Compensation Specialties, L.L.C. v. New England Mutual Life Insurance Co.

6 So. 3d 275, 2008 La.App. 1 Cir. 1549R, 2009 La. App. LEXIS 204, 2009 WL 367497
CourtLouisiana Court of Appeal
DecidedFebruary 13, 2009
Docket2008 CW 1549R
StatusPublished
Cited by18 cases

This text of 6 So. 3d 275 (Compensation Specialties, L.L.C. v. New England Mutual Life Insurance 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
Compensation Specialties, L.L.C. v. New England Mutual Life Insurance Co., 6 So. 3d 275, 2008 La.App. 1 Cir. 1549R, 2009 La. App. LEXIS 204, 2009 WL 367497 (La. Ct. App. 2009).

Opinion

CARTER, C.J.

| aThis appeal concerns whether Plaintiffs suit is abandoned pursuant to La. Code Civ. P. art. 561.

FACTS AND PROCEDURAL HISTORY

On May 12, 1999, Compensation Specialties, L.L.C. (Plaintiff), filed suit against New England Mutual Life Insurance Company (Defendant). 1 Defendant answered the petition on May 9, 2002. On May 6, 2005, Plaintiff propounded its first written interrogatories and request for production of documents to Defendant. There was no further action on the record until March *278 26, 2008, at which time Plaintiff filed a motion and order to substitute counsel.

On June 4, 2008, Defendant filed a motion seeking dismissal of Plaintiffs suit on the basis of lack of prosecution. Defendant accompanied its motion with an affidavit signed by defense counsel, attesting that “no steps have been taken in the prosecution or defense of the above referenced matter for over [three] years and, more particularly, no discovery pleadings have been served since the 6th day of May, 2005.” 2

Thereafter, on June 9, 2008, counsel for Plaintiff filed a motion to enroll additional counsel and to set a status conference for the purpose of setting a trial date. That same day, Plaintiff filed a memorandum in opposition to Defendant’s motion to dismiss.

| sThe trial court set the matter for a contradictory hearing, which was held on July 16, 2008. The hearing consisted solely of argument of counsel; no evidence was taken. At the conclusion of the hearing, the trial court denied Defendant’s motion to dismiss.

In denying Defendant’s motion to dismiss, the trial court relied on a May 11, 2005, letter from defense counsel to Plaintiffs counsel confirming an informal extension of time to reply to discovery as a step in the defense of the suit such that it interrupted the abandonment period. This letter is not in the record, and it was not offered into evidence at the hearing.

The judgment denying the motion to dismiss was signed on August 1, 2008. Defendant filed with this court an application for a supervisory writ, seeking reversal of the trial court’s denial of its motion to dismiss. On August 28, 2008, the writ was denied. Chief Judge Burrell J. Carter dissented, noting he “would grant the writ and dismiss the lawsuit as abandoned under La. C.C.P. art. 561. Satterthwaite v. Byais, 2005-0010 (La.App. 1 Cir. 7/26/06), 943 So.2d 390.”

On October 24, 2008, the Louisiana Supreme Court granted Defendant’s application for supervisory and remedial writs and remanded the case back to this court for “briefing, argument and opinion.” On October 27, 2008, this court issued a stay pending further orders of this court.

After careful review of the record and consideration of the controlling legislation and jurisprudence, we reverse the trial court judgment denying Defendant’s motion to dismiss and render judgment dismissing Plaintiffs suit as abandoned by operation of law on May 7, 2008.

[STANDARD OF REVIEW

The pertinent facts are undisputed, and the issues herein are limited to questions of law. Supervisory review of legal issues is simply to determine whether the trial court’s judgment was legally correct. Voisin v. International Companies & Consulting, Inc., 2005-0265 (La.App. 1 Cir. 2/10/06), 924 So.2d 277, 279, writ denied, 2006-1019 (La.6/30/06), 933 So.2d 132. Appellate courts owe no deference to the legal conclusions of the trial court. Jackson v. BASF Corp., 2004-2777R (La.App. 1 Cir. 11/4/05), 927 So.2d 412, 415, writ denied, 2005-2444 (La.3/24/06), 925 So.2d 1231.

LAW AND ANALYSIS

Louisiana Code of Civil Procedure article 561 governs abandonment and pro- *279 vides in pertinent part: 3

A. (1) An action, except as provided in Subparagraph (2) of this Paragraph, is abandoned when the parties fail to take any step in its prosecution or defense in the trial court for a period of three yearsf.]
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(2) If a party whose action is declared or claimed to be abandoned proves that the failure to take a step in the prosecution or defense in the trial court or the failure to take any step in the prosecution or disposition of an appeal was caused by or was a direct result of Hurricane Katrina or Rita, an action originally initiated by the filing of a pleading prior to August 26, 2005, which has not previously been abandoned in accordance with the provisions of Subparagraph (1) of this Paragraph, is abandoned when the parties fail to take any step in its prosecution or defense in the trial court for a period of five years[.]
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(3) This provision shall be operative without formal order, but, on ex parte motion of any party or other interested person by affidavit which provides that no step has been|fitimely taken in the prosecution or defense of the action, the trial court shall enter a formal order of dismissal as of the date of its abandonment. The sheriff shall serve the order in the manner provided in Article 1314, and shall execute a return pursuant to Article 1292.
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B. Any formal discovery as authorized by this Code and served on all parties whether or not filed of record, including the taking of a deposition with or without formal notice, shall be deemed to be a step in the prosecution or defense of an action.

The Louisiana Supreme Court has held that Article 561 is self-executing; it occurs automatically upon the passing of three years without either party taking a step, and it is effective without a court order. Clark v. State Farm Mutual Automobile Ins. Co., 2000-3010 (La.5/15/01), 785 So.2d 779, 784. It is unnecessary for a defendant to file a motion to dismiss with the court in order to make a plaintiffs abandonment of the case effective. Washington v. City of Baton Rouge, 99-1987 (La.App. 1 Cir. 2/18/00), 752 So.2d 367, 369.

Article 561 imposes three legal requirements: (1) a party must take some step toward the prosecution or defense of the lawsuit; (2) the step must be taken in the trial court and, with the exception of formal discovery, must appear on the record; and (3) the step must be taken within the legislatively-prescribed time period from the last step taken by either party. James v. Formosa Plastics Corporation of Louisiana, 2001-2056 (La.4/3/02), 813 So.2d 335, 338. A party takes a “step” when it takes formal action before the trial court intended to hasten the matter to judgment. James, 813 So.2d at 338.

There are two jurisprudential exceptions to the abandonment rule. The first is a plaintiff-oriented exception based upon contra non valentem, | ¿which applies when the failure to prosecute is caused by *280

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6 So. 3d 275, 2008 La.App. 1 Cir. 1549R, 2009 La. App. LEXIS 204, 2009 WL 367497, Counsel Stack Legal Research, https://law.counselstack.com/opinion/compensation-specialties-llc-v-new-england-mutual-life-insurance-co-lactapp-2009.