Olivier v. National Union Fire Ins. Co. of Pittsburgh

499 So. 2d 1330, 1986 La. App. LEXIS 8685
CourtLouisiana Court of Appeal
DecidedDecember 10, 1986
Docket86-51
StatusPublished
Cited by22 cases

This text of 499 So. 2d 1330 (Olivier v. National Union Fire Ins. Co. of Pittsburgh) 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
Olivier v. National Union Fire Ins. Co. of Pittsburgh, 499 So. 2d 1330, 1986 La. App. LEXIS 8685 (La. Ct. App. 1986).

Opinion

499 So.2d 1330 (1986)

Gregory OLIVIER, et ux., Plaintiffs-Appellants,
v.
NATIONAL UNION FIRE INSURANCE COMPANY OF PITTSBURGH, PA, Defendant-Appellee.

No. 86-51.

Court of Appeal of Louisiana, Third Circuit.

December 10, 1986.
Rehearing Denied January 14, 1987.

*1331 Russell T. Tritico, Lake Charles, for plaintiffs-appellants.

Patrick A. Juneau, Jr., Lafayette, Plauche, Smith and Nieset, A. Lane Plauche, Ronald J. Bertrand, Lake Charles, for defendant-appellee.

Before GUIDRY, FORET and DOUCET, JJ.

GUIDRY, Judge.

This is an action for damages for alleged legal malpractice. Plaintiffs, Gregory and Beverly Olivier, filed suit against National Union Fire Insurance Company of Pittsburgh, PA (National Union), the separate liability insurer of attorneys Ronald J. Bertrand and Thomas E. Gibbs. The Oliviers assert that they sustained damages due to the alleged negligence and/or breach of contract of attorneys Bertrand and Gibbs in connection with prior adoption proceedings. National Union filed exceptions of prescription. The trial judge maintained the exceptions and plaintiffs appealed to this court.[1]

FACTUAL BACKGROUND

Gregory and Beverly Olivier retained the services of attorney, Thomas E. Gibbs, in early 1982 for the purpose of adopting a child to be born to Elvira Segura. The child was born on May 14, 1982. Prior to the birth of the Segura child, Gibbs prepared a draft of a proposed act of surrender in compliance with La.R.S. 9:422.6, and forwarded same by mail to the Oliviers with instructions that an attorney would have to be retained to represent Segura, the natural mother. This attorney, according to the instructions, was to complete the act of surrender and witness Segura's signature thereon.

Pursuant to these instructions, the Oliviers ultimately contacted Ronald J. Bertrand who agreed to represent Segura. The Oliviers delivered the act of surrender prepared by Gibbs to Bertrand. Thereafter, Bertrand retyped the agreement and filled in the required necessary information. In retyping the act, a critical provision was inadvertently omitted by Bertrand. On May 20, 1982, Segura signed the act of surrender, transferring custody of her child to the Oliviers, in the presence of Bertrand. Bertrand thereafter forwarded the executed act to Gibbs. Neither Bertrand nor Gibbs detected the omission in the document which was retyped by Bertrand and ultimately signed by Segura.

On June 4, 1982, Segura executed a document entitled "Declaration of Revocation of Adoption", wherein she expressed her intention not to give her child up for adoption. On June 8, 1982, the Oliviers' petition for adoption was filed. Segura filed an exception of no cause of action on September 20, 1982, asserting the invalidity of the act of surrender. The trial court sustained this exception on September 30, 1982 and dismissed the Oliviers' petition for adoption. On appeal, this court affirmed the trial court judgment in the matter entitled, In re G.O., 433 So.2d 1115 (La.App. 3rd Cir.1983), wherein we held that the act of *1332 surrender executed by Segura was invalid, in that, it failed to specifically recite the consent of the parent (Segura) to the adoption, as required by La.R.S. 9:422.6(3).[2]

On April 5, 1984, the Oliviers filed the instant suit against National Union, as the insurer of both Gibbs and Bertrand. In their petition, the Oliviers charged Gibbs and Bertrand with negligence in failing to detect the crucially omitted provision from the act of surrender. The Oliviers also asserted that an attorney-client relationship existed as to both attorneys and that both warranted, either expressly or impliedly, that "the technical formalities of the adoption requirements would be met".

National Union filed exceptions of prescription. Following a hearing on the exceptions, the trial court rendered judgments on April 8, 1985 and April 12, 1985, sustaining the exception as it related to actions of Bertrand and overruling the exception as it related to actions of Gibbs.

In his written reasons for judgment, the trial judge stated:

"Plaintiffs' petition states an action both in tort and in contract. As to the action in tort, it is clearly prescribed as to both attorneys. If prescription did not start running on May 20, 1982, the date the Act of Surrender was signed, it certainly began running at some point in time when plaintiffs had knowledge of the defect and of their malpractice claim in the course of the litigation on or before September 30, 1982, the date the trial judge signed a formal judgment sustaining the exception of no cause of action."

As to the Oliviers' action in contract, the court found that there was no attorney-client relationship between Bertrand and the Oliviers, since Bertrand was retained to represent Segura. Thus, the court held that the ten year prescription on actions in contract as provided by La.C.C. art. 3499 was inapplicable as to the Oliviers' claim regarding Bertrand.

However, as to the Oliviers' claim against National Union as insurer of Gibbs, the trial court found that there did exist an attorney-client relationship between the parties. In reliance upon the Third Circuit case of Wingate v. National Union Fire Insurance Company, 435 So.2d 594 (La. App. 3rd Cir.1983), writ denied, 440 So.2d 762 (La.1983), the trial court held that the plaintiffs' action stated a claim both in tort and in contract, and therefore, the longer prescriptive period was applicable.[3]

On August 9, 1985, National Union, as insurer of Gibbs, filed a "Motion to Reconsider Previous Rulings on Peremptory Exception of Prescription ...". Through this motion, National Union re-asserted its position that the applicable prescriptive period in the instant case was the one year tort prescriptive period. In support of its position, National Union directed the trial court's attention to the recently decided case of Rayne State Bank & Trust Co. v. National Union Fire Insurance Co., 469 So.2d 409 (La.App. 3rd Cir.1985),[4] in which this court expressly rejected its previous position in Wingate, supra, and adopted the position taken by the First Circuit Court of Appeal in Cherokee Restaurant, Inc. v. Pierson, supra (see footnote 3).

*1333 Following a hearing on the motion, the trial judge rendered judgment on August 27, 1985, in favor of National Union, as insurer of Gibbs, sustaining the exception of prescription of one year. It is from this latter judgment that plaintiffs appeal.

ASSIGNMENTS OF ERROR

Plaintiffs-appellants set forth the following assignments of error on appeal:

1. The trial court erred in "reconsidering" its prior ruling as to the prescription issue;
2. The trial court erred in failing to consider the primary purpose for Gibbs' employment, i.e., to obtain consent to the adoption from the natural mother;
3. The trial court erred in failing to find that Gibbs' failure to detect the error in the act of surrender amounted to non-performance, thus governed by the ten year prescription of La.C.C. art. 3499; and,
4. The trial court erred in determining that prescription began to run prior to September 16, 1983, the alleged date on which the Supreme Court denied writs.

TORT VS. CONTRACT

The first issue which we consider is whether plaintiffs' suit sounds in contract or in tort or in both.

The trial court, in its judgment of April 12, 1985, relied upon our decision in Wingate,

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Bluebook (online)
499 So. 2d 1330, 1986 La. App. LEXIS 8685, Counsel Stack Legal Research, https://law.counselstack.com/opinion/olivier-v-national-union-fire-ins-co-of-pittsburgh-lactapp-1986.