Ducote v. Commercial Union Ins. Co.

616 So. 2d 1366, 1993 La. App. LEXIS 1439, 1993 WL 105619
CourtLouisiana Court of Appeal
DecidedApril 7, 1993
Docket92-431
StatusPublished
Cited by13 cases

This text of 616 So. 2d 1366 (Ducote v. Commercial Union Ins. 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
Ducote v. Commercial Union Ins. Co., 616 So. 2d 1366, 1993 La. App. LEXIS 1439, 1993 WL 105619 (La. Ct. App. 1993).

Opinion

616 So.2d 1366 (1993)

Vernon DUCOTE, et ux, Plaintiffs-Appellees,
v.
COMMERCIAL UNION INSURANCE CO., et al., Defendants-Appellants.

No. 92-431.

Court of Appeal of Louisiana, Third Circuit.

April 7, 1993.

*1367 Thomas Walker Lewis, New Orleans, Ringgold Hynson Luke, Bunkie, and Ralph T. Rabalais, New Orleans, for Vernon Ducote, et ux.

Terry Beth Deffes, Thomas Edward Loehn, New Orleans, and DeWitt T. Methvin, Jr., Alexandria, for Commercial Union Ins. Co., et al.

*1368 Before STOKER, THIBODEAUX and SAUNDERS, JJ.

THIBODEAUX, Judge.

Third Party defendants, Felix Armand, Jr. and State Farm Mutual Automobile Insurance Company, appeal an adverse judgment in favor of third party plaintiffs, Sernadia Robinson, the town of Bunkie, and Commercial Union Insurance Company. The judgment found appellants fifty percent at fault for damages suffered by the original plaintiffs, who were no longer part of the suit at the time of trial, and ordered them to pay half the damage amount to appellees, representing their virile portion as solidary obligors. For the following reasons, we amend and affirm in part, reverse in part and render.

FACTS

This suit arises out of an accident occurring in the town of Bunkie, Louisiana, in the early morning hours of May 28, 1989. Three vehicles were involved in the accident. An ambulance, driven by Robinson, owned by Bunkie, and insured by Commercial Union, was traveling north on Highway 29 and approaching its intersection with Lyles Lane. At this same time, Armand was also in the northbound lane of Highway 29, attempting to make a left turn onto Lyles Lane. Principal plaintiffs in this matter, Charline Ducote, the driver, and her husband and passenger, Vernon Ducote, were in the southbound lane. As Robinson approached the intersection, she sought to pass the left-turning Armand on the left. A collision occurred with Robinson's ambulance rebounding off the Armand vehicle, crossing the southbound lane, and striking the Ducote vehicle.

The Ducotes filed suit on June 16, 1989, naming Robinson and Commercial Union as defendants. Defendants answered and filed a third party demand naming Armand and State Farm as third party defendants, and asking for indemnification or, alternatively, a determination of solidary liability and comparative fault. Plaintiffs amended their petition to add Bunkie as a defendant and Bunkie asserted its own third party demand, adopting the claims of Robinson and Commercial Union. Armand and State Farm filed answers denying the third party claims. On March 3, 1991, plaintiffs again amended their petition asserting a claim against Armand and State Farm.

On May 24, 1991, a compromise agreement was reached between the Ducotes and Robinson, Bunkie and Commercial Union. The agreement purported to release appellees and assign whatever remaining rights principal plaintiffs had against appellants to appellees. On June 6, 1991, a motion to dismiss, substitute and realign parties was filed. The motion represented that the principal plaintiffs wished to dismiss all claims against appellees and have appellees realigned as party plaintiffs for the purpose of recovering amounts paid to settle the claim. The trial judge signed an order dismissing the claims against appellees and aligned them as plaintiffs to prosecute their subrogation and assignment of rights.

Appellants filed a peremptory exception of no right of action. They claimed the compromise dismissed any interest appellees had in the suit and left them with no right to claim indemnity or contribution, and that the assignment of rights was invalid. A hearing was held and the trial judge overruled the exception. He did grant a motion in limine filed by appellees to prevent appellants from introducing the settlement agreement into evidence at trial. Appellants applied for writs and, on October 9, 1991, the morning the trial was set to begin, they were denied by this court.

The trial lasted three days. The town of Bunkie's claim was tried by the bench and all others by a jury. Upon completion, the jury found Robinson and Armand each fifty percent at fault. It set damages at $575,000.00 for Charline Ducote and zero for Vernon Ducote. The trial judge adopted the findings of the jury and held Bunkie liable for fifty percent of the damages.

Judgment was signed on December 12, 1991 in favor of Robinson, Bunkie and Commercial Union for $575,000.00—the amount of damages assessed by the jury— *1369 reduced by fifty percent, representing the percentage of Robinson's comparative fault. The defendants' motion for judgment notwithstanding the verdict was denied. The trial court did amend the judgment, however, by limiting the solidary liability of Armand and State Farm to $100,000.00 which is the limit of Armand's policy with State Farm.

From the foregoing judgments, the following appeal was taken. Appellants asserted eight assignments of error. A few of the assigned errors were not briefed and are considered abandoned under Uniform Rules—Courts of Appeal Rule 2-12.4. Appellants framed the assignments into six issues which we have, in turn, condensed into four.

ISSUES
I. Whether appellees, as settling tortfeasors, have any right of action for contribution against non-settling appellants, either through the assignment or the third party demand.
II. Whether appellees have established a prima facie case of liability in their favor against appellees.
III. Whether appellants should have been allowed to introduce evidence of the settlement agreement at trial and to prove original plaintiffs had no further interest in the proceedings.
IV. Whether the trial court erred in assessing fifty percent fault to Armand.

LAW & ANALYSIS

A. Right of Action

In order to expedite this discussion, we will initially dispose of the argument that the judgment against appellants was based on a valid assignment of rights from plaintiffs to appellees. Appellees argue that, pursuant to their release, plaintiffs transferred all remaining rights to appellants to pursue plaintiffs' claim against appellants. Taken literally, this means plaintiffs transferred their right to assert their cause of action for personal injury damages to appellees. Such an assignment is clearly prohibited by the law and cannot be the basis for the judgment in favor of appellees.

As our brethren on the First Circuit stated in Gilboy v. American Tobacco Co., 540 So.2d 391, at 393 (La.App. 1st Cir.1989):

The law has been well settled in this state for many years that a transfer of a personal injury cause of action during the lifetime of the injured party is not permitted because of the intensely personal nature of such actions. (Citations omitted).

Thus, this cause of action based on a personal injury claim may not be the subject of a conventional subrogation to be assigned to a paying solidary obligor, and contribution may not be sought by that means. We should note that the case of Keith v. Comco Insurance Co., 574 So.2d 1270 (La.App. 2d Cir.1991), writ denied, 577 So.2d 16 (La.1991), was cited for the proposition that a cause of action could be assigned pursuant to a compromise between solidary obligors and the obligee. We can easily distinguish Keith because the cause of action assigned in that case was contractual in nature, arising out of an insurer's failure to meet a condition of its policy.

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Bluebook (online)
616 So. 2d 1366, 1993 La. App. LEXIS 1439, 1993 WL 105619, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ducote-v-commercial-union-ins-co-lactapp-1993.