Boyd v. St. Paul Fire & Marine Ins. Co.

775 So. 2d 649, 1999 La.App. 3 Cir. 1820, 2000 La. App. LEXIS 3386
CourtLouisiana Court of Appeal
DecidedDecember 20, 2000
Docket99-1820
StatusPublished
Cited by6 cases

This text of 775 So. 2d 649 (Boyd v. St. Paul Fire & Marine 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
Boyd v. St. Paul Fire & Marine Ins. Co., 775 So. 2d 649, 1999 La.App. 3 Cir. 1820, 2000 La. App. LEXIS 3386 (La. Ct. App. 2000).

Opinion

775 So.2d 649 (2000)

Charles Wayne BOYD, et al.
v.
ST. PAUL FIRE & MARINE INSURANCE COMPANY, et al.

No. 99-1820.

Court of Appeal of Louisiana, Third Circuit.

December 20, 2000.

*650 David A. Fraser, Fraser, Morris & Wheeler, Lake Charles, LA, Counsel for Plaintiffs-Respondents, Charles Wayne Boyd, et al.

Milo A. Nickel, Jr., Michele S. Caballero, M. Keith Prudhomme, Lake Charles, LA, Counsel for Defendant-Applicant, Louisiana Patient's Compensation Fund.

Court composed of HENRY L. YELVERTON, SYLVIA R. COOKS and MICHAEL G. SULLIVAN, Judges.

COOKS, Judge.

Charles and Rebecca Boyd, individually and on behalf of their minor child, instituted this action initially asserting that Dr. Roy L. Sasser, Jr. "committed various acts of malpractice resulting in severe damage and harm" to Charles Wayne Boyd. Their claims first were presented to a Medical Review Panel, duly constituted pursuant to the Louisiana Medical Malpractice Act. The panel rendered a unanimous opinion concluding that Dr. Sasser "failed to comply with the appropriate standard of care... and the conduct complained of was a factor of resultant damages." Subsequently, the Boyds filed a petition with the *651 Calcasieu Parish District Court essentially reurging the malpractice claim presented by them to the Medical Review Panel. The petition named as defendants the estate of Dr. Sasser, St. Paul Fire and Marine Insurance Company (Dr. Sasser's malpractice insurer), and the Louisiana Patient's Compensation Fund (the PFC), as the responsible party over and above any coverage provided by St. Paul.

The plaintiffs also alleged St. Paul, the PFC, and/or the State of Louisiana Office of Risk Management "conspired and acted in concert" to deny them certain basic constitutional and statutory rights. Specifically, they asserted in the following paragraphs:

27

On information and belief, St. Paul was prepared to pay its statutory and policy limit of $100,000.00 to petitioners to settle all claims pending against ST. PAUL and DR. ROY L. SASSER, JR., herein, reserving unto petitioners their claims against PFC. Prior to St. Paul making that offer to petitioners, on information and belief the PCF contacted ST. PAUL and advised ST. PAUL that it did not desire that ST. PAUL pay its policy limit and, in fact, offered valuable consideration to ST. PAUL in exchange for ST. PAUL not offering its policy limit to petitioners.
28
The actions by ST. PAUL in accepting the "deal" made by the PCF and the actions by the PCF and/or THE STATE OF LOUISIANA OFFICE OF RISK MANAGEMENT, in making this deal of indemnity and payment to ST. PAUL effectively denied to petitioners the benefits and protection of the Louisiana Medical Malpractice Act in that it denied to petitioners the $100,000.00 payment that was to be made by ST. PAUL, and further denied to petitioners the liability determination that such a payment and partial settlement would produce.
29
Petitioners alleged that this conspiracy and joint act by ST. PAUL and PCF and/or THE STATE OF LOUISIANA, OFFICE OF RISK MANAGEMENT, have been continuing in nature and have resulted in a deprivation and have intentionally created loss of the civil rights of petitioners as guaranteed in the United States Constitution. This action has been through color and complicity of State Law because of the action of the PCF and OFFICE OF RISK MANAGEMENT and the relationship defendants share with the State of Louisiana as participants in the Louisiana Malpractice program.
30
The State of Louisiana (PCF), pursuant to the provisions of LSA-R.S. 40:1299.44, et seq., serves as trustee of the funds known as the Patient Compensation Fund. Under that statute, the State of Louisiana has and owes to petitioners a fiduciary duty to administer those funds for the use, benefit and protection of petitioners. The State of Louisiana is prohibited from using the PCF for purposes other than as provided by LSA 40:1299.44 et seq. Indemnity and hold harmless agreements whereby the State (PCF) or OFFICE OF RISK MANAGEMENT agrees to protect St. Paul (and other malpractice insurers) from a portion of their liability for the underlying coverage are contrary to LSA-R.S. 40:1299.44, et seq. Additionally, such agreements violate the due process and equal protection rights of petitioners as those rights are guaranteed by the United States and Louisiana State Constitutions.
31
Petitioners allege that the limitation of liability provisions of the Louisiana Malpractice Act are unconstitutional as *652 it treats petitioners unfairly and denies due process of law and equal protections of law as written and enacted. Additionally, the unfair dealing by the PCF and ST. PAUL is an effort to prohibit petitioners from enjoying the one favorable provision of the Louisiana Malpractice Act, the determination of liability and causation, once the policy limit of ST. PAUL was paid. On information and belief, this activity is a custom and practice of the PCF and is intended to and does deprive persons such as petitioners of the basic guarantee of property, due process of law and equal protection as granted in the U.S. Constitution. This conduct is in violation of the fiduciary relationship between the fund administrator and the plaintiffs. Petitioners are entitled to all damages and to attorney's fees that have resulted from the wrongful conspiratorial behavior of ST. PAUL and the PCF as set forth herein, pursuant to the United States Code Title 42 Section 1983.
32.
Because of this wrongful conspiracy and wrongful joint conduct, defendants ST. PAUL and the PCF and/or THE STATE OF LOUISIANA, OFFICE OF RISK MANAGEMENT, are indebted unto petitioners for sums over and above the sums allowed through the Louisiana Medical Malpractice Act, including but limited to all damages, penalties and attorney's fees resulting from the harm to petitioners and allowed by USC 42:1983.

As surmised from the pleadings, St. Paul initially responded to the petition by tendering its $100,000.00 policy limit to plaintiffs in exchange for dismissal of the malpractice claim asserted by them against it and Dr. Sasser. St. Paul and the other defendants then filed exceptions to the petition asserting, in relevant part: (1) by settling the malpractice claim with the healthcare provider, plaintiffs relinquished their right to challenge the constitutionality of [the] statutory framework" of LSA-R.S. 40:1299.42; and (2) as provided by LSA-R.S. 40:1299.41(1) plaintiffs have no cause of action to assert the claims allegedly arising from a conspiracy, wrongful joint conspiracy and violation 42 U.S.C. § 1983. The defendants also answered the suit on the same date and denied all the allegations recited in paragraphs 27-32 of plaintiffs' petition.

Next, various defendants were added, including the State, through the Division of Administration, and multiple exceptions, motions, and other pleadings were filed. Plaintiffs then propounded interrogatories essentially asking defendants to disclose whether the alleged agreement was entered between them, the details of the agreement, the employees or managers of the PCF and St. Paul who made the agreement, and whether the PCF and Office of Risk Management entered similar agreements with insurers in the past.

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Cite This Page — Counsel Stack

Bluebook (online)
775 So. 2d 649, 1999 La.App. 3 Cir. 1820, 2000 La. App. LEXIS 3386, Counsel Stack Legal Research, https://law.counselstack.com/opinion/boyd-v-st-paul-fire-marine-ins-co-lactapp-2000.