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FOR IMMEDIATE NEWS RELEASE NEWS RELEASE #031 FROM: CLERK OF SUPREME COURT OF LOUISIANA

The Opinions handed down on the 22nd day of May, 2009, are as follows:

BY KIMBALL, C.J.:

2008-C -2607

MARY CUTSINGER v. LAURA REDFERN, USAGENCIES CASUALTY INSURANCE COMPANY, INC., AND STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY (Parish of Rapides) For the foregoing reasons, we find the lower courts' judgments granting summary judgment in favor of plaintiff insofar as they refused to allow the uninsured motorist carrier a credit for the benefits paid to or on behalf of plaintiff by the workers' compensation insurer were in error. The judgment of the court of appeal is reversed. The case is remanded to the trial court for it to conduct further proceedings not inconsistent with this opinion. REVERSED AND REMANDED. VICTORY, J., concurs in the result.

05/22/09

SUPREME COURT OF LOUISIANA

No. 2008-C-2607

MARY CUTSINGER v. LAURA REDFERN, USAGENCIES CASUALTY INSURANCE COMPANY, INC., AND STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY

ON WRIT OF CERTIORARI TO THE COURT OF APPEAL, THIRD CIRCUIT, PINEVILLE CITY COURT

KIMBALL, Chief Justice This case involves an uninsured motorist carrier who seeks to enforce its policy language allowing it to reduce any amount payable under its uninsured motorist coverage by any amount paid to or on behalf of its injured insured pursuant to the workers' compensation law. For the reasons that follow, we conclude the uninsured motorist carrier and the workers' compensation insurer are solidary obligors such that payment by one solidary obligor extinguishes the obligation of the other solidary obligor to the extent of the payment. We further conclude the collateral source rule does not apply to override the principles of solidary liability expressly set forth in the Civil Code. Because we find the injured party is provided full recovery of those damages paid by the workers' compensation insurer even when the uninsured motorist carrier is allowed to reduce its payments by the amounts paid by the workers'
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compensation insurer, we conclude the policy language is not against public policy and is enforceable. Facts and Procedural History Plaintiff, Mary Cutsinger, instituted the present action in the Pineville City Court against defendants, Laura Redfern ("the tortfeasor"), and her supposed automobile liability insurer, USAgencies Casualty Insurance Company

("USAgencies"), for damages she allegedly sustained in a motor vehicle accident on December 12, 2006. Plaintiff's uninsured motorist carrier, State Farm Mutual Automobile Insurance Company ("State Farm"), was also named as a defendant. At the time of the accident, plaintiff was in the course and scope of her employment. Accordingly, she was subsequently provided workers' compensation benefits by her employer. USAgencies answered the petition and generally denied its allegations. It further asserted that although it had previously issued a policy of automobile liability insurance to the tortfeasor, the policy was canceled for non-payment of premium on December 6, 2006, at 12:01 a.m. USAgencies also filed a motion for summary judgment asking that it be dismissed from the proceedings with prejudice based on the cancellation of the policy. After a hearing on the matter, the trial court granted the motion for summary judgment and dismissed plaintiff's claims against USAgencies. The tortfeasor was thus uninsured at the time of the accident. Subsequently, plaintiff filed a motion for summary judgment asserting there was no question of material fact and judgment should be rendered finding that Laura Redfern, the tortfeasor, was solely liable for the accident at issue, that State Farm issued a policy of automobile liability insurance to plaintiff that provides uninsured motorist coverage for the accident at issue, that at the time of the accident Laura Redfern, the tortfeasor, was uninsured, and that State Farm is not entitled to a credit
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nor is it allowed to reduce the uninsured motorist coverage afforded plaintiff by any payments that may be made by plaintiff's employer or its workers' compensation carrier. After a hearing, the trial court granted summary judgment as to liability, finding that the tortfeasor was solely at fault in causing the accident, that the tortfeasor was an uninsured motorist at the time of the accident, and that State Farm provided uninsured motorist coverage at the time of the accident to plaintiff. Further, the trial court granted summary judgment as to the issue of credit, finding that State Farm is not allowed to reduce the uninsured motorist benefits by any workers' compensation payments made to plaintiff. State Farm appealed that portion of the judgment prohibiting it from reducing the uninsured motorist benefits by the amount of workers' compensation benefits paid to plaintiff. The court of appeal affirmed the trial court's grant of summary judgment in favor of plaintiff on this issue. Cutsinger v. Redfern, 08-134 (La. App. 3 Cir. 10/1/08), 997 So.2d 585. In affirming the judgment of the trial court that disallowed the credit sought by State Farm, the court of appeal distinguished this court's decision in Bellard v. American Central Ins. Co., 07-1335 (La. 4/18/08), 980 So.2d 654, and concluded the collateral source rule applies to prohibit plaintiff's uninsured motorist carrier from reducing its uninsured motorist benefits by the amount of workers' compensation payments received by plaintiff.1 In Bellard, this court concluded that an employer's uninsured motorist carrier is entitled to a credit in the amount of payments made by the employer and/or its workers' compensation insurer to or on behalf of plaintiff. In reaching this decision, we found the employer's uninsured motorist carrier and the employer and/or its workers' compensation insurer were solidary obligors as to lost wages and medical expenses and, moreover, that the

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One judge concurred in part and dissented in part from the court's ruling. 3

collateral source doctrine did not apply to prevent the credit. In the instant case, the court of appeal determined that because the plaintiff herself, and not her employer, paid for the uninsured motorist coverage, the collateral source rule applies and State Farm cannot reduce the uninsured motorist benefits by the amount of workers' compensation benefits paid to plaintiff. We granted certiorari to consider the correctness of the court of appeal's judgment. Cutsinger v. Redfern, 08-2607 (La. 1/16/09), 998 So.2d 88. Discussion A motion for summary judgment will be granted "if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to material fact and that mover is entitled to judgment as a matter of law." La. C.C.P. art. 966(B). The summary judgment procedure is favored and is designed to secure the just, speedy, and inexpensive determination of actions. La. C.C.P. art. 966(A)(2). Appellate courts review a judgment granting or denying a motion for summary judgment de novo. Bonin v. Westport Ins. Corp., 05-0886, p. 4 (La. 5/17/06), 930 So.2d 906, 910. Thus, appellate courts ask the same questions the trial court does in determining whether summary judgment is appropriate: whether there is any genuine issue of material fact, and whether the mover is entitled to judgment as a matter of law. Smith v. Our Lady of the Lake Hosp., 93-2512, p. 26 (La. 7/5/94), 639 So.2d 730, 750. Interpretation of an insurance policy ordinarily involves a legal question that can be properly resolved by a motion for summary judgment. Bonin, 05-0886 at p. 4, 930 So.2d at 910. It is well-settled that an insurer may limit liability and impose reasonable restrictions upon its policy obligations provided that such limitations do not conflict with statutory provisions or public policy. Bonin, 05-0886 at p. 5, 930 So.2d at 911; Cadwallader v. Allstate Ins. Co., 02-1637, p. 9 (La. 6/27/03), 848 So.2d 577, 583;
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Etienne v. National Automobile Ins. Co., 99-2610, p. 4 (La. 4/25/00), 759 So.2d 51, 54. The law governing uninsured motorist coverage, La. R.S. 22:680, provides in part:

No automobile liability insurance covering liability arising out of the ownership, maintenance, or use of any motor vehicle shall be delivered or issued for delivery in this state with respect to any motor vehicle designed for use on public highways and required to be registered in this state or as provided in this Section unless coverage is provided therein or supplemental thereto, in not less than the limits of bodily injury liability provided by the policy, under provisions filed with and approved by the commissioner of insurance, for the protection of person insured thereunder who are legally entitled to recover nonpunitive damages from owners or operators of uninsured or underinsured motor vehicles because of bodily injury, sickness, or disease, including death resulting therefrom; however, the coverage required under this Section is not applicable when any insured named in the policy either rejects coverage, selects lower limits, or selects economic-only coverage, in the manner provided in Item (1)(a)(ii) of this Section. An uninsured motorist insurer's liability "is conditioned by the tortfeasor's total or partial lack of liability insurance, the type of damage [the tortfeasor] has caused and any limits in the insurer's policy that are permitted by law." Hoefly v. Government Employees Ins. Co., 418 So.2d 575, 579 (La. 1982). Uninsured motorist coverage embodies a strong public policy, which is to provide full recovery for innocent automobile accident victims who suffer damages caused by a tortfeasor who is not adequately covered by liability insurance. Duncan v. U.S.A.A. Ins. Co., 06-0363, p. 4 (La. 11/29/06), 950 So.2d 544, 547. The underlying purpose of uninsured motorist coverage "is to promote and effectuate complete reparation, no more or no less." Hoefly, 418 So.2d at 579. To carry out the objective of providing reparation for persons injured through no fault of their own, the statute is liberally construed. Taylor v. Rowell, 98-2865, p. 5 (La. 5/18/99), 736 So.2d 812, 816; Roger v. Estate of Moulton, 513 So.2d 1126,
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1130 (La. 1987). Any exclusion in uninsured motorist coverage must be clear and unmistakable. Duncan, 06-0363 at pp. 4-5, 950 So.2d at 547. The uninsured motorist coverage that plaintiff purchased from State Farm contains a provision that any amount due under the policy's uninsured motorist provisions shall be reduced by any amount paid pursuant to the workers' compensation law. Specifically, the policy provides, under its uninsured motorist coverage, that the insurer will pay nonpunitive damages for bodily injury an insured is legally entitled to collect from the owner or driver of an uninsured motor vehicle. The policy further provides: Limits of Liability Under Coverage U [uninsured motorist coverage] .... 2. Any amount payable under this coverage shall be reduced by any amount paid or payable to or for the insured: .... b. under any workers' compensation, disability benefits, or similar law. This does not reduce the limits of liability of this coverage. The language of this provision is clear and unambiguous. It provides that any damages for bodily injury for which the uninsured tortfeasor is liable that are also paid or payable to the insured under any workers' compensation law, such as lost wages and medical benefits, will not be paid under the insured's uninsured motorist coverage. This reduction, however, will not reduce the limits of liability of the uninsured motorist coverage. Plaintiff contends the uninsured motorist statute does not allow the insurer to reduce uninsured motorist benefits by the amount of workers' compensation benefits paid to the insured. Plaintiff asserts the contract language is therefore in derogation of state law. She argues it would be a clear violation of public policy to allow a credit to an uninsured motorist insurer for workers' compensation benefits paid to an

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insured. State Farm, on the other hand, contends plaintiff contracted for the credit and no statute prohibits it from asserting the credit. In Bellard v. American Central Ins. Co., 07-1335 (La. 4/18/08), 980 So.2d 654, this court concluded an employer's uninsured motorist carrier is entitled to a credit for medical and disability wage benefits paid on behalf of or to the plaintiff by the workers' compensation insurer. Although the uninsured motorist policy in that case did not contain language dictating the reduction in coverage for benefits paid under workers' compensation insurance, this court nevertheless held the employer's uninsured motorist carrier was entitled to the credit based on principles of solidarity and the inapplicability of the collateral source doctrine. Based on those same principles of solidary obligations and a finding that the collateral source doctrine does not apply in the instant case, as well as the purpose underlying the law governing uninsured motorist coverage, we find the language contained in State Farm's policy relating to the reduction in uninsured motorist payments for any workers' compensation benefits paid to the insured is not against public policy and is therefore enforceable. Louisiana Civil Code article 1794 provides the following with respect to a solidary obligation: An obligation is solidary for the obligors when each obligor is liable for the whole performance. A performance rendered by one of the solidary obligors relieves the others of liability toward the obligee. Applying this article, we explained in Bellard that a solidary obligation exists when the obligors: (1) are obliged to the same thing, (2) so that each may be compelled for the whole, and (3) when payment by one exonerates the other from liability toward the creditor. Bellard, 07-1335 at p. 11, 980 So.2d at 663-64 (citing Hoefly v. Government Employees Ins. Co., 418 So.2d 575, 576 (La. 1982)). We noted that in Hoefly we

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examined each of these requirements to find the existence of solidary liability between an uninsured motorist carrier and a tortfeasor. Similarly, in Narcise v. Illinois Central Gulf Railroad Co., 427 So.2d 1192 (La. 1983), we used these standards to find the existence of solidary liability between a railroad company liable to its employee under the Federal Employer's Liability Act, 45 U.S.C.

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