Virgil Buz" Reid and Elizabeth Guidry v. Valerie Dawn Fall "

STATE OF LOUISIANA
COURT OF APPEAL, THIRD CIRCUIT

21-165

VIRGIL "BUZ" REID AND ELIZABETH GUIDRY

VERSUS

VALERIE DAWN FALL, ET AL.

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APPEAL FROM THE
FIFTEENTH JUDICIAL DISTRICT COURT
PARISH OF LAFAYETTE, NO. 20181104
HONORABLE MARILYN C. CASTLE, DISTRICT JUDGE

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ELIZABETH A. PICKETT
JUDGE

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Court composed of Elizabeth A. Pickett, John E. Conery, and Candyce G. Perret,
Judges.

REVERSED AND REMANDED.

Katherine P. Martin
Gretchen Heider Mayard
Martin Mayard, LLC
P. O. Box 81338
Lafayette, LA 70598-1338
(337) 291-2440
COUNSEL FOR DEFENDANT-APPELLANT:
State Farm Mutual Automobile Insurance Co.

James H. Domengeaux
Domengeaux Wright Roy & Edwards
P. O. Box 3668
Lafayette, LA 70502-3668
(337) 233-3033
COUNSEL FOR PLAINTIFFS-APPELLEES:
Virgil “Buz” Reid
Elizabeth Guidry

Patricia J. Delpit
Johnson, Rahman & Thomas
P. O. Box 98001
Baton Rouge, LA 70898-8001
(225) 231-0899
COUNSEL FOR INTERVENOR-APPELLEE:
Louisiana Workers’ Compensation Corp.

James T. Rivera
Bryan D. Scofield
Jessica W. Marchard
Scofield & Rivera, LLC
P. O. Box 4422
Lafayette, LA 70502
(337) 235-5353
COUNSEL FOR DEFENDANT-APPELLEE:
Imperium Insurance Company

Thomas Richard Temple, Jr.
Druit G. Gremillion, Jr.
Breazeale, Sachse & Wilson, LLP
P. O. Box 3197
Baton Rouge, LA 70821
(225) 387-4000
COUNSEL FOR DEFENDANT-APPELLEE:
McGriff Insurance Services, Inc.

PICKETT, Judge.

State Farm Mutual Automobile Insurance Company appeals a judgment of

the trial court finding an Uninsured/Underinsured Motorist Bodily Injury (UMBI)

Coverage Form (UM waiver) executed by Glenn Stokes on behalf of Mosquito

Control Contractors, Inc. was valid and limited coverage to UMBI economic only

(UEO) damages up to the limits of the automobile insurance policy issued by

Imperium Insurance Company.

FACTS

On June 29, 2017, a Kia Forte driven by Valerie Fall collided with a Ford

Ranger driven by Virgil Reid. Ms. Fall’s vehicle was insured by State Farm. The

vehicle driven by Mr. Reid was owned by his employer, Mosquito Control

Contractors, Inc. Imperium Insurance Company issued two insurance policies to

Mosquito Control on March 17, 2017. The first was an automobile policy with

$1,000,000 limits covering the fleet of vehicles owned by Mosquito Control,

including the Ford Ranger driven by Mr. Reid. The second was a commercial

excess liability policy with $1,000,000 coverage limits.

Mr. Reid and his wife, Elizabeth Guidry, filed a petition for damages naming

Ms. Fall, State Farm, and Imperium as defendants. The petition alleges that Ms.

Fall was charged with operating her vehicle while intoxicated and was at fault for

the collision. It further alleges that Mr. Reid and his wife suffered damages. State

Farm was named as defendant both as the insurer of Ms. Fall and as Mr. Reid’s

UM insurer, based on an automobile liability policy purchased by Mr. Reid

personally. Upon State Farm’s tendering of the policy limits of Ms. Fall’s liability

coverage, the trial court signed an order dismissing Ms. Fall and State Farm as

liability insurer of Ms. Fall from the suit. The plaintiffs, though, specifically

reserved the right to proceed against State Farm for UM coverage afforded by the

insurance policy issued by State Farm to the plaintiffs.

Imperium subsequently filed a third-party demand against the insurance

agency who issued the policy to Mosquito Control, McGriff Regions Insurance,

Inc. The third-party demand alleges that if the UM waiver form electing UEO

damages is held to be invalid, McGriff is liable for the consequences per the

agency agreement between McGriff and Imperium. Louisiana Workers’

Compensation Commission intervened as the workers’ compensation insurer of

Mosquito Control to recover benefits paid to Mr. Reid as a result of his on-the-job

accident.

Following discovery, State Farm filed a Motion for Partial Summary

Judgment alleging that the form executed by Mr. Stokes purporting to select UEO

coverage capped at the policy limits of $1,000,000 did not comply with the law.

Thus, State Farm argued, both the automobile policy and the excess liability policy

issued by Imperium included UM coverage up to $1,000,000 without limitation as

to the type of damages, for a total potential exposure of $2,000,000 for Imperium.

State Farm argued that the waiver did not comply with the Insurance Department’s

requirement that all UM waiver forms include the name of the insurer or their logo

on the face of the form. State Farm further argues that only one UM waiver form

was executed, so that even if it is valid, it cannot serve to waive or alter UM

coverage on both Imperium policies.

McGriff filed an Exception of Peremption alleging the claims against it by

Imperium were untimely. McGriff also filed a Cross-Motion for Summary

Judgment, alleging the UM waiver form executed by Mr. Stokes is valid and

effective to select UEO coverage. Imperium likewise filed a Cross-Motion for

Summary Judgment, adopting the same arguments as McGriff’s summary
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judgment motion. In its memorandum in support of the motion for summary

judgment, Imperium specifically limits its argument to the automobile policy

issued to Mosquito Control.

Following a hearing, the trial court granted the motion for summary

judgment filed by McGriff and Imperium, finding the UM waiver form selecting

UEO coverage valid with respect to the commercial automobile policy. The trial

court denied the motion for summary judgment of State Farm to the extent that is

sought to have that form ruled invalid. The trial court deferred a decision on

whether a UM waiver form was validly executed on the excess liability policy

issued by Imperium. The trial court further sustained the exception of peremption

filed by McGriff. The trial court further found that “there is no just reason for

delay of any review or appeal of the granting of the Cross Motions for Summary

Judgment filed by Imperium Insurance Company and McGriff Insurance Services,

Inc. f/k/a Regions Insurance, Inc., THEREFORE, IT IS FURTHER

ORDERED, ADJUDGED AND DECREED that this judgment is designated as a

final judgment as authorized by La. Code of Civil Procedure Art. 1915.”

State Farm now appeals the judgment of the trial court.

ASSIGNMENTS OF ERROR

State Farm asserts three assignments of error:

1. The Trial Court erred in finding the UM selection form valid
despite the fact:

(1) it violated the Insurance Commissioner’s mandate that a UM form
“must” contain either the individual company name, the group name
or the insurer’s logo; and

(2) it did not contain any way to identify the policy to which it was
intended to apply, despite the fact that there were two Imperium
policies going into effect the following day.

2. The Trial Court erred in finding a UM selection form which
purportedly selected Economic-Only UMBI (UEO) Coverage equal to
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the liability limits ($1,000,000) applied to the Imperium Auto Policy
when:

a. The Auto Declarations page does not reflect the policy provides
UEO benefits;

b. The Auto Declarations page does not reflect the policy provides
UM limits equal to the liability limits;

c. The Auto Declarations page reflects the policy affords $100,000 in
UM coverage;

d. The only form in the Auto policy regarding UM Coverage is
entitled “Louisiana Uninsured Motorists Coverage-Bodily Injury” and
indicates the policy affords UM Bodily Injury coverage and does not
even reference UEO coverage.

3. The trial court erred in failing to hold the Imperium
Commercial policy, for which Imperium has admitted no UM form
was secured, affords UM benefits equal to the $1 million in liability
benefits.

DISCUSSION

Pursuant to La.Code Civ.P. art. 966(A)(2), the summary judgment procedure

is favored and must be construed to accomplish its purpose of “the just, speedy,

and inexpensive determination of every action, except those disallowed by Article

969.” Article 966(A)(3) further provides that the “motion

for summary judgment shall be granted if the motion, memorandum, and

supporting documents show that there is no genuine issue as to material fact and

that the mover is entitled to judgment as a matter of law.” When the issue

presented by the motion for summary judgment is one on which the movant will

bear the burden of proof at trial, the burden of showing that there is no genuine

issue of material fact is on the moving party. La.Code Civ.P. art. 966(D)(1). The

adverse party must then “produce factual support sufficient to establish the

existence of a genuine issue of material fact or that the mover is not entitled to

judgment as a matter of law.” Id. A court of appeal reviews summary judgments

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de novo, using the same standard used by the trial court. Higgins v. La. Farm

Bureau Cas. Ins. Co., 20-1094 (La. 3/24/2021), 315 So.3d 838.

In this case, Imperium bears the burden of proving that Mosquito Control

executed a valid form selecting lower UM limits. Gray v. American Nat’l Prop. &

Cas. Co., 07-1670 (La. 2/26/08), 977 So.2d 839. Every policy of automobile

liability insurance issued in Louisiana includes coverage for uninsured motorist

coverage equal to the policy limits of the liability policy. La.R.S. 22:1295. A

purchaser of insurance may reject UM coverage, choose lower limits of coverage,

or select economic-only coverage. “Such rejection, selection of lower limits, or

selection of economic-only coverage shall be made only on a form prescribed by

the commissioner of insurance. The prescribed form shall be provided by the

insurer and signed by the named insured or his legal representative.” La.R.S.

22:1295(1)(a)(ii). “A properly completed and signed form creates a rebuttable

presumption that the insured knowingly rejected coverage, selected a lower limit,

or selected economic-only coverage.” Id.

In Duncan v. U.S.A.A. Insurance Co., 06-363, p. 11-12 (La. 11/29/06), 950

So.2d 544, 551, the supreme court enumerated six requirements for a UM waiver

form to be validly executed:

Before we determine whether the statute requires that all aspects of
the form be complied with, let us now consider what the prescribed
form entails. Essentially, the prescribed form involves six tasks: (1)
initialing the selection or rejection of coverage chosen; (2) if limits
lower than the policy limits are chosen (available in options 2 and 4),
then filling in the amount of coverage selected for each person and
each accident; (3) printing the name of the named insured or legal
representative; (4) signing the name of the named insured or legal
representative; (5) filling in the policy number; and (6) filling in the
date.

The UM waiver in this case executed by Glenn Stokes, the representative of

Mosquito Control, is challenged by State Farm for two reasons: it fails to include

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the policy number of the underlying policy and it does not include the name or

logo of the insurer. The uncontested facts presented at the summary judgment

proceeding show that the policy number was not available at the time Mr. Stokes

signed the UM waiver. The supreme court has held that if the policy number does

not exist at the time the form was signed, the number is not required on the form

per the Commissioner of Insurance’s regulations. Carter v. State Farm Mut. Auto.

Ins. Co., 07-1294 (La. 10/5/07), 964 So.2d 375.

While the regulations issued by the Commissioner of Insurance in La.

Bulletin LIRC 98-01 required that the insurer’s name appear at the lower left-hand

corner of the form, the supreme court in Duncan did not include the insurer’s name

as one of the six requirements for a validly executed UM waiver. In Gingles v.

Dardenne, 08-2995 (La. 3/13/09), 4 So.3d 799, the supreme court reversed this

court and held that the insurer’s name is not required on a UM waiver form. In so

doing, it held that all “the pertinent designated spaces on the form were filled out.”

Id., at 800. State Farm argues that the Commissioner of Insurance issued new

regulations in LDOI Bulletin No. 08-02, including the promulgation of a new form

which included a blank for the name or logo of the insurance company. On the

form signed by Mr. Stokes, labeled as “Issued per LDOI Bulletin 08-02 08/29/08,”

on the bottom left are two text boxes. In the space previously designated for a

policy number, the box reads:

<Optional Information for Policy Identification Purposes
Only>

Immediately below the first box appears the following:

<Individual Company Name, Group Name, and/or Logo>

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This court recently held in Hart v. Mabou, 21-28 (La.App. 3 Cir. 6/23/21),

___ So.3d ___, that the insurer’s name, logo, or group name must be included on a

UM rejection for the form to be valid. In that case, this court found that the

insured validly rejected UM coverage in an application for a commercial

automobile policy in 2016. This court found that whether the 2019 policy was a

renewal or a new policy, the insurer’s submission of a new UM waiver at that time

for the insured to sign must comply with the LDOI Bulletin 08-02. Because the

UM rejection form signed in 2019 and attached to the policy did not include the

insurer’s name, logo, or group name, the rejection of UM coverage was invalid.

Id., citing Barras v. Cardinal Services, 19-530 (La.App. 3 Cir. 4/1/20), 297 So.3d

877, writ denied, 20-978 (La. 11/4/20), 303 So.3d 631.

State Farm further argues that because two Imperium policies were issued on

the same day, the form is ambiguous since it does not indicate for which policy the

form was issued. At the hearing in the court below, Imperium conceded that one

UM waiver form could not be used to waive or lower UM coverage on two

different policies. State Farm claims, though, that if the form does not indicate

which policy the UM waiver form applied to, it should apply to neither. State

Farm also points out that the declarations page for the Imperium automobile policy

indicates UM coverage with $100,000 limits, the UM waiver form indicates UEO

coverage for the policy limits. Imperium conceded at argument in the court below

that the higher limits would necessarily apply.

“Ambiguous policy provisions are generally construed against the insurer

and in favor of coverage.” Cadwallader v. Allstate Ins. Co., 02-1637, p. 4 (La.

6/27/03), 848 So. 2d 577, 580. While a policy number is not necessary for a UM

waiver to be valid, there must be some indication that the UM waiver is applicable

to a specific policy of insurance. Because the declarations page for the automobile
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policy indicates completely different UM coverage than the UM waiver executed

by Mr. Stokes, we find the UM waiver is necessarily ambiguous because it cannot

be linked to the automobile policy. This ambiguity is compounded by the issuance

of two different insurance policies on the same date.

Therefore, we find the UM waiver did not validly waive UM coverage or

select lower limits of UM coverage or UEO coverage on the Imperium automobile

policy. The judgment of the trial court is reversed, and we hereby grant summary

judgment in favor of State Farm and find there is no valid waiver of UM coverage

on the automobile policy issued by Imperium. Thus, we find the Imperium policy

affords full UM coverage equal to the liability limits of the policy.

Finally, State Farm argues that this court should issue a ruling finding there

is no valid UM waiver associated with the excess liability coverage. This court did

determine that the insurer’s name, logo, or group name is required for a UM

waiver to be valid in Hart, ___ So.3d ___, and Barras, 297 So.3d 877. While the

trial court deferred a ruling on this issue, all parties agreed that a single UM waiver

could not operate to waive UM coverage for two different policies. Thus, the

evidence adduced at the hearing on the cross-motions for summary judgment

clearly indicates that the trial court in effect denied the motion for summary

judgment filed by State Farm, which sought a finding that UM coverage existed for

both the automobile and the excess policies issued by Imperium. Because we find

the UM waiver is invalid entirely, we hereby grant in full the motion for summary

judgment filed by State Farm and find UM coverage to the full policy limits of the

excess policy.

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CONCLUSION

The judgment of the trial court granting summary judgment in favor of

Imperium and finding a valid selection of lower UM coverage is reversed.

Summary judgment is entered in favor of State Farm holding that the UM waiver

form executed by Mr. Stokes is invalid with respect to both the Imperium

automobile policy and excess policy. The case is remanded for further proceedings

consistent with this opinion. Costs of this appeal are taxed against the appellee,

Imperium Insurance Company.

REVERSED, RENDERED, AND REMANDED.

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