Deus v. Allstate Insurance

800 F. Supp. 420, 1992 U.S. Dist. LEXIS 11901, 1992 WL 188298
CourtDistrict Court, W.D. Louisiana
DecidedJuly 10, 1992
DocketCiv. A. 88-2099
StatusPublished
Cited by6 cases

This text of 800 F. Supp. 420 (Deus v. Allstate Insurance) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Deus v. Allstate Insurance, 800 F. Supp. 420, 1992 U.S. Dist. LEXIS 11901, 1992 WL 188298 (W.D. La. 1992).

Opinion

OPINION

NAUMAN S. SCOTT, District Judge.

Before the court is the Motion of Allstate Insurance Company (Allstate) for judgment as a matter of law dismissing the claims of plaintiff, Frank S. Deus (Deus) on the issues of breach of contract, intentional infliction of emotional distress and prescription. We have granted the motion with respect to the breach of contract issue. We now address the issues of intentional infliction of emotional distress and prescription.

JURISDICTION

We have jurisdiction under 28 U.S.C. § 1332, diversity of citizenship.

PROCEDURAL BACKGROUND

I.

On August 15, 1988, Deus filed suit against Allstate, which eventually developed into various state law claims of which only the claim of intentional infliction of emotional distress, breach of contract and the defense of prescription remained. The case commenced on April 6, 1992 before a jury on Deus’ claims that defendant Allstate (1) breached its employment contract, and (2) intentionally inflicted emotional distress.

After plaintiff had rested his case, Allstate filed a Motion for Judgment as a Matter of Law to dismiss plaintiff’s claims for breach of contract and for intentional infliction of emotional distress. Allstate later filed a supplemental memorandum raising the issue of prescription. The court granted the motion in part from the bench before the jury was charged dismissing the breach of contract claim and a written ruling on that issue signed by the court on June 15, 1992. The remaining issues were taken under advisement. The jury was charged on the issue of intentional infliction of emotional distress and returned a verdict in favor of plaintiff Deus on the issue of intentional infliction of emotional distress, awarding him $850,000.00 for lost income, past and future; $450,000.00 for *422 pain and suffering, past and future; $40,-000.00 for medical expenses, past and future; and $50,000.00 for disability, past and future, for a total award of $1,390,000.00. The court suspended the signing of a judgment and issued to both parties a briefing schedule on the pending motions.

Allstate’s motion for judgment as a matter of law is filed pursuant to Fed.R.Civ.P. 50(a), previously termed “Motion for Directed Verdict and for Judgment Not Withstanding the Verdict.” Paragraph (a)(1) of the new Rule 50 articulates the standard:

If during the trial by jury a party has been fully heard with respect to an issue and there is no legally sufficient evidentiary basis for a reasonable jury to have found for that party with respect to that issue, the court may grant a motion for judgment ... on any claim ... that cannot under the controlling law be maintained without a favorable finding on the issue.

Fed.R.Civ.P. 50(a)(1).

Although this rule is new, the Notes of Advisory Committee on December, 1991 amendment of the rule are instructive in developing the standard for granting of such a motion: the new rule effects no change in the existing standard articulated in long-standing case law. Thus, we are compelled to consider prior cases under Rule 50 as binding authority.

Whether the evidence is sufficient to create an issue of fact for the jury is solely a question of law to be determined by the court. U.S. for Use and Benefit of Weyerhauser Co. v. Bucon Constr. Co., 430 F.2d 420 (5th Cir.1970). The standard in passing on that question is the same whether it arises in the procedural context of a motion for directed verdict or of a motion for judgment notwithstanding the verdict. Lubbock Feed Lots, Inc. v. Iowa Beef Processors, 630 F.2d 250, 269 (5th Cir.1980). The question is not whether there is literally no evidence supporting the party against whom the motion is directed but whether there is evidence upon which the jury could properly find a verdict for that party. Improvement Co. v. Munson, 14 Wall (81 U.S.) 442, 448, 20 L.Ed. 867 (1871). Wright & Miller § 2524. In the Fifth Circuit, it has been firmly established that, in diversity cases, a federal test controls on the sufficiency of the evidence. U.S. v. Williams, 441 F.2d 637, 644 (5th Cir.1971); Pope v. Safeway Stores, Inc., 425 F.2d 1161 (5th Cir.1970).

The federal standard of review for motions for directed verdict and for JNOV was succinctly set out in Boeing Co. v. Shipman, 411 F.2d 365 (5th Cir.1969) (en banc).

[T]he court should consider all of the evidence — not just that evidence which supports the non-mover’s case — but in the light and with all reasonable inferences most favorable to the party opposed to the motion. If the facts and inferences point so strongly and overwhelmingly in favor of one party that the Court believes that reasonable men could not arrive at a contrary verdict, granting of the motion is proper. On the other hand, if there is substantial evidence opposed to the motions, that is, evidence of such quality and weight that reasonable and fair-minded men in the exercise of impartial judgment might reach different conclusions, the motions should be denied, and the case submitted to the jury. 411 F.2d at 374.

With these parameters in mind, we address each of the issues of Allstate's motion.

HISTORY

II.

Plaintiff Deus was employed by Allstate as an insurance salesman from 1968 until his retirement as of January 1, 1989. His last day in his office was actually August 17, 1987; thereafter until January 1, 1989 he was on medical leave.

Traditionally before January 1, 1985, Allstate had two types of agents, Sears agents and company office agents (COAs). Sears agents usually were newly hired sales agents, in training at booths in Sears stores. COAs were trained agents, assigned in groups to large offices leased and run by Allstate. Each COA office expenses were paid for by Allstate, under a standard budget formula involving the dollar amount of sales production and the number of agents in each office.

*423 State Farm Insurance, Allstate’s chief competitor, by contrast had established its agents with great success in individual offices throughout the community. To meet this competition Allstate initiated the “neighborhood office agent” (NOA) program.

It was Allstate’s intention to saturate the market geographically with many one-agent “neighborhood” offices.

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Related

Nicholas v. Allstate Ins. Co.
765 So. 2d 1017 (Supreme Court of Louisiana, 2000)
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Deus v. Allstate Insurance
15 F.3d 506 (Fifth Circuit, 1994)

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Bluebook (online)
800 F. Supp. 420, 1992 U.S. Dist. LEXIS 11901, 1992 WL 188298, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deus-v-allstate-insurance-lawd-1992.