Ryals v. Home Indemnity Co.

576 F. Supp. 780, 1983 U.S. Dist. LEXIS 15654
CourtDistrict Court, W.D. Louisiana
DecidedJuly 6, 1983
DocketCiv. A. 81-0567
StatusPublished
Cited by2 cases

This text of 576 F. Supp. 780 (Ryals v. Home Indemnity Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ryals v. Home Indemnity Co., 576 F. Supp. 780, 1983 U.S. Dist. LEXIS 15654 (W.D. La. 1983).

Opinion

MEMORANDUM RULING

STAGG, District Judge.

INTRODUCTION:

This diversity action was brought to recover damages for injuries sustained by William E. Ryals Jr., at age 8, while he was playing on and around a pumping unit located on an oil and gas lease operated by defendant Alpha Oil & Gas, Inc. (hereinafter “Alpha”). Plaintiffs- brought this action against Alpha and its insurer, the Home Indemnity Company (hereinafter “Home Indemnity"), as well as two individual nonresident defendants who are corporate officers of Alpha.

Defendants have filed a motion for summary judgment and to dismiss, the focal point of which is that a final judgment has been procured against Home Indemnity in a state court action involving the same accident and injuries at issue here arid that judgment has been fully paid by Home Indemnity. Defendants argue that payment of the judgment by Home Indemnity, as insurer of Alpha, bars this action. The only issue of fact over which there is any dispute involves whether or not plaintiffs made an effective reservation of rights in the state -court “satisfaction of judgment” document. For reasons discussed later, the court finds that this single factual dis-

pute does not affect resolution of this motion under the governing legal principles. Therefore, no “genuine issues of material fact” are present, and resolution of this motion depends solely on this court’s determination of the issues of law.

RELEASE OF SOLIDARY OBLIGORS

The principal argument asserted by the defendants for dismissal of this action is that satisfaction of the' state court judgment released all solidary obligors. This argument must also be considered in the context that plaintiffs do not dispute that prescription would bar any suit against a tortfeasor not solidarily liable with Home Indemnity. '

As noted by defendants, Louisiana Civil Code art. 2091 provides that:

“ There is an obligation in solido on the part of the debtors, when they are all obligated tó the same thing, so that each may be- compelled for the whole, and when the payment which is made by one of them, exonerates the others toward the creditor.

By its plain terms, it would appear that Article 2091 would bar any further action in this court due to the .satisfaction of the state court judgment. Plaintiffs did not initially respond to this argument by the defendants but placed sole reliance on Doyle v. State Farm (Mut.) Ins. Co., 414 So.2d 763 (La.1982), as allowing, under the doctrine of res judicata, the relitigation of damages. Given the decision in Doyle, it could be argued that if res judicata does not bar the relitigation of damages, then a judgment against one solidary obligor does not fix the amount of the debt, and damages can be relitigated. However, res judicata under Civil Code art. 2286 and the release of solidary obligors under Civil Code art. 2091 are not synonymous legal theories. Doyle did not address the issue of solidary obligation. Furthermore, any reliance on Doyle, in terms of its impact on Civil Code art. 2091, is completely misplaced given the subsequent Louisiana Supreme Court decision in Hoefly v. Government Employees Insurance Company, *783 418 So.2d 575 (La.1982). While both Hoefly and Doyle deal with the relationship of the uninsured motorist insurer to suits brought against the tortfeasors, one deals with res judicata and the other deals with solidary liability with neither opinion making reference to the other legal theory.

In Hoefly, the Court held that the uninsured motorist insurer was solidarily liable with the tortfeasor and implicitly overruled prior decisions inconsistent with that holding. 418 So.2d at 579-60. While it was unnecessary for resolution of the issues before the Court, i.e., the interruption of prescription, it is significant that the Court went out of its way to state:

When payment is made by either the tortfeasor or the uninsured motorist carrier the other is exonerated toward the creditor as to the solidary obligation. This is a direct consequence of each debt- or being obliged to the same thing so that each may be compelled for the whole, as if he were the sole debtor. 4 C. Aubry & C. Rau, supra, p. 27. Moreover, the underlying purpose of both delictual responsibility and uninsured motorist coverage is to promote and effectuate complete reparation, no more or no less. Accordingly, as to the debt to which the tortfeasor and uninsured motorist carrier are solidarily obliged, payment of it by one exonerates the other toward the creditor.

418 So.2d at 579. A comparison of Doyle and Hoefly demonstrates that the concept of res judicata and the release of solidary obligors under 2091 are separate and distinct issues and that it is Hoefly that controls the issue at hand, not Doyle. Furthermore, the case principally relied upon by defendants in this area, Granger v. General Motors Corporation, 171 So.2d 720 (La.App.1965), does clearly indicate that the satisfaction of a judgment against one solidary obligor releases the others and was favorably cited in Hoefly at 418 So.2d 577 and 579.

As already noted, plaintiffs did not initially respond to the argument of defendants that the state court judgment released the solidary obligors. H'owever, in their reply memorandum filed on April 8, 1983, plaintiffs indicated that under Civil Code arts. 2101 and 2102 the reservation of rights attempted in the state court satisfaction of judgment document preserves their action here. The court agrees with defendants that Civil Code arts. 2101 and 2102 are facially inapplicable to this case. There is no issue of proportionate share or arrearages of interest from one debtor in this case. The sole issue is whether payment of the state court judgment extinguished the entire debt. On the other hand, assuming that an effective reservation of rights was made in the state court satisfaction of judgment document, this raises the issue of whether Civil Code art. 2203 would permit the present action. Article 2203 provides that:

The remission or conventional discharge in favor of one of the codebtors in solido, discharges all the others, unless the creditor has expressly reserved his right against the latter.
In the latter case, he cannot claim the debt without making a deduction of the part of him to whom he has made the remission.

Under Article 2203, the general issue is whether or not the reservation of rights in a satisfaction of judgment, prevents the discharge of other solidary obligors. However, for a reservation of rights to have any effect, the satisfaction of a state court judgment must be tantamount to a “remission or conventional discharge” contemplated by Article 2203.

The only ease this court was able to find that even remotely addressed this issue was Barr v. Stephens Chevrolet, Inc., 245 So.2d 755 (La.App.1971).

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