Potier v. Commissioner of Ins.

753 So. 2d 305, 1999 WL 1062184
CourtLouisiana Court of Appeal
DecidedNovember 10, 1999
Docket98 CA 1063
StatusPublished
Cited by4 cases

This text of 753 So. 2d 305 (Potier v. Commissioner of Ins.) 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
Potier v. Commissioner of Ins., 753 So. 2d 305, 1999 WL 1062184 (La. Ct. App. 1999).

Opinion

753 So.2d 305 (1999)

Darryl H. POTIER, et al.
v.
COMMISSIONER OF INSURANCE, et al.

No. 98 CA 1063.

Court of Appeal of Louisiana, First Circuit.

November 10, 1999.
Rehearing Denied December 30, 1999.
Writ Denied April 20, 2000.

*306 Anthony M. Fazzio, Lafayette, Edward J. Walters, Jr., Baton Rouge, for Plaintiffs-Appellants Darryl H. Potier, et al. and Appellant Anthony M. Fazzio.

Stephanie B. Laborde, Angela Adolph, Baton Rouge, for Defendants-Appellees Louisiana Patient's Compensation Fund Oversight Board, et al.

E. Barton Conradi, Baton Rouge, for Defendant-Appellee Commissioner of Insurance.

Before: CARTER, C.J., LeBLANC, and PETTIGREW, JJ.

PETTIGREW, J.

Plaintiffs in the instant suit for injunctive relief are claimants in a pending malpractice lawsuit. The instant case presents the res nova issue of whether the Louisiana Patient's Compensation Fund may expend trust fund money to affect issues of liability between claimants and a health care provider in the malpractice action prior to a judgment, settlement, or arbitration award. Based upon its finding that the Patient's Compensation Fund "is not expressly prohibited by law from paying the defense costs of the deceased physician in this matter," the district court declined to grant plaintiffs' request for injunctive relief. Plaintiffs now appeal the district court's determination and the dismissal of their lawsuit.

FACTS

In 1991, Darryl H. Potier ("Mr.Potier"), individually and on behalf of the minors, Cassandra L. Potier, Kevin D. Potier and Steven D. Potier, and Elizabeth D. Potier (collectively, "plaintiffs") filed suit in Vermillion Parish against the Estate of Dr. Bruce A. Grovenburg and his medical malpractice carrier, Physician's National Risk Retention Group ("PNRRG"), and several other defendants (collectively, "the malpractice defendants"). According to the allegations set forth in plaintiffs' petition, the late Dr. Grovenburg, prior to his death in 1990, treated Mr. Potier for obesity and an ulcerated stomach. Plaintiffs further allege that the malpractice defendants had information concerning Mr. Potier's medical condition that they failed to share with him, and prescribed certain medications that were contraindicated for his medical condition. Plaintiffs contend that as a result of the actions of the malpractice defendants, Mr. Potier has suffered renal failure and must undergo kidney dialysis.

After filing suit, plaintiffs inquired of the Louisiana Patient's Compensation Fund ("the Fund") as to whether Dr. Grovenburg was a covered health care provider under the Medical Malpractice Act ("MMA"), La. R.S. 40:1299.41, et seq. The administrators of the Fund confirmed that at the time of the alleged acts of malpractice, Dr. Grovenburg was a covered health care provider and insured by PNRRG. On November 12, 1991, PNRRG was purportedly placed in liquidation by the Louisiana Department of Insurance, and all suits and seizures against PNRRG were apparently stayed.

After being ordered to do so by the liquidation court, the plaintiffs and the Estate of Dr. Grovenburg purportedly agreed to settle their differences. Plaintiffs assert in brief that this settlement was never finalized because the administrators of the Fund sought to avoid a settlement (and a corresponding acknowledgement as to liability) *307 by agreeing to fund the defense costs incurred by the Estate of Dr. Grovenburg in the defense of this matter.

Accordingly, on January 30, 1998, plaintiffs filed the instant suit in East Baton Rouge Parish seeking injunctive relief against the Louisiana Patient's Compensation Fund Oversight Board, Louisiana Patient's Compensation Fund, Michael Walsh, as Executive Director of the Louisiana Patient's Compensation Fund Oversight Board, and James H. Brown, Louisiana Commissioner of Insurance (collectively, "defendants"). Alleging that defendants had violated their fiduciary duties as administrators of the Fund by providing services, attorney fees, costs and expenses to the Estate of Dr. Grovenburg in the malpractice action, plaintiffs obtained issuance of a temporary restraining order ("TRO") prohibiting defendants from continuing to pay the costs of defense in the malpractice action.

Several defendants, namely, the Louisiana Patient's Compensation Fund Oversight Board, Michael Walsh, Executive Director of the Louisiana Patient's Compensation Fund, and Cheryl Jackson, Medical Malpractice Director of the Louisiana Patient's Compensation Fund (collectively, "the PCF") opposed the application for preliminary injunction and filed a reconventional demand against plaintiffs seeking attorney fees and costs in connection with the wrongful issuance of the TRO. On February 9, 1998, the district court held a full hearing on plaintiffs' application for preliminary injunction. Present at this hearing were counsel for plaintiffs and the PCF. At the conclusion of the hearing, the district court dissolved the TRO, denied plaintiffs' application for preliminary injunction, and dismissed with prejudice plaintiffs' "Petition For Injunctive Relief." In a written judgment signed on February 11, 1998, the district court expressly reserved to the PCF the right to seek a hearing at a future date on their reconventional demand.[1] The district court subsequently issued written reasons for its decision on September 3, 1998. Subsequently, on February 13, 1998, plaintiffs appealed from the district court's judgment of February 11, 1998.

Defendant James H. "Jim" Brown, Commissioner of Insurance ("the COI"), did not appear at the February 9, 1998 hearing for injunctive relief. Curiously, it appears that on the day of the hearing, the COI evidently filed a "Peremptory Exception Of No Cause Of Action And Motion To Dismiss With Prejudice." Neither an original nor a copy of said pleading appears in the record. By an interim order of this court, the clerk of court of the district court was later directed to supplement the record with a true copy of the accompanying order that was signed by the district court ex parte on February 10, 1998.[2] According to a certification from the deputy clerk, all parties have acknowledged receipt of a copy of said order.

The district court's ex parte order of February 10, 1998, a copy of which was supplemented herein, reflects that a hearing was purportedly scheduled on the COI's exception and motion for February 8, 1998.[3] The order further reflects that the scheduled hearing was cancelled, the COI was dismissed from this litigation, and counsel for plaintiffs was directed to pay all court costs and costs associated with the COI's preparation for the cancelled hearing. On March 9, 1998, the plaintiffs, together with their attorney, Mr. Fazzio, suspensively appealed the judgment of February 10, 1998.

*308 Nevertheless, on February 20, 1998, the COI attempted, through the filing of an "Amendment To Peremptory Exception Of No Cause Of Action And Motion To Dismiss With Prejudice With Reconventional Demand" to resurrect the previously disposed of exception and motion to dismiss from which plaintiffs had already taken an appeal. In its amended pleading, the COI alleged that his counsel was not present at the February 9, 1998 hearing for injunctive relief because he had been advised by plaintiffs' counsel that the hearing had been postponed to a later date.[4]

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Cite This Page — Counsel Stack

Bluebook (online)
753 So. 2d 305, 1999 WL 1062184, Counsel Stack Legal Research, https://law.counselstack.com/opinion/potier-v-commissioner-of-ins-lactapp-1999.