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.
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
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.
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.
c. A right of action is an attribute of some, but not all,
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.
An action is an incorporeal thing, as is a right, and it may be possessed just as any other thing.
e. A heritable right is a right which the obligee may transfer to another person.
f. A strictly personal right is a right which the obligee may not transfer. When the obligee dies, the right dies with him.
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).
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,
whereas personal injury
rights were strictly personal.
However, after
litis contestatio
(the point at which both petition and answer have been filed), even personal injury actions were heritable
in most cases.
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.
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.
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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.
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
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.
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.
c. A right of action is an attribute of some, but not all,
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.
An action is an incorporeal thing, as is a right, and it may be possessed just as any other thing.
e. A heritable right is a right which the obligee may transfer to another person.
f. A strictly personal right is a right which the obligee may not transfer. When the obligee dies, the right dies with him.
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).
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,
whereas personal injury
rights were strictly personal.
However, after
litis contestatio
(the point at which both petition and answer have been filed), even personal injury actions were heritable
in most cases.
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.
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.
The Code, while borrowing many provisions of the Code Napoleon verbatim, also included many provisions of Spanish law.
When the legislature adopted the predecessor article to Article 2315,
they impliedly adopted the Spanish rule that personal injury rights are strictly personal.
The Louisiana courts, beginning with the Louisiana Supreme Court in
Hubgh v. New Orleans & Carrollton Railroad Co.,
have consistently held that personal injury rights are strictly personal.
This Court
believes that this result was true to Louisiana’s Roman/Spanish heritage. However, Louisiana courts also held that personal injury
actions
were strictly personal even after
litis contestatio
despite the civil law tradition to the contrary and despite the Code of Practice
provision that
no
actions abate upon the death of a party.
Commentators severely criticized this result,
and the Louisiana State Law Institute proposed the adoption of amendments which would make it clear that instituted personal injury actions do not abate upon the death of the victim.
The legislature rejected the pertinent amendatory language, enacting instead a truncated version which provided: “An action does not abate on the death of a party. The only exception to this rule is an action to enforce a right or obligation which is strictly personal.”
Thus, the legislature adopted the jurisprudential rule that actions to enforce strictly personal rights are abated on the death of the obligee. Personal injury
actions
fall into this exception to nonabatement if personal injury
rights
are strictly personal.
The Court must now determine whether the legislature has done anything to change Louisiana’s long-standing rule that personal injury rights are strictly personal.
It is clear that Article 2315.1 of the Louisiana Civil Code provides a right to recover to the survivor of a tort victim: “If a person who has been injured by an offense or quasi-offense dies, the right to recover all damages for injury to that person, his property or otherwise, caused by the offense or quasi-offense, shall survive for a period of one year from the death of the deceased in favor of [certain specified beneficiaries].... The right of action granted under this Article is heritable....”
In 1960, the legislature made this survivor’s right (including that derived from the victim’s personal injury right) heritable. As a result, some commentators contend that the legislature also intended to make the
victim’s
personal injury right heritable.
This Court disagrees.
In the case of a heritable victim’s right (e.g., a property damage right), Article 2315.1 operates to
transfer
the victim’s right to a designated beneficiary. Thus, the beneficiary’s right is the same right that the victim held. In the case of a strictly personal victim’s right (e.g., a personal injury right), Article 2315.1 operates to
novate
the victim’s right, extinguishing it and vesting a new right in the beneficiary.
The survivor’s right and the victim’s right, while in many ways alike, are in fact two different rights.
Both the victim’s right
and the survivor’s right
had consistently been held to be strictly personal prior to 1960. In the 1960 amendments, the legislature specified that the victim’s property damage right and the survivor’s right were heritable. However, the legislature notably
did not
specify that the victim’s personal injury right be heritable.
Of even greater significance is the article’s second paragraph, which states: “The right to recover damages
to property
caused by an offense or quasi offense is a property right [i.e. heritable] _”
If the legislature had intended to make personal injury rights heritable, it simply could have left the words “to property” out of the sentence. The inclusion of the words “to property” can only mean that the legislature intended that property damage rights and
not
personal injury rights were heritable. The revision of the pertinent articles since 1960 has constituted no more than a reorganization of the article.
Therefore, this Court concludes that, under Louisiana law, a victim’s personal injury right is strictly personal. Because it is strictly personal, it may not be donated or assigned. Thus, Mrs. Covert’s attempted donation of her personal right is absolutely null.
Since Mrs. Covert’s donation is null and void,
the original named plaintiffs in this suit were never real parties in interest as to the right asserted because that right was Mrs. Covert’s personal injury right. Even when Mrs. Covert died, her right did not vest in the plaintiffs. Her right died with her, and a new right vested in some, but not all, of the plaintiffs who are deemed beneficiaries by Article 2315.1.
However, the original plaintiffs’ suit interrupted the prescription of Mrs. Covert’s personal injury right since it gave to the defendants the requisite notice of the claim.
Having concluded that the donation by Mrs. Covert as null and void, the Court must now consider plaintiffs’ motion for leave to amend to substitute Mrs. Covert as the plaintiff.
III. Plaintiffs’ Motion to Amend
The Federal Rules of Civil Procedure permit a plaintiff who is not a real party in interest to substitute the real party in interest in his stead, even though the original plaintiff presumably has no standing. Thus, Rule 17(a) provides:
No action shall be dismissed on the ground that it is not prosecuted in the name of the real party in interest until a reasonable time has been allowed after objection for ratification of commencement of the action by, or joinder or substitution of, the real party in interest; and such ratification, joinder, or substitution shall have the same effect as if the action had been commenced in the name of the real party in interest.
The comments to Rule 17(a) indicate that substitution is available only to plaintiffs who originally filed the suit in good faith:
The provision should not be misunderstood or distorted. It is intended to prevent forfeiture when determination of the proper party to sue is difficult or when an understandable mistake has been made. It does not mean, for example, that, following an airplane crash in which all aboard were killed, an action may be filed in the name of John Doe (a fictitious person), as personal representative of Richard Roe (another fictitious person), in the hope that at a later time the attorney filing the action may substitute the real name of the real personal representative of a real victim, and have the benefit of suspension of the limitation period.
The distinction drawn by the comments is between an attorney who files a suit fully intending to prosecute it on behalf of the named plaintiffs and an attorney, who from the outset, plans to substitute plaintiffs at a later date. The instant case falls in the former category. There is no evidence that plaintiffs did not sincerely believe that they had a cause of action when they commenced this suit. Therefore, exercising its discretion and in the interest of justice, this Court holds that Rule 17(a) allows plaintiffs' amendment to substitute Mrs. Covert as the plaintiff herein. Therefore, plaintiffs’ motion to amend is granted.
IV. Has this Suit Abated?
Under Rule 17(a), the amendment to substitute Mrs. Covert as plaintiff relates back to the date of the original complaint. Therefore, Mrs. Covert is considered to have been the plaintiff in this action when she died on December 11, 1987. Mrs. Covert’s death raises the additional issue of whether her action abated, or whether her action continued, and an additional substitution under Rule 25 of the Federal Rules of Civil Procedure is required.
The abatement of an action is governed by the law of the sovereign that created the cause of action,
which in the instant case is the state of Louisiana. “An action does not abate on the death of a party. The only exception to this rule is an action to enforce a right or obligation which is strictly personal.”
As was discussed earlier, Mrs. Covert’s personal injury right was strictly personal. Therefore, Article 428 would require that her action to enforce that right would abate upon her death. However, the Louisiana courts have held to the contrary.
In
J. Wilton Jones Co. v. Liberty Mutual Insurance Co.,
the Louisiana Fourth Circuit Court of Appeal addressed the question of whether a personal injury action is heritable, or whether it is abated upon the death of the victim. The court held that the action is not abated, and that the victim’s survivors may substitute themselves as plaintiffs in the action. In so holding, the
Jones
court relied heavily on statutory changes enacted in 1960:
1. Article 428 of the Code of Civil Procedure, which provides, unequivocally, that an action once commenced does not abate upon the death of a party;
2. Article 801 of the Code of Civil Procedure, which provides specifically that the succession representative may substitute for any deceased party in a civil action. It is important to note that no time limit is provided for in this article; and
3. Article 2315 of the Civil Code was amended to provide that “a right [of action] to recover damages under the provisions of this paragraph is property right.”
The court concluded: “The question is one of abatement. LSA-C.C.P. Art. 428 specifically excludes that possibility.”
In
Guidry v. Theriot,
the Louisiana Supreme Court agreed with
Jones
that personal injury actions do not abate upon the victim’s death, but fell short of holding that personal injury
rights
are heritable.
Louisiana jurisprudence appears to have revived the Roman/Spanish tradition that personal injury right is strictly personal, but a personal injury action is not. Under the principles outlined in
Erie Railroad Co. v.
Tompkins
the federal courts must abide by a state supreme court’s interpretation of its state’s laws. Therefore, this Court holds that Mrs. Covert’s personal injury action did not abate upon her death.
Rule 25(a)(1) of the Federal Rules of Civil Procedure provides:
If a party dies and the claim is not thereby extinguished, the court may order substitution of the proper parties. The motion for substitution may be made by any party or by the successors or representatives of the deceased party and, together with the notice of hearing, shall be served on the parties as provided in Rule 5 and upon persons not parties in the manner provided in Rule 4 for the service of summons, and may be served in any judicial district. Unless the motion for substitution is made not later than 90 days after the death is suggested upon the record by service of a statement of the fact of the death as provided herein for the service of the motion, the action shall be dismissed as to the deceased party.
In the instant case, no one has filed a suggestion of death of Mrs. Covert in the record, nor has anyone moved to substitute the proper plaintiffs, who would be the Article 2315.1 beneficiaries. The Court shall give the Article 2315.1 beneficiaries thirty days from the date of this opinion to be substituted as plaintiffs on behalf of Mrs. Covert.
Conclusion
For the foregoing reasons, IT IS ORDERED that plaintiffs’ motion for leave to amend is GRANTED.
IT IS FURTHER ORDERED that defendants’ motion for summary judgment is DENIED.
IT IS FURTHER ORDERED that the beneficiaries of Jane H. Covert under Article 2315.1 have thirty days to be substitut
ed as plaintiffs on behalf of Jane H. Covert.