115 So. 3d 27
La. Ct. App.2013Background
- Hurricane Katrina damaged plaintiffs' property in 2005; plaintiffs sue Citizens in 2010 for breach of contract and bad faith.
- Citizens filed prescription exceptions, hearing held December 20, 2011; no testimony or evidence presented.
- Trial judge ruled in Citizens' favor, finding claims prescribed; reasons issued February 6, 2012.
- Plaintiffs contend claims were tolled by being putative class members in eight class actions.
- Court remands to allow plaintiffs to amend or supplement petitions to show non-prescription if possible.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court misapplied prescription burden | Williams/Holmes contend petition facially non-prescribed; class actions tolling applies | Citizens argues petition on its face prescribes; no tolling alleged | No error; prescription sustained; remand allowed to amend |
| Whether class-action tolling under Art. 596 suspended prescription | Petitions alleged being named in class actions tolls prescription | No allegations of membership or defined/timely class; no tolling | Prescriptions not suspended; petitions prescribed on their face |
| Whether filing an individual suit forfeits class-action suspension | Individual suit may preserve suspension by opt-out or related filing | Filing independent suit does not automatically forfeit suspension | Court indicates no meaningful evidence; remand to allow amend |
Key Cases Cited
- Taranto v. Louisiana Citizens Property Ins. Corp., 62 So.3d 721 (La. 3rd Cir. 2011) (manifest-error standard at prescription hearings)
- Lima v. Schmidt, 595 So.2d 624 (La.1992) (prescription interruption analysis)
- Harris v. Louisiana Citizens Property Insurance Corp., 106 So.3d 207 (La.App. 5th Cir. 2012) (prescription tolling in class-action context)
- Cichirillo v. Avondale Industries, Inc., 917 So.2d 424 (La.2005) (prescription burden shifting on face of petition)
- Bailey v. Khoury, 891 So.2d 1268 (La.2005) (strict construction against prescription in analog contexts)
- Harney v. Louisiana Citizens Property Insurance Corp., 106 So.3d 193 (La.App. 5th Cir. 2012) (affirms class-action tolling principles)