Labruzzo v. Employers Ins. of Wausau

521 So. 2d 515, 1988 La. App. LEXIS 255, 1988 WL 9234
CourtLouisiana Court of Appeal
DecidedFebruary 10, 1988
DocketCA-8122
StatusPublished
Cited by7 cases

This text of 521 So. 2d 515 (Labruzzo v. Employers Ins. of Wausau) 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
Labruzzo v. Employers Ins. of Wausau, 521 So. 2d 515, 1988 La. App. LEXIS 255, 1988 WL 9234 (La. Ct. App. 1988).

Opinion

521 So.2d 515 (1988)

John Frank LABRUZZO
v.
EMPLOYERS INSURANCE OF WAUSAU, et al.

No. CA-8122.

Court of Appeal of Louisiana, Fourth Circuit.

February 10, 1988.
Rehearing Denied March 16, 1988.
Writ Denied May 6, 1988.

*517 C.T. Williams, Jr., George R. Blue, Jr., Donald A. Hammett, Blue, Williams & Buckley, Metairie, for defendant-appellant, Chicago Ins. Co.

Eldon E. Fallon, J. Robert Ates, Kierr, Gainsburgh, Benjamin, Fallon, David & Ates, New Orleans, for plaintiff-appellee, John Frank Labruzzo.

Before BYRNES, WARD and WILLIAMS, JJ.

WARD, Judge.

In this tort suit both plaintiff and defendant insurer appeal a judgment in favor of the plaintiff for injuries he sustained in an accident which occurred on property owned by the defendant's insured. In its suspensive appeal, Chicago Insurance Company, insurer of Jackson Square Investments Limited (JSIL), raises issues of liability and damages; the plaintiff John F. Labruzzo appeals the damage award.

Labruzzo sued JSIL along with its primary insurance carrier, Employers Insurance of Wausau which provided $500,000.00 of coverage, and Chicago Insurance Company, the excess carrier. North River Insurance Company, worker's compensation insurer for Labruzzo's payroll employer, intervened to recover compensation paid to Labruzzo. Shortly before trial, Employers of Wausau, the primary carrier, settled with Labruzzo and with North River, the intervening compensation carrier. The settlement paid Labruzzo $450,000.00, of which $50,000.00 was to be paid to North River in exchange for the dismissal of its intervention. Labruzzo released Employers of Wausau. He reserved his rights against JSIL only to the extent of its excess coverage under the Chicago policy; however, he agreed to allow Chicago a credit of $500,000.00, plus interest, against any amount for which Chicago might be found liable.

The case was assigned to a Commissioner of the Civil District Court who recommended judgment against Chicago, the sole remaining defendant. The Trial Court rendered judgment for Labruzzo and against Chicago for a total of $1,071,341.21, plus costs and interest, subject to the stipulated credit of $500,000.00. Chicago's motion for a new trial was denied, and these appeals followed.

LIABILITY

Chicago Insurance asserts three theories in support of the argument that Labruzzo's exclusive remedy against JSIL is worker's compensation and argues in the alternative that even if Labruzzo has a tort claim, his recovery should be barred or reduced by victim fault. These issues of liability require a consideration of the following pertinent facts from the record.

JSIL was formed in January of 1982 for the purpose of purchasing and holding title to a large parcel of real estate on the Mississippi River's edge of the French Quarter. The parcel, purchased from American Can Company, had formerly been the site of the Jax Beer brewery and consisted of several dilapidated buildings. JSIL was a Louisiana limited partnership. Its general partner was Jackson Square Investments Corporation which was owned in equal shares by Darrell Berger, David Burrus and Wayne Ducote. Berger and Burrus were members of the corporation's board of directors, and they and seven other individuals were the limited partners of JSIL.

Berger and Burrus had been partners in the real estate business for a number of years. They engaged in a variety of projects and ventures, most frequently buying a piece of property and improving it in some way for quick resale. For tax and liability purposes Berger and Burrus formed many limited partnerships, similar to JSIL, with corporate general partners. Usually, a separate partnership was formed for each large project. Few of the limited partnerships had a payroll; personnel were provided by outside contractors or from a core group of employees, including Labruzzo, who were payroll employees of Berger & Burrus Investments (BBI), an ordinary partnership owned by Darrell Berger and David Burrus.

*518 John Labruzzo had worked for Darrell Berger and David Burrus since 1977. Up until August of 1982, Labruzzo's primary responsibility had been the management of Delta Towers, a downtown New Orleans apartment building containing more than 1000 units which was owned by one of the limited partnerships. Labruzzo's job at Delta Towers was the day-to-day operation of the building including physical maintenance, much of it performed by Labruzzo himself.

In August of 1982, Berger and Burrus withdrew from the management of Delta Towers, and moved their offices to Iberville Street, a few blocks from the Jax property. Labruzzo's job duties during this period were varied. He did not have a specific major area of responsibility, but worked on several projects including planning the move of all Berger and Burrus offices onto the Jax property and, perhaps, some coordination of cleanup and demolition on the premises. Additionally, Labruzzo took on an outside job as general contractor for the new owners of the Delta Towers who were converting the building to a Ramada hotel.

The extent of Labruzzo's participation in the Jax Brewery project has been a major issue in this lawsuit. Berger and Burrus and several of their key employees who worked with Labruzzo and knew him well claim that Labruzzo was not to be included in the Jax development, due to a consensus of opinion that his abilities were not appropriate for the project. Labruzzo corroborated the fact that he had been "left out" of the Jax project, although he did not know why until he heard the trial testimony of his employers and co-workers.

Because JSIL had no payroll employees, several BBI employees initially participated in the planning of the Jax development and in demolition and cleanup on the property. In 1983, after Labruzzo's accident, Jackson Square Development Corporation was formed, and it hired employees for the project. However, as long as BBI employees were used, JSIL reimbursed BBI for their time and expenses incurred on the Jax project. Although Labruzzo may have been tangentially involved in the early stages of the Jax project, he was not among the BBI employees whose salary was reimbursed by JSIL.

The facts immediately surrounding Labruzzo's accident are for the most part undisputed. Labruzzo had spent the morning of January 11, 1983 in Baton Rouge at a hearing on a controversy involving some contractors. He returned to his office shortly before noon. Soon afterwards, David Burrus asked Labruzzo to go with him to the Jax property. The purpose of Labruzzo's accompanying Burrus is disputed. Chicago contends that Labruzzo was to show the property to Burrus. Labruzzo testified that Burrus asked him, "Come on. Take a walk with me. Let me go see what I bought." David Burrus testified,

I had never been in the buildings that constituted the brew house. Our office was a couple of blocks from there at 111 Iberville, and one day around noon I literally wanted to go over there and see what we were doing because there were decisions being made that I had to make essentially, and I literally stuck my head in Johnny's office door and asked, "What are you doing" He said, "Nothing." I said, "Let's take a walk over to the brewery." And we got in his car and drove there. He said, "Let's go to lunch later", I think. And we parked on Decatur Street and walked in the brewery.

The work on the brewery was in the very early stages, and the premises were still in a dilapidated condition. Burrus and Labruzzo walked through the brewery buildings for fifteen to twenty minutes, discussing the contractors' hearing.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Marciante v. Marciante
113 So. 3d 387 (Louisiana Court of Appeal, 2013)
Tolbird v. Wyble
892 So. 2d 103 (Louisiana Court of Appeal, 2004)
Degruise v. Houma Courier Newspaper Corp.
815 So. 2d 1074 (Louisiana Court of Appeal, 2002)
Robbins v. State Ex Rel. Dept. of Labor
728 So. 2d 991 (Louisiana Court of Appeal, 1999)
Zatzkis v. Zatzkis
632 So. 2d 307 (Louisiana Court of Appeal, 1993)
Canady v. Pynes Chrysler, Inc.
617 So. 2d 566 (Louisiana Court of Appeal, 1993)
Labruzzo v. Employers Insurance of Wausau
523 So. 2d 1342 (Supreme Court of Louisiana, 1988)

Cite This Page — Counsel Stack

Bluebook (online)
521 So. 2d 515, 1988 La. App. LEXIS 255, 1988 WL 9234, Counsel Stack Legal Research, https://law.counselstack.com/opinion/labruzzo-v-employers-ins-of-wausau-lactapp-1988.