Bullock v. AIU Insurance

503 F.3d 384, 2007 U.S. App. LEXIS 23361, 2007 WL 2875986
CourtCourt of Appeals for the Fifth Circuit
DecidedOctober 4, 2007
DocketNo. 06-60528
StatusPublished
Cited by8 cases

This text of 503 F.3d 384 (Bullock v. AIU Insurance) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bullock v. AIU Insurance, 503 F.3d 384, 2007 U.S. App. LEXIS 23361, 2007 WL 2875986 (5th Cir. 2007).

Opinion

GARWOOD, Circuit Judge:

This court has determined, in this Mississippi law diversity case, to certify the dispositive but unsettled question of law in this matter to the Supreme Court of Mississippi.

CERTIFICATE FROM THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT TO THE SUPREME COURT OF MISSISSIPPI, PURSUANT TO MISSISSIPPI RULE OF APPELLATE PROCEDURE 20.

TO THE SUPREME COURT OF MISSISSIPPI AND THE HONORABLE JUSTICES THEREOF:

I. STYLE OF THE CASE '

The style of the case in which this certif: icate is made is Jimmy Bullock, Plaintiff-Appellant v. AIU Insurance Company; The Gottfried Corporation; and AIG Claim Services, Inc., Defendants-Appellees, Cause No. 06-60S28, in the United States Court of Appeals for the Fifth Circuit, on appeal from the United States District Court for the Southern District of Mississippi. Federal jurisdiction is based on diversity of citizenship.

II. STATEMENT OF THE CASE

Plaintiff-appellant Jimmy Bullock (Bullock) appeals the district court’s final judgment entered July 17, 2006, in which the court granted defendants-appellees’ motion for summary judgment.1 The court concluded that the applicable statute of limitations barred' Bullock’s suit alleging bad faith in the denial of his workers’ compensation benefits and dismissed with prejudice all of his claims against all defendants. At issue is whether Bullock’s bad faith cause of action accrued in 1999 when the Mississippi Workers Compensation Commission Administrative Law Judge (ALJ) issued an order declaring Bullock’s injury compensable or, instead, in either 2003, when the ALJ issued his final order, or 2004, when the full Commission approved payment of a settlement to Bullock.

The parties agree that Mississippi law is applicable and that under Mississippi law a suit, such as Bullock’s, for bad faith failure or refusal to pay workers’ compensation benefits may not be filed until there is exhaustion of the administrative remedies provided by the Mississippi Workers’ Compensation Act, Miss.Code Ann. §§ 71-3-1 to -129, and the Mississippi Workers’ Compensation Commission (the Commission). Further, they agree that the three-year limitations period prescribed at Mississippi Code 1972 Annotated § 15 — 1— 49(1)2 governs Bullock’s bad faith action, which was filed August 26, 2004 (and subsequently removed by the defendants to the United States District Court for the Southern District of Mississippi on the ba[386]*386sis of diversity jurisdiction). Finally, all parties to this appeal concede that if Bullock’s administrative remedies were exhausted in November or December 1999 such that he could have brought his bad faith cause of action at that time, “the bad faith claim expired before it was filed and the trial court’s dismissal must be affirmed.”

In November of 1996, Bullock was working as a subcontractor in Bay St. Louis, Mississippi for defendant-appellee The Gottfried Corporation (Gottfried), a Louisiana corporation, when he injured both of his knees while stepping off a ladder. Bullock filed a claim for workers’ compensation benefits with defendant-appellee AIU Insurance Company (AIU), Gottfried’s workers’ compensation insurer. A dispute arose over whether Bullock was covered under Gottfried’s workers’ compensation policy with AIU. Coverage was denied.

Thereafter, on January 9, 1997, Bullock filed a petition to controvert with the Mississippi Workers’ Compensation Commission (the Commission). On October 12, 1999, after conducting a hearing at which, as the October 12 order expressly states, the “only issue” considered was “the threshold issue of whether defendants are liable for payment of workers’ compensation benefits under the Act,” an ALJ issued and entered an order finding that Bullock was an insured and entitled to workers’ compensation benefits under the AIU policy. No one appealed the ALJ’s decision finding compensability to the full Commission. AIU and defendant-appellee AIG Claims Services, Inc. (AIG) promptly paid all back benefits owed Bullock, and Bullock began receiving and continued to receive workers’ compensation benefits.

Thereafter, the issue of temporary and permanent disability — which the parties had agreed to reserve pending a ruling on the issue of coverage — was litigated before the ALJ. A final hearing on the merits was scheduled for October of 2003, and the parties filed with the Commission pretrial statements on May 3, 2001. In their pretrial statement, Gottfried and AIU included among “contested issues” the issue of “whether employer and carrier herein are the responsible employer and carrier regarding this claim.”3 Also in their pretrial statement, Gottfried and AIU explained, “The parties have discussed the potential of having a bifurcated hearing in this matter, with the issue of whether or not the Gottfried Corp. is the responsible employer being the only issue[ ] to be decided at the first hearing.”

After holding a hearing on October 15, 2003, the ALJ entered an order on December 1, 2003, declaring Bullock’s claim com-pensable and awarding Bullock additional workers’ compensation benefits. On May 25, 2004, the Commission approved payment of a commuted lump-sum settlement to Bullock.

On August 26, 2004, Bullock filed a civil complaint in the Circuit Court of Hancock County, Mississippi, against Gottfried, AIU, and AIG, asserting a bad faith claim for refusal to provide workers’ compensation benefits. The case was removed [387]*387based on diversity of citizenship to the United States District Court for the Southern District of Mississippi, Southern Division, on November 18, 2004.

Gottfried moved to dismiss Bullock’s case, contending that the suit was filed after the applicable limitations period. AIU and AIG joined in Gottfried’s motion to dismiss and also filed an alternative motion for summary judgment, also based on the statute of limitations. Gottfried, AIU, and AIG argued that the. limitations period began on November 1, 1999, or twenty days after the ALJ’s October; 12, 1999 decision in Bullock’s favor — the period within which a request or petition for review by the full Commission is permissible under Mississippi Code 1972 Annotated § 71-3-47.4 Bullock responded on July 1, 2005, arguing that the limitations period did not start until May 25, 2004, when the Commission approved the settlement.

The district court heard oral argument on the motions on February 6, 2006 and denied the motions after expressing its hesitancy to rule as a matter of law that the statute' of limitations had run. On February 16, 2006, the - defendants filed a motion to reconsider, arguing that the district court was duty bound under Erie R.R. Co. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938), to address the statute of limitations issue. On February 22, 2006, the district court granted the motion for reconsideration and ordered the parties to file supplemental briefs.

In its opinion and order filed April 28, 2006, the district court concluded that the lawsuit was filed after expiration of the three-year statute of limitations dictated by Mississippi Code 1972 Annotated § 15-1-49(1).

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Bluebook (online)
503 F.3d 384, 2007 U.S. App. LEXIS 23361, 2007 WL 2875986, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bullock-v-aiu-insurance-ca5-2007.