Johnson v. First Nat. Bank of Shreveport, 2000-870.
| Decision Date | 20 June 2001 |
| Docket Number | No. 2000-870.,2000-870. |
| Parties | Benton JOHNSON v. FIRST NATIONAL BANK OF SHREVEPORT, et al. |
| Court | Court of Appeal of Louisiana — District of US |
Mr. Stephen 0' Brien Scandurro, Mr. Dewey M. Scandurro, Scandurro & Layrisson, L.L.C., New Orleans, LA, Counsel for Benton Johnson, Appellee.
Mr. Bernard Slattery Johnson, Cook, Yancey, King & Galloway, Shreveport, LA, Counsel for Aetna Casualty & Surety Co., Appellant, Counsel for Standard Fire Insurance Company, Appellant.
Mr. Samuel Maurice Hicks, Jr., Lydia M. Rhodes, Hicks, Hubley & Marcotte, Shreveport, LA, Counsel for Fidelity & Guaranty Underwriters, Appellant.
Ms. Deborah Shea Baukman, Mayer, Smith & Roberts, Shreveport, LA, Counsel for Saint Paul Insurance Company, Appellant.
Mr. Harry D. Simmons, Bodenheimer, Jones, Klotz and Simmons, Shreveport, LA, Counsel for North Rivers Insurance Company, Appellee.
Mr. Ronald Everett Raney, Lunn, Irion, Johnson & Salley, Shreveport, LA, Counsel for Fidelity & Casualty Company, Appellant, Counsel for Phoenix Assurance Company, Appellant.
Mr. David B. Means, III, Plummer & Means, Mansfield, LA, Counsel for Mr. Dwight Young, Appellee, Counsel for Ms. Gloria Young, Appellee.
Ms. Mary Olive Pierson, Cooper & Pierson, Baton Rouge, LA, Counsel for Mr. Benton Johnson, Appellee, Counsel for Mr. Dwight Young, Appellee (in cons. case), Counsel for Ms. Gloria Young, Appellee (in cons. case).
Court composed of SYLVIA R. COOKS, JOHN D. SAUNDERS, and BILLIE COLOMBARO WOODARD, Judges.
The trial court awarded Benton Johnson $784,000.00 in general damages. On appeal we reduce that award to $150,000.00, and we remand to the trial court for further proceedings consistent with this opinion.
Jess Loyd worked for the First National Bank of Shreveport for more than 35 years. Of those years, he spent 20 as vice-president in charge of agricultural lending. Mr. Loyd developed a reputation both in and outside of the bank as a person who was held in high esteem by his co-workers, superiors, and the agricultural community in North Louisiana. Publicly, he was perceived to be highly knowledgeable in all matters regarding the cattle business, especially the financing of the cattle business. Mr. Loyd was viewed as a powerful and influential man. People in the community considered it an honor to be a customer of Mr. Loyd and First National Bank of Shreveport.
Privately, Mr. Loyd engaged in making false representations to the bank's customers. Mr. Loyd asserted that he had superior knowledge and expertise in cattle farming. Mr. Loyd represented to his customers that the bank required they follow his advice and direction in order to remain customers of the bank. He also engaged in extensive self-dealing at the expense of the bank's customers.
Gradually, Mr. Loyd began to direct and control the businesses of the bank customers. To achieve his personal goals, he developed extremely close and personal relationships of friendship and trust with these customers. Mr. Loyd developed such a relationship with Mr. Benton Johnson. Mr. Johnson considered Mr. Loyd to be family." Mr. Johnson trusted Mr. Loyd, did not doubt his advice, and looked to him for his superior knowledge.
Mr. Loyd encouraged his customers, such as Mr. Johnson, to continue following his advice, even after losing years, by loaning more money to cover previous losses. After a loss, Mr. Johnson testified that Mr. Loyd would say, After his customers became deeply indebted to the bank, it became apparent, even without Mr. Loyd saying so, that he was extremely powerful and was in a position to discontinue credit to his customers if they failed to follow his advice. Once heavily indebted, his customers did not have the option of changing banks. In October 1986, Mr. Loyd quietly retired, but remained with the bank as a contract consultant.
In April 1987, Mack James, a bank customer, confronted the bank with information he had learned about Mr. Loyd's misconduct. Although the bank did not acknowledge or believe the allegations, the bank contacted Mr. Loyd. A few days later, Mr. Loyd admitted that he had "profiteered" off of his customers and had committed various crimes. Mr. Loyd expressed concern that the bank would "send him up the river" for his conduct. Mr. Loyd made these admissions to a bank officer and one of his co-conspirators shortly before Loyd committed suicide.
Mr. Johnson filed suit on April 18, 1988. Initially, Mr. Johnson brought his suit in Sabine Parish; however, the suit was later consolidated with the suit of Dwight Young, et al, which was pending in DeSoto Parish. On May 24, 1999, the jury trial of the matter began. On June 2, 1999, the jury returned a verdict in favor of Mr. Johnson on several theories of liability, including fraud, negligent supervision, breach of fiduciary duty, negligent misrepresentation, and general fault. The jury assessed Mr. Johnson with 25% fault and awarded general damages of $588,000.00.
The trial judge made post-trial determinations regarding several coverage issues, including the issue of how Mr. Loyd's damages should be allocated. The trial judge heard arguments regarding these matters on November 5, 1999. The trial judge, on its own motion, increased the general damages awarded to Mr. Johnson to $784,000.00, finding that the jury had made an improper pre-verdict reduction of its award for Mr. Johnson's fault. The trial judge signed his judgment on December 3, 1999.
Mr. Johnson then filed a post-judgement motion for a new trial and a judgment notwithstanding the verdict (JNOV), which the court granted on February 16, 2000. The trial judge found that the reduction of Mr. Johnson's damages for his own fault was improper under the provisions of La. Civ.Code art. 2323(C) because of the jury's finding of fraud. The trial judge signed this judgment on March 7, 2000.
From this judgment, Fidelity & Casualty Company of New York, Phoenix Assurance Company of New York, Fidelity & Guaranty Underwriters, Inc., St. Paul, Aetna Casualty & Surety Company, and Standard Fire Insurance Company filed timely suspensive appeals. Prior to the hearing on this matter, Aetna Casualty & Surety Company and Standard Fire Insurance Company dismissed their appeals, having settled with Mr. Johnson regarding the portion of the judgment for which they were cast.
On appeal, Defendant insurers assert numerous assignments of error. In order to handle the sheer volume of assignments, we will address the assignments in the following order: procedural errors, errors concerning the merits of the case, errors concerning jury instructions, evidentiary errors, errors concerning the damages awarded, and errors regarding insurance coverage.
The Defendants assert the following procedural errors:
1. The trial judge erred in consolidating this matter for trial in an improper venue with another matter involving more inflammatory evidence to the prejudice of the Defendants.
2. The trial judge erred in allowing Mr. Johnson to bring two suits, one for economic damage and one for bodily injury.
On appeal, the Defendants allege that the trial judge erred in consolidating this matter for trial in an improper venue with another matter involving more inflammatory evidence to the prejudice of the Defendants. In support of this argument, the Defendants argue that the consolidation of Mr. Johnson's case with that of the Youngs', pending in DeSoto Parish, violated the provisions of La.Code Civ.P. art. 123(A), which states:
For the convenience of the parties and the witnesses, in the interest of justice, a district court upon contradictory motion, or upon the court's own motion after contradictory hearing, may transfer a civil case to another district court where it might have been brought; however, no suit brought in the parish in which the plaintiff is domiciled, and in a court which is otherwise a court of competent jurisdiction and proper venue, shall be transferred to any other court pursuant to this Article.
The Defendants also argue that such a consolidation was improper under La.Code Civ.P. art. 1561(B) because it gave an undue advantage to Mr. Johnson. The Defendants assert that Mr. Johnson's claim was not as emotionally charged and inflammatory as the Youngs' because of the lack of any evidence of kickbacks affecting Mr. Johnson's profit line and the lack of any evidence of medical or psychological treatment when compared to that of the Youngs' who adduced the medical testimony of Drs. Seiden and Taylor. In making this argument, they look to La.Code Civ.P. art. 1561(B), which provides:
Consolidation shall not be ordered if it would do any of the following:
(1) Cause jury confusion.
(2) Prevent a fair and impartial trial.
(3) Give one party an undue advantage.
(4) Prejudice the rights of any party.
Upon a review of the record, we find that the consolidation of the two matters was appropriate. Cases may be consolidated when they are pending in the same court. See La.Code Civ.P. art. 123. The Parishes of DeSoto and Sabine compose the Eleventh Judicial District Court. La.R.S. 13:477(11). Each judicial district constitutes a single court. The creation of different divisions within that court does not operate to sever a single district court into multiple courts. Piper v. Olinde Hardware & Supply Co., 288 So.2d 626 (La.1974). The reference to court in the consolidation article is synonymous with judicial district court in cases dealing with procedural issues. See Robertson v. Cambon, 146 So. 738, 176 La. 753 (1933). Therefore, the trial court did not err in trying the Johnson and...
To continue reading
Request your trial
-
Agrifund, LLC v. Radar Ridge Planting Co.
...(La. App. 1 Cir. 4/12/17), 219 So. 3d 349, writ denied , 17-00915 (La. 10/9/17), 227 So. 3d 833 ; Johnson v. First Nat. Bank of Shreveport , 2000-870 (La. App. 3 Cir. 6/20/01), 792 So. 2d 33, writ denied , 01-2770 (La. 1/4/02), 805 So. 2d 212, writ denied , 01-2783 (La. 1/4/02), 805 So. 2d ......
-
Chatman v. S. Univ. at New Orleans
... ... Ms. Chatman and Ms. Sanders were among those first 150 housing students. SUNO selected an apartment-style, as ... in instructions given to the jury); See also Johnson v. First Nat'l Bank Shreveport, 00870, p. 26 (La.App. 3 ... ...
-
National Union Fire Ins. Co. v. Harrington
... ... filed appeals. We first address assignments of error pertaining to the trial court ... is not liable for that emotional disturbance." Johnson v. First Nat'l Bank of Shreveport, 00-870, p. 20 (La.App ... ...
-
Amoco Production Co. v. Texaco, Inc.
...trial court's evidentiary rulings will not be overturned absent a showing of an abuse of discretion. Johnson v. First Nat. Bank of Shreveport, 00-870 (La.App. 3 Cir. 6/20/01), 792 So.2d 33, writ denied, 01-2770, 02-2783 (La.1/4/02), 805 So.2d 212, 213; Belle Pass Terminal, Inc. v. Jolin, In......