Stuart Gignilliat and Kasey Gignilliat v. American Economy Insurance Company, Fertility Institute of New Orleans, Ovation Fertility, and Texas Fertility Center

Louisiana Court of Appeal·Decided March 20, 2026·No. 2025-CA-0593·Published·Judge Joy Cossich Lobrano

Opinion

STUART GIGNILLIAT AND * NO. 2025-CA-0593 KASEY GIGNILLIAT

*

COURT OF APPEAL

VERSUS *

* FOURTH CIRCUIT AMERICAN ECONOMY INSURANCE COMPANY, **** FERTILITY INSTITUTE OF STATE OF LOUISIANA NEW ORLEANS, OVATION FERTILITY, AND TEXAS FERTILITY CENTER ***

APPEAL FROM

CIVIL DISTRICT COURT, ORLEANS PARISH NO. 2018-00924, DIVISION “A-16”

Honorable Ellen M Hazeur, Judge ******

Judge Joy Cossich Lobrano ******

(Court composed of Judge Joy Cossich Lobrano, Judge Tiffany Gautier Chase, Judge Monique G. Morial)

Conrad Meyer Sarah J.L. Christakis CHEHARDY, SHERMAN, WILLIAMS, MURRAY, RECILE, STAKELUM & HAYES, L.L.P. One Galleria Boulevard, Suite 1100 Metairie, LA 70001

COUNSEL FOR APPELLEE/FERTILITY INSTITUTE OF NEW ORLEANS

Lorraine P. McInnis Micholle W. Mordock Lance V. Licciardi Jr. BRADLEY MURCHISON KELLY & SHEA LLC 1100 Poydras Street, Suite 2700 New Orleans, LA 70163-2700

COUNSEL FOR APPELLANT/ FPG SERVICES, LLC d/b/a OVATION FERTILITY and FPG LABS, LLC d/b/a OVATION FERTILITY

REVERSED AND REMANDED

MARCH 20, 2026

JCL TGC MGM

Defendants/Appellants FPG Services, LLC d/b/a Ovation Fertility and FPG Labs, LLC d/b/a Ovation Fertility (collectively “Ovation”) appeal the district court’s June 5, 2025 judgment granting the motion for summary judgment filed by defendant Fertility Institute of New Orleans (“FINO”) and dismissing, with prejudice, both the claims of plaintiffs Stuart and Kasey Gignilliat and Ovation’s cross claims against FINO. For the reasons that follow, we reverse the judgment of the district court and remand this matter for further proceedings consistent with this opinion.

FACTUAL AND PROCEDURAL BACKGROUND Plaintiffs Stuart and Kasey Gignilliat (collectively “Plaintiffs”) came to FINO in January 2014 seeking in vitro fertilization (“IVF”) and surrogacy services.

In May 2014, Mrs. Gignilliat underwent egg retrieval, and six embryos were cryopreserved in FINO’s laboratory in June 2014. FINO later determined that it had failed to evaluate the embryos for infectious disease as required by the Food and Drug Administration (“FDA”). This failure made the first set of six embryos

ineligible for transfer to a gestational surrogate.

FINO did not report the compliance failure to the FDA or seek an available exemption. Instead, FINO marked the embryos for “sexually intimate partner use” only and offered Plaintiffs a complimentary second egg retrieval.

The second egg retrieval, performed in September 2014, produced six additional embryos. Preimplantation genetic diagnosis (“PGD”) testing1 showed that three of the six embryos were genetically normal. FINO transferred one of the normal embryos to Plaintiffs’ gestational surrogate that same month, which resulted in a miscarriage. Plaintiffs then decided to change doctors and move their remaining embryos to Ovation in Texas.

On March 5, 2015, Plaintiffs signed consents to transfer all eleven remaining embryos from FINO to Ovation. Shortly after, Ovation thawed and transferred one viable embryo to the surrogate, resulting in the birth of a healthy daughter. At that time, Plaintiffs believed they had one remaining viable embryo, three non-viable embryos, and the original six embryos that could not be used with a surrogate because of FINO’s failure to properly screen them.

In March 2017, Plaintiffs arranged for transfer of what they believed to be their one remaining viable embryo to the surrogate. When an Ovation embryologist thawed the Cryotip device in which the embryo was believed to be housed, no embryo was found. According to Plaintiffs’ petition, two embryologists searched

1 PGD screening is a test performed to identify any chromosomal abnormalities or specific genetic conditions.

and flushed the device but found no evidence that an embryo had ever been loaded into the cane. The transfer did not occur.

On January 30, 2018, Plaintiffs filed this lawsuit. In their petition, Plaintiffs allege that FINO and Ovation each breached the applicable standard of care in handling Plaintiffs’ embryos. The petition asserted four theories of negligence, directed at both defendants and, with the exception of a single reference in subsection (c), consistently framed those allegations in terms of the Gignilliats’ “embryos” in the plural:

a. Failing to properly store and/or cryopreserve the Gignilliats’

embryos;

b. Negligently handling, packaging, or shipping the Gignilliats’

embryos;

c. Negligently losing the Gignilliats’ embryo; and/or d. Failing to institute proper procedures or protocols in the embryology laboratory to prevent the loss or destruction of human embryos.

The petition was supplemented and amended, but the amendment was limited to Paragraph 24, which addresses damages. The operative allegations giving rise to the asserted causes of action were not altered, and in all other respects Plaintiffs’ petition, including the theories of negligence identified, has remained the same and has never been formally amended.

FINO and Ovation both filed answers to Plaintiffs’ petition and cross claims against each other.

After discovery, FINO moved for summary judgment. FINO argued that neither Plaintiffs nor Ovation had produced expert testimony establishing that FINO caused the physical loss of the single embryo associated with the March 2017 thaw at Ovation. Ovation opposed the motion. Plaintiffs filed a written

response expressly adopting Ovation’s opposition “insofar as Ovation’s arguments relate to Plaintiffs’ claims against FINO as stated in Plaintiffs’ Petition for Damages,” and specifically referenced all four theories of negligence asserted in the petition.

The motion was heard on May 16, 2025. At the outset, the district court and the parties addressed the scope of Plaintiffs’ claims. FINO contended that Plaintiffs’ case is only about the physical loss of the single embryo in 2017. The district court questioned whether the case had been so narrowed, noting that FINO’s framing of the case did not comport with the broader allegations in Plaintiffs’ petition. Ovation argued that Plaintiffs’ petition and Ovation’s cross claim encompassed FINO’s conduct as to the full complement of embryos, including the first six embryos cryopreserved in June 2014.

After FINO and Ovation presented arguments, Plaintiffs’ counsel, who was present at the hearing, addressed the scope issue. Counsel acknowledged the matter was “confusing” and stated, in part:

“[T]he suit concerns the one embryo that got lost on the morning of the transfer in March of 2017… [W]e’re only adopting [Ovation’s]

opposition to the extent that they’re pointing to [sic] the finger at FINO with respect to the loss -- the actual loss of that one embryo that was supposed to be there in the transfer that morning.

In its oral reasons for granting FINO’s summary judgment motion, the district court found this oral statement as limiting Plaintiffs’ claims to the 2017 embryo loss. On June 5, 2025, the district court signed a judgment granting FINO’s motion for summary judgment and dismissing with prejudice both Plaintiffs’ claims and Ovation’s cross claims against FINO. Ovation timely filed this appeal.

STANDARD OF REVIEW

Appellate courts review summary judgment de novo, applying the same criteria used by the district court in determining whether summary judgment is appropriate. Under La. C.C.P. art. 966(A)(3), summary judgment shall be granted “if the motion, memorandum, and supporting documents show that there is no genuine issue as to material fact and that the mover is entitled to judgment as a matter of law.”

A “genuine issue” is one as to which reasonable persons could disagree.

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Stuart Gignilliat and Kasey Gignilliat v. American Economy Insurance Company, Fertility Institute of New Orleans, Ovation Fertility, and Texas Fertility Center, (La. Ct. App. 2026).

Stuart Gignilliat and Kasey Gignilliat v. American Economy Insurance Company, Fertility Institute of New Orleans, Ovation Fertility, and Texas Fertility Center (Stuart Gignilliat and Kasey Gignilliat v. American Economy Insurance Company, Fertility Institute of New Orleans, Ovation Fertility, and Texas Fertility Center) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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