State v. Placke

786 So. 2d 889, 2001 La. App. LEXIS 949, 2001 WL 487248
CourtLouisiana Court of Appeal
DecidedMay 9, 2001
DocketNo. 34,464-CA
StatusPublished
Cited by1 cases

This text of 786 So. 2d 889 (State v. Placke) 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
State v. Placke, 786 So. 2d 889, 2001 La. App. LEXIS 949, 2001 WL 487248 (La. Ct. App. 2001).

Opinion

JjPEATROSS, J.

This appeal arises out of the State of Louisiana’s overpayment of a damage award in an underlying medical malpractice suit. The State filed suit naming as defendants Ms. Conerly and her counsel in the original medical malpractice action, Allan L. Placke, Don H. Johnson and Johnson & Placke (collectively referred to herein as “Defendants”), seeking return of the overpayment. The parties filed cross motions for summary judgment. The trial court granted the State’s motion for summary judgment and denied Defendants’ motion. Defendants now appeal and the State has answered the appeal. For the reasons stated herein, we affirm.

FACTS and PROCEDURAL BACKGROUND

Timothy (now deceased) and Claudia Sue Conerly (“Conerlys”) sued E.A. Conway Memorial Hospital (referred to herein as the “State”), a state-owned medical institution, for damages for injuries sustained by their infant daughter, Christina, during and immediately prior to her birth. After trial of the medical malpractice claim, the State was found solely liable for Christina’s “catastrophic” injuries1; and, in its opinion, the trial court stated that [892]*892actual damages were $3,041,838.75, with legal interest due from date of judicial demand until paid. This amount was then reduced to a single award | aof $500,000, exclusive of custodial care and interest, due to the statutory cap on recoveries in medical malpractice cases under La. R.S. 40:1299.39. On appeal, this court affirmed on the issue of liability, but held that each plaintiffs claim was distinct and subject to separate caps. Timothy Conerly, et al., v. State of Louisiana, et al., 29,236 (La.App.2d Cir.3/3/97), 690 So.2d 980, writ denied, 97-0804 (La.3/13/98), 712 So.2d 864, writ granted, 97-0871 (La.3/13/98), 712 So.2d 859, and rev’d by, Timothy Conerly, et al., v. State of Louisiana, et al., 97-0871 (La.7/8/98), 714 So.2d 709. The supreme court reversed on the cap issue alone, applying a single cap (liability and amount of damages affirmed). Timothy Conerly, et al., v. State of Louisiana, et al., supra.

Prior to the supreme court’s decision, the Conerlys’ counsel wrote a letter advising the State’s counsel that his calculation of the amount due to The Conerlys was $1,174,994.26 (including interest until March 31, 1998), and that, from March 31 forward, legal interest would accumulate at $108.27 per day. The State accepted the figures as correct and responded that payment would be delayed pending the decision of the supreme court. In July, after the supreme court’s decision, and at the State’s request, a second copy of this letter was furnished to the State’s counsel with an updated figure of $1,199.147.47 (including interest through July 31, 1998). On August 20, 1998, the State tendered a » check in the amount of $1,888,973.99 along with a “Satisfaction of Judgment” to Ms. Conerly. According to the State, the correct figure was $1,188,973.99; in the processing of the request for the check, an “8” was inadvertently placed in |sthe hundred thousandth position instead of a “1.” This mistake amounted to an overpayment of $700,000.

On receipt of the incorrect check, Ms. Conerly’s attorney disbursed the proceeds to her and filed the Satisfaction of Judgment into the record.2 Subsequently, the State discovered that it had paid more than the amount judicially enforceable against it by statute. As previously stated, the State brought the present action to recover the amount it had overpaid and the parties filed cross motions for summary judgment. The trial court granted the State’s motion and denied Defendants’ motion, finding that the State was entitled to return of the overpayment because it lacked the “capacity to feel the sort of strong moral duty or duty of conscience that is required to create a natural obligation.” The trial court further found that both attorneys, the law firm and Ms. Con-erly were jointly and severally liable for return of the overpayment. Finally, finding that the attorneys did not act in bad faith in retaining the funds, despite their knowledge of the overpayment, the trial court required that they pay interest from the date of judgment only, rather than from the date of judicial demand. Defendants appeal and the State has answered the appeal requesting additional interest under La. C.C. art. 2303.

DISCUSSION

Defendants argue that the trial court’s judgment finding the State liable for in excess of three million dollars created a natural obligation supporting the payment of damages above the $500,000 statutory cap. 14According to Defendants, the trial court’s conclusion in this case implicitly holds that the existence of a natural obli[893]*893gation depends on the subjective intent of the debtor, which is not the appropriate inquiry in making such determination. In addition, Defendants assert that the Satisfaction of Judgment drafted by the State and executed by the parties signified the finality of all litigation between the parties; and, therefore, the State’s action for recovery of the overpayment should be dismissed. The State argues that it is not capable of forming the subjective intent necessary to support a natural obligation and, in fact, chose to limit its duty to pay injured plaintiffs in medical malpractice actions by enacting the statutory cap on recovery in such cases. In addition, as previously stated, the State has answered the appeal seeking interest from the date of judicial demand pursuant to La. C.C. art. 2303, rather than the date of judgment as ordered by the trial court.

We note that appellate courts review summary judgments de novo under the same criteria that govern the trial courts’ consideration of whether summary judgment is appropriate. Kennedy v. Holder, 33,346 (La.App.2d Cir.5/10/00), 760 So.2d 587; Fuggins v. Burger King, 33,473 (La.App.2d Cir.5/10/00), 760 So.2d 605. We are not, therefore, constrained by the manifest error/clearly wrong standard in reviewing the trial court’s grant of the State’s motion for summary judgment. We will first address the arguments presented in Defendants’ appeal.

Satisfaction of Judgment

Since Defendants argue that the Satisfaction of Judgment should operate to preclude the action by the State for overpayment of the judgment, |Kwe will address this argument first. The judgment rendered in the underlying medical malpractice action on May 7, 1996, including interest, was in the amount of $541,833.75. The Satisfaction of Judgment executed by the parties reads, in pertinent part:

THE JUDGMENT rendered and recorded in favor of Timothy Ray Conerly, Individually and as Administrator for the Estate of his Minor Child, Christina Lea Conerly and Claudia Sue Conerly, rendered and recorded against defendant State of Louisiana through the Department of Health and Human Resources, E.A. Conway Memorial Hospital, Dr. James Waddill and Dr. Charles Anderson, has been fully satisfied and paid. This satisfaction of judgment is authority for the Clerk of Court to cancel and erase from the records of Ouachita Parish that certain Judgment dated May 7, 1996 and filed in favor of Timothy Ray Conerly [et al] ... in the amount of FIVE HUNDRED FORTY ONE THOUSAND EIGHT HUNDRED THIRTY THREE DOLLARS AND 75/00 ($541,833.75); together with interest allowed by law and all court costs....

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Bluebook (online)
786 So. 2d 889, 2001 La. App. LEXIS 949, 2001 WL 487248, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-placke-lactapp-2001.