City of Natchitoches v. Employers Reinsurance Corp.6/5/2002
COOKS, J., dissents in part, finding Powell's claims against City Bank and Traber are viable and summary judgment should not have been granted.
AFFIRMED.
The plaintiff-in-reconvention and cross claimant, Charles Powell, appeals the judgment of the trial court granting summary judgment in favor of the defendant-in-reconvention, City of Natchitoches, and defendants in cross-claim, City Bank and Trust Company of Natchitoches and Traber Agency, Inc. We affirm.
FACTS
This matter stems from a suit filed by Natchitoches as a result of a scheme by Robert Morrow, an employee of Traber, whereby he over billed Natchitoches $766,011 during the period of 1989 through 1999. An investigative audit submitted by the Legislative Auditor for the State of Louisiana on May 31, 2000, revealed that Morrow over billed Natchitoches in the amount of $466,566 for insurance premiums and $118,750 under an administrative claims handling agreement never approved by it. Further investigation by Natchitoches revealed additional over billings in the amount of $180,695. According to the investigative audit, Morrow cashed the premium checks issued by Natchitoches in Traber's name and then divided the money between Traber, Kenneth Aaron of Aaron Insurance Agency, and himself. The audit further stated that Powell, Natchitoches' Chief Financial Officer, was responsible for approving Traber's billings and that he failed to review the insurance invoices and misrepresented the claims handling agreement. As a result of these acts, Natchitoches filed suit against Morrow, Traber, Aaron, individually and d/b/a Aaron Insurance Agency, Powell, and Employer's Reinsurance Corporation.
In its petition, Natchitoches alleged that Powell, as Finance Director, was responsible "for overseeing the purchase of liability insurance covering the CITY OF NATCHITOCHES and the payment of legitimate premium billings associated with the purchase of said insurance." It further alleged that, "prior to December, 1999, defendants, MORROW, AARON AND POWELL, did, through negligence and/or fraud, dishonesty, artifice and ill practices, induce petitioner to purchase insurance policies and then bill the CITY OF NATCHITOCHES for said policies at inflated prices."
After much procedural maneuvering, including cross-claims by City Bank and Traber against him, Powell, his wife, and their daughter filed peremptory exceptions and an answer to Natchitoches's suit, as well as answers to the cross-claims filed by Traber and Employers Reinsurance, Fidelity and Deposit Company of Maryland, and City Bank. As plaintiffs-in-reconvention, the Powells alleged that Natchitoches defamed, libeled, and falsely accused Powell of wrongdoing, which resulted in him being maliciously fired, sued, and arrested for a crime he did not commit. They further cross-claimed City Bank and Traber, alleging that the actions of City Bank, in allowing Morrow to cash the premium checks, and Traber, through the actions of Morrow, resulted in Powell's depiction as a criminal, damage to his reputation, and his inability to earn a living in the area. As a result of these actions, Powell sought damages for "extreme emotional distress, economic loses, humiliation, embarrassment, attorney fees." Powell's wife and daughter sought damages for loss of consortium, service, and society.
In response to the Powells' claims, City Bank and Traber Agency filed motions for summary judgment on the cross-claim issues of defamation and malicious prosecution. Natchitoches also filed a motion for summary judgment and a peremptory exception of no cause of action on the reconventional demand alleging that Powell's sole remedy against it was workers' compensat
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