Thomas v. Economy Premier Assurance Co.

196 So. 3d 7, 2016 WL 2903442, 2016 La. App. LEXIS 976
CourtLouisiana Court of Appeal
DecidedMay 18, 2016
DocketNo. 50,638-CA
StatusPublished
Cited by3 cases

This text of 196 So. 3d 7 (Thomas v. Economy Premier Assurance Co.) 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
Thomas v. Economy Premier Assurance Co., 196 So. 3d 7, 2016 WL 2903442, 2016 La. App. LEXIS 976 (La. Ct. App. 2016).

Opinion

GARRETT, J.

Lin this personal injury lawsuit, the tortfeasor, Wanda Jean Harris, and several insurance companies appeal from a trial court ruling which denied their motion for summary judgment based on the affirmative defense of judicial estoppel, and granted partial summary judgment in favor of the plaintiff, Willie Lee Thomas. For the following reasons, we affirm.

FACTS

Thomas was a delivery driver for Farmers Seafood Company, Inc. On February 24, 2012, while making a delivery at the East Ridge Country Club, located in Shreveport, he was struck by a vehicle driven by Harris. Pinned between the rear of his delivery truck and the vehicle driven by Harris, Thomas suffered serious injuries. Hé has undergone multiple surgeries'and is unable to work. - ■

On September 6, 2012, he filed this personal injury suit against Harris; Economy Premier Assurance Company (“Economy”), her automobile insurer; and Metropolitan Property and Casualty Insurance Company (“Metropolitan”), her excess liability insurer. Later, Peerless Insurance Company (“Peerless”), 'the excess uninsured/underinsured' insurance carrier for Farmers Seafood, was added as a defendant.1 Shortly after suit was filed, the attorney representing Harris and her insurers sent a letter to the plaintiffs attorney indicating that they would stipulate the accident was caused solely by the fault of Ms. Harris.

■ 12When the defendants deposed Thomas on March 28, 2014, they became aware that he had. previously filed a Chapter 18 bankruptcy proceeding before this accident occurred. Documents later filed into the record indicate that he had filed for Chapter 13 bankruptcy on November 23, 2010. The bankruptcy plan was confirmed on February 8, 2011. The bankruptcy filing shows'that Thomas had.no real property and very little personal property. His only secured creditor was the holder of the mortgage on hi's 1998 Mercury Grand Marquis automobile, which had more than 155,000 miles on it. Thomas had unsecured claims of approximately $11,000. He earned approximately $2,000 per month at his job with Farmers Seafood. His bankruptcy plan required him to pay approximately $200 per month to his creditors. When his personal vehicle was damaged, he amended his bankruptcy plan on February 28, 2011, and the proceeds of his property damage claim were used to pay [10]*10off his only secured creditor. The amended plan was confirmed on April 15, 2011. The accident at issue here occurred on February 24, 2012. Although he was seriously injured, he continued to comply with the bankruptcy plan. Thomas successfully completed the Chapter 13 plan and ultimately received a discharge from the bankruptcy court on February 17, 2014.

On June 27, 2014, Harris, Economy, and Metropolitan filed a supplemental answer asserting the affirmative defenses of failure to mitigate damages and judicial estop-pel. They then filed a motion for summary judgment, arguing that Thomas’s suit should be dismissed on the basis of | ¿judicial estoppel.2 According to the defendants, Thomas was required to inform the bankruptcy court of the present personal injury claim and list it as an asset. Because he did not do so, the defendants asserted that Thomas was judicially es-topped from proceeding with his suit in this matter. Attached to the motion were copies of the plaintiffs Chapter 13 plan.

On August 11, 2014, checks were sent to Thomas’s previously discharged unsecured creditors in the bankruptcy proceeding, paying them in full. The checks were drawn on the firm account of his attorney in the present matter.

On August 18, 2014, Thomas filed a motion for partial summary judgment, asserting that the cause of action in this matter arose after the bankruptcy petition was filed and after the confirmation in which Thomas was vested with all property belonging to the estate. Therefore, he had no duty to disclose this cause of action to the bankruptcy court. Thomas contended that the affirmative defense of judicial estoppel should be denied.

In October 2014, the cross motions for summary judgment were argued and denied. Although we do not have a transcript of these proceedings, it appears that the trial court found there was a genuine issue of material fact at that time as to whether the plaintiffs bankruptcy creditors had been paid. Thomas’s affidavit, given in support of his motion for summary judgment, asserted that all bankruptcy creditors had been paid in full. It appears that the correspondence that had been sent to the creditors |4on August 11, 2014, with copies of the checks, had not been filed with the plaintiffs motion for summary judgment and the defense questioned whether the creditors had been paid.

In January 2015, Thomas filed a second motion for partial summary judgment, adopting his original motion and alleging that all the bankruptcy creditors had been paid, and therefore the defense of judicial estoppel should be denied. Attached to this motion were copies of the payment letters and checks issued to the creditors. The three original defendants reurged their motion for summary judgment to dismiss the present personal injury claim based on judicial estoppel. Peerless adopted their motion.3

Arguments on the cross motions for summary judgment were heard on July 27, 2015. The trial court had the benefit of the extensive briefs and reply briefs on all the intricacies of bankruptcy law, federal jurisprudence, and judicial estoppel. The [11]*11trial court also entertained extensive oral argument. The trial court astutely noted that the court rulings cited by the parties had gone both ways on the issue of judicial estoppel, and the facts in each case were distinguishable. The court observed this matter was a post-eonfírmation case. The proof was now in the record that the creditors had, in fact, been paid and this occurred “even before we came to court the last time.” Noting the considerable discretion given to the court on the application of judicial estoppel, the trial court exercised that discretion in ruling that the doctrine should not be applied in this case.-

UThe trial court granted the motion for partial summary judgment filed by Thomas, dismissing and striking the affirmative defense of judicial estoppel urged by the defendants. The motion for summary judgment filed by the defendants was dismissed. The judgment was certified as an appealable final judgment. Harris, Economy, Metropolitan, and Peerless appealed, arguing that the trial court erred in failing to apply judicial estoppel to completely bar Thomas’s claim in this matter. .

JUDICIAL ESTOPPEL

Judicial estoppel is a common law doctrine by which a party who has assumed one position in his pleadings may be estopped from assuming an inconsistent position. The purpose of the doctrine is to protect the integrity of the judicial process, by preventing parties from playing fast and loose with the courts to suit the exigencies of self-interest. Because the doctrine is intended to protect the judicial system, rather than the litigants, detrimental reliance by the opponent of the party against whom the doctrine is applied is not necessary. In re Coastal Plains, Inc., 179 F.3d 197 (5th Cir.1999); In re Superior Crewboats, Inc., 374 F.3d 330 (5th Cir.2004); Jethroe v. Omnova Sols., Inc., 412 F.3d 598 (5th Cir.2005).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
196 So. 3d 7, 2016 WL 2903442, 2016 La. App. LEXIS 976, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-v-economy-premier-assurance-co-lactapp-2016.