Safeco Ins. Co. of America v. Chrysler Corp.

834 So. 2d 1026, 2002 WL 1772925, 01 La.App. 3 Cir. 1641, 2001 La.App. 3 Cir. 1641
CourtLouisiana Court of Appeal
DecidedJuly 31, 2002
Docket01-1641
StatusPublished
Cited by8 cases

This text of 834 So. 2d 1026 (Safeco Ins. Co. of America v. Chrysler Corp.) 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
Safeco Ins. Co. of America v. Chrysler Corp., 834 So. 2d 1026, 2002 WL 1772925, 01 La.App. 3 Cir. 1641, 2001 La.App. 3 Cir. 1641 (La. Ct. App. 2002).

Opinion

834 So.2d 1026 (2002)

SAFECO INSURANCE COMPANY OF AMERICA
v.
CHRYSLER CORPORATION, et al.
Michael William Mioton, et al.
v.
Chrysler Corporation, et al.

No. 01-1641.

Court of Appeal of Louisiana, Third Circuit.

July 31, 2002.

*1030 Arthur Howell Andrews, Funderburk & Andrews, Baton Rouge, LA, for Plaintiff/Appellee, Safeco Insurance Company of America.

Bradley John Gadel, Percy, Smith, Foote & Gadel, Alexandria, LA, for Plaintiff/Appellee, Michael William Mioton.

Michael M. Noonan, McGlinchey, Stafford, PLLC, New Orleans, LA, for Defendant/Appellant, DaimlerChrysler Corporation, Southern Chrysler Plymouth, Inc.

Court composed of MARC T. AMY, MICHAEL G. SULLIVAN, and GLENN B. GREMILLION, Judges.

GREMILLION, Judge.

The defendants, DaimlerChrysler Corporation and Southern Chrysler Plymouth, Inc., appeal the judgment in favor of the plaintiffs, Michael and Sue Mioton and Safeco Insurance Company of America. For the following reasons, we affirm in part, reverse in part, and remand.

FACTUAL AND PROCEDURAL BACKGROUND

In January 1998, Michael and Sue Mioton filed suit against DaimlerChrysler and Southern Chrysler claiming that their home was destroyed by a fire originating in their 1996 Plymouth Grand Voyager mini-van, manufactured by DaimlerChrysler and purchased from Southern Chrysler, that was parked in their carport. In their petition, the Miotons stated that they had a fire loss policy with Safeco, but that the policy did not cover all of the losses directly associated with and resulting from the fire. They further alleged that the van contained defects and characteristics that rendered it unreasonably dangerous in construction or composition, which existed at the time it left the defendants' control. In the alternative, they argued that the van was unreasonably dangerous in design because it deviated in a material way from DaimlerChrysler's specifications or performance standards. The Miotons further claimed that Southern Chrysler failed to properly repair the van and that they were entitled to a complete recision of the sale of the van.

In addition, Safeco filed a petition for subrogation urging that the defendants were liable jointly and in solido to it and the Miotons. In that petition, Safeco alleged that the van was unreasonably dangerous, with defects existing in construction and/or composition at the time it left DaimlerChrysler's control, and that the van deviated in a material way from DaimlerChrysler's specifications or performance standards. Safeco further alleged that Southern Chrysler failed to properly repair the van.

The Miotons' suit was eventually consolidated with Safeco's subrogation suit against the same defendants. Southern Chrysler filed a cross-claim against DaimlerChrysler urging that its "Sales and Service Agreement" with DaimlerChrysler provided that it would indemnify and hold the dealer harmless for expenses resulting from a products liability suit. The trial court granted a motion for summary judgment filed by Southern Chrysler, dismissing the plaintiffs' claims based on the Louisiana Products Liability Act and based on negligent repairs.

*1031 After a June 2000 trial, the jury returned a verdict finding that there was a defect in the manufacture of the van when it left the control of DaimlerChrysler, and that the defect was the cause of the January 1997 fire. It awarded the Mioton's the following damages:

Uninsured Home Contents                  $50,000.00
Uninsured Rebuilding Expenses            $ 7,900.00
Loss of Mazda Truck                      $ 2,500.00
Auto Rental Expenses                     $   907.79
Storage Expenses                         $ 2,672.92
Loss of Income to Linda Mioton           $ 1,409.85
Loss of Income to Michael Mioton         $ 3,897.00
Medical Expenses of the Miotons          $     0.00
Hardship and Inconvenience               $     0.00
Mental Anguish and Distress              $     0.00

In August 2000, a hearing was held to set expert witness fees and attorneys' fees, matters that were not put before the jury. The costs associated with expert fees were resolved at the hearing, leaving the trial court to resolve the issue of attorneys' fees in a written opinion. At issue before the trial court was whether the plaintiffs waived the right to raise the issue of redhibition at trial thereby disentitling them to recover attorneys' fees from DaimlerChrysler. In November 2000, the trial court rendered written reasons for judgment in which it found in favor of the Miotons and awarded them $40,000 in attorneys' fees and in favor of Safeco and awarded it attorneys' fees "in the amount provided in its contingency fee contract."[1]

The trial court issued its written judgment on December 8, 2000, ordering DaimlerChrysler to pay general damages in the sum of $69,287.56 to the Miotons and $249,934.07 to Safeco. It was ordered that judgment be rendered in favor of Safeco against DaimlerChrysler and Southern Chrysler in solido for $24,548.90, the purchase price of the van. Further, the trial court awarded attorneys' fees to the Miotons totaling $40,000 and to Safeco totaling $91,494, to be paid by DaimlerChrysler. Finally, the trial court set the expert witness fees.

Shortly thereafter, DaimlerChrysler appealed the ruling awarding the Miotons and Safeco attorneys' fees. The Miotons filed a motion for judgment notwithstanding the verdict (JNOV) urging that the jury erred in awarding only $50,000 for the uninsured loss of home contents claiming that the actual, stipulated, proven, and unrebutted damages totaled $66,688.10; in awarding $7,900 for the uninsured rebuilding expenses when the actual damages were $23,188.57; in failing to award medical expenses when the unrebutted evidence at trial indicated that the total expenses incurred were $11,750; and, in failing to award general damages for hardship, inconvenience, mental anguish, and distress. After a hearing in January 2001, the trial court granted the JNOV and increased the award for the uninsured home contents to $66,688.10, the uninsured rebuilding expenses to $13,300, and the medical expenses to $11,750. This judgment was signed on March 30, 2001.[2]

Thereafter, on April 6, 2001, the trial court filed amended reasons for judgment in order to address the issue of general damages pursuant to the JNOV. In its written reasons, the trial court granted that portion of the JNOV and awarded the Miotons $15,000 for mental anguish and $15,000 for hardship and inconvenience. On that same day, Southern Chrysler filed a motion to vacate and amend the JNOV urging that it was erroneous because it *1032 incorrectly cast it liable in solido with DaimlerChrysler for $274,482.97 to Safeco.

On May 15, 2001, DaimlerChrysler appealed the judgments in favor of the Miotons and Safeco that totaled $509,102.63, plus interest and costs. The order granting the appeal was signed that same day. On May 17, 2001, the trial court, on its own motion, granted a new trial on the March 30, 2001 JNOV ordering that the parties show cause on June 18, 2001, why the March 30, 2001 JNOV should not be vacated and why an amended judgment awarding general damages should not be issued.

On June 14, 2001, Southern Chrysler withdrew its motion to vacate and amend the JNOV and further dismissed its cross-claim against DaimlerChrysler. On June 15, 2001, Southern Chrysler appealed the judgments in favor of Safeco for $24,548.90 and $274,482.97 and the Miotons for $103,125.66, plus interest and costs. The order granting Southern Chrysler's appeal was signed that same day.

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Cite This Page — Counsel Stack

Bluebook (online)
834 So. 2d 1026, 2002 WL 1772925, 01 La.App. 3 Cir. 1641, 2001 La.App. 3 Cir. 1641, Counsel Stack Legal Research, https://law.counselstack.com/opinion/safeco-ins-co-of-america-v-chrysler-corp-lactapp-2002.