Opinion
NO. 2014 CA 0760
12-23-2014
JAMES FALKNER v. AMERICA FIRST INSURANCE COMPANY AND ROSEMARY GIVENS
Gregory J. Miller Baton Rouge, LA Attorney for Plaintiff-Appellant, James Falkner Jack W. Riffle Baton Rouge, LA Attorney for Defendant-Appellee, America First Insurance Company
NOT DESIGNATED FOR PUBLICATION On Appeal from the 19th Judicial District Court
In and for the Parish of East Baton Rouge
State of Louisiana
Trial Court No. 604,878
Honorable Timothy E. Kelley, Judge Presiding Gregory J. Miller
Baton Rouge, LA
Attorney for Plaintiff-Appellant,
James Falkner
Jack W. Riffle
Baton Rouge, LA
Attorney for Defendant-Appellee,
America First Insurance Company
BEFORE: WHIPPLE, C.J., McCLENDON, AND HIGGINBOTHAM, JJ.
HIGGINBOTHAM, J.
This appeal concerns the trial court's grant of summary judgment in favor of America First Insurance Company based upon a finding that the homeowner's policy issued to Rosemary Givens did not provide coverage for James Falkner's personal injury claim. After de novo review, we find that summary judgment was properly granted as a matter of law and we affirm.
At times throughout the record, "Falkner" is misspelled as "Faulkner" and "America First Insurance Company" is mistakenly referred to as "America's First Insurance."
BACKGROUND
James Falkner rented a house from Rose Mary Givens at 3600 Prescott Road in Baton Rouge, Louisiana. Givens provided a bed for Falkner's use at the rent house. On September 4, 2010, Falkner was attempting to move the mattress and box spring set back into place on the bed frame, when the bed fell on his hand and partially severed one of his fingers. Givens had homeowner's insurance with America First for her residence at 3625 Prescott Road, which was a separate structure from the rent house.
Falkner timely filed a petition for damages against Givens and America First, alleging he was injured due to the faulty and ill-fitting bed frame that had been provided by Givens. After filing an answer denying the allegations, America First moved for summary judgment, asserting that Falkner's claims were excluded under the policy because the incident occurred on rental property. America First specifically contended that the personal liability and medical payments coverage provided in the policy excluded bodily injury and property damage arising out of the rental of any part of any premises by an insured. In support of its motion for summary judgment, America First relied on Falkner's deposition testimony, Givens' recorded statement, and the policy issued to Givens, which were all introduced into evidence at the hearing on the motion without objection. While Falkner opposed America First's motion, he did not introduce any additional evidence at the hearing.
The trial court granted summary judgment in favor of America First, finding that the policy at issue excluded coverage for Falkner's personal injury claim. Accordingly, a final judgment was signed on October 9, 2013, dismissing Falkner's claims against America First with prejudice. Falkner appeals, asserting one assignment of error: "[t]he trial court erred in determining that certain policy exclusions under the policy's property coverage applied to the circumstances surrounding the accident that caused [Falkner's] injuries."
LAW AND ANALYSIS
Summary judgments are subject to a de novo review on appeal using the same criteria as the trial court to determine whether summary judgment is appropriate. Magnon v. Collins, 98-2822 (La. 7/7/99), 739 So.2d 191, 195; Schafer v. Summers, 2012-0730 (La. App. 1st Cir. 2/15/13), 113 So.3d 219, 223. If the pleadings, depositions, answers to interrogatories, and admissions, together with the affidavits, if any, admitted for purposes of the motion for summary judgment, show that there is no genuine issue as to material fact, and that the mover is entitled to judgment as a matter of law, then summary judgment is appropriate. La. Code Civ. P. art. 966(B)(2).
As mover, America First had the initial burden of producing evidence in support of its motion by pointing out the lack of factual support for an essential element in Falkner's case. See Schultz v. Guoth, 2010-0343 (La. 1/19/11), 57 So.3d 1002, 1006. America First pointed out Falkner's lack of factual support for coverage under the homeowner's policy it had issued to Givens. Then Falkner, as the party with the burden of persuasion at trial, had the responsibility of coming forth with evidence to demonstrate that he would be able to meet his burden of proof at trial. See Id. If Falkner did not produce evidence of a material factual dispute after American First pointed out the lack of factual support, then summary judgment is mandated as a matter of law. See Id.
The summary judgment procedure may be used to resolve questions of law pertaining to the interpretation of insurance contracts and, specifically, whether an insurance policy provides or precludes coverage. See Schafer, 113 So.3d at 223. However, summary judgment declaring no coverage under an insurance policy may not be rendered unless there is no reasonable interpretation of the policy, when applied to the undisputed material facts, under which coverage could be provided. Id.
An insurance policy is an agreement between the parties and is interpreted according to ordinary contract principles set forth in the Louisiana Civil Code. Cadwallader v. Allstate Ins. Co., 2002-1637 (La. 6/27/03), 848 So.2d 577, 580. The contract is enforced as written when the language is clear and explicit and does not lead to absurd consequences. La. Civ. Code art. 2046; Magnon, 739 So.2d at 197. Insurance companies are free to limit coverage so long as the limitations do not conflict with statutory provisions or public policy. Schafer, 113 So.3d at 224. In an action under an insurance contract, the insured bears the burden of proving the existence of the policy and coverage. Id.
Falkner's primary argument on appeal is that the trial court erroneously ruled his claim was not covered under America First's property coverage, when his claim is about personal liability caused by Givens' negligence in providing him a faulty bed. Falkner is referring to the trial court's oral reasons discussing property coverage under the policy, but it is well settled that appeals are taken from judgments, not reasons for judgment. Elliott v. Elliott, 2010-0755 (La. App. 1st Cir. 9/10/10), 49 So.3d 407, 416 n.3, writ denied, 2010-2260 (La. 10/27/10), 48 So.3d 1088. Further, even if the trial court cites incorrect reasons, if the trial court reached the proper result, the judgment should be affirmed. Id. Moreover, our de novo review reveals that Falkner ignores the clear and unambiguous exclusion for personal liability (Coverage E) and medical payments (Coverage F) found in Section II of America First's policy. Those exclusions provide, in pertinent part:
Coverage E is the section of America First's policy regarding personal liability. It provides, in pertinent part:
COVERAGE E - Personal Liability"Occurrence" means an accident, which results in bodily injury or property damage during the policy period.
If a claim is made or a suit is brought against an "insured" for damages because of "bodily injury" or "property damage" caused by an "occurrence" to which this coverage applies, we will:
1. Pay up to our limit of liability for the damages for which the "insured" is legally liable. ...
Coverage F is the section of America First's policy regarding medical payments to others. It provides, in pertinent part:
COVERAGE F- Medical Payments to OthersAn "insured location" includes the residence premises and other structures used by the insured as a residence and is shown on the declaration page of the policy. However, under "SECTION I - PROPERTY COVERAGES," "Other Structures" (Coverage B) does not include structures "[u]sed whole or in part for 'business'" or "[r]ented or held for rental to any person not a tenant of the [residence premises]."
We will pay the necessary medical expenses that are incurred or medically ascertained within three years from the date of an accident causing "bodily injury." ... As to others, this coverage applies only:
1. To a person on the "insured location" with the permission of an "insured[.]"
SECTION II - EXCLUSIONS
1. Coverage E - Personal Liability and Coverage F - Medical Payments to Others do not apply to "bodily injury" or "property damage":
* * *
c. Arising out of the rental or holding for rental of any part of any premises by an "insured."
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e. Arising out of a premises:
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(3) Rented to others by an "insured";
that is not an "insured location";
* * *
The policy defines "insured location" to include the residence premises and other structures used by the insured as a residence, and which is shown in the declarations page of the policy. It is undisputed that the rent house where Falkner was a tenant was not used by Givens as a residence and the rent house was not shown on the declarations page of America First's policy. It is undisputed that Falkner's injury arose out of the use of a bed at a rent house that was rented by the insured, Givens, to Falkner. Accordingly, Falkner's injury occurred at a rental premises that was not an insured location under the policy. Thus, America First successfully pointed out that Falkner's injury was not covered under the homeowner's policy. In response, Falkner did not offer any evidence that would point to a genuine issue of material fact. We find it is clear that Falkner's personal injury claim against Givens is expressly excluded from coverage under the America First homeowner's policy. Therefore, the trial court correctly granted summary judgment in favor of America First, as a matter of law. Falkner's assignment of error is without merit.
CONCLUSION
For the stated reasons, we affirm the trial court's summary judgment dismissing James Falkner's personal injury claims against America First Insurance Company with prejudice. Appeal costs are assessed against plaintiff-appellant, James Falkner.
AFFIRMED.