Natchitoches v. Employers Reinsurance

819 So. 2d 413, 2002 La.App. 3 Cir. 0147, 2002 La. App. LEXIS 1779, 2002 WL 1203809
CourtLouisiana Court of Appeal
DecidedJune 5, 2002
Docket02-0147
StatusPublished
Cited by10 cases

This text of 819 So. 2d 413 (Natchitoches v. Employers Reinsurance) 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
Natchitoches v. Employers Reinsurance, 819 So. 2d 413, 2002 La.App. 3 Cir. 0147, 2002 La. App. LEXIS 1779, 2002 WL 1203809 (La. Ct. App. 2002).

Opinion

819 So.2d 413 (2002)

CITY OF NATCHITOCHES
v.
EMPLOYERS REINSURANCE CORP., et al.

No. 02-0147.

Court of Appeal of Louisiana, Third Circuit.

June 5, 2002.

*415 Ronald E. Corkern, Jr., Natchitoches, LA, for City of Natchitoches.

William Preston Crews, Jr., Watson, Murchison, etc., Natchitoches, LA, for Defendant in Reconvention/Appellee, City of Natchitoches.

Daniel T. Murchison, Natchitoches, LA, for Defendant in Reconvention/Appellee, City of Natchitoches.

Andrew Swithin Vallien, Natchitoches, LA, for City of Natchitoches.

Stanley R. Aaron, Jones, Aaron & Smith, Baton Rouge, LA, for Kenneth Aaron, Aaron Insurance Agency.

William Daniel Dyess, Many, LA, for Plaintiff/In Cross-Claim/Appellant, Charles Powell, Deborah Prudhomme Powell, Brook Powell.

Henry Cole Gahagan Jr., Gahagan & Gahagan, Natchitoches, LA, for Defendant/In Cross-Claim/Appellee, City Bank & Trust Co. of Natchitoches.

Kenneth D. McCoy Jr., McCoy, Roberts & Begnaud, Natchitoches, LA, for Defendant/In Cross-Claim/Appellee, Employers Reinsurance Corp., Traber Agency, Inc.

James Houston Morgan III, Seale, Smith & Phelps, Baton Rouge, LA, for: Employers Reinsurance Corp., Traber Agency, Inc.

Eugene R. Preaus, Preaus, Roddy & Krebs, New Orleans, LA, for Fidelity & Deposit Co. of Maryland.

James Ryan III, Sessions, Fishman, et al, New Orleans, LA, for Gulf Insurance Company.

James L. Pate, Laborde & Neuner, Lafayette, LA, for Robert E. Morrow.

Jeffrey Howerton Thomas, Natchitoches, LA, for Robert E. Morrow.

Robert Edwin Torian, LaBorde & Neuner, Lafayette, LA, for Robert E. Morrow.

Court composed of SYLVIA R. COOKS, JIMMIE C. PETERS, and GLENN B. GREMILLION, Judges.

GREMILLION, Judge.

The plaintiff-in-reconvention and cross claimant, Charles Powell, appeals the judgment of the trial court granting summary judgment in favor of the defendant-in-reconvention, City of Natchitoches, and defendants in cross-claim, City Bank and Trust Company of Natchitoches and Traber Agency, Inc. We affirm.

*416 FACTS

This matter stems from a suit filed by Natchitoches as a result of a scheme by Robert Morrow, an employee of Traber, whereby he over billed Natchitoches $766,011 during the period of 1989 through 1999. An investigative audit submitted by the Legislative Auditor for the State of Louisiana on May 31, 2000, revealed that Morrow over billed Natchitoches in the amount of $466,566 for insurance premiums and $118,750 under an administrative claims handling agreement never approved by it. Further investigation by Natchitoches revealed additional over billings in the amount of $180,695. According to the investigative audit, Morrow cashed the premium checks issued by Natchitoches in Traber's name and then divided the money between Traber, Kenneth Aaron of Aaron Insurance Agency, and himself. The audit further stated that Powell, Natchitoches' Chief Financial Officer, was responsible for approving Traber's billings and that he failed to review the insurance invoices and misrepresented the claims handling agreement. As a result of these acts, Natchitoches filed suit against Morrow, Traber, Aaron, individually and d/b/a Aaron Insurance Agency, Powell, and Employer's Reinsurance Corporation.

In its petition, Natchitoches alleged that Powell, as Finance Director, was responsible "for overseeing the purchase of liability insurance covering the CITY OF NATCHITOCHES and the payment of legitimate premium billings associated with the purchase of said insurance." It further alleged that, "prior to December, 1999, defendants, MORROW, AARON AND POWELL, did, through negligence and/or fraud, dishonesty, artifice and ill practices, induce petitioner to purchase insurance policies and then bill the CITY OF NATCHITOCHES for said policies at inflated prices."

After much procedural maneuvering, including cross-claims by City Bank and Traber against him, Powell, his wife, and their daughter filed peremptory exceptions and an answer to Natchitoches's suit, as well as answers to the cross-claims filed by Traber and Employers Reinsurance, Fidelity and Deposit Company of Maryland, and City Bank. As plaintiffs-in-reconvention, the Powells alleged that Natchitoches defamed, libeled, and falsely accused Powell of wrongdoing, which resulted in him being maliciously fired, sued, and arrested for a crime he did not commit. They further cross-claimed City Bank and Traber, alleging that the actions of City Bank, in allowing Morrow to cash the premium checks, and Traber, through the actions of Morrow, resulted in Powell's depiction as a criminal, damage to his reputation, and his inability to earn a living in the area. As a result of these actions, Powell sought damages for "extreme emotional distress, economic loses, humiliation, embarrassment, [and] attorney fees." Powell's wife and daughter sought damages for loss of consortium, service, and society.

In response to the Powells' claims, City Bank and Traber Agency filed motions for summary judgment on the cross-claim issues of defamation and malicious prosecution. Natchitoches also filed a motion for summary judgment and a peremptory exception of no cause of action on the reconventional demand alleging that Powell's sole remedy against it was workers' compensation benefits. Four days prior to the hearing on the motions and the exception, the Powells filed a first amending and supplemental cross-claim. Following a hearing on the motions and the exception, the trial court granted summary judgment in favor of Traber and City Bank. It further granted summary judgment in favor of Natchitoches, finding that Powell's remedy against it was limited to workers' compensation *417 benefits. In rendering judgment in favor of Natchitoches, the trial court denied the Powells' first amending and supplemental cross-claim. This appeal by Powell followed.

ISSUES

On appeal, Powell argues that the trial court erred in granting the summary judgment in favor of Natchitoches, City Bank, and Traber Agency.

SUMMARY JUDGMENT

Summary judgments are reviewed de novo. Magnon v. Collins, 98-2822 (La.7/7/99), 739 So.2d 191. Thus, the appellate court asks the same questions the trial court asked in determining whether summary judgment was appropriate. Id. This inquiry seeks to determine whether any genuine issues of material fact exist and whether the movant is entitled to judgment as a matter of law. La.Code Civ.P. art. 966(B) and (C). Summary judgment shall be granted if the pleadings, depositions, answers to interrogatories, admissions on file, and any affidavits reveal no genuine issue of material fact and the mover is entitled to judgment as a matter of law. La.Code Civ.P. art. 966(B).

Although the burden of proof remains with the movant, he will not be required to "negate all essential elements of the adverse party's claim" if he will not bear the burden of proof at trial. La.Code Civ.P. art. 966(C)(2). Rather, he is only required to point out an "absence of factual support for one or more elements essential to the adverse party's claim." Id. "Thereafter, if the adverse party fails to produce factual support sufficient to establish that he will be able to satisfy his evidentiary burden of proof at trial, there is no genuine issue of material fact." Id. Summary judgment procedure is favored and designed to secure the just, speedy, and inexpensive determination of every action. La. Code Civ.P. art. 966(A)(2).

MALICIOUS PROSECUTION

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Bluebook (online)
819 So. 2d 413, 2002 La.App. 3 Cir. 0147, 2002 La. App. LEXIS 1779, 2002 WL 1203809, Counsel Stack Legal Research, https://law.counselstack.com/opinion/natchitoches-v-employers-reinsurance-lactapp-2002.