Dobson v. Aetna Cas. and Sur. Co.

484 So. 2d 976, 1986 La. App. LEXIS 6324
CourtLouisiana Court of Appeal
DecidedMarch 5, 1986
Docket84-1112
StatusPublished
Cited by10 cases

This text of 484 So. 2d 976 (Dobson v. Aetna Cas. and Sur. 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
Dobson v. Aetna Cas. and Sur. Co., 484 So. 2d 976, 1986 La. App. LEXIS 6324 (La. Ct. App. 1986).

Opinion

484 So.2d 976 (1986)

Ronald DOBSON, Plaintiff-Appellant,
v.
AETNA CASUALTY AND SURETY COMPANY, Defendant-Appellee.

No. 84-1112.

Court of Appeal of Louisiana, Third Circuit.

March 5, 1986.

*977 Mayer, Smith & Roberts, Mark A. Goodwin, Shreveport, for defendant-appellant-appellee.

Thomas & Dunahoe, Edwin Dunahoe, Natchitoches, for plaintiff-appellee-appellant.

*978 Richard A. Bailly, Monroe, Stafford, Stewart & Potter, Russell L. Potter, Alexandria, for defendant-appellee.

Before STOKER, DOUCET and YELVERTON, JJ.

YELVERTON, Judge.

This personal injury damage suit is just reaching us from a 1978 accident. One of several reasons for the delay is that a declaratory action intervened, which went to our Supreme Court to resolve questions about the uninsured motorist coverages. The case on the merits was then tried at the district court, some issues being decided by a jury and other issues by the trial court. The jury awarded plaintiff, Ronald Dobson, $620,724.05 in damages, and the district judge cast Southern American Insurance Company, an uninsured motorist carrier, with statutory penalties and attorney's fees totaling $146,886.88.

The case is now before us contesting these awards, as well as other rulings handed down during this litigation. Before discussing all of these issues, we will identify the parties and explain why they were in the lawsuit, and we will describe the judgment that was rendered.

This case happened in April 1978 when Ronald Dobson, then 26 years old, was driving a small pickup truck on a state highway in Bienville Parish and another vehicle out of control, with defendant Randy Walker at the wheel, hit Dobson's truck, seriously and permanently injuring him. Dobson sued Randy Walker and his insurer, Commercial Union Insurance Company. In time, plaintiff named three other insurers as defendants: Aetna Casualty & Surety Company, the uninsured motorist insurer of the small pickup plaintiff was driving; Southern American Insurance Company, the umbrella uninsured motorist insurer of the pickup truck; and Northeastern Fire Insurance Company of Pennsylvania, another umbrella UM carrier insuring the pickup. From these three defendants plaintiff sought uninsured motorist benefits, as well as penalties and attorney's fees.

The pickup truck being driven by Dobson was leased by his employer, Dobson Pulpwood Company, Inc., a business owned by Dobson's father. Aetna provided UM coverage on this pickup for $100,000 limits. Southern American had written an umbrella liability policy covering the pickup for $1,000,000. Northeastern Fire Insurance Company had written an umbrella policy covering the pickup for $2,000,000. Southern American and Northeastern filed suits seeking a declaratory judgment concerning the existence of UM coverage under their respective policies. The Supreme Court ruled in favor of Ronald Dobson against these two insurers finding that uninsured motorist coverage existed under both policies. Southern American Insurance Company v. Dobson, 441 So.2d 1185 (La. 1983).

When the case went to trial on the merits, two UM insurers, Aetna and Northeastern, were no longer in litigation: Aetna had paid its policy limits and was out; Northeastern was in liquidation in the State of Pennsylvania, and its attorneys had withdrawn. Only Walker, Commercial Union and Southern American remained as represented defendants.

The case was tried. The court signed a judgment awarding Ronald Dobson $620,724.05 against Randy Walker, with legal interest from date of judicial demand until paid. The judgment also awarded Ronald Dobson $5,000 against Commercial Union, Walker's insurer, the extent of its liability coverage, and adjudged that Southern American's ultimate liability to Dobson was to be reduced by this $5,000, as well as the $100,000 paid by Aetna before trial. Finding Southern American arbitrary and capricious in its handling of its UM responsibilities to Dobson, the trial judge gave judgment in favor of Dobson against Southern American for a 12% penalty on $515,724.05 (Southern American's liability after taking into account Commercial Union's obligation for $5,000, and Aetna's payment of $100,000), or $61,886.88, and $85,000 for attorney's fees. The judgment also made provision *979 for the expert witness fees of six physicians, fixing them and charging the fees to costs, ranging from a low of $250 to a high of $1,500. The court later assessed court costs to be paid two-thirds by Southern American and one-third by Commercial Union.

Southern American appealed raising the following issues:

1) whether uninsured motorist coverage under its policy was available to plaintiff under La.R.S. 22:1406;

2) the excessiveness of the jury award of general damages;

3) its right to a trial by jury on the issue of statutory penalties and attorney's fees;

4) the award of legal interest to run from date of judicial demand;

5) Commercial Union's primary responsibility for post-judgment legal interest;

6) the award of a $1,500 expert witness fee to Dr. Thomas; and

7) the propriety of the allocation of court costs.

Plaintiff also appealed, contending that the jury's award of $75,000 for past and future loss of earnings and loss of earning capacity was inadequate; that the trial court should have cast Commercial Union to pay legal interest on the entire judgment from the date of entry of judgment until it paid its judgment debt; and that plaintiff is entitled to an increase in attorney's fees for this appeal.

Commercial Union answered both appeals and raises the issue of whether the trial court abused its discretion in its allocation of court costs.

We will now discuss these issues individually.

UNINSURED MOTORIST COVERAGE

Southern American argues that the uninsured motorist coverage in its policy is not available to the plaintiff under the provisions of La.R.S. 22:1406(D)(1)(c).

The pertinent provisions of La.R.S. 22:1406 are as follows:

"D. The following provisions shall govern the issuance of uninsured motorist coverage in this state.
"(1)(a) No automobile liability insurance covering liability arising out of the ownership, maintenance, or use of any motor vehicle shall be delivered or issued for delivery in this state with respect to any motor vehicle registered or principally garaged in this state unless coverage is provided therein or supplemental thereto, in not less than the limits of bodily injury liability provided by the policy, under provisions filed with and approved by the commissioner of insurance, for the protection of persons insured thereunder who are legally entitled to recover damages from owners or operators of uninsured or underinsured motor vehicles because of bodily injury, sickness, or disease, including death, resulting therefrom; provided, however, that the coverage required under this Subsection shall not be applicable where any insured named in the policy shall reject in writing the coverage or selects lower limits. Such coverage need not be provided in or supplemental to a renewal or substitute policy where the named insured has rejected the coverage or selected lower limits in connection with a policy previously issued to him by the same insurer. Any document signed by the named insured or his legal representative which initially rejects such coverage or selects lower limits shall be conclusively presumed to become a part of the policy or contract when issued and delivered, irrespective of whether physically attached thereto.

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Bluebook (online)
484 So. 2d 976, 1986 La. App. LEXIS 6324, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dobson-v-aetna-cas-and-sur-co-lactapp-1986.