Bennett v. Trinity Universal Ins. Co.

943 So. 2d 1104, 2006 WL 2636514
CourtLouisiana Court of Appeal
DecidedSeptember 15, 2006
Docket2005 CA 1957
StatusPublished
Cited by4 cases

This text of 943 So. 2d 1104 (Bennett v. Trinity Universal 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
Bennett v. Trinity Universal Ins. Co., 943 So. 2d 1104, 2006 WL 2636514 (La. Ct. App. 2006).

Opinion

943 So.2d 1104 (2006)

Desiree BENNETT
v.
TRINITY UNIVERSAL INSURANCE COMPANY, Turner United Partnership and United Companies Realty and Development Company, Inc.

No. 2005 CA 1957.

Court of Appeal of Louisiana, First Circuit.

September 15, 2006.

*1105 Frank R. Whitely, Baton Rouge, Counsel for Appellees, Intervenor and Defendant in Reconvention, St. Paul Fire and Marine Insurance and Third-Party Defendant, Arkansas Blue Cross-Blue Shield.

Amos H. Davis, Baton Rouge, Counsel for Defendants/Appellants, Turner United Partnership, United Companies Realty and Development Companies, Inc., et al.

Before: CARTER, C.J., WHIPPLE and McDONALD, JJ.

WHIPPLE, J.

Turner United Partnership, United Companies Realty and Development Companies, Inc., and Trinity Universal Insurance Company, appeal from a judgment of the trial court dismissing their reconventional and third-party demands and ordering that Trinity Universal Insurance Company reimburse St. Paul Fire and Marine Insurance Company the amount of its lien for workers' compensation benefits and medical benefits paid to plaintiff. For the following reasons, we affirm.

FACTS AND PROCEDURAL HISTORY

On September 11, 1997, plaintiff, Desiree Bennett, an employee of Arkansas Blue Cross-Blue Shield ("Blue Cross-Blue Shield"), was injured when she tripped in a hole while walking to the outdoor, designated smoking area for United Plaza Building Number Nine, where her employer, Blue Cross-Blue Shield, was a tenant and maintained an office. At the time of the accident, appellants, Turner United Partnership and United Companies Realty and Development Company, Inc., owned the property, commonly known as "United Plaza Building Number Nine" and, pursuant to a written lease entered into between the parties, leased office space to Blue Cross-Blue Shield.[1]

On August 18, 1998, plaintiff filed a petition for damages, naming as defendants Turner United Partnership ("Turner"), United Companies Realty and Development Company, Inc. ("United"), and their liability insurer, Trinity Universal Insurance Company ("Trinity"), (or collectively, "defendants"). On October 2, 1998, United, Turner, and Trinity filed an answer, generally denying any liability for plaintiff's injuries. On November 3, 1998, St. Paul Fire and Marine Insurance Company ("St.Paul"), in its capacity as Blue Cross-Blue Shield's workers' compensation insurance carrier, filed a petition of intervention, asserting its statutory right to be paid by preference out of any judgment or sums paid to plaintiff and seeking reimbursement from the defendants for workers' compensation benefits and medical payments made by St. Paul to plaintiff as a result of this accident.

On August 1, 2001, defendants filed a reconventional demand against St. Paul and a third-party demand against Blue Cross-Blue Shield. Defendants claimed that by failing to obtain a subrogation waiver from St. Paul, Blue Cross-Blue Shield had violated Section 8.18 of the Lease Agreement whereby Blue Cross-Blue Shield purportedly agreed to waive subrogation against United, Turner, and Trinity and to "cause [Blue Cross-Blue Shield's] insurance carriers to waive *1106 same."[2] United, Turner, and Trinity further claimed that, pursuant to the indemnity provision set forth in Section 5.04 of the Lease Agreement, Blue Cross-Blue Shield had agreed to defend, hold harmless, indemnify and/or reimburse United, Turner, and Trinity for any losses resulting from Blue Cross-Blue Shield's failure to perform and discharge its covenants and obligations under the Lease Agreement, including the claims asserted by plaintiff.[3] Thus, defendants contended, Blue Cross-Blue Shield was responsible for the losses incurred by defendants due to Blue Cross-Blue Shield's alleged "active breach" of its contractual obligations to defendants under the lease.

Plaintiff ultimately settled her tort claims in the main demand against the defendants. As a result of that settlement, on November 27, 2001, plaintiff filed a motion and order for partial dismissal, dismissing her claims against defendants with prejudice, but reserving all rights of plaintiff and Trinity against Blue Cross-Blue Shield and St. Paul. Thus, the trial involved only these remaining claims, i.e., defendants' reconventional and third-party claims against Blue Cross-Blue Shield and intervenor, St. Paul. At trial, defendants introduced a copy of the Receipt and Release Agreement executed on August 10, 2001, evidencing the terms of the settlement between plaintiff and defendants.[4]

*1107 On May 4, 2005, the trial court issued written reasons for judgment, dismissing the defendants' reconventional and third-party demands and granting St. Paul's petition for intervention. The trial court further ordered that United and Trinity reimburse St. Paul the full amount claimed as its lien, $74,515.30, for workers' compensation payments made to plaintiff, with interest from the date of demand, and all costs of court. In its written reasons, the trial court stated that it adopted and incorporated as its reasons "the post-trial brief" submitted by St. Paul and Blue Cross-Blue Shield.[5] A written judgment in conformity with the court's ruling was signed on May 27, 2005. The instant appeal by defendants followed.

On appeal, defendants assign the following as error:

1. [The trial court] erred in considering any parole [sic] evidence or argument regarding the drafting and negotiating of the lease or the parties' intent where the provisions in question were clear and explicit and did not lead to any absurd circumstances; and
2. [The trial court] erred in failing to uphold the clear and explicit language of Section 8.18 of the lease between Turner United and Blue Cross which required Blue Cross to waive any subrogation rights and cause its insurers to do the same; and
3. [The trial court] erred in failing to uphold the clear and explicit language of Section 5.04 of the lease which obligated Blue Cross to fully defend and indemnify Turner United for any losses resulting from Blue Cross's breach of its obligation under the lease to obtain subrogation waivers from its insurers.

DISCUSSION

The lease contract is the law between the parties in defining their respective legal rights and obligations. Carriere v. Bank of Louisiana, 95-3058, p. 8 (La.12/13/96), 702 So.2d 648, 666. Each provision in an agreement must be interpreted in light of the other provisions so that each is given the meaning suggested by the agreement as a whole. LSA-C.C. art. 2050; K & M Enterprises of Slaughter, Inc. v. Pennington, 99-0930, p. 3 (La. App. 1st Cir.5/12/00), 764 So.2d 1089, 1091, writ denied, XXXX-XXXX (6/30/00), 766 So.2d 548.

We are obligated to give legal effect to contracts according to the true intent of the parties. LSA-C.C. art. 2045. The true intent of the parties to a contract is to be determined by the words of the contract when they are clear, explicit, and lead to no absurd consequences. LSA-C.C. art. 2046; Fleniken v. Entergy Corporation, 99-3023, 99-3024, p. 14 (La.App. 1st Cir.2/16/01), 790 So.2d 64, 73, writs denied, XXXX-XXXX, XXXX-XXXX (La.6/15/01), 793 So.2d 1250, 1252. When the words of a contract are clear and explicit and lead to no absurd consequences, no further interpretation may be made in search of the parties' intent. LSA-C.C. 2046; Amoco Production Company v. Fina Oil & Chemical Company, 95-1185, p. 11 (La.App. 1st Cir.2/23/96), 670 So.2d 502, 511, writ denied,

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Bluebook (online)
943 So. 2d 1104, 2006 WL 2636514, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bennett-v-trinity-universal-ins-co-lactapp-2006.