Pittman v. State Farm Mut. Auto. Ins. Co.

958 So. 2d 689, 2007 WL 1202255
CourtLouisiana Court of Appeal
DecidedApril 24, 2007
Docket06-CA-920
StatusPublished
Cited by4 cases

This text of 958 So. 2d 689 (Pittman v. State Farm Mut. Auto. Ins. Co.) 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
Pittman v. State Farm Mut. Auto. Ins. Co., 958 So. 2d 689, 2007 WL 1202255 (La. Ct. App. 2007).

Opinion

958 So.2d 689 (2007)

Lisa Montgomery PITTMAN
v.
STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY and Ken Moore.

No. 06-CA-920.

Court of Appeal of Louisiana, Fifth Circuit.

April 24, 2007.

*690 George F. Riess, Law Offices of George F. Riess & Associates, L.L.C., New Orleans, LA, for Plaintiff/Appellant, Lisa Montgomery Pittman.

Henry G. Terhoeve, Stephen Dale Cronin, Guglielmo, Marks, Schutte, Terhoeve & Love, Baton Rouge, LA, for Defendant/Appellee, State Farm Mutual Automobile Insurance Company.

Robert H. Cooper, Pelleteri, Wiedorn & Cooper, New Orleans, LA, for Defendant/Appellee, Ken Moore.

Panel composed of Judges THOMAS F. DALEY, SUSAN M. CHEHARDY, and GREG G. GUIDRY.

THOMAS F. DALEY, Judge.

The plaintiff, Lisa Montgomery Pittman, has appealed the trial court judgment in favor of State Farm Mutual Automobile Insurance Company and its employee, Ken Moore. For the reasons that follow, we reverse.

FACTS:

Plaintiff filed suit against State Farm Mutual Automobile Insurance Company (hereinafter State Farm) and its employee, Ken Moore, alleging that she was damaged when State Farm filed a fraudulent malpractice claim against her. Plaintiff is an attorney who provided legal services to State Farm and its insureds. During the course of her representation of State Farm, plaintiff represented State Farm and its insured in the case of Hickey v. Lazaro, et al. The Hickey case proceeded to trial and an excess judgment was rendered against State Farm's insured. State Farm then filed a legal malpractice claim with plaintiff's malpractice insurer, Acceptance Insurance Company (hereinafter Acceptance Insurance). At some point during the pendency of this claim, State Farm agreed through its employee, Ken Moore, to settle the claim for $20,000.00. A check was forwarded to State Farm in this amount. Upon review of the settlement documents and release agreement, Mr. Moore noted that the documents contained language to which State Farm did not agree. Although these documents are not contained in the record, the parties state that this language provided that State Farm would continue to assign cases to plaintiff wherein plaintiff would represent *691 State Farm and its insureds. State Farm notified Acceptance Insurance that it did not agree to the language in the documents; however, State Farm deposited the check that accompanied the documents. State Farm and Acceptance Insurance never reached an agreement as to the language in the settlement documents and release agreement and thus the documents were never signed by State Farm. State Farm did send a check returning the settlement proceeds to Acceptance Insurance, however, State Farm claims Acceptance Insurance refused the check.

Plaintiff then filed suit against State Farm and Moore alleging State Farm violated the Louisiana Unfair Trade Practices Act in their "unlawful settlement practices" and/or illegally converted the settlement proceeds to its own use and benefit without authority. The petition further alleged that plaintiff was told by Mr. Moore that when the malpractice claim was resolved, she would receive new assignments of cases from State Farm and for this reason plaintiff urged Acceptance Insurance to settle the malpractice claim, however, immediately after the settlement of the malpractice claim, State Farm requested the return of all assignments and files in plaintiff's office. The petition alleged that this essentially destroyed plaintiff's law practice because State Farm was her major client.

State Farm and Mr. Moore answered with general denials. Both moved for and were granted summary judgment. This timely appeal followed.

LAW AND DISCUSSION:

Appellate courts review a district court's grant of summary judgment de novo, viewing the record and all reasonable inferences that may be drawn from it in the light most favorable to the non-movant. Summary judgment shall be granted after adequate discovery if the motion shows there is no genuine issue as to material fact and the mover is entitled to judgment as a matter of law. La.Code Civ. Proc. art. 966(C)(1). The burden of proof is on the mover; however, if the mover will not bear the burden of proof at trial, the mover need only point out to the court that there is an absence of factual support for one or more elements essential to the adverse party's claim. La. C.C.P. art. 966(C)(2). Thereafter, the adverse party must produce factual evidence sufficient to establish that he will be able to satisfy his evidentiary burden of proof at trial. Id.

In its Motion for Summary Judgment, State Farm argues there was no settlement with Acceptance Insurance and plaintiff. In support of this position, State Farm relies on C.C. art. 3071, which provides that a compromise agreement must be in writing, and argues that since the settlement documents in this matter were not executed, there is no enforceable settlement. State Farm further argues that there was no "meeting of the minds" as to a settlement, therefore, there was no settlement. State Farm denies its negotiation of the $20,000.00 check equates a settlement because there is no proof that State Farm intended to accept the settlement under the terms and conditions set forth in the unexecuted settlement documents.

Alternatively, State Farm argues that even if there was a binding settlement, it is unenforceable. Relying on Rule 1.16 of the Rules of Professional Conduct giving the absolute right of a client to discharge his attorney, State Farm explains that plaintiff was counsel for State Farm, at the will of State Farm, and plaintiff never had the authority to compel further referral of cases with or without the alleged settlement agreement. Attached to State Farm's motion is an affidavit executed by Mr. Moore, a claim section manager for *692 State Farm. Mr. Moore attests that State Farm asserted a malpractice claim against plaintiff to which State Farm agreed to settle for $20,000.00. State Farm received a check for $20,000.00 and informed counsel for plaintiff that it opposed the language in the settlement documents. When there was a failure to agree to the language in the settlement documents, State Farm forwarded a check to counsel for plaintiff and Acceptance Insurance for $20,000.00 plus interest, however, the check was refused.

In his Motion for Summary Judgment, Mr. Moore argues that at all times pertinent to this matter he was acting as a mandatory for State Farm and was within the limits of his authority, therefore, he can have no personal liability in this matter. He further adopted the arguments made by State Farm in its motion. Attached to this motion is an affidavit by Mr. Moore attesting that as a claim section manager for State Farm, he had authority to negotiate a compromise of the malpractice claim against plaintiff and in doing so, he acted within the scope of this authority.

The appellate record contains three memoranda in opposition to the motions for summary judgment. In the opposition filed March 22, 2005, entitled "Supplemental Memorandum in Opposition to Defendant's Motion for Summary Judgment" plaintiff argues that defendant misunderstands her cause of action. Plaintiff explains that she was induced to make substantial investments in office space and equipment as a result of assurances by Mr. Moore that upon resolution of the malpractice claim, new assignments of cases would be made to her by State Farm. She further explains that the legal malpractice claim filed against her was baseless and an integral part of her fraud claim.

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958 So. 2d 689, 2007 WL 1202255, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pittman-v-state-farm-mut-auto-ins-co-lactapp-2007.