George Raymond Williams, M.D. v. Sif Consultants of Louisiana, Inc.

Louisiana Court of Appeal·Decided December 29, 2016·No. CA-0016-0343·Unknown

Opinion

STATE OF LOUISIANA COURT OF APPEAL, THIRD CIRCUIT

16-343

GEORGE RAYMOND WILLIAMS, M.D.

VERSUS

SIF CONSULTANTS OF LOUISIANA, INC.

**********

APPEAL FROM THE TWENTY-SEVENTH JUDICIAL DISTRICT COURT PARISH OF ST. LANDRY, NO. 09-C-5244-C HONORABLE ALONZO HARRIS, DISTRICT JUDGE

JOHN D. SAUNDERS JUDGE

Court composed of Sylvia R. Cooks, John D. Saunders, and John E. Conery, Judges.

AFFIRMED.

Conery, J., dissents. John S. Bradford William B. Monk Stockwell, Sievert, Viccellio, Clements & Shaddock, L.L.P. P.O. Box 2900 One Lakeside Plaza, Fourth Floor Lake Charles, LA 70601 (337) 436-9491 COUNSEL FOR PLAINTIFF/APPELLEE: Orthopaedic Surgery, A ProfessionalMedical, LLC George Raymond Williams, M.D.

Charles Thach Curtis Jr. Gerard George Metzger Attorneys at Law 829 Baronne Street New Orleans, LA 70113 (504) 581-9322 COUNSEL FOR DEFENDANT/APPELLEE: Med-Comp USA, Inc.

Patrick A. Juneau Jr. The Juneau Firm Post Office Drawer 51268 Lafayette, LA 70505-1268 (337) 269-0052 COUNSEL FOR OTHER APPELLEE: Patrick Juneau, Special Master

Patrick C. Morrow James P. Ryan Morrow, Morrow, Ryan & Bassett P. O. Box 1787 Opelousas, LA 70570 (337) 948-4483 COUNSEL FOR PLAINTIFF/APPELLEE: George Raymond Williams, M.D. Orthopaedic Surgery, A ProfessionalMedical, LLC

Stephen B. Murray Stephen B. Murray, Jr. Arthur M. Murray Nicole A. Murray-Ieyoub Murray Law Firm 650 Poydras Street, Ste 2150 New Orleans, LA 70130 (504) 525-8100 COUNSEL FOR PLAINTIFF/APPELLEE: George Raymond Williams, M.D. Orthopaedic Surgery, A ProfessionalMedical, LLC

Larry Lane Roy Brown Sims 600 Jefferson St., Suite 800 Lafayette, LA 70501 (337) 484-1240 COUNSEL FOR DEFENDANT/APPELLEE: Bestcomp, Inc. Randall Kurt Theunissen Allen & Gooch P. O. Box 81129 Lafayette, LA 70598-1129 (337) 291-1000 COUNSEL FOR DEFENDANT/APPELLANT: Homeland Ins. Co. of New York

Janice Bertucci Unland Rabalais, Unland 1404 Greengate Dr., #110 Covington, LA 70433-5272 (985) 893-9900 COUNSEL FOR DEFENDANT/APPELLEE: Risk Management Services

Steven William Usdin Barrasso, Usdin, Kupperman 909 Poydras St., #2400 New Orleans, LA 70112 (504) 589-9700 COUNSEL FOR DEFENDANT/APPELLEE: Executive Risk Specialty Ins. Co.

Martin A. Stern E. Paige Sensenbrenner Raymond P. Ward Adams & Reese LLP 701 Poydras St., Suite 4500 New Orleans, LA 70139 (504) 581-3234 COUNSEL FOR DEFENDANT/APPELLANT: Homeland Ins. Co. of New York

Thomas A. Filo Somer G. Brown Michael K. Cox Cox, Cox, Filo, Camel & Wilson, L.L.C. 723 Broad Street Lake Charles, LA 70601 (337) 436-6611 COUNSEL FOR PLAINTIFF/APPELLEE: George Raymond Williams, M.D. Orthopaedic Surgery, A ProfessionalMedical, LLC

Michael E. Parker Allen & Gooch P. O. Box 81129 Lafayette, LA 70598-1129 (337) 291-1000 COUNSEL FOR DEFENDANT/APPELLANT: Homeland Ins. Co. of New York Cynthia J. Thomas Galloway, Johnson, et al. 3 Sanctuary Blvd., Suite 301 Manderville, LA 70471 (985) 674-6710 COUNSEL FOR DEFENDANT/APPELLEE: SIF Consultants of Louisiana, Inc.

John Mark Fezio Stone, Pigman, et al. 546 Carondelet St. New Orleans, LA 70130 (504) 581-3200 COUNSEL FOR DEFENDANT/APPELLEE: Cor Vel Corp.

Michael J. Rosen Peter F. Lovato Skarzynksi Black, LLP 205 N. Michigan Ave., Ste 2600 Chicago, IL 60601 (312) 946-4200 COUNSEL FOR DEFENDANT/APPELLANT: Homeland Ins. Co. of New York

Daniel J. Layden Ronald P. Schiller Hangley, Aronchick, Segal One Logan Square, 27th Floor Philadelphia, PA 19103 COUNSEL FOR DEFENDANT/APPELLEE: Risk Management Services SAUNDERS, Judge.

This is a class action wherein the plaintiff class filed suit against two

different insurance companies under La. R.S. 22:1269. The plaintiff class asserted

claims for damages under statute prohibiting certain conduct by preferred provider

organization.

The plaintiff class previously moved for and was granted summary judgment

against one of the insurance companies. The case settled while that first insurance

company’s application for writs to our Louisiana Supreme Court was pending. In

the settlement, the plaintiff class reserved all rights to pursue any claims against

the second insurance company.

The plaintiff class then moved for and was granted a motion for summary

judgment against the second insurance company. The trial court granted the

motion. The second insurance company appeals this decision.

FACTS AND PROCEDURAL HISTORY:

The plaintiff class of medical providers filed suit against Executive Risk

Specialty Insurance Company (Executive Risk) and Homeland Insurance Company

of New York (Homeland) under the direct action statute. Executive Risk and

Homeland had each issued a claims-made errors and omissions policy to CorVel,

Corp. (CorVel) during consecutive time periods. Executive Risk issued policies to

CorVel for annual periods from October 31, 1999, to October 31, 2005. Homeland

issued policies for annual periods from October 31, 2005. CorVel settled with the

plaintiff class for failure to comply with the mandatory notice provisions of billing

discounts in the Louisiana PPO Act, La.R.S. 40:2203.1.

After the trial court certified the plaintiff class and this court upheld that

certification, a motion for partial summary judgment was filed by the plaintiff class

against Executive Risk. The trial court granted the motion for partial summary judgment on the issue of coverage. This court, in Williams v. SIF Consultants of

Louisiana, Inc., 13-972 (La.App. 3 Cir. 2/26/14), 133 So.3d 707, affirmed the trial

court. While an application for writs to our Louisiana Supreme Court was pending,

the plaintiff class settled with Executive Risk, but reserved it rights against

Homeland.

Thereafter, the plaintiff class filed a motion for summary judgment against

Homeland. The trial court granted the motion. Homeland appeals the granting of

the plaintiff class’ motions for summary judgment, raising the three assignments of

error that follow:

ASSIGNMENTS OF ERROR:

1. The trial court’s judgment is contrary to the principle of issue preclusion embodied in Louisiana’s res judicata statute, La. R.S. 13:4231(1).

2. The trial court abused its discretion in failing to apply judicial estoppel, thus allowing plaintiffs to take contrary positions in obtaining two contradictory summary judgments.

3. The trial court committed legal error in granting plaintiffs’ motion for summary judgment against Homeland despite a number of genuinely disputed issues of material fact.

ASSIGNMENT OF ERROR NUMBER ONE:

Homeland asserts, in its first assignment of error, that the trial court’s

judgment was erroneous due to the principle of issue preclusion under La. R.S.

13:4231(1). We find no merit to this assertion.

DE NOVO REVIEW

Louisiana Revised Statutes 13:4231 states:

Except as otherwise provided by law, a valid and final judgment is conclusive between the same parties, except on appeal or other direct review, to the following extent:

(1) If the judgment is in favor of the plaintiff, all causes of action existing at the time of final judgment arising out of the transaction or

2 occurrence that is the subject matter of the litigation are extinguished and merged in the judgment.

(2) If the judgment is in favor of the defendant, all causes of action existing at the time of final judgment arising out of the transaction or occurrence that is the subject matter of the litigation are extinguished and the judgment bars a subsequent action on those causes of action.

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George Raymond Williams, M.D. v. Sif Consultants of Louisiana, Inc., (La. Ct. App. 2016).

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