Roger v. Estate of Moulton

513 So. 2d 1126
CourtSupreme Court of Louisiana
DecidedOctober 19, 1987
Docket86-C-2266
StatusPublished
Cited by198 cases

This text of 513 So. 2d 1126 (Roger v. Estate of Moulton) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roger v. Estate of Moulton, 513 So. 2d 1126 (La. 1987).

Opinion

513 So.2d 1126 (1987)

Donald ROGER
v.
The ESTATE OF Tad MOULTON, et al.

No. 86-C-2266.

Supreme Court of Louisiana.

May 18, 1987.
Rehearing Granted June 24, 1987.
On Rehearing October 19, 1987.

*1127 Mack Barham, Gail Nick, Barham & Churchill, Robert Keaty, Keaty & Keaty, for applicant.

Craig Marks, Jeansonne & Briney, Raymond Jackson, III, Allen, Gooch, Bourgeois, Gregory Moroux, Voorhies & Labb, for respondents.

COLE, Justice.

The primary issue in this case is whether or not there was a valid rejection of uninsured motorist (UM) coverage. The Court of Appeal found there was a valid rejection.[1] We reverse.

The automobile liability policy was issued by Liberty Mutual Insurance Company (Liberty Mutual) to United Parcel Service (UPS). The appellate court found relevant a letter written in 1981 which the trial court had ruled was inadmissible. It also determined the letter constituted a valid rejection of UM coverage in Louisiana, when considered in pari materia with the policy and a previous 1974 letter which was statutorily ineffective as a rejection. Our threshhold concern is the sufficiency of the 1981 letter to effect a rejection of the UM coverage.

FACTS

This case arises out of a vehicular collision which occurred along Highway 333 in Vermilion Parish during a rain storm. Liability is not now at issue and we recite only those facts necessary for an understanding of the procedural posture.

On the morning of July 3, 1981, plaintiff Donald Roger was traveling south on Louisiana Highway 333 in a truck owned by his *1128 employer, UPS. At this same time, Tad Moulton and three passengers were in an automobile proceeding north on Highway 333. The four were returning home after a two week tour of duty on an offshore oil rig. As these two vehicles entered a curve in the highway, Moulton swerved his vehicle across the double yellow line of the highway, striking the front left side of the UPS truck. Tad Moulton died at the scene from injuries sustained in the collision. Donald Roger was seriously injured.

A third vehicle, a pickup truck owned by Pierce Enterprises, Inc. (Pierce) and driven by its employee, Owen Schexnyder (Schexnyder), was also allegedly involved in the accident. Prior to the accident, Schexnyder, because of transmission failure, pulled onto the eastern shoulder of Highway 333 to attempt to effect repairs. Allegations were made that Moulton was forced to cross the highway's centerline by the position of the pickup truck on the shoulder.

PROCEDURAL HISTORY

Three separate law suits were filed as a result of this accident. Initially, Roger filed suit against the Estate of Tad Moulton; Frank R. Moulton, Jr., administrator; and Maryland Casualty Company (Maryland), insurer of the vehicle owned by Frank Moulton. Roger later added as defendants Global Marine, Inc. (Global), who was Tad Moulton's employer; Pierce, and its insurer, Maryland.

Liberty Mutual, in its capacity as workers' compensation carrier for UPS, filed a separate suit against the Estate of Tad Moulton, Frank R. Moulton, Jr., and Maryland as Moulton's insurer, seeking reimbursement for workers' compensation benefits and medical expenses paid to Roger. Added later to this suit as defendants were Pierce, its insurer Maryland, and Global.

These two actions were consolidated, with Liberty Mutual being designated by stipulation as intervenor in Roger's suit. Prior to trial, Roger settled his claims against the defendants named in his original suit and dismissed the suit with prejudice, reserving his right to proceed against Liberty Mutual as UM carrier for UPS.

Following this settlement, Roger filed a separate suit against Liberty Mutual in its capacity as UM carrier for UPS. He later added Liberty Mutual in this same capacity as a defendant in his original suit. His separate action against Liberty Mutual for UM benefits was also consolidated, and as consolidated, all three suits proceeded to trial.

After a four day trial of these consolidated suits, the trial court determined (1) the accident was caused solely by the negligence of Tad Moulton; (2) UPS had not rejected UM coverage in Louisiana, and therefore UM coverage was required to be provided in amounts equal to the liability limits of $200,000; (3) Roger had suffered $406,579.06 in damages; and, (4) Liberty Mutual was not entitled to recover from Maryland, Moulton's liability insurer, the workers' compensation benefits it paid to Roger.

The trial court allowed oral arguments on Liberty Mutual's motion for a new trial, but rejected Liberty Mutual's claim for reimbursement of Roger's compensation benefits out of his judgment against Liberty Mutual based upon the UM coverage. The trial court did, however, acknowledge Liberty Mutual's right as compensation carrier to sue itself.

Liberty Mutual both in its capacity as UM carrier and as workers' compensation carrier appealed. On original hearing the Court of Appeal affirmed in part and reversed in part. It affirmed the trial court's determination that the accident was solely the fault of Tad Moulton. It reversed the trial court's finding of UM coverage, holding UPS had validly rejected the coverage in Louisiana.

COURT OF APPEAL OPINION

In reaching its conclusion, the Court of Appeal first concluded:

The Liberty [Mutual] policy, although issued and delivered outside the State of Louisiana, provides coverage for UPS trucks and other vehicles located in Louisiana.... Under these circumstances... insofar as such policy applies to UPS *1129 motor vehicles registered and principally garaged in the State of Louisiana, such policy was "issued for delivery in this state" and therefore, the provisions of La.R.S. 22:1406D(1)(a) apply.

In finding La.R.S. 22:1406(D)(1)(a) did mandate UM coverage, the Court of Appeal distinguished Snider v. Murray, 461 So.2d 1051 (La.1985). After concluding our law required UM coverage be provided, the Court of Appeal then determined UPS had validly rejected UM coverage in Louisiana based on a combined reading of the policy and the two letters.

The first letter dated January 2, 1974 was an express rejection of UM coverage in Louisiana. It is undisputed this letter was never physically attached to the original policy issued in 1974, or any subsequent renewals. Accordingly, it alone could not operate as a valid rejection of UM coverage under Stroud v. Liberty Mutual Insurance Co., 429 So.2d 492 (La.App. 3d Cir.1983), writ denied, 437 So.2d 1147 (La.1983).

The second letter dated March 2, 1981 had been excluded from evidence in the trial court on the grounds of relevancy. The letter was allowed to be offered as a proffer of proof. In choosing to consider the 1981 letter, the Court of Appeal found, "The trial court clearly erred in disallowing this evidence." This letter in its entirety states:

In accordance with our standard procedure and instructions to Liberty Mutual please reject the Uninsured Motorist coverage in the state of Pennsylvania, effective March 1, 1981.
Since this is our standard practice, regarding Uninsured Motorists coverage in the event any other state changes their law or regulations to allow rejection of this coverage, please do so immediately on the earliest possible effective date.

Taking both letters into account, the Court of Appeal concluded:

Were it not for the letter of March 2, 1981, Stroud, supra, would dictate the result reached by the trial court. However,

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513 So. 2d 1126, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roger-v-estate-of-moulton-la-1987.