Bowen v. Smith

885 So. 2d 1, 2003 La.App. 4 Cir. 0432, 2004 La. App. LEXIS 2181, 2004 WL 2112148
CourtLouisiana Court of Appeal
DecidedSeptember 8, 2004
DocketNos. 2003-CA-0432, 2003-CA-1562
StatusPublished
Cited by4 cases

This text of 885 So. 2d 1 (Bowen v. Smith) 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
Bowen v. Smith, 885 So. 2d 1, 2003 La.App. 4 Cir. 0432, 2004 La. App. LEXIS 2181, 2004 WL 2112148 (La. Ct. App. 2004).

Opinion

J^DWIN A. LOMBARD, Judge.

RELEVANT FACTS AND PROCEDURAL HISTORY

On or about May 19,1997, an automobile accident occurred involving a vehicle owned by Housing Authority of New Orleans (“HANO”) and being operated by Louis Smith. The other vehicle involved in the accident was a bus owned by Lake Castle Private School being operated by Robben Karr. The bus had twenty (20) children aboard, several of whom were injured, including Margaret Karr, the minor child of Clifton and Robben Karr. The HANO vehicle was insured under a Business Automotive Policy issued by Zurich-American Insurance Company (“Zurich”) with a single liability limit of $500,000.00. Zurich received and evaluated settlement demands and entered into settlement negotiations with several claimants.

Clifton Karr brought suit individually and on behalf of Margaret Karr. Robben Karr, by way of reconventional demand in a separately filed action, brought a claim in her individual capacity. On October 11, 1999, Zurich tendered its remaining policy limit of $239,110.70 to settle the Karrs’ claims. In return for 1 gZurich’s payment of its remaining policy limits, Robben and Clifton Karr, individually and as natural tutor of his minor child, dismissed, with full prejudice, the claims against Zurich. Both dismissals were with a reservation of rights to continue any and all actions against other named defendants. Zurich filed a Motion for Summary Judgment [3]*3seeking dismissal on the grounds that its policy limits were exhausted and it therefore no longer owed a duty of indemnity or a defense to its insureds. The trial court granted Zurich’s motion on June 4, 2002 and dismissed it from the lawsuit.

The Karrs subsequently proceeded with their claim against the remaining defendants. A third party, Ann Bell (“Bell”), was appointed provisional tutrix for Margaret Karr. Bell instituted the instant proceedings to judicially enforce the minor’s right to annul the judgment rendered against the minor. On or about July 10, 2002, Bell filed a Motion to Rescind and Annul Judgment of Dismissal and Reinstate Claims, seeking to vacate the Judgment of Dismissal rendered on or about October 29, 1999. On or about March 17, 2003, after hearing the law and evidence, the trial court granted the Motion to Vacate, Rescind and Annul Judgment of Dismissal and Reinstate Claims. The court also ordered that all parties be restored to the situation that existed before the indemnity agreement was entered into and the claims made by Clifton Karr, Robben Karr, and Clifton Karr, as natural tutor of Margaret Karr, be reinstated. Furthermore, the court ordered Zurich be restored to its position before the agreement was entered into by the Karrs, reimbursing the insurance company the amount of money received, 1.4239,110.70, less any sums paid to satisfy liens in favor of health care providers and attorneys. Finally, the trial court ordered that Zurich shall receive a credit for any sums not returned due to those sums having been paid to satisfy liens in favor of health care providers and attorneys, reserving all parties their rights to seek reimbursement of any moneys as may be required.

On or about March 25, 2003, Defendants filed a Motion for Rehearing or Alternatively a New Trial on the Motion to Vacate, Rescind, Annul Judgment of Dismissal and Reinstate Claims. On May 15, 2003, the trial court denied the motion. Defendants were granted an appeal on June 9, 2003.

LAW AND DISCUSSION

Appellate courts may only disturb a trial court’s findings of fact that are manifestly erroneous or clearly wrong. Rosell v. ESCO, 549 So.2d 840, 844-845 (La.1989).

In their first assignment of error, Defendants claim the trial court erred in finding Clifton Karr had to first obtain court approval before dismissing a lawsuit he, as the natural tutor, brought on behalf of his minor daughter, Margaret Karr. Defendants rely on La. R.S. 9:196 that, at the time the Karr settlement was entered into, provided in pertinent part:

A tutor, who is entitled to tutorship by nature, pursuant to the provisions of Section 2 of Chapter 1 of Title VII of Book 1 of the Civil Code and without qualification, may perform or discharge any act affecting any right or interest of the minor which involves less than seven thousand five hundred dollars.

1 ¿Plaintiffs argue that the tutor of a minor is restricted in his capacity to engage in such transactions to settle a lawsuit on behalf of a minor under the La. C.C. art. 3072, which provides, in pertinent part:

The tutor of a minor or the curator of a person interdicted or absent can not make a transaction without being authorized thereto by the judge.

Given the requisites of Louisiana law, Clifton Karr could properly settle Margaret Karr’s claims without judicial approval if her claim was valued at less than $7,500.00, or, with judicial approval if the claim was valued at more than $7,500.00.

In its reasons for judgment, the trial court explained:

An examination of the settlement agreement and the check drafted pursuant to [4]*4that agreement revealed that there is no apportionment of the settlement between each of the plaintiffs. Accordingly, there is no designation of the settlement proceeds of the minor Margaret Karr. Therefore, the Court cannot make a definitive determination on the amount of the minor’s settlement proceeds. Additionally, as there is no evidence presented on the minor’s injuries, the Court cannot evaluate said injury as being less than $7,500.00.

Accordingly, the trial court correctly determined that the provisions of La. R.S. 9:196 do not apply to the claims of the minor child, Margaret Karr.

Pursuant to La. C.C.P. art. 4265, a tutor such as Clifton Karr may compromise the claim of a minor with the approval of the court; but, when Margaret’s claims were compromised, there was no request for, nor receipt of, judicial authority for settlement as required by statute. Without court approval, the settlement, and the dismissal based on settlement, must be declared null. Ronquillo v. State Farm Insurance Co., 522 So.2d 134, 136 (La.App. 4 Cir.1988). Relying on Ronquillo, as the trial court did herein, we find no error in declaring the | .Judgment of Dismissal an absolute nullity and reinstating the claims of Clifton Karr, Robben Karr, and Clifton Karr, as natural tutor for Margaret Karr.

Next, Defendants argue that the trial court erred in not ordering the Karrs to return 100% of the $239,110.70 paid by Zurich as consideration for entering in the release agreement. Defendants suggest that all parties should be restored to the situation that existed before the “Receipt, Release, Hold Harmless and Indemnity Agreement” was entered into and cite La. C.C. art. 2033 that provides in pertinent part:

An absolutely null contract, or a relatively null contract that has been declared null by the court, is deemed never to have existed. The parties must be restored to the situation that existed before the contract was made. If it is impossible or impracticable to make restoration in kind, it may be made through an award of damages.

Both parties cite to La. C.C. art. 1921 that provides:

Upon rescission of a contract on the ground of incapacity, each party or his legal representative shall restore the other what he has received thereunder.

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Bluebook (online)
885 So. 2d 1, 2003 La.App. 4 Cir. 0432, 2004 La. App. LEXIS 2181, 2004 WL 2112148, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bowen-v-smith-lactapp-2004.