Cressy v. Huffines Hyundai McKinney, LP

• Decision Date: 22 February 2017
• Docket Number: 16–712
• Parties: Raymond Charles CRESSY, et al. v. HUFFINES HYUNDAI MCKINNEY, LP, et al.
• Court: Court of Appeal of Louisiana — District of US

212 So.3d 683

Raymond Charles CRESSY, et al.
v.
HUFFINES HYUNDAI MCKINNEY, LP, et al.

16–712

Court of Appeal of Louisiana, Third Circuit.

February 22, 2017

Pete Lewis, Sarah Delahoussaye Call, Lewis & Caplan, 3631 Canal Street, New Orleans, Louisiana 70119, (504) 486–7766, Counsel for Plaintiffs/Appellants: Raymond Charles Cressy, Yolanda Cressy

G. Bruce Parkerson, Jessica S. Savoie, Scott H. Mason, Plauché Maselli Parkerson L.L.P., 701 Poydras Street, Suite 3800, New Orleans, Louisiana 70139, (504) 582–1142, Counsel for Defendant/Appellee: Huffines Hyundai McKinney, LP

Gary G. Hebert, Charles S. Smith, McGlinchey Stafford, PLLC, 601 Poydras Street, Floor 12, New Orleans, Louisiana 70130, (504) 586–1200, Counsel for Defendant/Appellee: FCA US LLC (formerly known as "Chrysler Group LLC")

Court composed of Sylvia R. Cooks, Shannon J. Gremillion, and Phyllis M. Keaty, Judges.

KEATY, Judge.

In this case stemming from a one-vehicle automobile accident, the trial court granted summary judgment in favor of

212 So.3d 685

Defendants and dismissed Plaintiff's product liability claims against them based upon a release which Plaintiff, a passenger in the vehicle, had previously entered into with the driver of the vehicle and his liability insurer, who were not named as defendants in this action. Plaintiff appeals. For the following reasons, we affirm.

FACTS AND PROCEDURAL HISTORY

Raymond Charles Cressy was rendered a quadriplegic in a one-vehicle accident (the accident) that occurred in Natchitoches Parish on October 12, 2010. The accident happened when the driver of the 2006 Dodge Durango in which Raymond was a guest passenger lost control of the vehicle when he swerved to avoid a tire in the roadway, causing the vehicle to enter into the median and roll over several times. The vehicle was owned by Raymond's sister, Yolanda Cressy, and was being operated by Raymond's brother, Wayne Cressy. Yolanda had purchased the used vehicle from Huffines Hyundai McKinney, LP, (Huffines) in March of 2010.

On October 11, 2011, Raymond¹ filed the instant petition for damages against Huffines and Chrysler Group, LLC (Chrysler),² the manufacturer of the vehicle, (sometimes hereafter collectively referred to as Defendants), alleging that the vehicle was unreasonably dangerous and seeking damages against them pursuant to the Louisiana Products Liability Act, La.R.S. 9:2800.51 –.60.³ Defendants filed a joint motion for summary judgment (MSJ) on May 20, 2015, asserting that Raymond's claims against them should be dismissed because of a release Raymond entered into on October 19, 2011, through Yolanda acting as his agent-in-fact, whereby he released all "persons, firms or corporation of and from any and every claim" arising from the October 10, 2010 automobile accident. Plaintiffs opposed the MSJ on the basis that Raymond, who died on December 31, 2012, as a result of the injuries he sustained in the accident, only intended to settle his claims against Wayne and Wayne's insurer, GEICO,⁴ when Yolanda signed the release on his behalf. A hearing on the MSJ took place on November 19, 2015, following which the parties were given time to file post-trial briefs. On March 26, 2016, the trial court signed a judgment granting summary judgment in Defendants' favor. Defendants filed a motion for partial new trial seeking to amend the judgment to provide that Plaintiffs' claims against them were dismissed

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with prejudice, as was noted in the reasons for judgment. The trial court granted Defendants' motion to amend and issued a new judgment on June 1, 2016, granting Defendants' motion for summary judgment, dismissing Plaintiffs' claims with prejudice, and certifying the judgment as final and appealable.

Plaintiffs now appeal, alleging that:

The Trial Court erred in finding that the Plaintiffs failed to present substantiating evidence of mistaken intent in signing the Release. In accordance with the evidence presented, Plaintiff, Yolanda Cressy, did not intend to release the Defendants named in the underlying suit, creating a genuine issue of material fact regarding whether the subject claims were compromised. Thus, the trial court erred in granting summary judgment in light of the genuine issue of material fact.

LAW

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." La.Code Civ.P. Art. 966(A)(3). "A genuine issue of material fact is one as to which reasonable persons could disagree; if reasonable persons could reach only one conclusion, there is no need for trial on that issue and summary judgment is appropriate." Smitko v. Gulf S. Shrimp, Inc. , 11-2566, p. 7 (La. 7/2/12), 94 So.3d 750, 755.

The Louisiana Supreme Court has held that "[s]ummary judgment is seldom appropriate for determinations based on subjective facts, such as motive, intent, good faith, knowledge and malice." Smith v. Our Lady of the Lake Hosp., Inc. , 93-2512, p. 28 (La. 7/5/94), 639 So.2d 730, 751. Nevertheless, whether a plaintiff's claims against a certain defendant should be dismissed because of a release entered into by the plaintiff can be resolved in the context of a motion for summary judgment. See , e.g. , Hudson v. Progressive Sec. Ins. Co. , 43,857 (La.App. 2 Cir. 12/10/08), 1 So.3d 627, writ denied , 09-235 (La. 3/27/09), 5 So.3d 148 ; Palmer v. Walker , 09-756 (La.App. 5 Cir. 1/12/10), 31 So.3d 443.

DISCUSSION

The facts are not at issue in this appeal. On December 31, 2010, several months after the accident, Raymond granted Yolanda power of attorney (POA), authorizing her to conduct his affairs. The POA referred to Raymond as "Principal" and Yolanda as "Agent" and gave her the full authority to, among other things:

11) Sue in PRINCIPAL's name and on PRINCIPAL's behalf as well as be sued on behalf of PRINCIPAL, including the right to appear before all courts of law on PRINCIPAL's behalf for all purposes, and further to compromise or refer to arbitration any claims (whether asserted judicially or not) for or against PRINCIPAL, and to make transaction[s] in matters of litigation[.]

On the same date the POA was signed, Yolanda, on behalf of Raymond, signed a Contract of Employment with attorney James C. Lawrence, Jr. (Attorney Lawrence). Ten months later, on October 11, 2011, Raymond, through attorney Pete Lewis (Attorney Lewis), filed the instant petition for damages.

The release that Yolanda signed on Raymond's behalf on October 19, 2011, was notarized by Attorney Lawrence and provided, in pertinent part, as follows (emphasis added):

RELEASE

In Full of All Claims

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Claim #: 0338694670101032

I, Raymond Cressy , Releasor(s), ... being over the age of majority, for and in consideration of checks for the sum of twenty five thousand dollars and 00/100 ($25,000.00) ..., the receipt of which is hereby acknowledged, do for myself/ourselves, my/our heirs, executors, administrators, successors and assigns, hereby remise, release, and forever discharge Wayne Cressy and Government Employees Insurance Company , Releasee(s), successors and assigns, and/or his, her or their associates, heirs, executors and administrators, and all other persons, firms or corporations of and from any and every claim, demand, right or cause of action, of whatever kind or nature, on account of or in any way growing out of any and all personal injuries and consequences thereof, including, but not limited to, all causes of action preserved by the wrongful death statute applicable, any loss of services and consortium, any injuries which may exist but which at this time are unknown and unanticipated and which may develop at some time in the future , all unforeseen developments arising from known injuries, and any and all property damage resulting or to result from an accident that occurred on or about the 12th day of October, 2010 at or near Natchitoches Parish, LA and especially all liability arising out of said accident including, but not limited to, all liability for contribution and/or indemnity.

AS A FURTHER CONSIDERATION FOR THE MAKING OF SAID SETTLEMENT AND PAYMENT, IT IS EXPRESSLY WARRANTED AND AGREED :

(1) That I/we understand fully that this is a final settlement and disposition of the disputes both as to the legal liability for said accident, casualty, or event and as to the nature and extent of the injury, illness, disease and/or damage which I/we have sustained ....

Near the release's signature line, which was signed "Yolanda Cressy P.O.A. Raymond Cressy," was the phrase "THIS IS A RELEASE IN FULL." The release was witnessed by Desiree Singletary who certified that Yolanda signed it in her presence and that Yolanda "acknowledged that he/they understood it fully."

In their MSJ, Defendants argued that "the broad language of the Cressy Release is clear, unambiguous, and enforceable as written" such that no genuine issues of material fact remained and entitling them to summary judgment dismissing Raymond's...