Daigle v. Clemco Industries

• Court: Louisiana Supreme Court
• Writing for the Court: DENNIS
• Citation: Daigle v. Clemco Industries, 613 So.2d 619 (La. 1993)
• Decision Date: 11 February 1993
• Docket Number: No. 92-CC-0604,92-CC-0604
• Parties: Barbara DAIGLE, et al. v. CLEMCO INDUSTRIES, et al.

Page 619

613 So.2d 619

Barbara DAIGLE, et al. v. CLEMCO INDUSTRIES, et al.

No. 92-CC-0604.

Supreme Court of Louisiana.

Feb. 11, 1993.

Alfred F. McCaleb, III, Baton Rouge, for applicant.

Craig R. Nelson, Hulse, Nelson & Wanek, New Orleans, Henry E. Yoes, III, Pitre, Yoes, Kay & Halley, Lake Charles, Donald A. Hoffman, Paul J. Politz, Ann Marie LeBlanc, Hoffman, Sutterfield, Ensenat & Bankston, Leonard A. Young, J. Edward Thompson, Bienvenu, Foster, Ryan & O'Bannon, New Orleans, John I. Moore, John Michael Parker, Taylor, Porter, Brooks & Phillips, Baton Rouge, John E. Galloway, Jack E. Chappuis, Jr., Galloway, Johnson, Tompkins & Burr, New Orleans, for respondent.

DENNIS, Justice. ^*

We are called upon to decide whether the spouse and children of a tortiously injured person may, during his lifetime, validly compromise their potential wrongful death claims against the alleged tortfeasor(s). See La.Civ.C. art. 2315.2. This case arises as a sequel to a personal injury suit for damages sustained by an injured worker resulting from long-term industrial exposure to crystalline free silica. As a condition of their agreement to a cash settlement with the injured worker, the defendants required the worker's wife and children to relinquish their prospective rights to damages arising out of the alleged occupational injury, including damages available after the death of the worker under Louisiana's wrongful death statute, La.Civ.C. art. 2315.2. The potential statutory beneficiaries received no direct pecuniary compensation for their releases but instead signed the agreements, as evidenced by the clear language of the documents, to induce the defendants to settle with the injured worker. After the death of the worker, the wife and children instituted the instant action for damages they sustained as a result of the alleged wrongful death of their spouse and father. The defendants raised the peremptory exception of res judicata based on the releases. After considering the matter, the trial judge denied the exceptions. Defendants sought review of that ruling; the appellate court affirmed in part, invalidating releases made on behalf of the victim's minor children without court approval but otherwise concluding that the waiver of a prospective wrongful death claim by enumerated statutory beneficiaries is valid and should be given res judicata effect. 593 So.2d 1282.

We affirm. There is no express constitutional or legislative prohibition against the settlement of a potential wrongful death claim after injury has occurred but before the tort victim's demise. In fact, the Civil Code provides, as a general rule, that future things may be the object of a contract. La.Civ.C. art. 1976. The only future thing excepted from this rule is the succession of a living person. La.Civ.C. arts. 1976, 2454. Furthermore, the compromise of a potential wrongful death claim against a third person based on the past injury of a spouse or parent does not derogate from laws enacted for the protection of the public interest. See La.Civ.C. art. 7. By the same token, the compromise does not produce a result against public policy or public order. La.Civ.C. arts. 1968, 2030. Accordingly, we conclude that the compromise of a prospective wrongful death claim has res judicata effect if there is no error, fraud, duress or undue influence which vitiates the consent of the potential wrongful death beneficiary. Because there is no evidence of a vice of consent under the facts of the instant case, the decisions below are affirmed.

FACT & PROCEDURAL HISTORY

Daniel Daigle, Sr. worked as a sandblaster/painter for six years for various employers. During that time he was exposed to industrial abrasive, including crystalline free silica, which eventually caused his death. During his lifetime, Daigle filed suit for personal injury arising out of this industrial exposure and resulting contraction of pulmonary silicosis. The executive officers of Daigle's employers were named as defendants in the action with the manufacturers of the protective and safety equipment used by him in sandblasting. On May 19, 1988, Mr. Daigle died as a direct result of the silicosis, leaving as survivors a wife (Barbara Daigle) and six children (Donald J. Daigle, Ronald P. Daigle, Sr., Daniel Daigle, Jr., Lynn P. Daigle, Darryl J. Daigle, Sr. and John W. Daigle).

On September 18, 1979, plaintiffs Donald J. Daigle, Donald P. Daigle, Sr., Daniel Daigle, Jr. and Lynn P. Daigle executed a release in favor of the defendants "in order to induce certain defendants and third party defendants in the suit ... to make a compromise settlement with their father, Daniel Daigle in the amount of two hundred thousand ($200,000.00) dollars." The release recited that they were the only surviving major children of Mr. Daigle and provided, in part:

[A]ppearers do hereby ... release all persons, firms, corporations whatsoever from all claims which appearers may have at any time in the future for the alleged wrongful death of Daniel Daigle as a result of or in any way connected with the alleged injuries described in the aforesaid suit [entitled 'Daniel Daigle vs. Liberty Mutual Insurance Company'] including any claims for loss of support or earnings, loss of love and affection, pain and suffering, or any other claim they might or could have ...

On October 11, 1979, Mr. Daigle entered into a full compromise and release of the defendants for two hundred thousand dollars ($200,000.00) and later dismissed his action against the defendants with prejudice. Although she was not a party to the personal injury action, Mrs. Daigle also granted to the defendants a full and complete release of all of her rights, past and future, and those of her minor children at the time, Darryl and Wayne Daigle "... in consideration of the aforementioned payment to Daniel Daigle, Sr." This release similarly provided, in part:

[S]he does hereby release all persons, firms and corporations whatsoever from all claims which she may have now or at any time in the future for the alleged wrongful death of Daniel Daigle as a result of or in any connection to the alleged injuries described in the aforesaid suit, including any claims for loss of support or earnings, loss of love and affection, pain and suffering, or any other claim she might or could have.

Appearer, Barbara Daigle, additionally agrees to hold harmless and indemnify the parties in whose favor this release may be made or brought by any of the children born of her marriage to Daniel Daigle ...

Mr. Daigle was alive but suffering from pulmonary silicosis and its attendant side effects at the time the purported releases and hold harmless agreements were signed. Extensive discovery had been conducted and a medical diagnosis of pulmonary silicosis was made. Although plaintiffs signed the releases with the full benefit of counsel, Mr. Daigle alone received monetary consideration. His wife and children agreed to waive their respect future rights to recovery for damages they sustained or would sustain as a result of Mr. Daigle's occupational injury and eventual death arising therefrom to induce the defendants to settle his personal injury action without the uncertainty of trial on the merits.

Following the death of Mr. Daigle, Barbara Daigle and her children brought suit for damages they sustained as the result of his alleged wrongful death. Defendants raised the peremptory exception of res judicata based on the theory that the releases have, as between the parties, a force equal to the authority of things adjudged. La.Civ.C. art. 3078. Plaintiffs argued that the releases were nevertheless unenforceable because they violate a rule of public interest or order and reach a result against public policy. La.Civ.C. arts. 1968, 2030. The trial court denied the exceptions without giving reasons for judgment. The appellate court affirmed in part, finding that the pre-death releases signed by the wife and major children with benefit of advice and assistance of counsel to be valid and enforceable, but indicated that the settlements signed by the mother on behalf of her minor children were without judicial approval and were, therefore, unenforceable. Lynn Daigle's settlement was also approved despite his claim of lack of contractual capacity at the time the settlement agreement was confected. The Court of Appeal found no record evidence of his minority at the time the agreements were confected. The appellate court also found it significant that the document on its face recited Lynn Daigle's majority.

DISCUSSION

Several general principles concerning the object and matter of contracts set forth by Civil Code articles 1971-1977 are applicable in this case. Parties are free to contract for any object that is lawful, possible, and determined or determinable. La.Civ.C. art. 1971. A contractual object is possible or impossible according to its own nature and not according to the parties' ability to perform. La.Civ.C. art. 1972. Future things may be the object of a contract, except that the succession of a living person may not be the object of a contract other than an antenuptial agreement. Id. arts. 1976, 2454.

None of these principles prohibits the object of the settlement contract in the present case. The future thing that was the subject of the settlement was the prospective wrongful death right of action that the tort victim's spouse and children would acquire in the event that Daniel Daigle, Sr. died as the result of the particular tortious conduct described in the settlement. The succession of Mr. Daigle was not an object of the settlement contract; nor was the succession of any other living person.

The special rules governing the contract of transaction or compromise, La.Civ.C. arts. 3071-3083, do not modify or depart from the general principles concerning the object of contracts. La.Civ.C. arts. 1915, 1916. Several complement the general contracts principles and imply that such...