Jones v. Capitol Enterprises, Inc.
89 So. 3d 474
La. Ct. App.2012Background
- This is a Louisiana class action arising from sandblasting and painting an adjacent water tower near a residential area in Algiers, New Orleans.
- Plaintiffs sued Capitol Enterprises (the contractor) and the Sewerage & Water Board (the water tower’s owner) for damages caused by emissions and nuisance from the project.
- The parties settled with Capitol, the S&W Board, and primary insurers; FFIC remained as excess insurer and was tried on coverage and damages issues.
- The trial court concluded FFIC provided excess coverage and credited $3,889,623.90 against damages, while seven named class representatives were awarded $20,000 each.
- The court later denied class-wide damages, upheld the seven $20,000 awards, and found FFIC liable in solido with Capitol and the S&W Board for those damages.
- The appellate court upheld the judgment on liability, the coverage issues, and the damages awards.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| S&W’s status as an additional insured scope | S&W was an additional insured for Capitol’s operations and its own negligence. | FFIC argues coverage is limited to vicarious liability for the named insured, not S&W’s own fault. | Adopted broad construction; S&W covered for its own negligence as an additional insured. |
| FFIC credit amount | Credit should reflect primary policy limits; the aggregate/credit allocation should be reconsidered. | Credit calculation should align with the policy terms and prior proceedings; the issue was not properly raised for appeal. | Court declined to reduce FFIC’s credit on appeal due to procedural posture (not raised below; final ruling preserved). |
| Class decertification | Decertification is inappropriate where class action is proper and would unfairly prejudice members if decertified. | Partial settlement and FFIC’s credit create conflicts; decertification should be considered for fairness and manageability. | Class certification not decertified; no reversible error; proceeding as a class action retained. |
| Quantum of damages to named class representatives | $20,000 each appropriately compensates for four categories of damages over the nuisance period. | Awards for minor, transient injuries are excessive and should be reduced; class-wide damages already narrowed. | No abuse of discretion; lump-sum awards for seven named plaintiffs affirmed. |
Key Cases Cited
- Gasquet v. Commercial Union Ins. Co., 391 So.2d 466 (La.App. 4th Cir. 1980) (credit rule for excess insurer aligns with underlying primary policy limits)
- Miller v. Superior Shipyard and Fabrication, Inc., 859 So.2d 159 (La.App. 1 Cir. 2003) (additional insured coverage may extend to the insured’s own fault under broad endorsement)
- Holzenthal v. Sewerage & Water Bd. of New Orleans, 950 So.2d 55 (La.App. 4 Cir. 2007) (not all add'l insured endorsements cover additional insureds for own negligence)
- Doerr v. Mobil Oil Corp., 935 So.2d 231 (La.App. 4 Cir. 2006) (class-action framework; due process and efficiency of certification)