Herman v. State Farm Mut. Auto. Ins. Co.

977 So. 2d 41, 2007 La.App. 1 Cir. 0548, 2007 La. App. LEXIS 2050, 2007 WL 3246485
CourtLouisiana Court of Appeal
DecidedNovember 2, 2007
Docket2007 CA 0548
StatusPublished

This text of 977 So. 2d 41 (Herman v. State Farm Mut. Auto. 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
Herman v. State Farm Mut. Auto. Ins. Co., 977 So. 2d 41, 2007 La.App. 1 Cir. 0548, 2007 La. App. LEXIS 2050, 2007 WL 3246485 (La. Ct. App. 2007).

Opinion

977 So.2d 41 (2007)

Mark A. HERMAN
v.
STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY.

No. 2007 CA 0548.

Court of Appeal of Louisiana, First Circuit.

November 2, 2007.

*42 Christopher B. Siegrist, Patrick H. Yancey, Houma, LA, for Plaintiff/Appellant, Mark A. Herman.

G. Bruce Parkerson, Glenn S. Newbauer, New Orleans, LA, for Defendant/Appellee, The Times-Picayune, L.L.C.

Maurice Mathieu, Houma, LA, Pamela Richard, New Orleans, LA, for Defendant/Appellee, State Farm Mutual Automobile Insurance Company.

Herman Bastian, Jr., Thomas Barnett, New Orleans, LA, for Defendants/Appellees, AIG Insurance and John Ross.

Before WHIPPLE, GUIDRY, and HUGHES, JJ.

GUIDRY, J.

This is an appeal by the plaintiff, Mark A. Herman (Herman), from a judgment maintaining the peremptory exception raising the objection of prescription in favor of The Times-Picayune, L.L.C. (Times-Picayune) and its unnamed insurer, and dismissing the plaintiffs claim against them. For the following reasons, we affirm.

FACTUAL AND PROCEDURAL BACKGROUND

The plaintiff, Herman, was injured as a result of an accident that occurred on June 16, 2001,[1] between the motorcycle he was driving and a vehicle with an attached flatbed trailer being driven by J.H. Ross (Ross). It is undisputed that the accident was caused by Ross's negligence in failing to yield and pulling out into the path of Herman's motorcycle. Ross was insured by an automobile liability policy issued by AIG National Insurance; Company (AIG), with policy limits of $100,000.00 per person.

On June 14, 2002, Herman settled his claims against Ross and AIG and executed a release of any and all claims against them as well as "any and all other persons" for any damages arising out of said accident. To preserve his claims against his uninsured motorist carrier, Herman predicated his execution of the release on Ross providing a sworn affidavit attesting that he, Ross, had no other insurance coverage or other source of funds or assets to apply toward any damage owed to Herman as a result of the accident. Ross's affidavit was signed on June 13; Herman executed the release the next day, on June 14, 2002. Herman was unrepresented by *43 counsel during these settlement negotiations; rather, he relied on information provided and assurances made by the insurance adjuster and the tortfeasor.

On June 6, 2003, Herman, represented by counsel, filed a petition for damages against State Farm Mutual Automobile Insurance Company (State Farm), asserting his claims for excess damages arising out of the accident under his uninsured motorist policy with State Farm.[2] During the course of discovery in that suit, Ross was deposed, and it was revealed that he was employed by the Times-Picayune, and he may have been in the course and scope of that employment at the time of the accident.

Based on this information, on April 15, 2005, State Farm filed a supplemental answer to Herman's Petition, asserting that Ross was acting in the course and scope of his employment at the time of the accident; therefore, it would be entitled to full credit for the assessment and payment of any damages from the Times-Picayune and its automobile liability insurer. Herman responded with a First Supplemental and Amending. Petition, filed on May 31, 2005, adding as defendants Ross, AIG, the Times-Picayune, and ABC Insurance Company, for the then unknown insurer for the Times-Picayune. This supplemental petition alleged that Herman had settled with Ross and AIG based on an affidavit from Ross that there was no other insurance coverage for the accident at issue, giving rise to Herman's action against his UM insurer, State Farm. The petition also asserted facts that indicated, contrary to the affidavit, that Ross may have been in the course and scope of his employment at the time of the accident, which if proven, would trigger liability and coverage under the Times-Picayune's automobile insurance policy.

On November 14, 2005, the Times-Picayune filed a peremptory exception raising the objection of prescription on the grounds that Herman did not file suit against the original tortfeasor, Ross, or his employer, the Times-Picayune, within the one-year prescriptive period applicable; and, his suit filed against his UM insurer within the two-year applicable prescriptive period did not interrupt prescription against the Times-Picayune. The exception also raised the objection of res judicata on the grounds that the release executed by Herman releasing Ross, AIG, and "any and all other parties" operated in favor of the Times-Picayune, barring Herman's claims against it. On April 26, 2006, two days before the hearing set on the Times-Picayune's exceptions, Ross and AIG filed their own exceptions of prescription and res judicata adopting and asserting, by way of incorporation, the arguments made by the Times-Picayune in support thereof.

On February 10, 2006, the Times-Picayune additionally filed a motion for summary judgment asserting that the uncontested facts established that Ross was not acting in the course and scope of his employment at the time of the accident, that there were no genuine issues of material fact, and that it was entitled to judgment as a matter of law. The Times-Picayune requested the motion for summary judgment be heard in conjunction with its previously filed exceptions.

On March 10, 2006, State Farm filed a cross motion for summary judgment, asserting that Ross was acting in the course *44 and scope of his employment at the time of the accident, that there were no genuine issues of material fact, and that it was entitled to judgment as a matter of law. The cross motion was set for hearing on the same date as the earlier filed exceptions and motion for summary judgment on behalf of the Times-Picayune.

On March 15, 2006, Herman filed a memorandum in opposition to the Times-Picayune's exceptions of prescription and res judicata. Regarding the exception of prescription, Herman claims entitlement to the contra non valentem suspension of the one-year prescriptive period, in particular the fourth category recognized by our jurisprudence: where the cause of action is not known or reasonably knowable by the plaintiff, even though his ignorance is not induced by the defendant. Herman claimed that he executed a release predicated on assurances by Ross (and AIG's insurance adjuster, Karen Delhardt) that there was no other insurance coverage for his damages. He further asserted that his reliance on Ross's affidavit to that effect was reasonable, and that the possibility of coverage through Ross's employer was a cause of action not known, nor reasonably knowable to him, based on the affidavit by Ross declaring that none existed. According to Herman, "Ross'[s] sworn affidavit should be reason enough for anyone to foreclose further investigation as to whether TP or anyone else was potentially liable: for Herman's damages." Notably, Herman cites no authority for this conclusive assertion.

A hearing on the exceptions filed by the Times-Picayune, Ross, and AIG, as well as on the Times-Picayune's summary judgment motion and State Farm's cross motion for summary judgment, was held on April 28, 2006. On May 11, 2006, the trial court rendered judgment maintaining the exception of prescription filed by the Times-Picayune and dismissing the plaintiff's claims against it. The trial court further found there was no just reason for delay and designated the judgment as final for purposes of appeal pursuant to La. C.C.P. art. 1915(B)(1).

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977 So. 2d 41, 2007 La.App. 1 Cir. 0548, 2007 La. App. LEXIS 2050, 2007 WL 3246485, Counsel Stack Legal Research, https://law.counselstack.com/opinion/herman-v-state-farm-mut-auto-ins-co-lactapp-2007.