Cacamo v. Liberty Mut. Fire Ins. Co.

764 So. 2d 41, 2000 WL 898551
CourtSupreme Court of Louisiana
DecidedJune 30, 2000
Docket99-C-3479, 99-C-3480 and 99-C-3481
StatusPublished
Cited by61 cases

This text of 764 So. 2d 41 (Cacamo v. Liberty Mut. Fire Ins. Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cacamo v. Liberty Mut. Fire Ins. Co., 764 So. 2d 41, 2000 WL 898551 (La. 2000).

Opinion

764 So.2d 41 (2000)

Alan CACAMO, Individually, and on Behalf of All Others Similarly Situated
v.
LIBERTY MUTUAL FIRE INSURANCE COMPANY.
Edith Porobil, Individually and on Behalf of All Others Similarly Situated
v.
Allstate Insurance Company.
Monique Poirrier, Individually and on Behalf of All Others Similarly Situated
v.
Progressive Security Insurance Company.

Nos. 99-C-3479, 99-C-3480 and 99-C-3481.

Supreme Court of Louisiana.

June 30, 2000.

*42 Stanley Paul Baudin, Plaquemine, Paul H. Due, Andre Phillip LaPlace, Baton Rouge, Patrick W. Pendley, Plaquemine, Donald Wayne Price, Baton Rouge, Counsel for Applicants.

James Wendell Clark, E'Vinski Lamarr Davis, Adams & Reese; Allen Dale Darden, Jeff Leonard, Mark Hanover, Clinton Ryan Stuart, Phelps Dunbar, Brent Joseph Bourgeois, Carlton Jones, III, Larry Michael Roedel, Roedel, Parsons, Hill & Koch, Baton Rouge, Counsel for Respondents.

Jennifer Elizabeth Ancona, Thomas Alcade Casey, Jr., New Orleans, Bryan Cave, Charles Newman, Peter Herzog, David G. Radlauer, New Orleans, Lee A. Schutzman, Washington, DC, Counsel for amici curiae Daimler Chrysler Corp., and General Motors Corporation.

MARCUS, Justice.[*]

Alan Cacamo, Edith Porobil and Monique Poirrier each filed a class action lawsuit against Liberty Mutual Fire Insurance Company (Liberty Mutual), Allstate *43 Insurance Company (Allstate) and Progressive Security Insurance Company (Progressive) respectively, asserting that defendants required policy holders to pay fees, installment charges, and other consideration in addition to the regular monthly premiums called for by their policies, all in violation of La. R.S. 22:627. The suits, filed in Orleans Parish, claimed that these fees were not disclosed at the time of purchase of the policies. The class plaintiffs sought damages, declaratory relief, and reimbursement for the charges allegedly assessed in contravention of La. R.S. 22:627. The three class action suits were consolidated in the trial court.

Each of the three insurers filed exceptions of improper venue. Liberty Mutual and Allstate claimed that they were foreign insurers subject to suit only in East Baton Rouge Parish pursuant to La.Code Civ. P. art. 42(7). Progressive, a domestic insurer, filed a similar exception, asserting that it could be sued only in Jefferson Parish where its registered office is located. La.Code Civ. P. art. 42(2). The trial judge overruled the exceptions of improper venue. Defendants appealed. The court of appeal reversed the judgment of the trial court, concluding that the proper venue for plaintiffs' class actions is controlled by the language of the Direct Action Statute, La. R.S. 22:655.[1] The court of appeal further concluded that under the specific language of the Direct Action Statute, plaintiffs are limited to the venue choices set forth in La.Code Civ. P. art. 42 only.[2] We granted certiorari to review the correctness of that decision.[3]

The sole issue presented for our review is whether class action plaintiffs involved in suits asserting contract claims against their own insurers are limited to the specific venue choices in La.Code Civ. P. art. 42, or whether they can take advantage of supplementary venue articles found elsewhere in the Code of Civil Procedure and otherwise provided by law.

At the outset we reject the conclusion of the court of appeal that plaintiffs' venue choices in this case are controlled by the Direct Action Statute. Plaintiffs assert first-party claims against defendants with whom they are in direct contractual privity. The Direct Action Statute is designed to grant a procedural right of action against an insurer where the plaintiff has a substantive cause of action against the insured. Descant v. Adm'rs of Tulane Educ. Fund, 93-3098 (La.7/5/94), 639 So.2d 246. It was enacted to give special rights to tort victims, not to insureds with contract claims against a defendant. Arrow Trucking Co. v. Continental Ins. Co., 465 So.2d 691 (La.1985). In this case, plaintiffs do not purport to file their claims under the Direct Action Statute and have no need to do so. The language in the Direct Action Statute cannot limit the venue choices otherwise available to them. The court of appeal erred in holding otherwise.

The claims made by plaintiffs in this case are class action claims. The appropriate venue for such claims is set forth in La.Code Civ. P. art. 593, which provides in pertinent part:

A. An action brought on behalf of a class shall be brought in a parish of proper venue as to the defendant [emphasis added].

Any appropriate venue under article 593 will be a proper venue in these consolidated cases.

The Code of Civil Procedure dictates the rules of construction for its procedural provisions. La.Code Civ. P. art. 5052 provides that when the language of an article *44 is clear and free from ambiguity, its letter is not to be disregarded under the pretext of pursuing its spirit. La.Code Civ. P. art. 5053 further instructs us that words and phrases are to be read in their context and are to be construed according to the common and approved usage of the language employed.

We have consistently held that the starting point in interpreting any statute is the language of the statute itself. Theriot v. Midland Risk Ins., Co., 95-2895 (La.5/20/97), 694 So.2d 184; Touchard v. Williams, 617 So.2d 885 (La.1993). Where a law is clear and unambiguous and its application does not lead to absurd consequences, the law shall be applied as written without further interpretation in search of legislative intent. La. Civ.Code art. 9; New Orleans Rosenbush Claims Serv., Inc. v. City of New Orleans, 94-2223 (La.4/10/95), 653 So.2d 538; Moore v. Gencorp, Inc., 93-0814 (La.3/22/94), 633 So.2d 1268. Courts are not free to rewrite laws to effect a purpose that is not otherwise expressed. White v. Wal-Mart Stores, Inc., 97-0393 (La.9/9/97), 699 So.2d 1081.

Following the rules of construction in the Code of Civil Procedure, we find the directive that class plaintiffs must file suit in a "proper venue as to the defendant" to be clear and unambiguous. "Proper venue" means the parish where an action or proceeding may be brought under the rules regulating that subject. La.Code Civ. P. art. 41. "The defendant" is the person defending or denying; it is the party against whom relief or recovery is sought in an action or suit. Black's Law Dictionary 507 (4th ed.1951).

The general rules for "proper venue as to the defendant" are found in La.Code Civ. P. art. 42, which sets forth the appropriate venue for actions against parties to a proceeding. Under La.Code Civ. P. art. 42(2), a suit against a domestic insurer such as Progressive must be brought in the parish where its registered office is located, in this case Jefferson Parish. Suits against foreign insurers, such as defendants Liberty Mutual and Allstate, must be brought in the Parish of East Baton Rouge. La.Code Civ. P. art. 42(7). However, La.Code Civ. P. art. 43 further provides that the general venue rules in article 42 are subject to the exceptions contained in La.Code Civ. P. arts. 71-85 and as otherwise provided by law. In Kellis v. Farber, 523 So.2d 843 (La. 1988), we held that the plain meaning of art. 43 is that venues permitted in articles 71-85 and otherwise permitted by law may be used to supplement the general venue provisions of article 42 whenever venue under article 42 is appropriate. Our decision in Kellis as to the meaning of La.Code Civ. P. arts.

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Bluebook (online)
764 So. 2d 41, 2000 WL 898551, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cacamo-v-liberty-mut-fire-ins-co-la-2000.