Cannon v. Insured Lloyds

499 So. 2d 978, 1986 La. App. LEXIS 7836
Louisiana Court of Appeal·Decided October 8, 1986·No. 85-834·Published·Cited by 10 cases

Opinion

499 So.2d 978 (1986)

Alfred B. CANNON, Plaintiff-Appellant,
v.
INSURED LLOYDS, et al., Defendants-Appellees.

No. 85-834.

Court of Appeal of Louisiana, Third Circuit.

October 8, 1986.

*979 Darrel D. Ryland, Marksville, for plaintiff-appellant.

Gist, Methvin, Hughes & Munsterman, George Gaienne, III, Alexandria, for intervenor-appellant.

H. Gregory Walker, of Percy & Walker, and Stafford, Stewart & Potter, Russell L. Potter, Alexandria, Peter Lemoine, Bunkie, Guglielmo & Lopez, Gina Tuttle, Opelousas, McLure & Pickels, John S. Pickels, Alexandria, for defendants-appellees.

Before DOMENGEAUX, GUIDRY and YELVERTON, JJ.

GUIDRY, Judge.

This appeal and companion appeals stem from the district court's judgments sustaining several motions for summary judgment in favor of certain defendants. Since the trial court rendered a separate judgment on each motion, three appeals were confected. These three appeals were consolidated upon motion of appellants. For the reasons hereafter set forth, we decide the issues presented in all three appeals in this opinion, but will render separate decrees in the following two matters similarly entitled "Cannon v. Insured Lloyds, et al", 499 So.2d 985 (La.App. 3rd Cir.1986), and 499 So.2d 985 (La.App. 3rd Cir.1986).

This action was brought by Alfred B. Cannon[1] as a result of an automobile accident in which he allegedly sustained injuries. The accident occurred on March 7, 1984. At the time of the accident, Cannon was a guest passenger in a rented van owned by Truck Rentals of Louisiana, Inc. and being driven by Bruce D. Roy. Also a passenger in the van at the time was Earl Fontanille. Cannon sustained injuries when a pickup truck, owned by Roy and being driven by Marshall Lavalais, struck the van in which he was riding from the rear. The pickup truck was towing a gooseneck trailer owned by Central Pecan Shelling Company, Inc. (Central Pecan). A piece of farm equipment and several sacks of pecans were being hauled on the trailer.

Made defendants in the instant suit are the following: (1) Insured Lloyds (Lloyds), the primary liability insurer of the Bruce D. Roy truck driven by Lavalais; (2) Empire Fire and Marine Insurance Company (Empire), the excess liability insurer of the Roy truck; (3) Forum Insurance Company (Forum), insurer of the van owned by Truck Rentals of Louisiana, Inc.; (4) Bruce D. Roy, individually and doing business as Bruce Roy Farms; (5) American Manufacturers Mutual Insurance Company (American), the general comprehensive insurer of Roy and Bruce Roy Farms; and, (6) Commercial *980 Union Insurance Company (Commercial Union), the comprehensive liability insurer of Central Pecan.

Central Pecan and First Horizon Insurance Company (First Horizon) intervened in the instant suit. First Horizon is Central Pecan's worker's compensation insurance carrier which had paid and was continuing to pay Cannon's disability benefits as well as his hospital and medical expenses. Central Pecan and First Horizon seek, through the intervention, reimbursement for all sums expended by them in worker's compensation and medical payments on behalf of Cannon.

Empire filed a third party demand against Roy asserting that the accident occurred as a result of his negligence. Empire seeks indemnification and/or contribution from Roy in the event that it is cast in judgment on the principal demand.

Empire and Lloyds thereafter moved for summary judgment on the basis of several exclusionary provisions of their respective policies of insurance. These exclusions provide, in effect, that coverage does not lie in situations where the accident and resultant injury are brought about by the acts of a co-employee. This exclusion is commonly known as the "cross-employee exclusion." In support of their position, Empire and Lloyds contend that, at the time of the accident, Lavalais and Cannon were co-employees.

Following a hearing on the matter, the trial court rendered judgment in favor of Empire and Lloyds, granting their motions for summary judgment and dismissing Cannon's and the intervenors' claims against them. The trial court based its decision on a finding that Lavalais and Cannon were co-employees of Central Pecan at the time of the accident.[2] Cannon, Central Pecan, and First Horizon thereafter jointly appealed this decision.

Shortly thereafter, Forum and Roy also filed motions for summary judgment. Roy's motion was premised on the argument that, since he and Cannon were co-employees of Central Pecan, he was immune from tort liability pursuant to La. R.S. 23:1032.[3] Forum asserted that it was similarly entitled to a summary judgment due to the fact that Roy, its contractual insured, was immune from suit by his co-employee, Cannon. The trial court granted these motions for summary judgment for the reasons previously set forth by it in its written reasons for judgment in favor of Empire and Lloyds. Cannon, Central Pecan and First Horizon thereafter appealed the trial court's judgment in favor of Roy and Forum.

Commercial Union moved for summary judgment on September 6, 1985, contending that, since it was the comprehensive liability insurer of Central Pecan, Cannon's employer, Cannon was precluded from instituting suit against it. Commercial Union urged that Cannon's exclusive remedy against Central Pecan and its insurers was in worker's compensation. Commercial Union additionally argued that the insurance policy afforded to Central Pecan contained a specific exclusion regarding injuries to Central Pecan's employees occurring while they were acting within the scope and course of their employment. Judgment was rendered in favor of Commercial Union, dismissing the claims of plaintiff and intervenors. Plaintiff and intervenors appealed the trial court's judgment in this respect also. All appeals were subsequently consolidated.

FACTS

The facts giving rise to this litigation were thoroughly and succinctly set forth by the trial judge in his written reasons for *981 judgment dated May 16, 1985. We adopt his factual findings which are as follows:

"Bruce Roy was one of the managing officers and an employee of Central Pecan Shelling Company, Inc. (`Central Pecan') and the owner and operator of his own farm under the name of Bruce Roy Farms. There is no business connection between Central Pecan and Bruce Roy Farms other than Bruce Roy being an employee of one and the owner of the other. Alfred Cannon and Earl Fontanille were regular employees of Central Pecan and occasional employees of Bruce Roy Farms. Marshall Lavallais[4] was a regular employee of Bruce Roy Farms and an occasional employee of Central Pecan.
On March 7, 1984, Roy, Cannon, Fontanille and Lavallais set out on the following mission: Roy was driving a rental van with Cannon and Fontanille riding as guest passengers departing from Mansura, Louisiana (the location of Central Pecan) in Avoyelles Parish. Their primary mission was to buy and pick up pecans in sacks and bring them back to the Central Pecan plant in Mansura for processing. On the same trip, Roy wanted to return a piece of farm equipment (which he had borrowed to use on his farm), to a farm in St. Landry Parish, Louisiana. The equipment was loaded on a trailer being pulled by a truck owned by Roy personally and being driven by Lavallais. Lavallais was to follow the van for directions as to where the equipment was to be delivered.

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Cannon v. Insured Lloyds, 499 So. 2d 978, 1986 La. App. LEXIS 7836 (La. Ct. App. 1986).

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