Thibodeaux v. Billiott

900 So. 2d 110, 2005 WL 474263
CourtLouisiana Court of Appeal
DecidedMarch 1, 2005
Docket04-CA-1308
StatusPublished
Cited by4 cases

This text of 900 So. 2d 110 (Thibodeaux v. Billiott) 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
Thibodeaux v. Billiott, 900 So. 2d 110, 2005 WL 474263 (La. Ct. App. 2005).

Opinion

900 So.2d 110 (2005)

Allie THIBODEAUX
v.
Lacy BILLIOTT, Progressive Insurance Company, Jefferson Parish Government d/b/a Jefferson Transit Westbank, and United States Fire Insurance.

No. 04-CA-1308.

Court of Appeal of Louisiana, Fifth Circuit.

March 1, 2005.

*111 Stephen C. Juan, Robert J. Caluda, Metairie, LA, for Plaintiff/Appellant.

Sidney J. Angelle, Ryan G. Davis, Lobman, Carnahan, Batt, Angelle & Nader, New Orleans, LA, for Defendant/Appellee.

Panel composed of Judges THOMAS F. DALEY, MARION F. EDWARDS, and CLARENCE E. McMANUS.

THOMAS F. DALEY, Judge.

On November 18, 2002, plaintiff, Allie Thibodeaux, was allegedly injured in a collision while a passenger on a Jefferson Parish transit bus, with a vehicle insured by Progressive Insurance Company and driven by Jesse Ginds with the permission of the owner, Lacy Billiott.

*112 On November 3, 2003, Thibodeaux filed suit against several defendants including the Jefferson Parish Government d/b/a Jefferson Transit Westbank ("Jefferson Parish") and United States Fire Insurance. In the petition, it was alleged that Jefferson Parish is insured by United States Life Insurance Company. No allegation was made against United States Fire Insurance.

In their January 5, 2004 Answer to Petition for Damages, United States Fire Insurance Company ("U.S.Fire") argued that the plaintiff had no cause of action against them because they did not write a liability insurance policy for any of the defendants. U.S. Fire alleged that the plaintiff and her counsel failed to make a reasonable inquiry to determine if, in fact, they were a proper defendant in this suit. U.S. Fire claimed that it repeatedly advised the plaintiff (on November 25th and December 1st, 2003) through her counsel that it was not a proper defendant and on December 17, 2003 it provided the plaintiff with an affidavit from Jeff Leiter, a U.S. Fire Claim Supervisor, indicating that none of the defendants in the suit were issued an insurance policy by U.S. Fire. Subsequently, U.S. Fire filed a Motion for Summary Judgment and LSA-C.C.P. art. 863 sanctions alleging that the plaintiff's claims against them should be dismissed with full prejudice because there existed no genuine issue of material fact, and that the court award reasonable costs associated with the filing of the motion, including attorney's fees totaling $1,162.00, because the plaintiff refused to dismiss them after finding out that the claim against them was not warranted by law or the facts.

At the hearing, the trial court granted U.S. Fire's Motion for Summary Judgment because it did not think the plaintiff should have sent U.S. Fire the Motion to Dismiss in an effort to force U.S. Fire to file the motion into the record, and awarded sanctions against the plaintiff. The court noted that U.S. Fire had already been forced to expend funds to answer the petition to protect themselves from a default judgment and file a Motion for Summary Judgment to force their dismissal from the suit. The court suggested that plaintiff's counsel should have determined the proper party in order to prevent U.S. Fire from having to expend those funds. Plaintiff's counsel argued that the actions taken by U.S. Fire were their own tactical choices because he never required them to do anything, including filing an answer. The court imposed on the plaintiff sanctions and attorney's fees, in favor of U.S. Fire, in the amount of $698.05: $500.00 in attorney's fees, $0.00 for the cost of filing an answer to the plaintiff's petition, and $158.05 for the cost of filing the Motion for Summary Judgment. The court awarded less than the dollar amount requested because it found that it was "part of doing business" for U.S. Fire to have a certain amount of work that involved letting people know that a mistake was made in identifying the proper party.

DISCUSSION:

On appeal, the plaintiff argues that the trial court erred in applying LSA-C.C.P. art. 863, imposing attorney's fees and costs. The plaintiff claims that she and her counsel's actions were reasonable because counsel believed that the police report referred to Jefferson Parish's insurer being U.S. Fire Ins. Plaintiff's counsel contends that his actions were not intended to cause harm or undue delay. Plaintiff's counsel claims that U.S. Fire was informed that they could not be dismissed from the case until Jefferson Parish filed pleadings identifying their insurer, but that no adverse action would be taken against them, nor would they be compelled to do anything in the case. Plaintiff's counsel *113 claims that U.S. Fire was only served with the original petition. He claims that he never made discovery requests or required that U.S. Fire file an answer. Plaintiff's counsel contends that the actions taken by U.S. Fire, instead of filing for another extension until Jefferson Parish verified coverage, were voluntary tactical decisions, and therefore, not fairly chargeable to the plaintiff. Plaintiff's counsel claims that immediately upon receipt of Jefferson Parish's acknowledgment of self-insurance with a retention of up to $500,000.00 it executed a release of U.S. Fire, both faxing and mailing it to them. In addition, plaintiff's counsel argues that the trial court erred in applying LSA-C.C.P. art. 863. Plaintiff's counsel claims that LSA-C.C.P. art. 863 was enacted to punish egregious misconduct by attorneys filing groundless and harassing suits without investigating the allegations and insinuations of their clients with complete disregard for the Code of Civil Procedure. Plaintiff's counsel contends that the naming of U.S. Fire as a defendant in the original petition was justified by its inclusion in the police report on the accident. Likewise, plaintiff's counsel contends that his waiting to dismiss U.S. Fire until the insurer for Jefferson Parish was verified was not an unreasonable or wanton act.

U.S. Fire argues that the evidence it presented, at trial, overwhelmingly supports the trial court decision to impose sanctions under LSA-C.C.P. art. 863 for a frivolous claim. U.S. Fire claims that LSA-C.C.P. art. 863 imposes on a plaintiff and her counsel the need to make an objective reasonable inquiry into the facts and law during a ninety-day period, in which they can file a voluntary dismissal. U.S. Fire contends that the police report listed U.S. Fidelity not U.S. Fire, but even if plaintiff's counsel believed that it said U.S. Fire the mistake could have been reasonably ended by placing a telephone call to the number listed in the police report, within the time frame for a voluntarily dismissal. U.S. Fire contends that on November 25, 2004 it sent to the plaintiff the name and address of United States Fidelity Insurance Co.'s Jefferson Parish representative.

A trial court's imposition of sanctions pursuant to LSA-C.C.P. art. 863 will not be reversed unless clearly wrong or manifestly erroneous. Alombro v. Alfortish, 02-1081 (La.App. 5 Cir. 4/29/03), 845 So.2d 1162, 1168.

LSA-C.C.P. art. 863 reads in pertinent part:

B.

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Cite This Page — Counsel Stack

Bluebook (online)
900 So. 2d 110, 2005 WL 474263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thibodeaux-v-billiott-lactapp-2005.