Joseph Henderson, Jr. v. State Farm Mutual Automobile Insurance Company, Michael Richard, Steadfast Insurance Company, Lyft, Inc., and Damon Reynolds

JOSEPH HENDERSON, JR. * NO. 2021-C-0654

VERSUS *
COURT OF APPEAL
STATE FARM MUTUAL *
AUTOMOBILE INSURANCE FOURTH CIRCUIT
COMPANY, MICHAEL *
RICHARD, STEADFAST STATE OF LOUISIANA
INSURANCE COMPANY, *******
LYFT, INC., AND DAMON
REYNOLDS

APPLICATION FOR WRITS DIRECTED TO
CIVIL DISTRICT COURT, ORLEANS PARISH
NO. 2017-11345, DIVISION “J”
Honorable D. Nicole Sheppard,
******
Judge Paula A. Brown
******
(Court composed of Judge Edwin A. Lombard, Judge Daniel L. Dysart, Judge
Paula A. Brown)

Peter R. Brigandi, Jr.
Kyle M. Green, Jr.
THE BRIGANDI LAW FIRM, LLC
1630 Franklin Avenue
Gretna, Louisiana 70053

Sherona Graham Alexis
FREDERICK A. MILLER & ASSOCIATES
1700 Lakeway II
3850 Causeway Blvd.
Metairie, Louisiana 70002

Karen M. Dicke
LEWIS, BRISBOIS, BISGAARD & SMITH, LLC
400 Poydras Street
Suite 1300
New Orleans, Louisiana 70130

COUNSEL FOR PLAINTIFF/RESPONDENT

Wade A. Langlois, III
Kaylyn E. Blosser
David J. Patin, Jr.
GAUDRY, RANSON, HIGGINS & GREMILLION, L.L.C.
401 Whitney Avenue,
Suite 500
Gretna, Louisiana I 0056

COUNSEL FOR DEFENDANT/RELATOR

WRIT GRANTED,
JUDGMENT REVERSED;
REMANDED WITH
INSTRUCTIONS
December 17, 2021

PAB
EAL
DLD

Relator, Steadfast Insurance Company (“Steadfast”), seeks review of the

district court’s October 1, 2021 judgment, which overruled Steadfast’s exception

of no cause of action. Steadfast’s writ is granted, the judgment of the district court

is reversed, and the matter is remanded for further proceedings consistent with this

writ opinion.

FACTUAL AND PROCEDURAL HISTORY

Respondent, Joseph Henderson, Jr., filed a petition for damages for injuries

allegedly sustained in an automobile accident, which occurred on June 11, 2017.

Mr. Henderson alleged that at the time of the accident he was a passenger in a

vehicle operated by Damon Reynolds—who was in the course and scope of his

employment as a Lyft driver—which was struck by a vehicle driven by an

unknown driver. Steadfast, provided automobile liability insurance to Mr.

Reynold’s through Lyft, Inc. In his original petition for damages, Mr. Henderson

alleged:

Defendant, STEADFAST INSURANCE COMPANY AND/OR
UNIDENTIFIED INSURANCE COMPANY DEF, is directly liable
under the direct action statute and is liable by law and by contract and
is liable by virtue of the issuance of a policy or policies of insurance,
including but not limited to insurance covering DAMON

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REYNOLDS AND/OR LYFT, INC. AND/OR MICHAEL RICHARD
AND/OR JOSEPH HENDERSON, JR. AND/OR UNIDENTIFIED
DRIVER ABC AND/OR UNIDENTIFIED VEHICLE OWNER DEF
AND/OR UNIDENTIFIED VEHICLE DRIVER XYZ, making said
insurer liable for all risks complained of herein and making it liable to
petitioner(s) by virtue of applicable coverage.

Following, Mr. Henderson filed a supplemental and amending petition,

seeking uninsured/underinsured motorist benefits from Steadfast that stemmed

from the liability of the unidentified driver in the accident. Mr. Henderson further

asserted that Steadfast was liable for statutory penalties, attorney fees and costs

under La. R.S. 22:18921 and La. R.S. 22:19732. Specifically, Mr. Henderson, in

his supplemental and amending petition, asserts:

1
La. R.S. 22:658 was re-codified as La. R.S. 22:1892, by Acts 2008, No. 415. La. R.S. 22:1892,
which provides in pertinent part:

A. (1) All insurers issuing any type of contract, other than those specified
in R.S. 22:1811, 1821, and Chapter 10 of Title 23 of the Louisiana Revised
Statutes of 1950, shall pay the amount of any claim due any insured within thirty
days after receipt of satisfactory proofs of loss from the insured or any party in
interest. The insurer shall notify the insurance producer of record of all such
payments for property damage claims made in accordance with this Paragraph.

***

B. (1)(a) Except as provided in Subparagraph (b) of this Paragraph, failure
to make such payment within thirty days after receipt of such satisfactory written
proofs and demand therefor or failure to make a written offer to settle any
property damage claim, including a third-party claim, within thirty days after
receipt of satisfactory proofs of loss of that claim, as provided in Paragraphs
(A)(1) and (4) of this Section, respectively, or failure to make such payment
within thirty days after written agreement or settlement as provided in Paragraph
(A)(2) of this Section when such failure is found to be arbitrary, capricious, or
without probable cause, shall subject the insurer to a penalty . . . as well as
reasonable attorney fees and costs.
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La. R.S. 22:1220 was re-codified as La. R.S. 22:1973 by Acts 2008, No. 415. La. R.S. 22:
1973, which provides in pertinent part:

A. An insurer, including but not limited to a foreign line and surplus line
insurer, owes to his insured a duty of good faith and fair dealing. The insurer has
an affirmative duty to adjust claims fairly and promptly and to make a reasonable
effort to settle claims with the insured or the claimant, or both. Any insurer who
breaches these duties shall be liable for any damages sustained as a result of the
breach.

2

NOW comes plaintiff, JOSEPH HENDERSON, who
respectfully represents that plaintiff seeks leave to amend his Petition
for Damages to aver that his uninsured/underinsured motorist carrier,
STEADFAST INSURANCE COMPANY, has refused to deal with
him in good faith, including, but not limited to, refusing to issue
unconditional (McDill) tenders and taking actions in violation of La.
R.S. 22:1892 and La. R.S. 22:1973. Thus, the first supplemental and
amending petition of Joseph Henderson seeks to amend the Petition
for Damages as follows, and to add the following numbered
paragraphs to the Petition for Damages. Plaintiff avers:

***

19.
Petitioner further avers that defendant, STEADFAST
INSURANCE COMPANY, has acted in bad faith for, but not limited
to, the reasons set forth herein and as an insurer has acted contrary to
La. R.S. 22:1892 and La. R.S. 22:1973. Defendant has arbitrarily,
capriciously and without probable cause failed to pay all monies due
pursuant to the applicable policy of insurance and/or pay all
unconditional (McDill) tenders within the applicable time periods.
Further, it is averred STEADFAST INSURANCE COMPANY has
misrepresented pertinent facts or insurance policy provisions relating
to coverages at issue.

20.

B. Any one of the following acts, if knowingly committed or performed by
an insurer, constitutes a breach of the insurer's duties imposed in Subsection A of
this Section:
(1) Misrepresenting pertinent facts or insurance policy provisions relating to any
coverages at issue.
(2) Failing to pay a settlement within thirty days after an agreement is reduced to
writing.
(3) Denying coverage or attempting to settle a claim on the basis of an application
which the insurer knows was altered without notice to, or knowledge or consent
of, the insured.
(4) Misleading a claimant as to the applicable prescriptive period.
(5) Failing to pay the amount of any claim due any person insured by the contract
within sixty days after receipt of satisfactory proof of loss from the claimant when
such failure is arbitrary, capricious, or without probable cause.
(6) Failing to pay claims pursuant to R.S. 22:1893 when such failure is arbitrary,
capricious, or without probable cause.
C. In addition to any general or special damages to which a claimant is
entitled for breach of the imposed duty, the claimant may be awarded penalties
assessed against the insurer in an amount not to exceed two times the damages
sustained or five thousand dollars, whichever is greater. Such penalties, if
awarded, shall not be used by the insurer in computing either past or prospective
loss experience for the purpose of setting rates or making rate filings.

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Petitioner further avers that pursuant to Louisiana Revised
Statute 22:1892 and 22:1973 et seq., petitioners are entitled to
penalties, attorneys’ fees and costs.
Steadfast filed an exception of no cause of action, alleging that Mr.

Henderson’s petition and supplemental and amending petition did not state a cause

of action under La. R.S. 22:1892 and La. R.S. 22:1973. Mr. Henderson opposed

the exception and attached exhibits thereto which Steadfast objected. After a

hearing, the district court overruled the exception, but did not rule on Steadfast’s

objection to the documents attached to Mr. Henderson’s opposition. This timely

writ application followed.

DISCUSSION

Steadfast argues that the district court erred in denying the exception of no

cause of action.3 Steadfast asserts that the allegations raised in Mr. Henderson’s

supplemental and amending petition are merely legal conclusions, which are

insufficient to state a cause of action.

A peremptory exception of no cause of action under La. C.C.P. art. 927 A(5)

questions whether the law extends a remedy against a defendant to anyone under

the factual allegations of a petition. Mid-S. Plumbing, LLC v. Dev. Consortium-

Shelly Arms, LLC, 12-1731, p. 4 (La. App. 4 Cir. 10/23/13), 126 So.3d 732, 736.

That is, “[a]n exception of no cause of action tests ‘the legal sufficiency of the

petition by determining whether the law affords a remedy on the facts alleged in

the pleading.’” Green v. Garcia-Victor, 17-0695, p. 4 (La. App. 4 Cir. 5/16/18),

248 So.3d 449, 453 (quoting Moreno v. Entergy Corp., 10-2281, p. 3 (La. 2/18/11),

62 So.3d 704, 706). Appellate courts review rulings on exceptions of no cause of

3
Steadfast also assigns as an error the district court failure to sustain its objection to the
inclusion of evidence on an exception of no cause of action. Having found the district court erred
in granting the exception of no cause of action, we pretermit discussion of this assigned error.

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action using the de novo standard of review because exceptions of no cause of

action present legal questions. Tickle v. Ballay, 18-0408, p. 4 (La. App. 4 Cir.

11/14/18), 259 So.3d 435, 438.

In Green, this Court recognized the well-settled jurisprudence on reviewing

exceptions of no cause of action.

In deciding an exception of no cause of action a court can consider
only the petition, any amendments to the petition, and any documents
attached to the petition.” 2400 Canal, LLC [v. Bd. of Sup’rs of Louisiana
State Univ. Agr. & Mech. Coll.], 12-0220, p. 7 [ (La. App. 4 Cir. 11/7/12) ],
105 So.3d [819,] 825.... “The grant of the exception of no cause of action is
proper when, assuming all well pleaded factual allegations of the petition
and any annexed documents are true, the plaintiff is not entitled to the relief
he seeks as a matter of law.” Id. Further, “any doubt must be resolved in the
plaintiffs’ favor.” Id.

17-0695, p. 5, 248 So.3d at 453.

La. C.C.P. art. 891 provides that a petition “shall contain a short, clear, and

concise statement of all causes of action arising out of, and of the material facts of,

the transaction or occurrence that is the subject matter of the litigation.” “In order

to plead ‘material facts’ within Louisiana’s fact-pleading system, the pleader must

‘state what act or omission he or she will establish at trial, such as the fact the

defendant failed to deliver goods by a designated date, exceeded the speed limit, or

failed to pay workers’ compensation benefits although the evidence in his or her

possession clearly established a compensable injury and disability.’” Udomeh v.

Joseph, 11-2839, p. 10 (La. 10/26/12), 103 So.3d 343, 349 (quoting Greemon v.

City of Bossier City, 10-2828, 11-0039, pp. 8-9 (La. 7/1/11), 65 So.3d 1263, 1268-

1269) (citation omitted).

Legal conclusions asserted as facts are not considered well-pled factual

allegations for purposes of an exception of no cause of action. First Natchez Bank

v. Malarcher-Damare Co., 135 La. 295, 65 So. 270, 271 (1914); Kyle v. Civil

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Service Comm’n., 588 So.2d 1154, 1159 (La. App. 1st Cir. 1991). A court may not

consider legal conclusions “clothed as fact.” Hooks v. Treasurer, 06-0541, p. 10

(La. App. 1 Cir. 5/4/07), 961 So.2d 425, 431-32. Simply stated, courts “are not

compelled to accept a party's legal conclusions as facts.” Hooks, 06-0541 at p. 10,

961 So.2d at 432. “If the pleader alleges [legal] conclusions and not material facts

(such as a petition in a negligence action which alleges only that the defendant

failed to use “due care”), the pleader has failed to state a cause of action.” 1 Frank

L. Maraist and Harry T. Lemmon, Louisiana Civil Law Treatise: Civil Procedure §

6:7 (2d ed.2012) (citing Johnson v. Edmonston, 383 So.2d 1277 (La. App. 1st Cir.

1980)); see Walton Const. Co. v. G.M. Horne & Co., 07-0145, p. 6 (La. App. 1 Cir.

2/20/08), 984 So.2d 827, 832; see also Charia v. Hulse, 619 So.2d 1099, 1102 (La.

App. 4th Cir. 1993).

Turning to the case sub judice, after review of the record, particularly Mr.

Henderson’s supplemental and amending petition, we conclude the supplemental

and amending petition does not provide any factual basis for his conclusions that

Steadfast is liable for statutory penalties, attorney’s fees and costs under La. R.S.

22:1892 and La. R.S. 22:1973; instead, the supporting petition for damages makes

conclusory statements regarding Steadfast’s alleged bad faith dealings. Mr.

Henderson, in support of his allegation of bad faith against Steadfast, attached

documents, emails and correspondence between the parties’ counsel to his

opposition memorandum. As previously noted, a court can consider only the

petition, any amendments to the petition, and any documents attached to the

petition. Green, 17-0695, p. 5, 248 So.3d at 453. Thus, the district court erred in

overruling Steadfast’s exception of no cause of action.

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Accordingly, we reverse the district court’s judgment overruling the

exception of no cause of action and find that Mr. Henderson failed to state a cause

of action for statutory penalties, attorney fees and costs under La. R.S. 22:1892 and

La. R.S. 22:1973. Nonetheless, La. C.C.P. art. 934 authorizes a district court to

allow a plaintiff to amend his petition when it fails to state a cause of action and

the grounds for the objection can be removed by amendment. See Ocwen Loan

Servicing, LLC v. Porter, 2018-0187, p. 9 (La. App. 4 Cir. 5/23/18), 248 So.3d

491, 498 (explaining that “when a plaintiff's petition fails to state a cause of action

the plaintiff is entitled to an opportunity to remove the grounds for the exception

by amending its petition.”). We, therefore, remand this matter back to the district

court to allow Mr. Henderson to supplement and amend his petition with sufficient

facts to support his allegations of bad faith.

CONCLUSION

For these reasons set forth above, we grant Steadfast’s writ, reverse the

district court’s judgment overruling the exception of no cause of action, and

remand the matter back to the district court for further proceedings consistent with

this writ opinion.

WRIT GRANTED,
JUDGMENT REVERSED;
REMANDED WITH
INSTRUCTIONS

7