Opinion ID: 1600313
Heading Depth: 1
Heading Rank: 1

Heading: Literal Meaning vs. Legislative Intent

Text: The starting point in every case involving the construction of a statute is the language of the statute itself. La.R.S. 49:258 provides as follows: Notwithstanding the provisions of any other law to the contrary and specifically the provisions of any law that authorizes the state or a state agency to appoint, employ, or contract for private legal counsel to represent the state or state agency, including but not limited to the provisions of R.S. 42:261, 262, and 263, and R.S. 40:1299.39(E), any appointment of private legal counsel to represent the state or a state agency shall be made by the attorney general with the concurrence of the director of the office of risk management, in accordance with the following procedure: (1) All attorneys appointed as private legal counsel to represent the state or a state agency shall meet or exceed written minimum qualifications and all appointments shall be made in accordance with a written appointments procedure, both of which shall be established by the attorney general and the governor, or their designees. The director of the office of risk management shall participate in the preparation of the minimum qualifications and the appointment procedure. The minimum qualifications and the appointments procedure shall be published at least annually in the Louisiana Bar Journal or such other publication as will reasonably assure dissemination to the membership of the Louisiana State Bar Association. The exercise of the authority provided in this Section shall not be subject to the Administrative Procedure Act. (2) All appointments of private legal counsel representing the state or a state agency that are in effect on the effective date of this Section shall be reviewed to ensure that such counsel satisfy the minimum qualifications provided for in Paragraph (1) of this Section and all such changes in or terminations of such appointments shall be made as are necessary to ensure such compliance. (3) For the purposes of this Section, state agency means any department, board, commission, agency, office, special district, authority, or other entity of the state, but does not include the Public Service Commission or any political subdivision of the state as defined by Article VI of the Constitution of Louisiana, or any entity of such political subdivision. (Emphasis added). The Attorney General contends La.R.S. 49:258 clearly states without ambiguity any appointment of private counsel to represent the state or a state agency shall be made by the attorney general. In response, the Insurance Commissioner maintains when he acts as a liquidator, rehabilitator or conservator of an insolvent insurance company, he is acting as a fiduciary of the company and not on behalf of the state or one of its agencies. Thus, it is the Insurance Commissioner's position that the term state agency as contained within La.R.S. 49:258 does not include state officers who are acting as fiduciaries for third parties. At the outset, we must dismiss the contention that La.R.S. 49:258 is clear and unambiguous. While the literal language of La.R.S. 49:258 may include the Commissioner of Insurance within the definition of state agency [2] , it is the duty of this court to restrict broad statutory language if we are convinced the legislature did not intend such an effect. State ex rel. Thompson v. Department of City Civil Serv., 214 La. 683, 38 So.2d 385, 388 (1948); Curatorship of Parks, 210 La. 63, 26 So.2d 289, 292 (1946). Our jurisprudence has consistently recognized a statutory ambiguity justifying judicial interpretation may arise with respect to the general scope and meaning of a statute when all of its provisions are examined. Matlack, Inc. v. Louisiana Pub. Serv. Comm'n, 260 La. 359, 256 So.2d 118, 121 (1971). The statutory language of La.R.S. 49:258 contains provisions which are obviously inconsistent with the Attorney General's position that the statute applies without limitation as to the type of case or legal matter in which the state or a state agency is involved. Pursuant to La.R.S. 49:258, any appointment of private counsel by the attorney general must be made with the concurrence of the director of the office of risk management. However, the office of risk management has no authority over and plays no role in the liquidation of failed insurance companies. [3] Thus, a literal reading of the statute produces an anomalous and illogical situation wherein the office of risk management is required to concur in the appointment of private legal counsel to represent the Insurance Commissioner in liquidation or rehabilitation proceedings. [4] We are convinced the legislature did not intend such a result. When the literal construction of a statute produces absurd or unreasonable results the letter must give way to the spirit of the law and the statute construed so as to produce a reasonable result. Smith v. Flournoy, 238 La. 432, 115 So.2d 809, 814 (1959); Dore v. Tugwell, 228 La. 807, 84 So.2d 199, 204 (1955). See also, La.Civ.Code art. 9 (West 1990). In ascertaining the true meaning of a word, phrase or section of a statute, the act as a whole must be considered. Fruge v. Muffoletto, 242 La. 569, 137 So.2d 336, 339 (1962). A reading of Act No. 448 of 1988, by which the legislature enacted La.R.S. 49:258, provides insight into the overall purpose and spirit behind the statute. When all of the provisions of Act No. 448 are considered together, it is evident it was the overall intent of the legislature to provide a comprehensive method of administering and defending claims against the state. [5] Our conclusion concerning the legislative intent behind La.R.S. 49:258 is supported by the title of Act No. 448. [6] The title of Act No. 448 of 1988 states: To amend and reenact R.S. 13:5109(A), R.S. 36:705(A)(1), R.S. 39:1533, 1535(A) and (B)(6), and R.S. 48:112, to enact R.S. 39:1535(B)(12) and (C), and R.S. 49:257 and 258, and to repeal R.S. 39:1543.2(e), and (3), and R.S. 48:111.1, relative to legal representation of the state; to provide for the attorney general and the Department of Justice to represent the state, departments, and state agencies in certain cases; to provide for authority to compromise certain legal claims; to provide for legal services for the office of risk management, division of administration; to provide for procedures relative to procurement of private legal services; to provide for the adjustment and settlement of claims against the state by the office of risk management; and to provide for related matters. (Emphasis added). Based on the purpose and intent behind the act as well as a reading of La.R.S. 49:257, we conclude the certain cases in which the attorney general shall represent the state or a state agency are cases involving the protection of a right or interest of the state. [7] Additionally, there is no reference whatsoever to insurance company insolvencies or Title 22 of the Louisiana Revised Statutes in the stated object of Act No. 448. If the legislature had intended to change existing law relating to the liquidation of insurance companies, consistent legislative drafting required mention of the effect of Act No. 448 on the existing law contained in Title 22. This is made clear by the title to the act expressly providing certain provisions of Titles 13, 36, 39, 48 and 49 were to be amended, reenacted, or repealed.