213 So. 3d 502
La. Ct. App.2017Background
- Phyllis Matthews (Orleans Parish domiciliary) was injured in a Jefferson Parish car accident involving driver Dan Robert, who was driving a truck owned by Doctor Pipe, Inc. (St. Charles domicile; principal place of business in Jefferson Parish).
- Matthews sued Doctor Pipe, United Fire & Casualty (insurer), and Robert in Orleans Parish; defendants filed an exception of improper venue.
- Matthews amended to add Steven Chambers (owner of Doctor Pipe; domiciled in Orleans Parish) and her UM/medical-pay insurer Liberty Mutual.
- Defendants argued Chambers and Liberty were fraudulently joined solely to establish venue in Orleans Parish and that venue therefore was improper; trial court denied the exception, finding defendants failed to prove fraudulent joinder.
- This court denied writs, Louisiana Supreme Court granted writs and remanded for opinion; after briefing and argument the Fourth Circuit affirmed the trial court and denied writs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Chambers was fraudulently joined to establish venue in Orleans Parish | Matthews alleged negligent hiring and negligent supervision by Chambers (owner/agent roles), supporting Orleans venue by his domicile | Defendants said Chambers was joined in bad faith; Canter limits employer liability and plaintiffs cannot meet prima facie burden | Court: Defendants failed to prove fraudulent joinder; on venue review petition allegations are taken as true absent sufficient contrary evidence — venue in Orleans is proper |
| Whether adding UM/medical-pay carrier (Liberty) was bad-faith venue-shopping | Matthews alleged UM/medical-pay claims and alleged damages exceed tortfeasor limits; Liberty could be sued where insured is domiciled | Defendants argued Liberty was added in bad faith because tortfeasor’s $1M policy sufficed and Matthews used a St. Bernard address for insurance | Court: Declined to decide because Chambers’ joinder alone made venue proper; concurrence explained documentary evidence supported Matthews’ Orleans domicile, so venue based on Liberty would also be proper |
Key Cases Cited
- Canter v. Koehring Co., 283 So.2d 716 (La. 1973) (standards for employer liability for employee negligence)
- Roberts v. Benoit, 605 So.2d 1032 (La. 1991) (recognition of negligent hiring/supervision as cognizable torts)
- Peironnet v. Matador Res. Co., 144 So.3d 791 (La. 2013) (discussing statutory changes affecting Canter)
- Sea Tang Fisheries, Inc. v. You’ll See Sea Foods, Inc., 569 So.2d 992 (La. App. 1st Cir. 1990) (venue remains proper despite later factual findings changing party status)
- Gaspard v. Louisiana Farm Bureau Ins. Co., 684 So.2d 55 (La. App. 4 Cir. 1996) (insured may sue UM carrier in parish of insured’s domicile)