Category: Civil Procedure

UM Claim in Amended Petition Prescribed When Original Petition Did Not Give Sufficient Notice of Claim

02.11.2025

In Madden v. Fairburn, the plaintiff amended her petition to assert a UM claim against an insurer based upon the alleged negligence of a new defendant not named in the original petition. The amended petition asserted a new theory of liability but sought the same recovery under the same UM policy.

The issue presented to the Louisiana Court of Appeal for the First Circuit was whether the original petition interrupted prescription for the claim brought against the UM insurer. Because the insurer did not receive notice in the original petition that it could be liable for damages based upon the new defendant’s fault, the court found prescription could not be interrupted.

Madden was a passenger in a vehicle driven by John Seibert that collided with Steven Ray Fairburn. Madden timely filed suit against Fairburn and Capitol Specialty Insurance Corporation (Capitol Specialty), claiming uninsured motorist (UM) coverage under its policy. The Trial Court later dismissed Madden’s claims against Fairburn. While the appeal of that ruling was pending, and over five years after the accident, Madden amended her petition to allege Seibert was at fault and sought the same UM coverage any damages he caused. Capitol Specialty argued the claim brought against it in the amended petition had prescribed.

At the time of the accident, claims for torts/delictual actions had a one-year prescriptive period that commenced from the date of the injury or damage sustained* Claims to recover damages under a UM policy are subject to a prescription period of two years.^ Madden argued her original claim against Capitol Specialty interrupted prescription because her amended claim arose from the same accident and sought to recover damages under the same UM policy.

La. C.C. art. 3462 states that prescription is interrupted when an obligee (Madden) commences an action against an obligor (Capitol Specialty) in a court of competent jurisdiction and venue. However, in Kling v. Hebert, the Louisiana Supreme Court has clarified that the “essence of interruption of prescription by suit is notice to the defendant of the legal proceedings based on the claim involved.” The Kling judges emphasized that prescription serves to protect defendants from unexpected liability years after an event, particularly when a new legal theory or a different alleged tortfeasor is introduced.

The court also considered Trahan v. Liberty Mutual Insurance Company, which held that a claim against an insurer based on one party’s negligence does not interrupt prescription for a later claim against the same insurer based on another party’s negligence. Because Madden’s original suit was based on Fairburn’s negligence, Capitol Specialty did not receive timely notice that she would later seek UM coverage based on Seibert’s alleged fault. Thus, the appellate court ruled in favor of the insurer, affirming the prescription of the plaintiff’s claims.

References:

Madden v. Fairburn, 2024-0513 (La. App. 1 Cir. 12/27/24), — So.3d —, 2024 WL 5232995.

Kling v. Hebert, 23- 00257, p. 4 (La. 1/ 26/24), 378 So. 3d 54.

Trahan v. Liberty Mutual Insurance Company, 314 So. 2d 350 (La. 1975).

*La. C.C. art. 3492. See As of July 1, 2024, delictual actions are subject to a two-year liberative prescriptive period, applying to delictual actions that arose or after the effective date.

^ La. R.S. 9:5629.

Keogh Cox Obtains Appellate Victory in Denial of Class Certification

01.30.2025

Keogh Cox attorneys Andrew Blanchfield, Chris Jones, and Chelsea Payne successfully defeated class certification in an action students brought to recover a partial refund of tuition and fees they claim they were owed after in-person classes were converted to remote learning because of the COVID-19 global pandemic. See Miazza v. Board of Supervisors of Louisiana State University and Agricultural and Mechanical College.

In 2021, plaintiffs Taylor Gunter and Michael Miazza filed a lawsuit seeking a partial refund of the tuition they paid to LSU for Spring 2020 classes. They alleged that they were entitled to a partial refund of tuition and certain fees because in-person classes were cancelled in the wake of the COVID-19 pandemic. In lieu of in-person classes, remote learning went into effect after spring break, from March 30, 2020 through the end of the spring semester.

In addition to their own claims for partial refunds, the plaintiffs tried to bring the case as a class action and moved to certify a class defined as: “All students who, as of March 13, 2020, were enrolled at Louisiana State University’s main campus in Baton Rouge who paid Tuition and/or Fees for the Spring 2020 semester, or on whose behalf such payment was made.”

After the completion of discovery for class certification, and after the dismissal of Plaintiff Michael Miazza’s claim, Plaintiff Taylor Gunter filed a Motion for Class Certification. After hearing, the Trial Court certified the class as alleged, finding all the requirements for class certification set forth in La. C.C.P. art. 591 were satisfied. LSU appealed the decision to the First Circuit Court of Appeals.

The First Circuit reversed the Trial Court’s judgment and found the Plaintiff failed to satisfy all of the requirements for class certification. After conducting a rigorous analysis of the class certification requirements, the Court concluded that “a multitude of individualized inquiries and proof make up the liability and damages issues essential to the putative plaintiffs’ implied contract claims.” The Court identified some of these “individualized inquiries” as follows:

• which representations in each school’s or college’s catalogs, bulletins, and website materials did the putative plaintiff rely upon in developing his or her expectation and what particular facilities and on-campus opportunities did a putative plaintiff expect to utilize;

• whether the putative plaintiff has historically utilized on-campus facilities and opportunities; which facilities and/or on-campus opportunities, if any, were necessary for a particular school’s or college’s course completion;

• whether a putative plaintiff was satisfied with the online instruction, course credits received, and grading options provided; and

• whether a putative plaintiff actually suffered any financial loss, mindful of each student’s particular situation.

Ultimately, the Court concluded that the record lacked sufficient evidence to support findings of offers and acceptances, where were necessary (1) to establish meetings of the mind and (2) conclude each putative plaintiff and LSU consented to an implied contract. Any determination of liability for an implied contract also is dependent upon proof of facts individual to each putative class member. Therefore, the class would degenerate into a series of individual trials.

The First Circuit concluded that certification of the case as a class action was an abuse of discretion. It reversed the Trial Court’s judgment and decertified the matter. Plaintiff filed a Writ Application with the Louisiana Supreme Court. On January 14, 2025, the Louisiana Supreme Court denied Plaintiff’s Writ Application, finally resolving the class certification issue. As a result, Plaintiff cannot pursue class certification, but rather may only pursue her own individual claim.

References:

Miazza v. Board of Supervisors of Louisiana State University and Agricultural and Mechanical College, 2023-1194 (La. App. 1 Cir. 8/9/24), 394 So.3d 874, writ denied, 2025 WL 87255 (La. 1/14/25).

Louisiana Supreme Court Rules on Bond an Insurer Must Post for Suspensive Appeal

12.03.2024

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.

The Runaway Railroad Jury Verdict: A Cautionary Tale for Attorneys and Jury Members

10.01.2024

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).