Duckworth v. Louisiana Farm Bureau Mutual Insurance Co.

125 So. 3d 1057, 2012 WL 5374248
CourtSupreme Court of Louisiana
DecidedNovember 2, 2012
DocketNo. 2011-C-2835
StatusPublished
Cited by51 cases

This text of 125 So. 3d 1057 (Duckworth v. Louisiana Farm Bureau Mutual Insurance Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Duckworth v. Louisiana Farm Bureau Mutual Insurance Co., 125 So. 3d 1057, 2012 WL 5374248 (La. 2012).

Opinions

WEIMER, Justice.

_JjWe granted certiorari in these consolidated cases to resolve an issue of first [1059]*1059impression in this court — whether a member of a putative class is entitled to the suspension of prescription provided for in La. C.C.P. art. 596 when an independent, individual lawsuit is filed prior to a ruling on the class certification issue. The respective district courts in each of these cases sustained exceptions of prescription, dismissing plaintiffs’ individual lawsuits filed prior to a resolution of the class certification issue in class action proceedings in which the plaintiffs were putative members. The court of appeal affirmed the dismissals, finding that the filing of an individual lawsuit by a member of a putative class prior to a ruling on the class certification issue operates as an “opt out” of the class action and a forfeiture of the | suspension provisions of La. C.C.P. art. 596. We granted certiorari to consider the correctness of this conclusion.

After reviewing the relevant statutory provisions, we find, contrary to the conclusions of the lower courts, that because plaintiffs are members of a class asserted in a class action petition, they are entitled to the benefits of the suspension of prescription provided under La. C.C.P. art. 596, notwithstanding that they also filed individual actions prior to a resolution of the class certification issue. As a result, we reverse the judgments of the lower courts sustaining exceptions of prescription to the petitions of the plaintiffs and remand these matters to the respective district courts for further proceedings.

FACTS AND PROCEDURAL HISTORY

The instant application arises out of two cases, filed in different district courts, which were consolidated in the court of appeal.

Duckworth v. Louisiana Farm Bureau Mutual Ins. Co.

The first case, Helen Duckworth v. Louisiana Farm Bureau Mutual Insurance Company, was filed in the 34th Judicial District Court for the Parish of St. Bernard. In that case, Ms. Duckworth alleges she is the owner of immovable property located in Arabi, Louisiana, which, on August 29, 2005, the date Hurricane Katrina struck the state of Louisiana, was covered by a policy of homeowner’s insurance underwritten by Louisiana Farm Bureau Mutual Insurance Company (“Farm Bureau”). The petition alleges the property suffered damages as a result of the hurricane for which Farm Bureau failed to provide adequate compensation. Ms. Duckworth seeks damages and the assessment of bad faith penalties. The petition, filed on December 30, 2008, additionally alleges that prescription on the asserted claims was interrupted pursuant to La. C.C. art. 3463 with the August 29, 2007 filing of a mass joinder complaint in federal district court, Acevedo, et al. v. AAA Insurance, et al., no. 07-5199, on the docket of the United States District Court for the Eastern District of Louisiana. Ms. Duckworth was a named plaintiff in that litigation.

On February 8, 2011, Farm Bureau filed a pleading entitled “Peremptory Exceptions of Prescription and/or Peremption and No Right of Action and Answer and Affirmative ■ Defenses.” In that pleading, Farm Bureau argued that because Ms. Duckworth’s initial claim was filed in a court of incompetent jurisdiction — the federal court, which lacked diversity jurisdiction because Farm Bureau is a Louisiana corporation — prescription was not interrupted and the December 30, 2008 petition was, therefore, untimely.

Ms. Duckworth responded by acknowledging the federal filing was in a court of incompetent jurisdiction and, therefore, could not serve to interrupt prescription on her claims. However, she argued her claims were nonetheless timely because the applicable prescriptive period was sus[1060]*1060pended, pursuant to La. C.C.P. art. 596, by the August 29, 2007, filing of a class action proceeding, Vinturella v. Louisiana Farm Bureau Mutual Insurance Company/Louisiana Farm Bureau Casualty Insurance Company, no. 06-8340, on the docket of the Civil District Court for the Parish of Orleans. She asserted she is a putative class member in this proceeding in which the certification question remains unresolved. At the hearing on the peremptory exception, the district court took judicial notice of the Vinturella class action in lieu of receiving evidence.

Following that hearing, on April 8, 2011, the district court sustained Farm Bureau’s exception of prescription and dismissed Ms. Duckworth’s suit with prejudice. The district court reasoned that by filing the federal complaint, Ms. |4Puckworth “opted out” of the class action and,, therefore, could not claim the benefit of the suspension of prescription provided for in La. C.C.P. art. 596. Ms. Duckworth appealed.

Smith v. Louisiana Farm Bureau Mutual Ins. Co.

In a petition filed on December 30, 2008, in the Civil District Court for the Parish of Orleans, Tony Smith alleges that he is the owner of immovable property located in New Orleans, Louisiana, which, on the date Hurricane Katrina struck the city, was also covered by a policy of insurance underwritten by Farm Bureau. Like Ms. Duckworth, Mr. Smith alleges his property sustained damages in the hurricane for which Farm Bureau failed to provide adequate compensation. The petition, also seeking damages and bad faith penalties, likewise alleges that prescription was interrupted by the filing of the Acevedo mass joinder complaint in which Mr. Smith was a named plaintiff.

On March 1, 2011, Farm Bureau filed identical exceptions, an answer, and affirmative defenses to those filed in the Duck-worth proceeding, asserting essentially the same arguments. Mr. Smith responded by acknowledging, as did Ms. Duckworth, that the federal filing was in a court of incompetent jurisdiction and, therefore, did not interrupt prescription. Following Ms. Duckworth’s lead, Mr. Smith argued his claims were nevertheless timely because prescription was suspended pursuant to La. C.C.P. art. 596 by the filing of two class action proceedings in which he was a putative class member — Vinturella, and State of Louisiana, et al. v. AAA Insurance, et al., no. 07-8970, on the docket of the Civil District Court for the Parish of Orleans (the “Road, \ -Home ” litigation).1 Mr. Smith asserted that at the time of the filing of his petition, the class certification issue in both cases remained unresolved.

Following a hearing on May 13, 2011, the district court granted Farm Bureau’s exception of prescription. In written reasons, the court concluded that because Mr. Smith filed the instant litigation prior to a decision on class certification in either of two class action proceedings on which he relied to suspend prescription, he “opted out” of both classes. In making this determination, the district court cited to, and relied primarily on, the case of Lester v. Exxon Mobil Corp., 09-1105 (La.App. 5 Cir. 6/29/10), 42 So.3d 1071, writ denied, 10-2244 (La.12/17/10), 51 So.3d 14, which resorted to federal jurisprudence to hold that a plaintiff who files an independent action while the issue of class certification is unresolved “opts out” of the class action proceeding and waives the benefit of the tolling of prescription created by the pending certification issue. Applying the rule [1061]*1061of Lester to the instant case, the district court concluded that because Mr. Smith filed his independent suit prior to a class certification in Vinturella

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Bluebook (online)
125 So. 3d 1057, 2012 WL 5374248, Counsel Stack Legal Research, https://law.counselstack.com/opinion/duckworth-v-louisiana-farm-bureau-mutual-insurance-co-la-2012.