Jackson v. American Employers' Ins. Co.

11 So. 2d 225, 202 La. 23, 1942 La. LEXIS 1332
CourtSupreme Court of Louisiana
DecidedNovember 30, 1942
DocketNo. 36538.
StatusPublished
Cited by47 cases

This text of 11 So. 2d 225 (Jackson v. American Employers' Ins. 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
Jackson v. American Employers' Ins. Co., 11 So. 2d 225, 202 La. 23, 1942 La. LEXIS 1332 (La. 1942).

Opinion

O’NIELL, Chief Justice.

The plaintiff is complaining of a judgment rendered by the civil district court and affirmed by the court of appeal dismissing her suit on a plea of prescription. The suit is for damages for personal injuries alleged to have been inflicted upon the plaintiff’s child, who is alleged to have been struck by an automobile owned and operated by the State Department of Agriculture and Immigration. The defendant, American Employers’ Insurance Company, is being sued for having issued a public liability insurance policy on the automobile. The plaintiff first sued the Employers’ Liability Assurance Corporation, Ltd., believing that that company had issued the insurance policy; but, when the case came on for trial, the defendant, the Employers’ *26 Liability Assurance Corporation, Ltd., disclosed that the policy was issued by the American Employers’ Insurance Company, and the judge dismissed the plaintiff’s suit. The original suit was brought within the year after the accident happened, and was not barred by prescription, but at the time when that suit was dismissed the year had expired. The plaintiff promptly — on the seventh day after her first suit was dismissed — brought this suit against the American Employers’ Insurance Company.

The only question presented is whether the bringing of the first suit interrupted prescription. The Employers’ Liability Assurance Corporation, Ltd., against which the first suit was brought, and the American Employers’ Insurance Company, against which the present suit was brought, are separate and distinct corporations. But the two corporations, together with the Employers’ Fire Insurance Company, are doing business in this state and throughout the United States as a group of insurance companies under the title “The Employers’ Group, of Boston, Massachusetts”. Their letterhead bears that title, and in the upper right-hand corner the three members of the group are listed, the Employers’ Liability Assurance Corporation, Ltd., being at the top of the list, the Employers’ Fire Insurance Company being next on the list, and the American Employers’ Insurance Company being third on the list. The letterhead discloses that the group of companies, or each one of the three companies, has one and the same office for its claim depart-, ment, which is indicated on the letterhead thus: “Gulf Claim Department, Hibernia Bank Building, New Orleans, Louisiana”. The three companies have one and the same agent, namely, the Secretary of State, for service of process upon any one of them. They have the same local attorneys, and have one and the same manager of their claim department, and one office and one force of employees for that department. The three companies have the same telephone number, Magnolia 4154, listed in the telephone book under the name of each company. As to two of the companies, namely, the Employers’ Liability Assurance Corporation, Ltd., which was sued originally, and the American Employers’ Insurance Company, defendant in this suit, the telephone number is listed as being in their “Underwriting and Claims Department”. These facts, showing the close business relation of the group of companies, are disclosed by the record and were admitted frankly in the argument of the case. The attorney who brought • the first suit died before it came to trial. The attorney who succeeded him as attorney for the plaintiff was unable to explain why that suit was brought against the wrong company, but assumed that the cause of the mistake was that the company against which the suit was brought is the only one on the list whose name indicates that it is a liability insurance company. The attorney who brought the original suit first miade written demand for payment of the claim. The attorney now representing the plaintiff stated in his argument, and it was not disputed, that no copy of the letter could be found among the papers of the deceased attorney. But there is no doubt that the letter was received by the manager for the claim de *28 partment of the three insurance companies, because he acknowledged receipt on the next day after the date of the demand, thus: “Re: Ernest Jack son. Your letter of February 14th [which was the day previous to the date of the manager’s letter] was received. I attempted to communicate with your office today by telephone, but was advised that you were out of the city. At your convenience, if you will telephone the writer at Magnolia 4154 for an appointment, I will be glad to discuss this matter with you at any time.” The letter is signed by the individual who was the manager of the claims department for the three companies. Although he did not sign the letter in a representative capacity for any one of the companies, it must have been written for the American Employers’ Insurance Company, the defendant in the present suit, because the writer of the letter was aware that that company had issued the policy and that neither of the two other companies was concerned in the matter about which the letter was written. The statement in this letter to the attorney for the plaintiff, that the claims manager would be glad to discuss the matter with the attorney at any time, could not have been written for or on behalf of any of the three companies except the one that was interested in a discussion of the matter with the attorney for the claimant. The only purpose for the proposed discussion of the matter was that the company that had issued the policy would have an opportunity either to deny or admit liability, and to attempt to adjust the claim if the company should admit liability. The defendant in this case was not asked to produce — and did not offer to produce — the letter received from the attorney who filed the original suit. But the answer to the letter is a sufficient showing of its purport, and it tended to keep the attorney misled until the period of prescription had expired.

Act 371 of 1940 requires the Casualty and Surety Rating Commission to furnish to any claimant or to the attorney for any claimant, upon his request being made at any reasonable time, the name of the employer’s insurer or insurers in compensation matters, or the name of the insurer with regard to personal injury claims. But there was no such law at the time when the plaintiff in this case filed her suit originally against the wrong insurance company.

The manager of the claim department for the group of insurance companies, of course, could not render the Employers’' Liability Assurance Corporation, Ltd., liable on the policy issued by the American Employers’ Insurance Company; but there is no doubt that the letter written by him in the regular course of his employment as claims manager for both companies unintentionally led the attorney to believe that his client’s claim was made upon the company that had issued the policy. The original suit,' having been brought against the company that had not issued the policy, could not have resulted in a judgment either against that company or against the company that had issued the policy. But the filing of the suit gave sufficient notice to* the company that had issued the policy to* interrupt prescription. The causes for which the attorney for the plaintiff was. misled until the period of prescription had *30 run are attributable to the method of doing business by the claims department of both the defendant in this suit'and the defendant in the original suit.

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Bluebook (online)
11 So. 2d 225, 202 La. 23, 1942 La. LEXIS 1332, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jackson-v-american-employers-ins-co-la-1942.