National Surety Corp. v. Standard Accident Insurance

175 So. 2d 263, 247 La. 906, 1965 La. LEXIS 1955
Supreme Court of Louisiana·Decided May 3, 1965·No. No. 47572·Published·Cited by 1 cases

Opinion

HAMLIN, Justice.

Certiorari was granted herein (Art. VII, Sec. 11, La.Const. of 1921, LSA) in order that we might review a judgment of the Court of Appeal, Second Circuit, which affirmed a judgment of the trial court sustaining a plea of prescription of one year, as provided by Article 3536 of the LSA-Civil Code, filed by defendants to the petition of intervention of Lemmie Tyson, La. App., 168 So.2d 858; 247 La. 259, 170 So.2d 512.

On December 10, 1963, 'National Surety Corporation, the workmen’s compensation insurer of T. L. James & Company, Inc. (hereinafter referred to as T. L. James), filed suit against (1) Gifford-Hill & Company, Inc. (hereinafter referred to as Gif-ford-Hill), owner of the Mack tandem truck herein involved and employer of Brown Ferguson, the truck operator, (2) Standard Accident Insurance Company, the insurer of Gifford-Hill, and (3) Brown Ferguson. It alleged that while in the course and scope of his employment with T. L. James on December 13, 1962, Lem-mie Tyson suffered disabling injuries resulting from the negligence of Brown Ferguson, who was assisted at the time of the accident by Lemmie Tyson in the pouring of concrete for Interstate Highway No. 20 being constructed by T. L. James.1 Plaintiff prayed for workmen’s compensation and medical expenses previously paid ($5,153.10), plus interest and costs, and for future workmen’s compensation and medical expenses it might have to pay.2 In addition to praying for service and citation on the three named defendants, plaintiff prayed for service and citation on Lemmie Tyson, alleging that he was an interested party in the proceedings.

On December 31, 1963, Lemmie Tyson filed a petition of intervention; he reiterated and adopted the pertinent allegations of plaintiff’s petition and prayed for an in solido judgment against the three [910]*910defendants in the sum of $141,368.10, together with interest and costs.

Among other pleadings, the defendants filed a peremptory exception of prescription to Tyson’s intervention, averring that the accident occurred on December 13, 1962; that the petition of National Surety Corporation was filed on December 10, 1963 and made demand for nothing more than reimbursement for compensation and medical expenses paid to or on behalf of Lemmie Tyson, or to be paid in the future ; that the petition of intervention was not filed until December 31, 1963, more than one year from the date of the accident and injury complained of by Lem-mie Tyson; and, that they expressly pleaded a prescription of one year, as provided by Article 3536 of the LSA-Civil Code, as a bar to the petition of intervention filed by Lemmie Tyson. They prayed that Tyson’s intervention be dismissed with prejudice and at his costs. As stated supra, this exception was maintained by the trial court whose judgment was affirmed by the Court of Appeal.

In this Court, intervenor-relator Lem-mie Tyson sets forth the following specification of error:

“The Court of Appeal erred, with one of its three Judges dissenting, in holding that the filing of suit against a tort feasor by the compensation insurer of an employer for damages sustained by it as a result of having paid compensation and medical expenses to the employee injured by said tort fea-sor did not interrupt prescription with respect to an intervention filed in said suit by such injured employee.”

The question presented for our determination is whether the, action filed by plaintiff served to interrupt prescription and thereby permit Lemmie Tyson to assert the rights or remedy he seeks to enforce later than one year after the accident.

In answering this question negatively, the Court of Appeal stated:

“We have found no authority in our jurisprudence which applies exactly to the issue presented in the instant case, and, therefore, our reasoning has, perforce, been based upon analogy. It is true that our courts have held that an employer or his insurer may intervene in a suit already instituted by an employee, even though more than one year has elapsed since the occurrence of the accident and resulting injury. But, as we have attempted to point out, we think this principle has been adopted because such claims have been included in the plaintiff’s demand. We find no indication in the authorities examined that would establish the converse of this proposition, namely, that an employee may intervene in an action by an employer or his insurer, even though [912]*912such intervention is filed after the running of the prescriptive period.
“It seems to us that one of the essential requirements for the application of prescriptive provisions, as established in our jurisprudence, is the notification to a defendant not only of the cause of the action but the nature and extent of the demand. It, therefore, appears proper to conclude that a claim which either changes the nature or enlarges the extent of the demand is not protected against the limitation of a prescriptive period.”

In the instant case, defendants argue in brief that the injury of relator gave rise to one cause of action. They urge that the law gave at least two persons, the plaintiff and the relator, a right of action or remedy. The assertion of a right or remedy by one creditor which interrupts prescription as to him does not necessarily interrupt prescription as to the other, even though their rights may arise out of the same cause of action.

Tyson’s intervention was filed under LSA-R.S. 23:1102, which provides that, “If either the employee or his dependent, or the employer, brings suit against a third person as provided in R.S. 23:1101,3 he shall forthwith notify the other in writing of such fact and of the name of the court in which the suit is filed, and such other may intervene as party plaintiff in the suit.”

No mention is made in the above statute or in LSA-R.S. 23:1101 as to when an employer or an injured employee must file suit or intervene. Article 2315 of the LSA-Civil Code assesses liability for acts causing damage to another, and Article 3536 of the Code provides that an action resulting from offenses or quasi offenses prescribes by one year. We find no mention in either the statutes or the Code as to what effect the timely filing of a suit by one party has on the filing of an intervention by the other party more than one year after the occurrence of the alleged tortious act. However, Act 31 of [914]*914I960, LSA-R.S. 9:5801, “Interruption of prescription by filing of suit, service of process”, recites:

“All prescriptions affecting the cause of action therein sued upon are interrupted as to all defendants, including minors or interdicts, by the commencement of a civil action in a court of competent jurisdiction and in the proper venue. When the pleading presenting the judicial demand is filed in an incompetent court, or in an improper venue, prescription is interrupted as to the defendant served by the service of process.” 4

In Hope v. Madison, 192 La. 593, 188 So. 711, this Court stated:

“A cause of action is an act on the part of a defendant which gives rise to a plaintiff’s cause of complaint; 'the existence of those facts which give a party a right to judicial interference in his behalf’; ‘the situation or state of facts which entitles a party to sustain an action’.

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National Surety Corp. v. Standard Accident Insurance, 175 So. 2d 263, 247 La. 906, 1965 La. LEXIS 1955 (La. 1965).

175 So. 2d 263 (National Surety Corp. v. Standard Accident Insurance) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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National Surety Corp. v. Standard Accident Ins. Co.
175 So. 2d 263 (Supreme Court of Louisiana, 1965)