Zurich American Insurance Co. v. Cox

128 So. 3d 644, 13 La.App. 3 Cir. 630, 2013 WL 6492239, 2013 La. App. LEXIS 2542
CourtLouisiana Court of Appeal
DecidedDecember 11, 2013
DocketNo. 13-630
StatusPublished

This text of 128 So. 3d 644 (Zurich American Insurance Co. v. Cox) 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
Zurich American Insurance Co. v. Cox, 128 So. 3d 644, 13 La.App. 3 Cir. 630, 2013 WL 6492239, 2013 La. App. LEXIS 2542 (La. Ct. App. 2013).

Opinion

GREMILLION, Judge.

| ¶ This matter involves a concursus proceeding invoked by Zurich American Insurance Company (Zurich) to resolve the dispute over attorney fees between George A. Flournoy and Paul J. Cox, both of whom represented Sheila and Rubin Webster in consolidated personal injury actions. An intervention filed by Flournoy in the personal injury suit was dismissed, and Cox successfully argued in the concur-sus proceeding that the dismissal was res judicata as to Flournoy’s claims for attorney fees. For the reasons that follow, we affirm.

FACTS AND PROCEDURAL HISTORY

The Websters were involved in a motor vehicle accident on December 29, 2008. They hired Flournoy, an attorney from Rapides Parish, to prosecute their personal injury claims against Zurich and its insureds in Evangeline Parish. They filed separate suits that were consolidated. The matters were close to trial in March 2010, when the trial judge granted Zurich a continuance. In May 2010, the Websters terminated Flournoy’s representation and retained Cox, a Calcasieu Parish attorney. Flournoy intervened in the Websters’ suits to preserve his claim for fees. Cox successfully negotiated a settlement from Zurich through mediation in December 2010.

In February 2011, Cox forwarded Flour-noy a joint motion to deposit the attorney fee funds into the registry of the court. Flournoy proposed a number of changes to the joint motion, which Cox incorporated before returning the joint motion to Flour-noy for execution.

Flournoy then forwarded to all counsel a motion and order for dismissal of his intervention without prejudice. Cox rejected the dismissal without prejudice. 12Then Flournoy sent a second dismissal of the intervention with prejudice, but reserving his claim for attorney fees. Cox rejected this, too.

On March 4, 2011, Flournoy filed civil suit number 241,015 on the docket of the [646]*646Ninth Judicial District Court in Rapides Parish, entitled “George A. Flournoy v. Paul J. Cox, et al.,” in which Flournoy named Cox and the Websters as defendants.1 Shortly thereafter, Flournoy dismissed the Websters from the Rapides Parish suit. Cox filed an exception of lis pendens, arguing that the proceedings ongoing in Evangeline Parish barred consideration of Flournoy’s suit in Rapides Parish. The Ninth Judicial District Court maintained the exception of lis pendens and dismissed Flournoy’s action on June 22, 2011.

All was not quiet in the Evangeline Parish action during this time. Flournoy made several attempts to dismiss his intervention with a reservation of his rights to seek his fee. One such attempt almost succeeded, as the trial court signed such a dismissal but withdrew it after Cox expressed his objection. The trial court fixed a motion to apportion the attorney fees for May 23, 2011. This hearing was continued at Flournoy’s request until June 17, 2011. However, on May 31, 2011, Flournoy filed a motion to dismiss his intervention with prejudice. This motion was signed by the trial court.

On June 21, 2012, Zurich invoked this concursus in Evangeline Parish and named Flournoy and Cox as the defendants. Cox filed an exception of res judicata in which he maintained that Flournoy’s dismissal of his intervention with prejudice precluded relitigation of the fee distribution. The trial court maintained Cox’s exception. Flournoy now appeals.

IsFlournoy assigns one error, the maintenance of Cox’s exception of res judicata.

ANALYSIS

Res judicata is governed by La. R.S. 13:4231, which provides:

Except as otherwise provided by law, a valid and final judgment is conclusive between the same parties, except on appeal or other direct review, to the following extent:
(1) If the judgment is in favor of the plaintiff, all causes of action existing at the time of final judgment arising out of the transaction or occurrence that is the subject matter of the litigation are extinguished and merged in the judgment.
(2) If the judgment is in favor of the defendant, all causes of action existing at the time of final judgment arising out of the transaction or occurrence that is the subject matter of the litigation are extinguished and the judgment bars a subsequent action on those causes of action.
(3) A judgment in favor of either the plaintiff or the defendant is conclusive, in any subsequent action between them, with respect to any issue actually litigated and determined if its determination was essential to that judgment.

When enacted in 1990, section 4231 substantially altered the concept of res judica-ta. Before, a second action was only barred when the plaintiff sought the same relief on the same grounds. Comment (a) to the section cites the example of Mitchell v. Bertolla, 340 So.2d 287 (La.1976), in which a plaintiff who unsuccessfully sought to void a sale on grounds of lesion beyond moiety was allowed to assert a second cause of action to rescind the same sale on the ground of fraud. The amendment in 1990 incorporated the concept that all causes of action existing at the time of the transaction or occurrence that formed the [647]*647basis of the first suit are merged in the judgment and extinguished. We remain mindful of the principle that res judicata is strictly and narrowly applied and any doubt as to its applicability must be resolved against its application. Boudreaux v. Franks, 12 — 1647,4 p. 4 (La.App. 3 Cir. 12/19/12), 106 So.3d 270, unit denied, 13-189 (La.3/8/13), 109 So.3d 361.

According to the terms of La.Code Civ.P. art. 1673, “[a] judgment of dismissal with prejudice shall have the effect of a final judgment of absolute dismissal after trial.” Therefore, Cox argues that Flour-noy’s dismissal with prejudice precluded him from relitigating the issue of attorney fee apportionment because it was as though his claim for fees had been rejected by the trial court. Because Cox’s clients, the Websters, were defendants in the Evangeline Parish suit, the identities of the parties is the same because the Websters are privies of Cox. See Burguieres v. Pollingue, 02-1385 (La.2/25/03), 843 So.2d 1049 (citing Welch v. Crown Zellerbach Corp., 359 So.2d 154 (La.1978)).

Flournoy argues that the Websters are not privies of Cox because Cox is not a successor to the same property right as the Websters. He also argues that the demands in the two suits are not the same; his intervention in Evangeline was solely to protect and recognize his interest in his fee, whereas the concursus was invoked to apportion the fee. Lastly, Flournoy argues that the dismissal was not actual litigation of the fee issue, and that res judicata cannot attach.

While the Websters, Cox’s clients, were named defendants in Flournoy’s intervention, Cox was not; indeed, Flournoy attempted to name Cox and his motion to amend was denied by the trial court. We find that Cox was in privity with the Websters. Louisiana Revised Statute 37:218 reads:

A. By written contract signed by his client, an attorney at law may acquire as his fee an interest in the subject matter of a suit, proposed suit, or claim in the assertion, prosecution, or defense of which he is employed, whether the claim or suit be for money or for property. Such interest shall be a special privilege to take rank as a first privilege thereon, superior to all other privileges and security interests under Chapter 9 of the Louisiana Commercial laws.

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Related

Brouillard v. Aetna Cas. & Sur. Co.
657 So. 2d 231 (Louisiana Court of Appeal, 1995)
Burguieres v. Pollingue
843 So. 2d 1049 (Supreme Court of Louisiana, 2003)
Mitchell v. Bertolla
340 So. 2d 287 (Supreme Court of Louisiana, 1976)
Centanni v. Ford Motor Co.
636 So. 2d 1153 (Louisiana Court of Appeal, 1994)
Welch v. Crown Zellerbach Corp.
359 So. 2d 154 (Supreme Court of Louisiana, 1978)
Boudreaux v. Franks
106 So. 3d 270 (Louisiana Court of Appeal, 2012)
Skipper v. Berry
762 So. 2d 56 (Louisiana Court of Appeal, 2000)

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Bluebook (online)
128 So. 3d 644, 13 La.App. 3 Cir. 630, 2013 WL 6492239, 2013 La. App. LEXIS 2542, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zurich-american-insurance-co-v-cox-lactapp-2013.