Vehrs v. Jefferson Insurance Company

168 So. 2d 873
CourtLouisiana Court of Appeal
DecidedJanuary 21, 1965
Docket1224
StatusPublished
Cited by28 cases

This text of 168 So. 2d 873 (Vehrs v. Jefferson Insurance Company) 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
Vehrs v. Jefferson Insurance Company, 168 So. 2d 873 (La. Ct. App. 1965).

Opinion

168 So.2d 873 (1964)

Evelyn C. VEHRS, Natural Tutrix of the Minor, Darlene Moss, Plaintiff and Appellee,
v.
JEFFERSON INSURANCE COMPANY et al., Defendant and Appellant.

No. 1224.

Court of Appeal of Louisiana, Third Circuit.

October 27, 1964.
Rehearing Denied December 1, 1964.
Writ Refused January 21, 1965.

*874 Gist, Gist, Methvin & Trimble, by DeWitt T. Methvin, Jr., Alexandria, for defendants-appellants.

Shapiro & Shapiro, by Morris Shapiro, Alexandria, for plaintiffs-appellees.

Before CULPEPPER, SAVOY and TATE, JJ.

En Banc.

CULPEPPER, Judge.

This case and its companion cases, Vehrs v. Jefferson Insurance Company, et al., La.App., 168 So.2d 879; McKay v. Jefferson Insurance Company, et al., La.App., 168 So. 2d 879; Otis L. Carmouche, Individually and as Administrator for the Minor, Carmouche v. Jefferson Insurance Company, et al., La.App., 168 So.2d 880; Otis L. Carmouche, Individually and as Administrator for the Minor, Carmouche, v. Jefferson Insurance Company, et al., La.App., 168 So.2d 880, arose out of the same set of facts and were consolidated for purposes of trial and appeal. These are the same cases in which we previously denied motions to dismiss the appeals. See Evelyn C. Vehrs, Natural Tutrix for the Minor, Moss, v. Jefferson Insurance Company, et al. (3rd Cir.App. 1964) 166 So.2d 20.

Plaintiffs in these cases were passengers in an automobile driven by defendant, Richard L. Vehrs, at the time of a one-car accident about December 30, 1962 on Louisiana State Highway #8 in Grant Parish, Louisiana. The defendant, Jefferson Insurance Company, is the alleged liability insurer of Vehrs. After defendant insurer's exceptions to the service of process, jurisdiction and venue were disposed of, judgments were eventually taken by default as against the insurer alone. The insurer has now appealed.

The substantial issue on appeal is whether the trial court erred in overruling defendant insurer's exception to the jurisdiction over the person. LSA-C.C.P. Art. 6. This involves an interpretation of LSA-R.S. 22:1253 which provides in pertinent part that the issuance or delivery by a foreign insurer, not authorized to do business in this state, of a policy to a citizen or resident of this state, is equivalent to appointment by such insurer of the Secretary of State as its agent for service of process in any suit arising out of such policy. The defendant, Jefferson Insurance, Company, is admittedly a foreign insurer domiciled in the State of Arkansas, not authorized to do business in Louisiana. The record shows service of process on the Secretary of State and that a copy of such process was received by the defendant insurer and that the attorney for the plaintiffs likewise sent by registered mail to defendant copies of the process within 10 days and, in fact, that all of the formalities required by said statute were complied with.

However, it is the contention of the defendant insurer that LSA-R.S. 22:1253 has no application here because the insured, Richard L. Vehrs, was not a citizen or resident of Louisiana at the time the policy was issued. Defendant contends the only evidence in the record is the address of Vehrs stated on the policy, which shows he was in the military service stationed at England Air Force Base, Alexandria, Louisiana. It is argued this is not sufficient proof that Vehrs was either a citizen or resident of Louisiana. Defendant contends that England Air Force Base is a military reservation, subject to the exclusive control of the Federal Government and that military personnel assigned there are not residents of *875 the State of Louisiana in which this base is located. No Louisiana case is cited in support of this proposition, but defendant cites several cases from other jurisdictions, involving unauthorized insurance acts, which cases apparently support defendant's position to some extent: Dezell v. E. E. Black, Ltd. (1961-District Court of Guam), 191 F.Supp. 635; Consolidated Sun-Ray, Inc., et al. v. Steel Insurance Company of America, (1961-Eastern District, Pa.) 199 F.Supp. 111; Johnson v. Universal Underwriters, Inc. (1960-7th Cir.) 283 F.2d 316.

On the other hand, plaintiffs contend that mere residence by Vehrs on England Air Force Base was sufficient to constitute him a resident of the State of Louisiana. Plaintiffs cite Polgase v. Illinois National Insurance Co., (District Court of California) 183 F.Supp. 519, in support of their position.

We find it unnecessary to decide whether Richard L. Vehrs was or was not a resident of Louisiana. In either event, service of process on the Secretary of State was sufficient and thereby vested jurisdiction in the court over the person of this nonresident insurer. If Vehrs was a resident of Louisiana, then the issuance of the policy to him brings this case within the contemplation of LSA-R.S. 22:1253. On the other hand, if Vehrs was not a resident of Louisiana, as defendant contends, then this case falls within the provisions of LSA-R.S. 13:3474, which provides in pertinent part that the use by nonresidents of the highways of this state "* * * shall be deemed equivalent to an appointment by such non-resident of the secretary of state of Louisiana or his successor in office, to be his true and lawful attorney for service of process, as well as the attorney for service of process of the public liability and property damage insurer of the vehicle, if such insurer be a non-resident not authorized to do business in the state * * *."

It is therefore our conclusion that service of process on the Secretary of State and subsequent actual notice to defendant, was sufficient and vested in the district court jurisdiction rationae persona over this nonresident insurer not authorized to do business in Louisiana.

Counsel for defendant has not presented any arguments on appeal with reference to his exception to the venue, but it would appear that since this accident occurred in Grant Parish the proper venue is there where the loss occurred.

Defendant insurer also argues that a new trial should be ordered because it would be inequitable and unconscionable under the circumstances to allow this default judgment to stand. Defendant contends the only reason it suffered the default judgment to be taken was because its attorneys never received any notice of the filing of the affidavit of compliance under LSA-R.S. 22:1253 and the further failure of defendant's attorneys to receive notice of an ex parte order of court dated October 21, 1963 directing defendant to post a bond in the sum of $12,000 or qualify to do business in Louisiana. See LSA-R.S. 22:1255. Defense counsel argues that had he received such notice he would have asked for a hearing on whether the defendant was an unauthorized insurer within the contemplation of LSA-R.S. 22:1253 and if this issue had been decided adverse to him he would then have decided whether or not to file the required bond to have the defendant authorized to do business in Louisiana.

Pretermitting the very serious question as to whether this unauthorized insurer, having failed to post bond, etc. as required by LSA-R.S. 22:1255, could move for a new trial in the courts of our state, we make the following observations:

For the reasons which we have set out above, it is apparent that it would have availed defendant nothing to seek a hearing on the issues presented by the ex parte order. The only argument which defendant *876

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168 So. 2d 873, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vehrs-v-jefferson-insurance-company-lactapp-1965.