Jackson v. Cockerham

931 So. 2d 1138, 2006 WL 1382177
CourtLouisiana Court of Appeal
DecidedMay 10, 2006
Docket2005-CA-0320
StatusPublished
Cited by5 cases

This text of 931 So. 2d 1138 (Jackson v. Cockerham) 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
Jackson v. Cockerham, 931 So. 2d 1138, 2006 WL 1382177 (La. Ct. App. 2006).

Opinion

931 So.2d 1138 (2006)

Martinell JACKSON and Ida Williams
v.
Jerry J. COCKERHAM, Lou Gioe Trucking D/B/A Chalmette Truck Corporation and U.S. Capital Insurance Company.

No. 2005-CA-0320.

Court of Appeal of Louisiana, Fourth Circuit.

May 10, 2006.

*1140 Robert G. Harvey, Sr., 3431 Prytania Street, Tamara Kluger Jacobson, New Orleans, Counsel for Plaintiffs/Appellees.

Terrill W. Boykin, Kriste L. Talton, Bordenave Boykin & Ehret, New Orleans, Counsel for Appellants (Rta and Tmsel).

(Court composed of Judge PATRICIA RIVET MURRAY, Judge JAMES F. MCKAY, III, Judge MICHAEL E. KIRBY).

MICHAEL E. KIRBY, Judge.

Defendants, Regional Transit Authority ("RTA") and Transit Management of Southeast Louisiana ("TMSEL"), appeal the October 18, 2004 trial court judgment in favor of plaintiffs, Martinell Jackson and Ida Williams, and against defendants.

On February 13, 1996, a tractor-trailer truck owned by Lou Gioe Trucking and operated by Jerry Cockerham struck a bus owned by the defendants and operated by plaintiff Ida Williams. Martinell Jackson was a guest passenger on the bus. U.S. Capital was the insurer of Mr. Cockerham and Lou Gioe Trucking, but later became insolvent and the Louisiana Insurance Guaranty Association ("LIGA") became the successor in interest to U.S.Capital.

LIGA filed a motion for summary judgment seeking enforcement of La. R.S. 22:1386, known as the LIGA Credit Statute. LIGA argued that this statute required plaintiffs to recover against all other sources before the statutory LIGA limits would be available. At the time of the accident, the bus was self-insured by RTA/TMSEL for the first $1 million of liability, with Lexington Insurance Company ("Lexington") providing an additional $14 million in coverage. No uninsured/underinsured ("UM") rejection form was signed when the Lexington policy was issued. In its motion for summary judgment, LIGA claimed that the $1,000,000.00 self-insured retention and the $14 million Lexington policy limits provided a total of $15 million in UM benefits that had to be exhausted before the LIGA limits would be available. At this point in the litigation, neither RTA nor TMSEL had yet been named as a defendant.

The trial court granted LIGA's motion for summary judgment, finding that there was $1 million in UM coverage under the self-insured retention of the defendants *1141 and $14 million in UM coverage provided by Lexington. The court ruled that LIGA was entitled to a credit for the full $15 million in UM coverage, and dismissed LIGA from further proceedings after plaintiffs stipulated that their total damages did not exceed that amount. Following this judgment, the plaintiffs moved for a new trial and amended their petition to add RTA and TMSEL as defendants. While the motion for new trial was pending, LIGA filed another motion for summary judgment against defendants, urging the same argument as in its first motion for summary judgment, i.e. that under the applicable statutes, the self-insured retention of the defendants and the policy limits of the Lexington policy had to be exhausted before the LIGA limits would be available. The trial court granted LIGA's second motion for summary judgment, and dismissed LIGA from the proceedings. Defendants appealed the trial court's granting of the LIGA's second motion for summary judgment.

This Court affirmed the trial court's judgment in Jackson v. Cockerham, 2002-2493 (La.App. 4 Cir. 5/21/03), 847 So.2d 698, writ denied, 2003-2207 (La.11/14/03), 858 So.2d 429. In that appeal, RTA and TMSEL argued that the self-insured retention does not qualify as a "policy" for purposes of the application of the LIGA Credit Statute, La. R.S. 22:1386. La. R.S. 22:1386(A) states as follows:

Any person having a claim against an insurer under any provision in an insurance policy, other than a policy of an insolvent insurer which is also a covered claim, shall be required first to exhaust his rights under such policy. Such other policies of insurance shall include but shall not be limited to liability coverage, uninsured or underinsured motorist liability coverage, or both, hospitalization, coverage under self-insurance certificates, coverage under a health maintenance organization or plan, preferred provider organization or plan, or similar plan, and any and all other medical expense coverage. All entities that are prohibited from recovering against the association, as specified in R.S. 22:1379(3)(b), shall also be considered insurers for purposes of this Subsection. As to the association, any amount payable by such other insurance shall act as a credit against the damages of the claimant, and the association shall not be liable for such portion of the damages of the claimant. In the case of a claimant alleging personal injury or death caused by exposure to asbestos fibers or other claim resulting from exposure to, release of, or contamination from any environmental pollutant or contaminant, such claimant must first exhaust any and all other insurance available to the insured for said claim for any policy period for which insurance is available before recovering from the association, even if an insolvent insurer provided the only coverage for one or more policy periods of the alleged exposure.

This Court noted that La. R.S. 22:1379(3)(b), which is referred to in La. R.S. 22:1386(A), specifically mentions entities that have a certificate of self-insurance. Applying La. R.S. 22:1386 as amended in 1999, this Court found that this statute conferred the status of "insurer" upon RTA/TMSEL. Because LIGA is to be an obligor of last resort, this Court held that plaintiffs had to exhaust the self-insured retention of RTA/TMSEL and the Lexington policy limits before the LIGA limits would become available. Furthermore, when considering La. R.S. 22:1406(D), governing the issuance of uninsured motorist coverage, along with public policy considerations favoring UM protection in general and for bus patrons in particular, this Court found that when *1142 read together, La. R.S. 22:1386 and 1406 lead to the result that RTA/TMSEL is an "insurer" and must provide UM coverage unless specifically rejected. Accordingly, this Court held that the plaintiffs were required to exhaust all $15 million in UM coverage afforded collectively by RTA/ TMSEL and Lexington before LIGA had exposure. This Court affirmed the trial court's granting of LIGA's second motion for summary judgment and dismissal of LIGA from this case due to the fact that the plaintiffs stipulated that their damages did not exceed $15 million.

Following this Court's decision affirming the trial court's dismissal of LIGA, plaintiffs' claims against RTA and TMSEL proceeded to trial. Following trial, the trial court rendered judgment in favor of plaintiffs and against defendants. The court awarded plaintiff, Ida Williams, $10,000.00 in general damages, $2,145.00 in medical expenses and $1,781.28 in lost wages, together with judicial interest from the date of demand until paid and all costs of the proceedings. The court awarded plaintiff, Martinell Jackson, $300,000.00 in general damages, $11,741.46 in medical expenses and $19,800.00 in loss of earning capacity, together with judicial interest from the date of demand until paid and all costs of the proceedings. Defendants now appeal.

On appeal, the defendants argue that this Court's previous decision in Jackson v. Cockerham, 2002-2493 (La.App. 4 Cir. 5/21/03), 847 So.2d 698 was incorrect, and that this Court should revisit its earlier ruling.

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Cite This Page — Counsel Stack

Bluebook (online)
931 So. 2d 1138, 2006 WL 1382177, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jackson-v-cockerham-lactapp-2006.