Troy Parria v. Louisiana Citizens Property Insurance Corporation

CourtLouisiana Court of Appeal
DecidedNovember 13, 2024
Docket2024CA0263
StatusUnknown

This text of Troy Parria v. Louisiana Citizens Property Insurance Corporation (Troy Parria v. Louisiana Citizens Property Insurance Corporation) 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
Troy Parria v. Louisiana Citizens Property Insurance Corporation, (La. Ct. App. 2024).

Opinion

STATE OF LOUISIANA

COURT OF APPEAL

FIRST CIRCUIT

NO. 2024 CA 0263 AND 2023 CW 1310

1- 1

LOUISIANA CITIZENS PROPERTY INSURANCE CORPORATION NOV 13 2024 Judgment Rendered:

On Appeal from the 32nd Judicial District Court Parish of Terrebonne, State of Louisiana Trial Court No. 192552

The Honorable Jason A. Dagate, Judge Presiding

David W. Ardoin Attorneys for Plaintiff A - ppellant, Preston L. Hayes Troy Parria Matthew D. Ory Ryan P. Mansour Thibodaux, Louisiana

Sidney W. Degan, III Attorneys for Defendant -Appellee, Keith A. Kornman Louisiana Citizens Property Ins. Corp. Genevieve K. Jacques Travis L. Bourgeois Candace C. Chauvin New Orleans, Louisiana

BEFORE: WOLFE, MILLER, AND GREENE, JJ.

I ., e"-

C! 147 14 1. 11elI J WOLFE, J.

This case involves the purely legal issue of whether the Legislature' s

amendment of La. R.S. 22: 1892( H) by 2023 La. Acts, No. 290, effective August 1,

2023 ( Act 290), was properly interpreted by the district court to be a procedural

change that applied retroactively, thereby eliminating any class action for damages,

including penalties, against the Louisiana Citizens Property Insurance Corporation LCPIC). The same issue was raised in a related writ application, which has been

referred to this appellate panel. For the following reasons, we affirm the district

court' s judgment, and accordingly, deny the writ application as moot.

FACTS AND PROCEDURAL BACKGROUND

Hurricane Ida damaged Troy Parria' s property on August 29, 2021. He

notified his property insurer, LCPIC,' of the damage on September 13, 2021. The

property, located in Houma, Louisiana, was subsequently inspected on September

28, 2021, and LCPIC tendered the undisputed amount of $46,911. 22 to Mr. Parria

on November 18, 2021. On December 14, 2021, Mr. Parria filed a Petition for

Damages and Recognition as a Class Action against LCPIC in the Thirty -Second Judicial District Court. Mr. Parria alleged that LCPIC owed bad faith penalties

because it failed to reasonably and timely pay insurance claims caused by Hurricane Ida within thirty days after receipt of satisfactory proof of loss, as required by La. R.S. 22: 1892( A)(4) and ( B)( 1)( a), and pursuant to insurance policies purchased by himself and others.

After almost two years of litigation, Mr. Parria filed a motion for class

certification on July 27, 2023; however, to this date the class has not been certified.

LCPIC responded to the motion by filing a peremptory exception raising the

LCPIC is a public, non-profit corporation created by statute and is a political instrumentality of the state. See La. R.S. 22: 2291 et seq. LCPIC operates residual market insurance programs for the State of Louisiana and is the insurer of last resort. See Ansardi v. Louisiana Citizens Property Ins. Corp., 2011- 1717 ( La. App. 4th Cir. 3/ 1/ 13), 111 So. 3d 460, 464, writs denied, 2013- 0698, 2013- 0697 ( La. 5/ 17/ 13), 118 So. 3d 380.

2 objection of improper use of class action procedure, as well as several motions

requesting that the district court strike and/ or dismiss all purported class action

allegations and a motion for judgment on the pleadings. After a hearing on LCPIC' s

motions and exception, the district court signed a judgment on November 14, 2023,

in favor of LCPIC, sustaining the exception of improper use of class action

procedure, striking the purported class action allegations from the pleadings, and

dismissing all class action allegations made by Mr. Parria against LCPIC with

prejudice. Mr. Parria' s individual claim for damages against LCPIC was not

dismissed. The judgment was designated as a partial final judgment under La. Code

Civ. P. art. 1915.

LCPIC' s exception of improper use of class action procedure and the district

court' s ruling were based on Act 290, passed by the Legislature in June 2023 as an

amendment to La. R.S. 22: 1892( H),2 which effectively eliminated any basis for a

class action against LCPIC, providing:

The Louisiana Insurance Guaranty Association, as provided in La.] R.S. 22: 2051 et seq., and the Louisiana Citizens Property Insurance Corporation [ LCPIC], as provided in [ La.] R.S. 22: 2291 et seq., shall not be subject to the provisions of Code of Civil Procedure Article 591 et seq., or any other provision allowing a class action, for any damages including any penalties awarded pursuant to the provisions of this Section. [ Emphasis added.]

There is no effective date specifically mentioned in the language of Act 290;

accordingly, it became effective on August 1, 2023 pursuant to La. Const. Art. 3, §

19. In oral reasons given at the October 17, 2023 hearing on the exception, the

district court determined that because a class action is a procedural device, the

amendment to La. R.S. 22: 1892( H) eliminating class actions against LCPIC was

Louisiana Revised Statute 22: 1892( H) was amended again in May 2024 by 2024 La. Acts, No. 3, effective July 1, 2024, to add a sentence at the end of section H: " The Louisiana Insurance Guaranty Association, as provided in [ La.] R.S. 22: 2051 et seq., shall also not be liable for any special damages or penalties provided for in this Section." The 2024 amendment is not at issue in this appeal. procedural and therefore, Act 290 applies retroactively as well as prospectively. The

district court also found that not allowing Mr. Parria to proceed under class action

procedure did not deprive him or any other person of any substantive rights, because

they still have a right to proceed individually against LCPIC for their respective

claims. Mr. Parria challenges the district court' s ruling on appeal.'

LAW AND ANALYSIS

The sole issue on appeal is the retroactivity of Act 290' s elimination of class

actions against LCPIC. Mr. Parria argues that Act 290 was intended to be applied

prospectively because it is substantive in nature and his right to pursue his remedies

via a class action against LCPIC was vested at the time he filed suit. He further

asserts that while the amendment to La. R.S. 22: 1892( H) did not provide a specific

effective date, the presumptive effective date was August 1, 2023. The issue of

whether an amendment to a law is to be applied prospectively or retroactively

presents a legal question, which appellate courts review de novo to simply determine

whether the district court was legally correct or legally incorrect without deference

to the legal conclusions of the lower court. See Jackson v. BASF Corp., 2004- 2777

La. App. 1st Cir. 11/ 4/ 05), 927 So. 2d 412, 415, writ denied, 2005- 2444 ( La.

3/ 24/ 06), 925 So. 2d 1231.

Initially, we note that if the effective date is not specifically set forth in the legislative act, then the effective date is provided for in La. Const. art. 3, § 19, and

depends on whether the law was enacted during a regular session or an extraordinary session of the legislature. Since Act 290 was enacted during a regular session and did not specify an earlier or later effective date, it took effect on August 1, 2023.

3 Mr. Parria filed an application for a supervisory writ and moved for a devolutive appeal concerning the November 14, 2023 judgment. The district court granted both.

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