Opinion ID: 43290
Heading Depth: 4
Heading Rank: 2

Heading: Failure to render professional services

Text: 24 United Fire next argues that the allegations in the petition do not include an allegation of a failure to render professional services, and, therefore, coverage is unambiguously excluded. Limiting our review to the four corners of the petition and to the four corners of the insurance policy, we first examine whether the petition contains allegations that Hixson failed to perform under the policy. We then examine whether the alleged failure includes a failure to perform professional services. Answering both questions in the affirmative, we hold that the allegations in the petition do not unambiguously exclude coverage under the Endorsement. 25 United Fire argues that the state court petition does not allege a failure to perform and instead merely alleges a dispute over the price of the services. In support of this contention, United Fire argues that the funeral services were in fact performed and that the dispute arose only after the plaintiffs purchased caskets not included in the burial insurance policy. Hixson counters that the state court petition plainly alleges a failure to perform. 26 We agree with Hixson. The state court petition contains an allegation that Hixson failed to provide the goods and services specified in the burial policy. 5 To view the petition as alleging merely a pricing disagreement would be to construe the petition strictly against the insured, rather than liberally as required by Louisiana law. See Lamar Adver., 396 F.3d at 660. Moreover, to do so would be to skirt the principal requirement of an eight-corners review. 6 We therefore hold that the petition alleges a failure to perform under the policy. 27 However, this holding alone is not dispositive. Because the Endorsement only covers a failure to render professional services, we must determine whether an allegation that Hixson failed to provide the goods and services specified in the burial policy constitutes a professional services allegation. 28 United Fire argues that a mortician's professional services include the preparation of corpses for burial, conducting funeral services, and actual burials and that the state court petition does not allege that Hixson inadequately performed these services. Hixson counters by arguing that [t]he allegations of the state court petition clearly state that Hixson refused to perform the services of a mortician under the burial policy. 29 Under Louisiana law, professional services in an insurance contract are defined as services performed by one in the ordinary course of the practice of [one's] profession, on behalf of another. Jensen v. Snellings, 841 F.2d 600, 613 (5th Cir. 1988) (quoting Aker v. Sabatier, 200 So.2d 94, 97 (La.Ct.App.), writ denied, 251 La. 48, 202 So.2d 657 (1967)). See also Natural Gas Pipeline Co. of Am. v. Odom Offshore Surveys, Inc., 889 F.2d 633, 636 (5th Cir.1989) (citing the professional services definition in Aker when interpreting a professional services policy exclusion). An act that can be done by any unskilled or untrained employee that does not involve the exercise of professional judgment is not a professional service. Am. Cas. Co. v. Hartford Ins. Co., 479 So.2d 577, 579 (La.Ct.App.1985) (internal quotation omitted). See also Thermo Terratech v. GDC Enviro-Solutions, Inc., 265 F.3d 329, 335-36 (5th Cir.2001) (discussing the definition of professional services under Louisiana law). 30 As noted, the plaintiffs in the underlying litigation allege that Hixson failed to provide goods and services specified in the burial policy  (emphasis added). In determining whether such goods and services are professional services, we consider relevant the quoted language of the petition, which refers us to the burial policy for a list of goods and services allegedly not provided. The burial policy coverage included: Casket, Burial garments, Embalming, and Preparation for Burial, Funeral coach, Use of Funeral Home, Arrangement of Flowers, Conducting the Funeral, [and] Necessary Cemetery Equipment. Construing the petition liberally, as we must, we hold that these services are those that the state court plaintiffs allege were not performed. See Lamar Adver., 396 F.3d at 660. 31 The dispositive question then becomes whether the services listed in the burial policy are professional services. An untrained or unskilled employee could not deliver the goods and services to be provided under the policy. Providing a casket, burial garments, embalming, a funeral coach, a funeral home and flowers together in a proper funeral service requires many decisions for which skilled judgment is required. 7 Indeed, United Fire acknowledges that conducting funerals is a professional service. We therefore hold that the state court petition includes a professional services allegation. 8