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Smart Summary

Factual and Procedural Background

On October 10, 1995, Roy and Helen Hall filed a personal injury suit against Folger Coffee Company ("Folger") for damages arising from Roy Hall's fall from a platform at Folger's warehouse in New Orleans. A default judgment was entered against Folger on January 24, 1996, and confirmed on July 15, 1996. Folger appealed and separately filed an action to annul the default judgment on grounds of insufficient service of process. The appeal of the default judgment was stayed pending resolution of the nullity action.

On May 1, 1997, Arcadian Truck Lines/T.T.C. Illinois, Inc. ("T.T.C."), the employer of Roy Hall, filed a petition to intervene in the Hall's personal injury suit seeking reimbursement for workers' compensation and medical benefits paid to Hall. T.T.C. also filed an intervention in Folger's suit to nullify the default judgment, asserting entitlement to reimbursement under the Louisiana Workers' Compensation Act for benefits paid due to Hall's injuries. Folger responded by filing exceptions including no right of action, arguing T.T.C.'s claims belonged in the personal injury suit intervention rather than the nullity action. The trial court sustained Folger's exception of no right of action and dismissed T.T.C.'s intervention petition. T.T.C. moved for a new trial, which was denied.

Legal Issues Presented

  1. Whether T.T.C. has a right to intervene in Folger's suit to nullify the default judgment.

Arguments of the Parties

T.T.C.'s Arguments

  • T.T.C. asserted a statutory right to intervene under the Louisiana Workers' Compensation Act to seek reimbursement for workers' compensation and medical benefits paid to Hall.
  • T.T.C. argued its intervention in the nullity action was proper because the outcome of that action would directly affect its reimbursement rights.
  • T.T.C. contended Folger failed to produce evidence showing T.T.C. was not the proper party to assert its interests in upholding the default judgment.

Folger Coffee Company's Arguments

  • Folger argued T.T.C. had no right to intervene in the nullity action because that suit could not grant the monetary relief T.T.C. sought.
  • Folger maintained T.T.C.'s claims should be asserted only in the intervention in the personal injury suit, not in the nullity action.
  • Folger claimed allowing T.T.C. to intervene in the nullity action would prejudice Folger's defense in the underlying tort suit by forcing it to respond to T.T.C.'s allegations.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
In re Medical Review Panel Claim of Dunjee, 97-0451 (La.App. 4 Cir. 5/27/98), 715 So.2d 64 The right to intervene requires a justiciable cause related or connected to the principal demand where a judgment will directly impact the intervenor's rights. The court applied this principle to determine that T.T.C. had a sufficient justiciable cause to intervene in the nullity action because the outcome would affect its reimbursement rights.
La.R.S. 23:1101(D)(1) Permits an employer or insurer to intervene in actions brought by injured employees to recover amounts paid as workers' compensation. The court found this statute granted T.T.C. a statutory right to intervene in Folger's nullity suit.
La.C.C.P. art. 1091 Defines methods by which a third person with an interest may intervene in a pending action related to the object of the action. The court used this procedural rule to confirm that T.T.C.'s intervention was permissible as it had an interest connected to the nullity action.
La.C.C.P. art. 1094 An intervenor cannot object to the form of the action or defects personal to the original parties. The court instructed that T.T.C.'s prayer for damages in the intervention should be disregarded and that the intervention should be read in an historical context to establish the right to intervene.

Court's Reasoning and Analysis

The court analyzed whether T.T.C. had a right to intervene in Folger's nullity action. It recognized that under La.R.S. 23:1101(D)(1), an employer or insurer may intervene in suits brought by injured employees to recover workers' compensation payments. The court examined La.C.C.P. art. 1091, which allows intervention by a third party with an interest connected to the principal demand, provided a justiciable cause exists and the judgment would directly impact the intervenor's rights.

The court determined that T.T.C. had a sufficient justiciable cause to intervene because the outcome of the nullity action—whether the default judgment against Folger is upheld or vacated—would directly affect T.T.C.'s claim for reimbursement. If the default judgment stands, T.T.C. would have a direct claim; if vacated, Folger's reimbursement claim would depend on the resolution of liability and damages in the underlying suit.

The court rejected Folger's argument that intervention would prejudice its defense in the tort suit, noting that the nullity action's sole issue is the validity of the default judgment and not the merits of the underlying tort claim. The court emphasized that T.T.C.'s allegations in the intervention should be considered only in historical context to establish the right to intervene, and its prayer for damages should be disregarded pursuant to La.C.C.P. art. 1094.

Accordingly, the court reversed the trial court's dismissal of T.T.C.'s intervention petition and remanded the matter for further proceedings consistent with this opinion.

Holding and Implications

The trial court judgment sustaining Folger's exception of no right of action and dismissing T.T.C.'s petition to intervene is REVERSED and the case is REMANDED for further proceedings.

The direct effect of this decision is to permit T.T.C. to intervene in Folger's nullity action, recognizing its statutory and procedural right to protect its reimbursement interests. The court did not establish new precedent but clarified the application of existing statutory and procedural rules to the intervention context in a nullity action.

ROY W. HALL AND HELEN HALL v. FOLGER COFFEE COMPANY AND XYZ INSURANCE COMPANY CONSOLIDATED WITH THE FOLGER COFFEE COMPANY

JUDGE MAX N. TOBIAS, JR.

In this action to nullify a default judgment, Arcadian Truck Lines/T.T.C. Illinois, Inc. (hereinafter "T.T.C.") appeals the trial court judgment sustaining the plaintiff's, Folger Coffee Company's ("Folger"), exception of no right of action, which dismissed its petition to intervene. We reverse the judgment of the trial court and remand.

On 10 October 1995, Roy and Helen Hall filed a personal injury action against Folger for damages allegedly sustained by Roy Hall when he fell from a platform at the Folger warehouse in New Orleans. The trial court entered a default against Folger on 24 January 1996, and confirmed the default by judgment on 15 July 1996. Folger appealed and filed this separate action to annul the default judgment based on insufficient service of process. This Court stayed the appeal of the default judgment (No. 96-CA-2146) on 16 January 1997 pending disposition of the nullity action.

On 1 May 1997, T.T.C., Hall's employer, filed a petition to intervene in the Halls's personal injury suit, seeking reimbursement for the amounts it paid to Hall and on his behalf in workers' compensation and medical benefits. Subsequently, T.T.C. filed another intervention in Folger's suit to nullify the default judgment, alleging that it had paid $94,866.00 in workers' compensation benefits and $73,936.04 in medical benefits. Again, T.T.C. claimed that, pursuant to the Louisiana Workers' Compensation Act, it was entitled to reimbursement of the amounts it had paid or was obligated to pay Hall as a result of his injuries if the default judgment in the Halls's favor is upheld. Folger responded, filing exceptions of no right of action, prematurity and vagueness. Folger argued that T.T.C.'s allegations and claims for relief could only be asserted in its intervention in the Halls's personal injury suit. The trial court sustained the exception of no right of action and dismissed T.T.C.'s petition to intervene.

T.T.C. moved for a new trial, arguing that Folger had produced no evidence to show T.T.C. was not the proper party to assert its interests in upholding the default judgment. On 19 October 1999, the trial court denied T.T.C.'s motion for new trial.

The only issue before us is whether T.C.C. has a right to intervene. Folger argues that T.C.C. has no right to intervene in its suit to nullify the default judgment because a judgment in the nullity action cannot grant T.C.C. the monetary relief it has prayed for in its petition.

La.R.S. 23:1101(D)(1) permits an employer or its insurer to intervene in any action brought by its injured employee to recover amounts paid as workers' compensation. La.C.C.P. art. 1091, relevant to intervention, provides:

A third person having an interest therein may intervene in a pending action to enforce a right related to or connected with the object of the pending action against one or more of the parties thereto by:
(1) Joining with plaintiff in demanding the same or similar relief against the defendant;
(2) Uniting with defendant in resisting the plaintiff's demand; or

(3) Opposing both plaintiff and defendant.

The right to intervene requires the existence of a justiciable cause between the parties that is related or connected to the facts of the principal demand where a judgment on the principal demand will have a direct impact on the intervenor's rights. In re Medical Review Panel Claim of Dunjee, 97-0451 (La.App. 4 Cir. 5/27/98), 715 So.2d 64.

We note that the correct spelling of the word for the person who intervenes is "intervenor". We further note that our legislature has chosen to call the person who intervenes the "intervener". La.C.C.P. arts. 1092 and 1094.

Clearly, T.C.C. has a statutory right to intervene in Folger's nullity suit. In the event the default judgment against Folger is upheld, T.C.C. would have a claim for reimbursement for the amounts it paid Hall in workers' compensation and medical benefits. If the default judgment is vacated and the case is remanded for a trial on the merits, Folger's claim for reimbursement would be contingent on the resolution of the issues of liability and damages. Because the outcome of the nullity action certainly will affect Folger's interest, it has a sufficient justiciable cause to intervene.

Folger argues that allowing T.C.C. to intervene in the nullity action would prejudice Folger's defense to the underlying tort suit because Folger would be forced to answer the intervenor's allegations, which also relate to the tort suit. We find this argument without merit. In answering T.C.C.'s intervention to the nullity action, Folger may simply deny the statements that it determines are objectionable. Further, we specifically note that the only issue to be adjudicated in the nullity action is whether the 15 July 1996 judgment is valid. The trial court cannot rule on the Halls's underlying tort claim against Folger because, inter alia, that matter pends in this Court and is the subject of the appeal currently stayed. T.C.C.'s allegations in the petition for intervention must be read only in an historical context to show that it has a right to intervene. Its prayer for damages should be disregarded because an intervenor cannot object to the form of the action or to any defects and informalities personal to the original parties. La.C.C.P. art. 1094.

Accordingly, for the above reasons, the trial court judgment is reversed. The matter is remanded for further proceedings consistent with this opinion.

REVERSED AND REMANDED

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Comments

HALL v. FOLGER COFFEE CO., 2000-0668 (La.App. 4 Cir. 2/7/01)
(Feb 7, 2001)