Provident Life and Acc. Ins. v. Turner

582 So. 2d 250, 1991 WL 96426
CourtLouisiana Court of Appeal
DecidedApril 10, 1991
DocketCA 90 0122
StatusPublished
Cited by25 cases

This text of 582 So. 2d 250 (Provident Life and Acc. Ins. v. Turner) 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
Provident Life and Acc. Ins. v. Turner, 582 So. 2d 250, 1991 WL 96426 (La. Ct. App. 1991).

Opinion

582 So.2d 250 (1991)

PROVIDENT LIFE AND ACCIDENT INSURANCE COMPANY and Asbestos Workers Local No. 53
v.
William TURNER, and his Wife, Aileen Turner.

No. CA 90 0122.

Court of Appeal of Louisiana, First Circuit.

April 10, 1991.

*251 James Kirk Piccione, Lafayette, for petitioners-appellant.

William E. Scott, III, Baton Rouge, for movers.

John L. Oliver, Francis A. Oliver, III, Sunset, for defendants.

Before LOTTINGER, SHORTESS, and CARTER, JJ.

LOTTINGER, Judge.

This is an appeal by Provident Life and Accident Insurance Company (Provident), and Asbestos Workers Local No. 53 (Asbestos), from a judgment of the trial court sustaining a peremptory exception raising the objection of prescription filed on behalf of defendants, McNeil Real Estate Fund (McNeil) and National Union Fire Insurance Company (National Union).

FACTS AND PROCEDURAL HISTORY

This matter originally arose out of an accident in which Aileen Turner was injured on March 31, 1984. Mr. and Mrs. Turner filed suit against Wal-Mart, Inc., McNeil, and National Union, on February 25, 1985. During the pendency of the Turner suit, Provident paid Mrs. Turner's medical bills incurred as a result of the accident, pursuant to a health insurance policy under which she was insured. Provident thereby became subrogated to the rights of the Turners against the three defendants in the Turner suit to the extent of the medical bills it paid.

*252 Provident notified the Turners' attorney and National Union during the pendency of the suit that it was paying the Turners' medical bills and requested reimbursement. Provident included paid medical bills in the amount of $5,652.84 along with this initial request for reimbursement, and advised that it would update these bills when notified that settlement was near. However, Provident did not intervene in the Turners' suit to assert its claim, and in March of 1988, the Turners settled with McNeil and National Union for $235,000.00 without prior notification to Provident. Subsequent to the settlement, the Turners paid Provident $5,652.84; and on April 4, 1988, voluntarily dismissed the suit against McNeil and National Union with prejudice.

Provident then notified the Turners that it had paid an additional $31,442.41 in medical bills and requested reimbursement. The Turners refused, and on January 19, 1989, Provident filed the instant suit against the Turners for reimbursement of this amount. On June 2, 1989, Provident amended its suit to name Wal-Mart,[1] McNeil, and National Union as defendants. Provident alleged in this supplemental petition that National Union acted in bad faith by settling with the Turners without notice to Provident, since National Union knew of Provident's claim for reimbursement for the medical bills it had paid. On September 14, 1989, Provident again amended its suit to include an allegation that all defendants were solidarily liable to it for the amount prayed for.

McNeil and National Union then filed a peremptory exception raising the objection of prescription. The trial court granted this exception and dismissed McNeil and National Union with prejudice. The trial court adopted the movers "Memorandum in Support of Exception of Prescription" as its written reasons for judgment.[2] Provident has perfected the instant appeal and asserts a single assignment of error, that the trial court erred in sustaining defendant's peremptory exception raising the objection of prescription.

Provident contends the suit filed by the Turners against McNeil and National Union interrupted prescription as to Provident's claim for reimbursement of the medical bills paid on behalf of Mrs. Turner. Provident alleges it had one year from the dismissal of the Turners' suit to assert its claim for reimbursement.

Provident next alleges that in light of the fact that all of the parties to the settlement in the Turner suit had actual knowledge of Provident's claim for reimbursement, but nevertheless settled without including Provident, they all became solidary obligors with respect to Provident's claim for reimbursement. It follows that since Provident timely (within one year from the dismissal of the Turner suit) sued one of these solidary obligors (the Turners) prescription was interrupted as to the remaining solidary obligors pursuant to La.Civ.Code art. 1799. Therefore, Provident claims the addition of McNeil and National Union to the instant suit was not barred by prescription.

McNeil and National Union dispute all of the above, but contend that even granting the same, Provident's suit against them is barred by prescription based on La.Civ. Code art. 3463, which provides in pertinent part: "Interruption is considered never to have occurred if the plaintiff abandons, voluntarily dismisses, or fails to prosecute the suit at the trial." McNeil and National Union contend that since the plaintiff (the Turners) voluntarily dismissed the suit against them prior to the filing of the instant suit, the interruption of prescription that resulted from the Turners' suit is considered never to have occurred.

WAS PRESCRIPTION INTERRUPTED AS TO PROVIDENT BY THE TURNERS' SUIT?

Provident's first proposition, that the Turners' suit interrupted prescription as to *253 its claim for reimbursement, and that prescription began to run anew from the dismissal of that suit, is supported by Louviere v. Shell Oil Co., 440 So.2d 93 (La.1983). In that case the plaintiffs were injured on an offshore oil platform. Within one year from the accident which caused the injuries, the plaintiff's workers' compensation carrier, who had paid compensation benefits to the plaintiffs, filed suit against various tortfeasors in federal district court for reimbursement of the benefits paid. The plaintiffs then filed suit against these same tortfeasors more than one year from the accident which caused their injuries.

The federal district court dismissed the claims of the plaintiffs as being untimely, holding that although prescription was interrupted by the filing of suit by the compensation carrier, that it immediately started to run again. Since both plaintiffs filed suit more than one year from the filing of the compensation carrier's suit, both suits were barred by prescription, notwithstanding that they were both filed during the pendency of the compensation carrier's suit. The plaintiffs appealed to the United States Court of Appeals for the Fifth Circuit, which via certified question, asked the Louisiana Supreme Court to instruct it as to the effect of the interruption of prescription occasioned by the filing of the compensation carrier's suit.

The Louisiana Supreme Court, in Louviere, responded that prescription was indeed interrupted by the filing of the compensation carrier's suit, because "there is only one principal cause of action, and the compensation insurer is asserting part of the employee's cause of action, because the insurer has paid part of the employee's damages and is entitled to recover to the extent of those payments as partial subrogee." Louviere, 440 So.2d at 95. The court further stated "when several parties share a single cause of action (as through partial subrogation), suit by one interrupts prescription as to all." 440 So.2d at 96. The Louviere

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Bluebook (online)
582 So. 2d 250, 1991 WL 96426, Counsel Stack Legal Research, https://law.counselstack.com/opinion/provident-life-and-acc-ins-v-turner-lactapp-1991.