Jones v. ABC Insurance

130 So. 3d 35, 11 La.App. 5 Cir. 632, 2013 WL 6504323, 2013 La. App. LEXIS 2559
CourtLouisiana Court of Appeal
DecidedDecember 12, 2013
DocketNo. 11-CA-632
StatusPublished
Cited by1 cases

This text of 130 So. 3d 35 (Jones v. ABC Insurance) 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
Jones v. ABC Insurance, 130 So. 3d 35, 11 La.App. 5 Cir. 632, 2013 WL 6504323, 2013 La. App. LEXIS 2559 (La. Ct. App. 2013).

Opinion

FREDERICKA HOMBERG WICKER, Judge.

|sThe underlying case from which this appeal arises is a medical malpractice and products liability action filed by Shannon Jones and Jennifer Brunelle, individually and on behalf of their minor daughter, Haley Jones, for damages Haley sustained during heart surgery she underwent as an infant and for her parents’ individual loss of consortium and related claims. The matter was partially settled by a lump sum settlement reached with the manufacturer-defendants, Polystan A/S and Cobe Cardiovascular, Inc., but allocation of the settlement funds was not determined at the time of settlement. The trial court subsequently allocated the settlement funds between Haley’s claims and Mrs. Brunelle’s individual claims.1 Mrs. Brunelle seeks review of the allocation judgment awarding her $65,000.00 for her loss of consortium claim and denying her individual claims for medical expenses, Lejeune damages and lost wages.

| ¿Belatedly, Mrs. Brunelle, individually and on behalf of Haley, filed a legal malpractice action against two law firms that represented plaintiffs during the settlement reached with the manufacturer-defendants in the underlying products liability case. Mrs. Brunelle asserts that the attorneys involved violated the Rules of Professional Conduct because they failed to obtain each client-plaintiffs informed consent to enter into the aggregate settlement and failed to disclose to each client-plaintiff, prior to settlement, the share or portion of the settlement funds each would receive. The law firms-defendants filed motions for summary judgment, arguing that they provided full disclosure to plaintiffs and that all plaintiffs gave informed consent to the aggregate settlement. The trial court granted the law firms-defendants’ motions for summary judgment and Mrs. Brunelle appeals. Haley, through her tutor and undertutor and with independent counsel, also appeals.2

Discussion

In this opinion, we address in turn the granting of summary judgments in the legal malpractice proceedings and the allocation judgment. For the reasons fully discussed herein, we reverse the trial court’s granting of summary judgments in the legal malpractice proceedings. We further find the trial court erred in limiting the evidence presented at the allocation hearing to Mrs. Brunelle’s loss of consortium claim and therefore vacate the allocation judgment and remand this matter to the trial court for further proceedings.

Legal Malpractice Proceedings

Mr. Jones and Mrs. Brunelle initially retained a Mississippi attorney who referred them to Gainsburgh, Benjamin, David, Meunier, & Warshauer, L.L.C. (the Gainsburgh firm) to represent them individually and on behalf of their minor | r,daughter, Haley.3 Attorney Gary Roth [38]*38initially handled the case at the Gains-burgh firm. Plaintiffs later terminated the Gainsburgh firm but retained Mr. Roth to continue handling the litigation after he moved to another firm, Boxer & Gerson, L.L.P. Following an acrimonious divorce between Mr. Jones and Mrs. Brunelle, Mrs. Brunelle terminated Mr. Roth and re-retained the Gainsburgh firm to represent her, individually and on behalf of Haley. Mr. Roth continued to represent Mr. Jones, individually and on behalf of Haley. At the time the parties entered into the settlement at issue, on October 29, 2008, the Gainsburgh firm represented Mrs. Brunelle, individually and on behalf of Haley, and Mr. Roth with Boxer & Gerson, L.L.P. represented Mr. Jones, individually and on behalf of Haley.

Thereafter, on June 5, 2009, Mrs. Bru-nelle again discharged the Gainsburgh firm and retained new counsel. The Gainsburgh firm filed a Petition for Intervention in the 24th Judicial District Court asserting its right to unpaid legal fees and unreimbursed expenses related to plaintiffs’ representation.4 Mrs. Brunelle, individually and on behalf of Haley, filed an answer to the petition as well as a recon-ventional demand and third-party demand against the Gainsburgh firm, Mr. Roth and Boxer & Gerson, L.L.P. (hereinafter the Roth defendants), and their insurers, alleging legal malpractice. Mrs. Brunelle, individually and on behalf of Haley, alleged that defendants violated the Rules of Professional Conduct because they failed to obtain plaintiffs’ informed consent to enter into the $8,250,000.00 aggregate settlement and that, as a result, Mrs. Brunelle and Haley |fihave suffered damages including lost interest on the settlement funds prior to the funds’ deposit into an interest-bearing account and additional legal fees incurred to litigate the subsequent allocation of the settlement funds.

Following preliminary discovery, the Gainsburgh firm and the Roth defendants each filed motions for summary judgment on the legal malpractice claims. On February 7, 2011, the trial court granted in part summary judgment in favor of the Gainsburgh firm.5 In its judgment, the trial court found that no genuine issue of material fact exists as to plaintiffs’ informed consent to enter into the aggregate settlement and that “the fault for losing interest on the settlement funds lies with Mrs. Brunelle.” Thereafter, on March 30, 2011, the trial court granted summary judgment in favor of the Roth defendants. We address the granting of summary judgment as to each law firm-defendant separately and, for the reasons discussed below, reverse the trial court’s judgments in this regard and remand the matter to the trial court for further proceedings.

The Gainsburgh Finn

In its motion for summary judgment, the Gainsburgh firm first argued that the [39]*39firm advised Mrs. Brunelle to execute the settlement documents and to immediately place the settlement funds into an interest-bearing account but that she refused to do so; and second, that Mrs. Brunelle, individually and on behalf of Haley, knew that the settlement at issue would require subsequent allocation of the funds and entered into the settlement after full disclosure and with informed consent.

|7First, the Gainsburgh firm argued that Mrs. Brunelle is solely to blame for the lost interest on the settlement funds because she refused to execute the settlement documents as advised by counsel and put the settlement funds into an interest-bearing account. The record indicates that the parties entered into a consent judgment to enforce the settlement and to finally deposit the settlement funds into the registry of the court on September 29, 2009, nearly a year after the parties agreed to the settlement.6 In support of its motion for summary judgment, the Gainsburgh firm attached Mrs. Brunelle’s deposition, pointing out that Mrs. Brunelle testified that counsel advised her to move forward with the settlement so that the settlement funds could be deposited into an interest-bearing account but that she refused to move forward with the settlement.7 Further, the Gainsburgh firm attached the affidavit of its lead attorney handling the case, Tracey Rannals Bryan, who attested that she advised Mrs. Bru-nelle on numerous occasions to execute the settlement documents so that the funds could be placed into an interest-bearing account.

Second, regarding informed consent, the Gainsburgh firm relied on Mrs.

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Related

Jones v. ABC Ins. Co.
249 So. 3d 310 (Louisiana Court of Appeal, 2018)

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Bluebook (online)
130 So. 3d 35, 11 La.App. 5 Cir. 632, 2013 WL 6504323, 2013 La. App. LEXIS 2559, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-abc-insurance-lactapp-2013.