Paul v. LOUISIANA STATE EMPLOYEES'GROUP

762 So. 2d 136, 2000 WL 579851
CourtLouisiana Court of Appeal
DecidedMay 12, 2000
Docket99 CA 0897
StatusPublished
Cited by39 cases

This text of 762 So. 2d 136 (Paul v. LOUISIANA STATE EMPLOYEES'GROUP) 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
Paul v. LOUISIANA STATE EMPLOYEES'GROUP, 762 So. 2d 136, 2000 WL 579851 (La. Ct. App. 2000).

Opinion

762 So.2d 136 (2000)

Terry Getchell PAUL, et al.
v.
LOUISIANA STATE EMPLOYEES' GROUP BENEFIT PROGRAM, et al.

No. 99 CA 0897.

Court of Appeal of Louisiana, First Circuit.

May 12, 2000.

*138 James M. Johnson, APLC, Minden, for Plaintiff/Appellant Terry Getchell Paul, et al.

Elizabeth P. Blitch, Donna Guinn Klein, Deborah A. Van Meter, Margaret Diamond, McGlinchey Stafford, P.L.L.C., New Orleans, for Intervenor/Appellant Wichita General Hospital.

Carmelite M. Bertaut, Douglas L. Grundmeyer, Brent A. Talbot, Chaffe, McCall, Phillips, Toler & Sarpy, L.L.P., New Orleans, for Defendants/Appellees Laboratory Corporation of America Holdings and Roche Biomedical Laboratories, Inc., now known as Laboratory Corporation of America Holdings.

BEFORE: SHORTESS, C.J., PARRO, and KUHN, JJ.

PARRO, J.

This is an appeal by Terry Getchell Paul, individually and on behalf of her interdicted husband, George Larry Paul, from a summary judgment dismissing all claims against Laboratory Corporation of America Holdings. Wichita General Hospital, intervenor in this suit, also appeals this judgment. We affirm.

FACTUAL AND PROCEDURAL BACKGROUND

The material facts in this case are not disputed. Shortly before June 27, 1996, George Larry Paul was offered a job with the Louisiana Department of Agriculture and Forestry (the Department) on the condition that he pass a drug test. The Department had a drug-free workplace policy and required all potential employees to submit to a pre-employment drug screen. The Department referred Mr. Paul to Work Force Consultants, Inc. (Work Force) for this purpose; Work Force sent Mr. Paul to the Shreveport facility of Laboratory Corporation of America Holdings (LabCorp) to actually collect and test his urine sample. On the morning of Thursday, June 27, a sample was collected and shipped by air courier and ground transport to LabCorp's site in Southhaven, Mississippi. On Friday, June 28, LabCorp reported to its client, Work Force, concerning Mr. Paul's urine specimen: "Specimen leaked in transit. Quantity not sufficient for testing. Please resubmit at no charge. We regret the inconvenience."

On Tuesday, July 2, Mr. Paul returned to LabCorp's Shreveport facility and provided another urine sample. On Wednesday, July 3, this sample was transported to LabCorp's Mississippi site and tested. About noon that same day, Work Force received the test results from LabCorp, *139 which indicated that Mr. Paul's sample was negative for drugs. Mr. Paul was employed by the Department on July 5, 1996.

One of the benefits of his employment was the opportunity to enroll in a group health insurance plan. Mr. Paul chose coverage under the Louisiana State Employees' Group Benefits Program (the Benefits Program) and completed an enrollment form on July 23, 1996. The plan provided that coverage would become effective on the first day of the month coinciding with or next following the completion of one full calendar month's service by the employee. The enrollment form showed his date of hire was July 5, 1996, and therefore the effective date of coverage, the "actual date of change," shown on the form was September 1, 1996. The plan further stated that if, on that date, the employee were confined to a hospital or nursing home as a result of an accident or injury, the effective date of coverage would be deferred until the employee completed one full day of active employment.

While traveling in Texas on Saturday, August 17, 1996, Mr. Paul was severely injured in a motorcycle accident. He was distracted by a herd of camels in a pasture, strayed off the roadway, and lost control when he tried to bring his motorcycle back onto the highway. He was hospitalized at Wichita General Hospital (Wichita) in Wichita Falls, Texas, and treated there until December 31, 1996, when he was transferred to a nursing home in Minden, Louisiana. Mr. Paul remained in a comatose condition and on July 29, 1997, he was interdicted and his wife was appointed his curatrix. He never returned to active employment with the Department and his major medical health insurance coverage under the Benefits Program never became effective. The parties do not dispute that, had Mr. Paul been employed by the Department on July 1, 1996, and had he worked for a full calendar month after being so employed, his health insurance coverage under the Benefits Program would have been effective August 1, 1996.

On August 18, 1997, Mrs. Paul filed this lawsuit, naming as defendants the Benefits Program, the Department, and LabCorp.[1] The claims against LabCorp were based on its negligence in losing or destroying Mr. Paul's urine sample on June 27, 1996, as a direct result of which he was not employed by July 1, 1996, and therefore was not insured for major medical health insurance benefits at the time of the accident. On October 10, 1997, Wichita intervened in the action, seeking almost $225,000 in unpaid medical expenses incurred by Mr. Paul during his hospitalization. Wichita's claim also alleged the defendants' negligence and breach of contract. Mrs. Paul later supplemented and amended her petition to add Work Force as a defendant.

On May 13, 1998, LabCorp filed a motion for summary judgment, seeking the dismissal of all claims against it.[2] Mrs. Paul and Wichita opposed the motion. After a hearing, the district court granted the motion and ordered the dismissal with prejudice of Mrs. Paul's and Wichita's claims against LabCorp. Finding there was no just reason for delay, the court designated the judgment as a final judgment. See LSA-C.C.P. art. 1915(B).

In written reasons for judgment, the court addressed the two legal theories upon which the claims were based. The court determined that Mr. Paul was not a third-party beneficiary of any agreement between the Department, Work Force, and LabCorp; there was no "stipulation pour autrui" in favor of Mr. Paul. The court also concluded that LabCorp owed no duty to *140 Mr. Paul. But even if LabCorp had a duty to safeguard the urine sample and test it accurately, this duty did not encompass the risk that its negligent handling of a urine sample might result in a lack of health insurance coverage for serious accidental injuries incurred by the person who provided that sample for drug testing. The court stated:

The failure of a sufficient quantity of the sample to arrive for testing and the failure of Paul to have medical coverage on the date of his accident lack an ease of association and are so attenuated that it is not within the scope of protection afforded by the duty owed.

In this appeal, Wichita and Mrs. Paul raise three assignments of error. They claim the district court erred: 1) in finding that LabCorp did not owe a duty to protect Mr. Paul's urine sample from mishandling en route for testing; 2) in further holding that even if such a duty did exist, the breach of that duty does not encompass the risk that Mr. Paul's employment-based insurance coverage would be delayed; and 3) in finding Mr. Paul was not a third-party beneficiary to the contract between LabCorp and the Department and/or Work Force, simply because that contract was not in writing.

SUMMARY JUDGMENT

Appellate courts review summary judgments de novo under the same criteria that govern the trial court's consideration of whether a summary judgment is appropriate. J. Ray McDermott, Inc. v. Morrison, 96-2337 (La.App. 1st Cir.11/7/97), 705 So.2d 195, 202, writs denied, 97-3055 & 97-3062 (La.2/13/98), 709 So.2d 753 & 754.

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Bluebook (online)
762 So. 2d 136, 2000 WL 579851, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paul-v-louisiana-state-employeesgroup-lactapp-2000.