that the plaintiffs do not dispute that it furnished an authentic copy of the federal record to the trial court, or deny that the trial court reviewed these pleadings and considered plaintiffs' arguments against the Fed.R.Civ.P. 12(b)(6) and summary judgment motions. State Farm suggests that because plaintiffs did not object to its failure to file the federal pleadings in the record, and since the trial judge had an opportunity to review these pleadings it is not necessary for the pleadings to actually be in the record.[4]

State Farm argues that, after remand, "a trial judge has discretion to deal with (a) case as he sees fit," citing Bolden v. Brazile, supra, as well as Armentor v. General Motors Corp., 399 So.2d 811 (La.App. 3d Cir. 1981) and cases from other jurisdictions. State Farm contends that this includes the discretion to adopt the pleadings filed in federal court prior to remand and dispositive rulings by the district court. Since the trial court's actions herein saved the parties time, effort and expense, State Farm argues that the court did not abuse its discretion.

Addressing the question of jurisdiction, State Farm contends that all rulings by the federal court prior to remand are valid because the court had jurisdiction until that time. It premises this argument on the fact that the court did not immediately remand the case, and proceeded with substantive motions.

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Bluebook (online)
669 So. 2d 1328, 95 La.App. 4 Cir. 0211, 1996 La. App. LEXIS 177, 1996 WL 67620, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ansalve-v-state-farm-mut-auto-ins-co-lactapp-1996.