Satterthwaite v. Byais

943 So. 2d 390, 2006 WL 2062489
CourtLouisiana Court of Appeal
DecidedJuly 26, 2006
Docket2005 CA 0010
StatusPublished
Cited by14 cases

This text of 943 So. 2d 390 (Satterthwaite v. Byais) 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
Satterthwaite v. Byais, 943 So. 2d 390, 2006 WL 2062489 (La. Ct. App. 2006).

Opinion

943 So.2d 390 (2006)

Richard SATTERTHWAITE and Cora Lee Roy (Mrs. Joseph Roy)
v.
Christel BYAIS and Merit Insurance Company.

No. 2005 CA 0010.

Court of Appeal of Louisiana, First Circuit.

July 26, 2006.

*391 John B. Lambremont, Sr., Baton Rouge, for Plaintiff-Appellant Cora Lee Roy.

Carey J. Guglielmo, Stephen D. Cronin, Guglielmo, Marks, Schutte, Terhoeve & Love, Baton Rouge, for Defendant-Appellee American Fire & Indemnity Co.

Before: PARRO, McDONALD, and HUGHES, JJ.

PARRO, J.

This is the appeal by a plaintiff of an order dismissing her claims against her uninsured/underinsured motorist insurer on the ground of abandonment. For the following reasons, we affirm.

Factual and Procedural Background

Richard Satterthwaite (Satterthwaite) was involved in an automobile accident on September 28, 1992, when the vehicle that he was driving was hit by a vehicle driven by Christel Byais (Byais). Cora Lee Roy *392 (Roy), Satterthwaite's mother, owned the vehicle that he was driving and was a passenger in the vehicle when the accident occurred. On March 2, 1993, Roy and Satterthwaite filed suit against Byais and her liability insurer and against Roy's underinsured/uninsured motorist (UM) insurer, American Fire Indemnity Company (American).[1] The liability insurer filed an answer on March 22, 1993, which was supplemented on May 19, 1993. This supplementation included a third-party demand against Satterthwaite for indemnity and/or contribution. On June 8, 1993, Satterthwaite filed an answer to the liability insurer's third-party demand against him. Aside from a motion to substitute counsel by Roy and then by Satterthwaite, nothing more was filed in this suit until Roy filed a motion on March 29, 2000, to substitute LIGA for the liability insurer, due to the liability insurer's liquidation.

On March 24, 2004, American filed an ex parte motion and order of abandonment, which was granted, resulting in the dismissal of Roy's claims against it. Although Roy's subsequent motion to set aside this order was granted, the dismissal of her claims was reinstated in connection with a motion for reconsideration filed by American. Roy appealed.

Discussion

On appeal, Roy conceded that her filing of a motion to substitute counsel did not constitute a step in the prosecution of her action.[2] With no step having been taken in the suit by Satterthwaite or Roy within five years after June 8, 1993, we apply the version of LSA-C.C.P. art. 561 in effect during the time in question.[3] The applicable provisions of Article 561(A) stated:

An action is abandoned when the parties fail to take any step in its prosecution or defense in the trial court for a period of five years. . . .
This provision shall be operative without formal order, but, on ex parte motion of any party or other interested person, the trial court shall enter a formal order of dismissal as of the date of its abandonment. However, the trial court may direct that a contradictory hearing be held prior to dismissal.

Abandonment under Article 561 is self-executing; it occurs automatically on the passing of five years without a step being taken by either party, and it is effective without a court order. Jones v. Phelps, 95-0607 (La.App. 1st Cir.11/9/95), 665 So.2d 30, 34, writ denied, 95-2907 (La.2/2/96), 666 So.2d 1104. Abandonment functions to relieve courts and parties of lingering claims. When the parties take no steps in the prosecution or defense of their claims during an extended period of time, as designated by the legislature, the logical inference is that the party intends to abandon the claim, and the law gives effect to this inference. Clark v. State *393 Farm Mut. Auto. Ins. Co., 00-3010 (La.5/15/01), 785 So.2d 779, 786-87.

Although she conceded that no steps were taken in the litigation within a five-year time period, Roy urged that American waived its right to plead abandonment by taking actions inconsistent with the intent to treat the case as abandoned. Roy submitted that ongoing communications should be considered as evidence of an intent not to treat the case as abandoned. Such communications in this case included an informal request for medical information, a settlement demand, and reports of progress being made in her efforts to obtain Medicare reimbursement information. Roy also pointed out that American settled the claims of her co-plaintiff and sought to have Satterthwaite's counsel sign a motion and order of dismissal with respect to Satterthwaite's claims against American.

A plaintiff's post-abandonment actions cannot serve to revive an abandoned action. Nor can inaction on the part of a defendant after accrual of the five-year period be construed as a waiver of abandonment by the defendant. However, a defendant's post-abandonment actions can serve to waive his right to plead abandonment. See Clark, 785 So.2d at 789. In Clark, the Louisiana Supreme Court stated:

That a defendant's conduct occurred before the abandonment period elapsed as opposed to after is thus a distinction without a difference.
The timing of a defendant's conduct cannot logically be construed as altering its character insofar as whether it is sufficient to constitute a waiver of the right to plead abandonment. Logic dictates that the same standard for determining if action of the defendant results in waiver and thereby an interruption of abandonment should apply regardless of whether the conduct occurred before or after the abandonment period elapsed.

Clark, 785 So.2d at 789.[4]

This waiver exception to Article 561, however, has been applied only where, after the abandonment period has accrued, a defendant has taken steps that facilitated the judicial resolution of the dispute on the merits and were an expression of the defendant's willingness or consent to achieve judicial resolution of the dispute. Thus, the following post-abandonment actions by a defendant have been found to constitute a waiver: submission of a case for decision,[5] participation in a status conference and signing a case management schedule,[6] and the filing of an answer and reconventional demand.[7]Porter v. Progressive Specialty Ins. Co., 99-2542 (La. App. 1st Cir.11/8/00), 771 So.2d 293, 295. *394 Furthermore, an insurer's unconditional tender to a plaintiff to satisfy the statutory requirement of LSA-R.S. 22:658(A)(1), even though of an informal nature, has been held to constitute a waiver. Clark, 785 So.2d at 789 n. 15 and at 791.[8] Other examples of post-abandonment conduct by defendants that have been held sufficient to waive abandonment include seeking security for costs[9] and provoking or responding to discovery.[10]Clark, 785 So.2d at 789 n. 15.

By comparison, a defendant's participation in post-abandonment settlement negotiations was found to reflect the defendant's intent to achieve a non-judicial resolution of the dispute, which, by definition, did not constitute a waiver of the right to plead abandonment. Porter, 771 So.2d at 295.[11] This ruling is in conformity with the jurisprudence that has held that extrajudicial efforts, such as informal settlement negotiations between the parties, are insufficient to constitute a step for purposes of interrupting or waiving abandonment. Clark, 785 So.2d at 790;

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Bluebook (online)
943 So. 2d 390, 2006 WL 2062489, Counsel Stack Legal Research, https://law.counselstack.com/opinion/satterthwaite-v-byais-lactapp-2006.