65 So. 3d 662
La. Ct. App.2011Background
- East Jefferson General Hospital rendered medical services on April 25, 2009 to Kathryn Corpora, an employee of Fat Hen Grill, owned by Shane Pritchett.
- Fat Hen Grill did not have workers' compensation insurance, and $1,828.35 of the bill remained unpaid.
- Eastern Jefferson filed a 1008 Disputed Claim for Compensation against K & W Diners, LLC d/b/a Fat Hen Grill; service by certified mail to 5708 Citrus Blvd occurred; no answer led to default judgment for $6,728.35, plus penalties and fees.
- K & W Diners, LLC moved to annul the default judgment; the OWC denied the motion, and the case was heard on annulment.
- The court held that service under 23:1310.3(B) was proper, but service was not on the proper party since K&W Diners, LLC did not own or operate Fat Hen Grill and had no mandatary relationship with Fat Hen Grill or Royal Citrus.
- The court concluded the OWC erred in denying the motion to annul and reversed the judgment, ultimately nullifying the default judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether service was proper under 23:1310.3(B) or 1266(A). | East Jefferson urged proper service by certified mail under 23:1310.3(B). | K&W argued service required under 1266(A) to the registered agent; certified mail to Fat Hen Grill name was insufficient. | Service was proper under 23:1310.3(B) but not on the proper party. |
| Whether K&W Diners, LLC was the mandatary or bound by apparent authority with Fat Hen Grill, Royal Citrus, or Mr. Pritchett. | East Jefferson asserted either apparent authority or actual mandate through Pritchett/Royal Citrus. | K&W contends no mandatary relationship existed; Fat Hen Grill and K&W were separate entities. | No mandatary relationship was established; putative mandatary doctrine not applied. |
Key Cases Cited
- Lee v. Winn-Dixie of Louisiana, Inc., 593 So.2d 961 (La.App. 4 Cir. 1992) (service on registered agent vs. certified mail conflict under former statute)
- Losabia v. Cypress Hosp., 619 So.2d 151 (La.App. 3 Cir. 1993) (certified mail service proper under amended statute)
- Andre v. Constr. Material Shop, 633 So.2d 1313 (La.App. 1 Cir. 1994) (prefer more specific statute over general CCP provision for service)
- Haddad v. Elkhateeb, 46 So.3d 244 (La.App. 4 Cir. 2010) (distinction between sole proprietorship and corporate entity in liability)
- Boulos v. Morrison, 503 So.2d 1 (La.1987) (definition and scope of mandatary and authority in agency)
- Tedesco v. Gentry Develop., Inc., 540 So.2d 960 (La.1989) (apparent authority doctrine operates when principal manifests authority)