Civil Procedure Categorized Articles

A Louisiana litigant has a right to appeal a judgment rendered against it at trial and has two options to appeal the judgment. The litigant can take a suspensive appeal, which suspends the execution of the judgment pending the outcome of the appeal, or it can take a devolutive appeal, which does not. La. C.C.P. art. 2124 provides that when the judgment if for a sum of money, a party seeking a suspensive appeal must post security, or a bond, “equal to the amount of the judgment,” including interest.

What happens when a monetary judgment is cast against an insurer (and its insureds) and the amount of the judgment exceeds the limits of the insurer’s policy? Can the insurer be required to post bond in excess of its policy limits to suspensively appeal the judgment? The Louisiana Supreme Court recently addressed this issue and ruled an insurer is required to post a security bond covering only its policy limits.

In Martinez v. Am. Transp. Grp. Risk Retention Grp., Inc., a jury cast judgment against a transportation group, its driver, and its insurer for damages the plaintiff sustained in a motor vehicle accident. The trial court rendered a judgment in the amount of $2,802,054.66, which was in excess of the $1,000,000 limits of the insurer’s policy. The insurer moved for a suspensive appeal and requested a reduced bond because its insured was no longer in existence and could not post a bond. Nevertheless, the trial court set the appeal bond at $2,802,054.66, plus interest. The insurer posted a bond in the amount of its policy limits plus interest and costs and sought appellate review of the trial court’s appeal bond order.

The Supreme Court observed that the contracts clauses of the federal and state constitutions prohibit the enactment of any law “impairing the obligation of contracts.” Therefore, the Court found that to require an insurer to post a bond for suspensive appeal in excess of its policy limits would render meaningless, and therefore impair, the terms of the insurance contract setting the policy’s limits. Thus, the Martinez court should have set security to allow the insurer to suspensively appeal the portion of the judgment up to its policy limit.

However, the Court refused to reduce the suspensive appeal bond for all the defendants cast in judgment. Instead, the Court ruled the insurer could suspensively appeal the judgment up to the amount of its policy limits, stay execution of that portion of the judgment, and devolutively appeal the remainder of the case for its insureds.

References:

Martinez v. Am. Transp. Grp. Risk Retention Grp., Inc., 2023-01716 (La. 10/25/24) 2024 WL 4579047.

A jury in the 16^th Judicial District Court awarded a garbage truck driver $8,307,050.00 in damages related to a September 16, 2016 accident with a train. The Louisiana Court of Appeal for the First Circuit reversed the decision in Theopholia Thomas v. BNSF Railway Company– because the answers to the questions on the jury verdict form were inherently inconsistent.

A garbage truck driver (Thomas) sued BNSF, the company that maintained a railroad track in the Town of Baldwin. On September 16, 2016, Thomas turned too wide while crossing railroad tracks, and his left front tire dropped off wooden planks on the crossing. This caused his left front tire to become stuck between the tracks. Thomas immediately began reversing the truck, then pulled forward and began moving across the railroad tracks. At that time, a BNSF train was bearing down on the crossing, blaring its horn. Thomas accelerated but train struck the rear of his truck. Thomas was injured in the incident.

Thomas filed suit the merits in May of 2022, the jury was provided a verdict form with a series of questions to 1) assign fault between the BNSF and Thomas; 2) determine the proximate cause of the accident; and 3) state the amount of damages. The jury completed the form, and a judgment was rendered by the Court in favor of Thomas.

The jury found: 1) that Thomas was negligent; 2) but that Thomas’ negligence was not a proximate cause of the accident; 3) however, the jury then assigned Thomas 15% of the fault. BSNF challenged the judgment, claiming that the answers on the jury verdict form were inconsistent. If Thomas was at fault, but that fault was not a proximate cause of the accident, then how was he assigned a portion of the fault? Before a party can be assigned fault, the jury must find both that the party was negligent, and that party’s negligence is a proximate cause of the accident.

The court of appeal overturned the over $8 million verdict in favor of Thomas because it agreed that the jury verdict form answers were inconsistent. La. C.C.P. art. 1813(E) provides that when the answers on a jury verdict form are inconsistent with each other, then the court shall not direct the entry of judgment but may return the form to the jury for further consideration or may order a new trial. The appellate court found that the jury could not both: 1) find that Thomas’ negligence was not the proximate cause of the accident; and 2) assign 15% fault to Thomas. Therefore, the verdict was vacated, and the case remanded for a new trial.

The lawsuit will be tried again – to a different jury. Certainly a cautionary tale.

References:

Theopholia Thomas v. BNSF Railway Company, 2023 CA 1209 (La. App. 1 Cir. 8/6/24).