Opinion ID: 1621628
Heading Depth: 1
Heading Rank: 3

Heading: Motion to Strike Applications for Writ of Certiorari

Text: In response to the Gibraltar defendants' application for writ of certiorari, plaintiff filed a motion to strike the pleading based upon Gibraltar's failure to disclose the existence of a $10,000,000 excess insurance policy. During the trial, Gibraltar's insurer, Reliance Insurance Company introduced the $1,000,000 base policy into evidence; however, it did not disclose the existence of the excess policy until after the court of appeal rendered a $4.3 million judgment against it. This court has never dealt with the issue of whether dismissal of a writ application is the appropriate sanction for a litigant's failure or refusal to disclose the existence of an insurance policy. Article 1471 of the Louisiana Code of Civil Procedure provides for sanctions for a party's failure to comply with a court order compelling discovery. In the instant case, as defendants point out, there was no order compelling discovery. Defendants failed to fully comply with plaintiffs request for discovery. Plaintiffs, unaware that there was another policy in existence, did not seek an order to compel disclosure. Although article 1471 is not exactly on point, it does allow the remedy that plaintiff is seeking, i.e., striking out pleadings or parts thereof and/or dismissing the action or proceeding or any part thereof. However, courts have been reluctant to dismiss actions as a sanction for failure to comply with discovery. This court has held that, because discovery sanctions of dismissal or default involve property rights, those sanctions are generally reserved for the most culpable conduct. See Horton v. McCary, 93-2315, (La. 4/11/94), 635 So.2d 199; reh'ing denied. While there are no state cases to guide us in determining the appropriate remedy for failure to disclose an insurance policy, the United States Court of Appeals, 5th Circuit, has dealt with a similar issue. In Crowe, et al. v. Smith, et al., 151 F.3d 217 (5th Cir.1998), after a civil action was settled, it was discovered that defendants' attorneys had failed to disclose an applicable insurance policy issued to defendant. The United States District Court for the Western District of Louisiana did not dismiss the action, but rather imposed sanctions consisting of fines, reprimands, and attorney discipline. Although the Court of Appeal reversed in part, affirmed in part, and remanded with instructions, dismissing the action or striking the pleadings was never an option. After reviewing the parties' briefs and oral arguments, we find that the dismissal of the Gibraltar defendants' application for writ of certiorari is not the appropriate remedy for defendants' actions. Therefore, we will review this case on its merits.