Old Republic Life Insurance Co. v. TransWood Inc.

222 So. 3d 995, 2016 La.App. 1 Cir. 0552, 2017 WL 2399344, 2017 La. App. LEXIS 1047
Louisiana Court of Appeal·Decided June 2, 2017·No. NO. 2016 CA 0552·Published·Cited by 6 cases

Opinion

THERIOT, J.

lain this appeal, the plaintiff-appellant, Old Republic Life Insurance Company (“Old Republic”), challenges the trial court’s judgment sustaining a peremptory exception of no right of action and ordering the dismissal, with prejudice, of Old Republic’s claims against the defendants-appellees, TransWood, Inc. and Trans-Wood Logistics, Inc. (“TransWood”), Tut-hill Corporation (“Tuthill”), Axiall, LLC, f/k/a Georgia Gulf Chemicals & Vinyls, LLC (“Axiall”), Muncie Power Products, Inc. (“Muncie”), and DXP Enterprises, Inc. (“DXP”). For the following reasons, we maintain the appeal, affirm the trial court’s revised judgment sustaining the exception of no right of action, and grant the answer to the appeal.

FACTS AND PROCEDURAL BACKGROUND

The factual background of this case is not currently in dispute. In January of 2013, an independent professional truck driver, Vincent G. Johnson,1 was seriously injured in a catastrophic accident that occurred at Axiall’s chemical manufacturing facility located in Plaquemine, Louisiana. Mr. Johnson was injured at Axiall’s facility while unloading powdered lime from his 2005 International 94001 eighteen-wheeler. Mr. Johnson’s eighteen-wheeler was equipped with a power takeoff unit and rotary displacement blower used to offload shipments. Mr. Johnson became entangled in his eighteen-wheeler’s offloading system equipment, which resulted in significant bodily injuries. It is uncontested that Mr. Johnson ultimately died from his injuries after the institution of this lawsuit.

|40n December 30, 2013, Old Republic filed suit against several named defendants, including TransWood, Tuthill, and Axiall.2 Through amended and supplemental pleadings, Muncie and DXP were later named as additional defendants. Old Republic alleged that after the accident, it was forced to make certain insurance payments to its insured, Mr. Johnson, pursuant to the terms of an occupational accident coverage insurance policy bearing policy number ORL01132I. Old Republic claimed the accident and resulting injuries to its insured were caused by the fault of the defendants, which it alleged, inter alia, failed to provide a safe work environment and/or improperly manufactured and/or installed the offloading system equipment onto Mr. Johnson’s eighteen-wheeler.

On July 1, 2015, following various matters not at issue on appeal, TransWood filed a peremptory exception of no right of action. TransWood submitted that Old Republic had no right of action against it, arguing that Old Republic did not enjoy a right of action as the conventional or legal subrogee of its insured. TransWood sought that the exception be sustained and the petition be dismissed. In the alternative, [1000] TransWood requested that the suit be stayed pending resolution of. Mr. Johnson’s federal lawsuit against the defendants. Old Republic opposed the motion.

On July 28, 2015, Axiall filed a motion adopting and joining in TransWood’s peremptory exception of no right of action.

On August 12, 2015, the exception of no right of action came before the trial court for a hearing. TransWood, Tuthill, Muncie, Axiall, and. Old Republic all made appearances at the hearing, Following arguments on the matter, the trial court orally sustained the exception of no right of action and [ ^declined to rule upon the alternative request for a stay. The trial court directed counsel for TransWood to prepare a final judgment.

On August 31, 2015, the trial court signed a written judgment in accordance with its oral ruling on the exception of no right of action that contained the following decretal language:

IT IS ORDERED, ADJUDGED, AND DECREED there be judgment in favor of TransWood, Inc., TransWood Logistics, Inc., and Axiall LLC and against Old Republic Life Insurance Company GRANTING the exception of no right of action filed by TransWood, Inc. and TransWood Logistics, Inc. and dismissing with prejudice all claims asserted by Old Republic Life Insurance Company against all parties....

Old Republic filed an appeal from this judgment. TransWood answered the appeal.3

ASSIGNMENTS OF ERROR

Old Republic raises the following assignments of error:

1. The trial court erred by granting the peremptory exception of no right of action, finding that Old Republic lacked a right of action through conventional subrogation.
2. The. trial court erred by granting the peremptory exception of no right of action, finding that Old Republic ' lacked a right of action through legal subrogation.

LAW AND DISCUSSION

Rule to Show Cause

Initially, before we can consider the merits of this appeal, we must dispose of the rule to show cause order issued by this court, ex propño motu, on May 26,' 2016. The rule to show cause order noted that the trial court’s August 31, 2015 judgment appeared unclear and lacked the specificity required by law; the rule to show cause order further noted that the appeal | ^appeared premature based upon a pending motion for new trial filed by Old Republic. The parties were directed to show cause as to whether or not-the appeal should- be dismissed for these reasons. On November 7, 2016, the rule to show cause order was' referred to the panel to which the merits of the appeal were assigned.

Prematurity of Appeal

It is well-settled under Louisiana law that an appeal taken while a timely filed motion for new trial or request for rehearing is pending is premature and subject to dismissal, because the filing of a [1001] motion for new trial suspends the operation of the final judgment being appealed. See La. C.C.P. arts. 2087(D) and 2123(C); Crescent Real Estate Equities/1100 Poydras v. Louisiana Tax Comm’n, 01-1434 (La.App. 1 Cir. 9/28/01), 809 So.2d 394, 396.

In the case before us, the record reflects that, on September 2, 2015, Old Republic timely filed a motion for new trial from the trial court’s August 31, 2015 judgment sustaining the exception of no right of action. The trial court set the motion for new trial for a hearing, but never held a hearing on the motion. In addition, several of the defendants began to pursue discovery regarding some of the documents that had been attached to the motion for new trial, but these discovery matters were never acted upon, and Old Republic later filed unopposed motions to quash the responsive discovery.4 On October 20, 2015, Old Republic filed a motion and order for devolutive appeal. The trial court signed the order granting Old Republic an appeal on that same day.

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Old Republic Life Insurance Co. v. TransWood Inc., 222 So. 3d 995, 2016 La.App. 1 Cir. 0552, 2017 WL 2399344, 2017 La. App. LEXIS 1047 (La. Ct. App. 2017).

222 So. 3d 995 (Old Republic Life Insurance Co. v. TransWood Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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