Motors Insurance Corporation v. Howell

266 So. 2d 240, 1972 La. App. LEXIS 5982
CourtLouisiana Court of Appeal
DecidedJune 27, 1972
Docket11883
StatusPublished
Cited by8 cases

This text of 266 So. 2d 240 (Motors Insurance Corporation v. Howell) 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
Motors Insurance Corporation v. Howell, 266 So. 2d 240, 1972 La. App. LEXIS 5982 (La. Ct. App. 1972).

Opinion

266 So.2d 240 (1972)

MOTORS INSURANCE CORPORATION
v.
Jackson P. HOWELL.

No. 11883.

Court of Appeal of Louisiana, Second Circuit.

June 27, 1972.

*242 Theus, Grisham, Davis & Leigh, by R. L. Davis, Jr. and J. Bachman Lee, Monroe, for Alcus J. Gibson and Employers Fire Insurance Company, appellants.

Hamilton & Carroll, by O. N. Hamilton, Jr., Oak Grove, for Jackson P. Howell and Ebbie C. Howell, appellees.

Before BOLIN, HEARD and HALL, JJ.

HALL, Judge.

This tort suit arises out of a collision between a left-turning automobile and an overtaking and passing pickup truck. The district court held that the accident was caused by the negligence of Alcus J. Gibson, driver of the overtaking pickup truck, and that Jackson P. Howell, driver of the left-turning automobile, was free from negligence. A judgment for damages was rendered in favor of Howell and his wife, who was a passenger in the automobile, against Gibson and his liability insurer, Employers Fire Insurance Company. Gibson and his insurer appealed. We affirm the judgment of the district court.

This suit was originally instituted by Motors Insurance Corporation, collision insurer of the Gibson vehicle, against Howell, seeking recovery of the sum of $583.41 for damages to the pickup truck, being the full amount of damages to the truck including the insured's $100 deductible. The petition alleged that under the subrogation agreement executed by Gibson, the plaintiff was authorized to proceed in its own name alone for the full amount of the damages.

The original defendant, Howell, answered denying negligence and liability and by way of reconventional demand, joined in by his wife as intervenor, sought recovery against Gibson and his liability insurer for personal injuries, medical expenses and property damage allegedly incurred by them arising out of the accident.

Gibson and Employers filed a peremptory exception of no cause or right of action to the Howells' reconventional demand on the basis that a reconventional demand may only be asserted against the plaintiff in the principal action and that neither Gibson nor his liability insurer were parties plaintiff in the principal action. Reserving their rights under the peremptory exception, Gibson and Employers answered denying negligence on the part of Gibson and alternatively pleading Howell's contributory negligence.

On June 30, 1966, the peremptory exception filed by Gibson and Employers was overruled and the case went to trial on the merits before Judge J. Vernon Sims. Trial was completed and the case was submitted for decision with briefs to be filed by each party within delays fixed by the court. Briefs were subsequently filed but the case was not decided prior to the retirement of Judge Sims. On October 18, 1971, Judge B. I. Berry rendered written reasons for judgment, awarding Mrs. Howell $750 for her pain and suffering, awarding Mr. Howell $7,500 for his pain, suffering and disability, and awarding Mr. Howell a total of $1,563.58 for medical expenses and damages to his automobile. Judgment was signed accordingly, with Employers' liability being limited to $5,375 under its policy limits and Gibson being cast for $3,688.58 over and above the policy limits. The original demand of Motors *243 Insurance Corporation was rejected. Motors Insurance Corporation was not represented at and did not participate in the trial and its original demand is not before this court on appeal.

After judgment was signed, Gibson and Employers filed a motion for rehearing and/or new trial and also filed a motion to dismiss the suit for failure to prosecute for more than five years pursuant to the provisions of LSA-Code of Civil Procedure Article 561. Both motions were overruled by the district court and this appeal ensued.

The issues presented on appeal are:

(1) Whether the peremptory exception directed at the Howells' reconventional demand and/or intervention should have been sustained.
(2) Whether the Howells' actions should have been dismissed for failure to prosecute.
(3) Whether Gibson was negligent.
(4) Whether Howell was contributorily negligent.
(5) Whether the amount of damages awarded to Howell was excessive.

THE PEREMPTORY EXCEPTION OF NO CAUSE OR RIGHT OF ACTION

In support of their peremptory exception of no cause or right of action, Gibson and Employers urge that the Howells could not bring reconventional demands against them because Gibson and Employers were not plaintiffs in the principal action. LSA-Code of Civil Procedure Article 1061 provides:

"The defendant in the principal action may assert in a reconventional demand any action which he may have against the plaintiff in the principal action...". (Emphasis supplied)

On the other hand, appellees argue that Gibson was, in truth and in fact, a real party at interest appearing through a nominal plaintiff and, therefore, the reconventional demand could properly be asserted against Gibson and his liability insurer.

The suit was originally brought by Motors Insurance Corporation for the full amount of damage to the Gibson vehicle. The petition alleges and the evidence shows that Motors Insurance Corporation under its collision insurance policy paid for the damages to the vehicle, less the $100 deductible. Gibson executed a subrogation agreement in favor of Motors Insurance Corporation containing standard subrogation language and authorizing and empowering the insurer "to sue, compromise or settle in the undersigned's name or otherwise". Under this provision, Motors Insurance Corporation was authorized to bring suit for the full amount of damages either in its own name or in the name of Gibson, or both. Gibson was the real party at interest and Motors Insurance Corporation was only a nominal plaintiff to the extent of $100 of the amount sued for. Johnson v. Wilson, 97 So.2d 674 (La.App. 1st Cir. 1957) is closely in point and involved a reconventional demand against the liability insurer of a plaintiff subrogor who brought the original suit in his own name, individually and for the use and benefit of his collision insurer. The court held:

". . . Appellants urge that the insurer, not a party to the suit, could not be made so by reconventional demand, citing Lyons v. Fry, 112 La. 759, 36 So. 674.
However, while this may be so as to a genuine third party, it is well settled that a reconventional demand may be asserted in the same proceedings against a real party in interest appearing through a nominal plaintiff. Smith v. Atlas Steam Cordage Co., 41 La.Ann. 1, 5 So. 413; Dugas v. Lewis-Chambers Const. Co., La.App. Orleans, 187 So. 117; 80 C.J.S. Set-Off and Counterclaim § 49, p. 80 ...".

*244 The reconventional demand here could properly be brought against Gibson as he was a real party in interest and Motors Insurance Corporation was only a nominal plaintiff to the extent of Gibson's interest. The relative position of Gibson and Motors Insurance Corporation, to the extent of Gibson's interest for which he had expressly authorized Motors Insurance Corporation to sue, in its own name, was that of principal and agent. Carl Heck Engineers, Inc. v. Daigle, 219 So.2d 294 (La.App. 1st Cir. 1969). Under LSA-Code of Civil Procedure Article 694 the principal is considered the plaintiff in an action brought by an agent to enforce a right of his principal. This Article specifically provides:

"* * *

". . .

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Cite This Page — Counsel Stack

Bluebook (online)
266 So. 2d 240, 1972 La. App. LEXIS 5982, Counsel Stack Legal Research, https://law.counselstack.com/opinion/motors-insurance-corporation-v-howell-lactapp-1972.