Comeaux v. Roy

517 So. 2d 1090, 1987 La. App. LEXIS 10364, 1987 WL 856
CourtLouisiana Court of Appeal
DecidedOctober 7, 1987
DocketNo. 86-640
StatusPublished
Cited by1 cases

This text of 517 So. 2d 1090 (Comeaux v. Roy) 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
Comeaux v. Roy, 517 So. 2d 1090, 1987 La. App. LEXIS 10364, 1987 WL 856 (La. Ct. App. 1987).

Opinions

WILLIAM A. CULPEPPER, Judge Pro Tem.

This matter is again on appeal to us after we remanded the case to the trial court for consideration of the impact of LSA-R.S. 9:3921 on the subrogation claim of Travelers Insurance Company (Travelers) against Cyrus Roy (Roy), an employee of Travelers’ insured. See our earlier opinion Comeaux v. Roy, 469 So.2d 478 (La.App. 3 Cir.1985), for the facts and our earlier disposition of the case. On remand the trial court ruled that R.S. 9:3921: (1) could be applied retroactively; and (2) was constitutional as applied to the present case. Travelers appeals, contending the retroactive application of the statute violates the constitutional prohibition against impairment of contracts. LSA-La. Const.1974, art. I § 23; U.S.C.A. Const., art. I, § 10; LSA-C.C. art. 8.

The pertinent facts here are that the minor child of the plaintiff, Maryleen Co-meaux, was riding on a motorcycle which was struck by a vehicle driven by Cyrus Roy, an employee of Morgan Goudeau & Associates, Inc., who had liability insurance with Travelers Insurance Company. Plaintiff settled with Roy and his insurer, Fidelity and Casualty Company, for its policy limits of $50,000.00 and released Roy only up to $50,000.00, reserving all rights to proceed against Roy for any damages in excess thereof. Plaintiff also settled with Goudeau’s insurer, Travelers, for $215,-000.00 and Travelers took a subrogation to all of Goudeau’s rights against Roy for indemnity. Travelers, a defendant in the original suit, filed a third party demand on its subrogation claim against Roy to recover the $215,000.00. In the first trial, the court held: (1) that the accident was caused solely by Roy’s fault; (2) that $265,000.00 was a reasonable sum for the minor’s damages; and (3) that Roy was an insured under Travelers’ policy. The original judgment dismissed Travelers’ claim against Roy. On appeal, this court reversed the holding that Roy was an insured under Travelers’ policy but remanded for consideration by the trial court of the effect of LSA-R.S. 9:3921, which was adopted in 1984, after the original trial but before judgment on appeal. That statute provides as follows:

“A. Notwithstanding any provision in Title III of Code Book III of Title 9 of the Louisiana Revised Statutes of 1950 to the contrary, every master or employer is answerable for the damage occasioned by his servant or employee in the exercise of the functions in which they are employed. Any remission, transaction, [1092]*1092compromise, or other conventional discharge in favor of the employee for such damage shall be valid as between the damaged creditor and the employee and the employer shall have no right of contribution, division, or indemnification from the employee nor shall the employer be allowed to bring any incidental action under the provisions of Chapter 6 of Title I of Book II of the Louisiana Code of Civil Procedure against such employee.
B. The provisions of this Section are remedial and shall be applied retrospectively and prospectively to any cause of action for damages arising prior to, on, or after the effective date of this Section.”
Amended by Acts 1984, No. 331, § 10, eff. July 2,1984.

In the present case, the accident occurred in 1979, and the conventional discharge in favor of Roy and the subrogation in favor of Travelers were executed in 1983, before the effective date of the statute on July 2, 1984. Before that date, the jurisprudence was settled that if any injured party conventionally released the employee, he automatically released the employer, whose liability was in solido with the employee, although only vicarious as to the injured party. Williams v. Marion-neaux, 240 La. 713, 124 So.2d 919 (1960); Finley v. Bass, 478 So.2d 608 (La.App. 2 Cir.1985). Thus, plaintiff’s release of Roy up to $50,000.00 also released Goudeau up to $50,000.00 but plaintiff reserved the right to seek damages from Roy in excess of $50,000.00 for which Goudeau was also liable in solido with Roy. Then plaintiff settled with Goudeau and its insurer, Travelers, for $215,000.00 and Travelers took a subrogation to plaintiff’s claim against Roy for the $215,000.00. If the statute at issue is applied retroactively, Travelers loses its right to pursue its subrogation claim against Roy.

On remand, the trial judge gave written reasons in which he first holds that the statute is remedial because it expressly states that it is remedial, and therefore applies retroactively. Travelers cites Pounds v. Schori, 377 So.2d 1195 (La. 1979), in which the Supreme Court states the well-recognized rule as follows:

“Legislation which affects substantive rights may not be accorded retrospective application unless it contains language expressly indicative of legislative intent to make it retroactive, and then only when constitutional guarantees such as due process, vested rights and the inviolability of contracts will not be adversely affected thereby.”

Under this well-recognized rule, the mere fact that the Legislature says a statute is remedial and retroactive does not prevent the courts from holding the statute unconstitutionally impairs prior contractual rights. In the present case, the statute clearly destroys Travelers’ rights under its conventional subrogation against Roy. Such an application of the statute is unconstitutional.

The trial judge next invokes the Legislature’s police power as grounds for applying the statute to violate contractual rights, citing Francis v. Morial, 455 So.2d 1168 (La.1984). In that case, members of the New Orleans Aviation Board filed suit to have declared unconstitutional a statute giving neighboring cities and parishes the right to participate in the selection of members of the Board. Plaintiffs argued that the New Orleans Home Rule Charter prohibited such interference by the Legislature with its local government. The State argued in support of the statute that it was within the police power of the Legislature. Our Supreme Court stated the law as follows:

“The decisions of this court and others establish principles governing the exercise of the police power and the prevention of its abridgement with which the delegates were familiar. Although the police power is not susceptible to precise definition except on a case by case basis, it has been described generally as the inherent power of the state to govern persons and things, within constitutional limits, for the promotion of general security, health, morals and welfare. Fernandez v. Alford, 203 La. 111, 13 So.2d [1093]*1093483 (1943); State v. Malory, 168 La. 742, 123 So. 310 (1929); VII Records 1445 (statement of Delegate Avant), 1454 (statement of Delegate Casey). The police power extends only to such measures as are reasonable, however, and all police regulations must be reasonable under all the circumstances. Schwegmann Bros, v. La. Bd. of Alcoholic Bev. Control, 216 La. 148, 43 So.2d 248 (1949); VII Records 1446 (statement of Delegate Avant). In order for a police measure to be reasonable, the means adopted must be reasonably necessary and appropriate for the accomplishment of legitimate objects falling within the scope of the power. Schwegmann Bros. v. La. Bd. of Alcoholic Bev. Control, 216 La. 148, 43 So.2d 248 (1949). Accordingly, the measure must tend toward the accomplishment or promotion of such purpose in a degree that is reasonably perceptible and clear. Id.; City of New Orleans v. Southern Auto Wreckers, 193 La. 895, 192 So. 523 (1939);

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Cite This Page — Counsel Stack

Bluebook (online)
517 So. 2d 1090, 1987 La. App. LEXIS 10364, 1987 WL 856, Counsel Stack Legal Research, https://law.counselstack.com/opinion/comeaux-v-roy-lactapp-1987.