Havard v. Jeanlouis

• Citation: 345 So.3d 1005
• Decision Date: 29 June 2022
• Docket Number: 2021-C-00810
• Parties: Johnny Carval HAVARD v. Ricky JEANLOUIS, et al.
• Court: Louisiana Supreme Court

345 So.3d 1005

Johnny Carval HAVARD
v.
Ricky JEANLOUIS, et al.

No. 2021-C-00810

Supreme Court of Louisiana.

June 29, 2022

Guy Dugue Perrier, Jean Emile Lavidalie, Jr., New Orleans, for Applicant - Defendant.

Floyd Anthony Buras, III, Baton Rouge, Brenton Israel Mims, Lafayette, David Philip Kobetz, Philip Collins Kobetz, Lafayette, for Respondent.

AFFIRMED. SEE OPINION.

Weimer, C.J., dissents and assigns reasons.

Crain, J., dissents in part and assigns reasons.

McCallum, J., dissents and assigns reasons.

GRIFFIN, J.

We granted this writ to determine whether a stamped signature on an uninsured/underinsured motorist ("UM") coverage rejection form, affixed by the administrative assistant of the corporate insured's owner and president, complies with the statutory requirement that the UM form be signed by the named insured or his legal representative. Because the stamped signature was affixed on behalf of the legal representative and not by the legal representative himself, we agree with the court of appeal that the lack of prior written authorization to the administrative assistant renders the UM form invalid.

FACTS AND PROCEDURAL HISTORY

This dispute over UM coverage arises from a motor vehicle accident between Johnny Carval Havard and Ricky Jeanlouis. The tow truck driven by Mr. Havard was owned by his employer, Rick's Towing & Recovery Service, Inc. ("Rick's Towing"). Mr. Havard filed suit against several parties including State National Insurance Company ("State National") in its capacity as UM coverage provider for Rick's Towing. The UM form in the State National policy was signed with a stamped signature bearing the name of Richard C. Baker, the owner and president of Rick's Towing.

State National filed a motion for summary judgment arguing that UM coverage was waived because Rick's Towing properly completed and signed a UM form wherein the option for rejecting coverage was initialed. In addition to the UM form, State National submitted the affidavits of Mr. Baker and Vickie d'Augereaux, Mr. Baker's administrative assistant. Both attested that Mr. Baker authorized Ms. d'Augereaux to stamp sign his signature and initial the UM form to reject coverage. Mr. Havard opposed, arguing the stamped signature did not constitute a valid signature or, alternatively, that Ms. d'Augereaux lacked written authority to affix Mr. Baker's stamped signature to the UM form on his behalf. The trial court granted State National's motion for summary judgment and dismissed Mr. Havard's claims against it with prejudice. Mr. Havard appealed.

The court of appeal reversed. Relying on

345 So.3d 1007

Holloway v. Shelter Mut. Ins. Co., 03-0896 (La.App. 3 Cir. 12/10/03), 861 So.2d 763, it found that because La. R.S. 22:1295 requires waiver of UM coverage must be in writing, written authorization is required under La. C.C. art. 2993 for another individual to waive coverage on behalf of a corporate insured's legal representative. Havard v. Jeanlouis , 20-0404, pp. 13-15 (La.App. 3 Cir. 5/12/21), 320 So.3d 1186, 1193-94.

State National's writ application to this Court followed, which we granted. Havard v. Jeanlouis, 21-0810 (La. 10/19/21), 326 So.3d 1223.

DISCUSSION

The issue before this Court is whether UM coverage was validly rejected by Rick's Towing. In Louisiana, "UM coverage is determined not only by contractual provisions, but also by applicable statutes." Duncan v. U.S.A.A. Ins. Co., 06-0363, p. 4 (La 11/29/06), 950 So.2d 544, 547. Thus, whether coverage exists turns on the interpretation of the policy and UM statute. Statutory interpretation is a question of law subject to de novo review. Benjamin v. Zeichner , 12-1763, p. 5 (La. 4/5/13), 113 So.3d 197, 201.

"No automobile liability insurance [policy] ... shall be delivered or issued in ... [Louisiana] unless [UM] coverage is provided." La. R.S. 22:1295(1)(a)(i). However, UM coverage is not required if "any insured named in the policy either rejects coverage, selects lower limits, or selects economic-only coverage, in the manner provided in [ La. R.S. 22:1295(1)(a)(ii) ]." Id . "Such rejection ... shall be made on a form prescribed by the commissioner of insurance" that is "provided by the insurer and signed by the named insured or his legal representative." La. R.S. 22:1295(1)(a)(ii). Accordingly, "the requirement of UM coverage is an implied amendment to any automobile liability policy ... as UM coverage will be read into the policy unless validly rejected." Duncan , 06-0363, p. 4, 950 So.2d at 547.

A stamped signature may be used to sign a UM form. See Rainey v. Entergy Gulf States, Inc. , 09-0572, pp. 15-16 (La. 3/16/10), 35 So.3d 215, 225-26 (observing that, in the absence of a specific statutory requirement, a signature may be "written by hand, printed, stamped, typewritten, engraved, or [accomplished] by various other means"); 5 LA. CIV. L. TREATISE, LAW OF OBLIGATIONS § 12.28 (2d ed.). The issue before this Court therefore turns not on the method of signing a UM form, but the authority of the individual who affixes the signature.

A corporate insured cannot sign its own name on a UM form and must act through its legal representative. Harper v. Direct General Ins. Co. , 08-2874, p. 3 (La. 2/13/09), 2 So.3d 418, 420 (per curiam); Kevin Associates, L.L.C. v. Crawford , 03-0211, p. 11 (La. 1/30/04), 865 So.2d 34, 41. The legal representative does not need prior written authority to sign on behalf of the corporate insured – such authority may be verbal and subsequently established by affidavit. See, e.g., Harper , supra ; Bergeron v. Liberty Mutual Ins. Co. , 12-0086, pp. 4-5 (La.App. 3 Cir. 6/6/12), 92 So.3d 645, 648-49 ; Terrell v. Fontenot , 11-1472, pp. 6-7 (La.App. 4 Cir. 6/27/12), 96 So.3d 658, 662-63.

The authority to represent another person may be conferred by law, contract, or procuration. See La. C.C. arts. 2985, 2986, and 2987. "A mandate is a contract by which a person, the principal, confers authority on another person, a mandatary, to transact one or more affairs for the principal." La. C.C. 2989. Although a mandate is not required to be in a certain form, "when the law prescribes a certain form for an act, a mandate authorizing the

345 So.3d 1008

act must be in that form." La. C.C. art. 2993 ; see also La. C.C. art. 2988 (procuration subject to the rules governing mandate to the extent they are compatible). Accordingly, where one individual signs a UM form on behalf of another individual and authority is not conferred by law, our Civil Code requires this authority be in writing. Holloway , 03-0896, p. 7, 861 So.2d at 768.

State National argues there was a valid rejection of UM coverage because Ms. d'Augereaux is the legal representative of Rick's Towing and executed the UM form on its behalf. See, e.g., Harper , supra ; Bergeron v. Liberty Mutual Ins. Co. , 12-0086, pp. 4-5 (La.App. 3 Cir. 6/6/12), 92 So.3d 645, 648-49 ; Terrell v. Fontenot , 11-1472, pp. 6-7 (La.App. 4 Cir. 6/27/12), 96 So.3d 658, 662-63. Mr. Havard counters that Holloway and La. C.C. art. 2993 applies in light of two facts established by the affidavits submitted in evidence: 1) Mr. Baker is the legal representative of Rick's Towing; and 2) Ms. d'Augereaux affixed Mr. Baker's stamped signature on the UM form rather than sign her own name. Mr. Havard thus asserts the cases relied upon by State National are factually distinguishable. We agree.

The affidavit testimony establishes that Mr. Baker, not Ms. d'Augereaux, is the legal representative of Rick's Towing. Specifically, Mr. Baker attested that he "make[s] the final determination as to what insurance coverage to get for Rick's Towing" and that he "made the decision to reject UMBI Coverage under the Policy issued by [State National] to Rick's Towing." Mr. Baker authorized Ms. d'Augereaux, to stamp sign his signature on the UM form. Ms. d'Augereaux attested that Mr. Baker "asked [her] to fill out" the UM form and that she "stamp-signed...