Dumas v. Angus Chemical Co.

742 So. 2d 655, 1999 WL 632222
Louisiana Court of Appeal·Decided August 20, 1999·No. 31,969-CW, 32,011-CA·Published·Cited by 27 cases

Opinion

742 So.2d 655 (1999)

Marzell Ike DUMAS, et al., Plaintiffs-Appellants,
v.
ANGUS CHEMICAL COMPANY, IMC Fertilizer, et al., Defendants-Appellees.

Nos. 31,969-CW, 32,011-CA.

Court of Appeal of Louisiana, Second Circuit.

August 20, 1999.

*657 Dennis Hennen, Monroe, Counsel for Plaintiffs-Appellants.

Hudson, Potts & Bernstein by Ben R. Hanchey, and J.P. Christiansen, Monroe, Davenport, Files & Kelly by Thomas W. Davenport and Shane Craighead, Monroe, Rabalais, Hanna & Hebert by Patrick J. Hanna, Lafayette, Lugenbuhl, Burke, Wheaton, Peck, Rankin & Hubbard by Claude F. Bosworth, New Orleans, Bickel & Brewer by Michael J. Collins and Elizabeth *658 Handschuch, Cook, Yancey, King & Galloway by Samuel Caverlee and Lee Ayers, Shreveport, Counsel for Defendants-Appellees.

Before NORRIS, C.J., and STEWART and DREW, JJ.

NORRIS, Chief Judge.

This is a class action suit arising from an industrial plant explosion. The defendants, Angus Chemical Company and IMC Fertilizer, moved for summary judgment to dismiss the claims of claimants who had executed a "release of all claims and assignment" in the months after the accident. The affected claimants, represented by the Plaintiffs' Steering Committee ("PSC"), opposed the motion. After four days of hearings, the District Court rendered judgment which granted, in whole or in part, or denied summary judgment as to 209 individual claims. The PSC has appealed, generally contesting the dismissal, in whole or part, of any claimant's claim. The defendants have sought supervisory review contesting the denial, in whole or part, of summary judgment with respect to 54 claimants. For the reasons expressed, we amend, affirm and clarify.

Procedural background

The case has been before the court on several prior occasions. Angus owned, and IMC operated, a nitroparaffins plant in Sterlington, Louisiana, in northern Ouachita Parish. On May 1, 1991 the plant exploded with the force of 12,000 pounds of TNT, killing eight IMC employees and causing bodily injury and property damage outside the plant. Angus promptly retained an adjusting firm, GAB, to identify and compensate claimants. A general contractor, Breck Construction Company, was hired to repair damaged homes and businesses, and accounts were opened at local hospitals and auto dealers so affected persons might obtain medical services and rental cars at no out-of-pocket cost to them.

Through GAB, Angus settled numerous claims and secured releases from over 200 claimants, each of whom signed a "RELEASE OF ALL CLAIMS AND ASSIGNMENT" (hereinafter, "release"), which acknowledged the receipt of cash paid to the claimant. The release further provides:

I/we, for myself/ourselves, my/our heirs, executors, administrators and assigns, release, acquit and forever discharge ANGUS CHEMICAL COMPANY and IMC FERTILIZER, INC., their parent companies, former owners, predecessor companies, stockholders, subsidiaries, related companies, and any other affiliates, their officers, directors, employees, agents, representatives, and their insurers and any and all other persons, firms and corporations for whom they may be responsible, of and from any and all actions, causes of action, claims or demands for damages, costs, losses, expenses, compensation, consequential damage or any other thing, known or unknown, whatsoever on account of, or in any way growing out of or resulting from a fire, explosion or chemical emission that happened on or about the 1st day of May, 1991, at or near Sterlington, Louisiana.
I/we hereby reserve all rights against parties not released hereunder and further assign and subrogate all of these reserved rights and all my/our other rights to ANGUS CHEMICAL COMPANY and IMC FERTILIZER, INC. against all other parties, and agree that ANGUS CHEMICAL COMPANY and IMC FERTILIZER, INC. may institute suit in my/our names and agree that I/we shall do all things necessary to secure the rights of ANGUS CHEMICAL COMPANY and IMC FERTILIZER, INC. hereunder.
I/we hereby acknowledge and assume all risk, change [sic; should be "chance"] or hazard that the said injuries or damage may be or become permanent, progressive, greater, or more extensive than is now known, anticipated or expected. No promise or inducement which is not herein expressed has been made to me/us, and in executing this *659 release I/we do not rely on any statement or representation made by ANGUS CHEMICAL COMPANY or IMC FERTILIZER, INC. or any person, firm or corporation, hereby released, or any agent, physician, doctor or any other person representing them or any of them, concerning the nature, extent or duration of said damages or losses or the legal liability therefor. * * *
This release contains the ENTIRE AGREEMENT between the parties hereto, and the terms of this release are contractual and not a mere recital.
I/we further state and I/we have carefully read the foregoing release and know the contents thereof, and I/we sign the same as my/our own free act.

Numerous persons filed lawsuits, which this court certified as a class action.[1] In the ensuing litigation, the District Court has granted several motions for summary judgment, rejecting various plaintiffs' claims and dismissing certain defendants.[2]

In May 1996 Angus filed the instant motion for summary judgment, asserting that 156 plaintiffs submitting proof of claim forms had signed the release. Angus later supplemented this motion to include additional plaintiffs, a total of 227. In support Angus filed the releases and, inter alia, portions of the class certification which, according to Angus, did not authorize double recovery for any claimant who had already settled. Several other defendants joined Angus's motion in extenso.[3]

The PSC opposed the motion. It attached affidavits from nearly all of the affected plaintiffs.[4] The affidavit was a computer-generated standard form listing 18 check-off options and space to write further comments. Representative entries from the list are as follows:

2. The money I received was for property damage only.
5. That at no time did I discuss with any insurance adjuster an intent to settle my personal injury claim.
11. It was never my intent to settle any personal injury claims or any claims now being made with the insurance company.
12. The adjuster did not tell me that any claims for personal injuries were being settled, nor did the adjuster ever express any intent that the insurance company was attempting to settle all claims arising from the accident of May 1, 1991.
13. To the extent the adjuster paid sums and obtained a document now being claimed as a full release, then it is my opinion that the adjuster knowingly attempted to deceive the true intent of the payment by the insurance company as well as the signing of any documents.

The PSC attached proof of claim forms and depositions from those claimants who had been deposed. Also filed were various documents obtained from Angus and other defendants through discovery—copies of checks, GAB tracking sheets, copies of bills and receipts—which, according to the *660 PSC, showed that settlement checks corresponded exactly to the property damage claimed. The PSC also filed the deposition of GAB's adjustor supervisor, Keith LeBlanc.

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Dumas v. Angus Chemical Co., 742 So. 2d 655, 1999 WL 632222 (La. Ct. App. 1999).

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