Covert v. Liggett Group, Inc.

750 F. Supp. 1303, 1990 U.S. Dist. LEXIS 15493, 1990 WL 177607
CourtDistrict Court, M.D. Louisiana
DecidedNovember 8, 1990
DocketCiv. A. 87-131-B
StatusPublished
Cited by2 cases

This text of 750 F. Supp. 1303 (Covert v. Liggett Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Covert v. Liggett Group, Inc., 750 F. Supp. 1303, 1990 U.S. Dist. LEXIS 15493, 1990 WL 177607 (M.D. La. 1990).

Opinion

POLOZOLA, District Judge:

This case is before the Court to examine articles of the Louisiana Civil Code and its source provisions to determine whether an injured party may lawfully assign or donate a personal injury claim to another party or whether such an assignment or donation is null and void. The Court must further determine whether the injured party may be substituted as the real party in interest under Rule 17 of the Federal Rules of Civil Procedure if the assignment of the claim was null and void.

I.Factual Background

Jane H. Covert had smoked cigarettes for almost forty years when she discovered that she had lung cancer in March of 1986. While Mrs. Covert believed she might have a cause of action against various cigarette manufacturers, she did not wish to become a party to the lawsuit. Therefore, she executed an act which purported to donate any cause of action she might have to her three children and to Stop Teenage Addiction to Tobacco (STAT), a nonprofit organization. This donation occurred prior to the time the lawsuit was filed. Thereafter, the donees filed suit against Liggett Group, Inc., Philip Morris, Inc., Brown and Williamson Tobacco Corp., Lorillard, Inc., and the Tobacco Institute, Inc. seeking to recover damages for the injuries Jane H. Covert sustained. 1

Defendants then moved for summary judgment on the ground that since Mrs. Covert’s donation was absolutely null and void, the plaintiffs lacked standing to sue. Plaintiffs subsequently redonated their claims back to Mrs. Covert and filed a motion for leave to amend their complaint in order to substitute Mrs. Covert as the sole plaintiff in the suit. While both motions were pending, Mrs. Covert died. Mrs. Covert’s heirs have since filed a separate wrongful death action.

For reasons which follow, this Court finds:

1. A victim’s right to recover for personal injuries is nonassignable. Therefore, Mrs. Covert’s donation was absolutely null and void.

2. This is an action to enforce Mrs. Covert’s right to recover damages under Article 2315 of the Louisiana Civil Code. The original plaintiffs, who never have possessed such right under Article 2315, were not real parties in interest to this action.

3. Rule 17(a) of the Federal Rules of Civil Procedure permits the original plaintiffs to substitute Mrs. Covert, the real party in interest, as plaintiff in this action.

4. This Court, in the exercise of its discretion and in the interest of justice, hereby *1305 grants the plaintiffs’ motion to amend to substitute Mrs. Covert as the plaintiff.

5. Since Mrs. Covert was, before her death, the real party in interest, defendants’ motion for summary judgment is denied as moot.

6. Since Mrs. Covert was the plaintiff in this action at the time of her death, the action did not abate upon her death. The heirs listed in Article 2315.1 of the Louisiana Civil Code have a right to substitute themselves as plaintiffs.

II. Legal Analysis of the Donation

A. Definitions

To fully understand the very technical issue involved in this case, the Court believes it is necessary to define certain legal terms to be used in this opinion. A proper resolution of the issues presented herein requires a clear distinction among the following terms:

a. An obligation is a legal relationship whereby a person, called the obligor, is bound to render a performance in favor of another, called the obligee. Performance may consist of giving, doing, or not doing something. 2
b. A right is correlative to an obligation. It is simply the obligation viewed from the perspective of the obligee (i.e., an obligor owes an obligation; an obligee holds a right). Rights are divided into real rights (those that confer authority over a thing) and personal rights (those that confer authority over a person). Personal rights are further subdivided into heritable rights and strictly personal rights. 3
c. A right of action is an attribute of some, but not all, 4 rights. It is the ability of the obligee to bring an action to enforce his right.
d. An action is a demand for the enforcement of a legal right. 5 An action is an incorporeal thing, as is a right, and it may be possessed just as any other thing. 6
e. A heritable right is a right which the obligee may transfer to another person. 7
f. A strictly personal right is a right which the obligee may not transfer. When the obligee dies, the right dies with him. 8

B. The Validity of Mrs. Covert’s Donation

Mrs. Covert attempted to assign her right to recover damages for her personal injuries under Article 2315 of the Louisiana Civil Code (hereinafter personal injury right). 9 The issue of whether Mrs. Covert could lawfully assign that right depends on whether a personal injury right is properly classified as heritable or as strictly personal. Unfortunately, Article 2315 does not expressly answer that question. Therefore, it is necessary for this Court to analyze the article’s history to discern the legislature’s intent.

Under both Roman and Spanish law, rights to recover for injuries to property were heritable, 10 whereas personal injury *1306 rights were strictly personal. 11 However, after litis contestatio (the point at which both petition and answer have been filed), even personal injury actions were heritable 12 in most cases. 13

Spanish law was in force in Louisiana in 1806 when the Louisiana Legislature directed James Brown and Louis Moreau-Lislet to prepare what would become the Digest of 1808. 14 The legislature specified that the compilation was to be based upon the law which was then governing the territory. The Digest and the residual Spanish law continued in effect until the legislature adopted the Civil Code of 1825. 15

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Cite This Page — Counsel Stack

Bluebook (online)
750 F. Supp. 1303, 1990 U.S. Dist. LEXIS 15493, 1990 WL 177607, Counsel Stack Legal Research, https://law.counselstack.com/opinion/covert-v-liggett-group-inc-lamd-1990.