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Mississippi Farm Bureau Mutual Insurance Company3/28/2002
Judge William F. Kline, Jr., Retired, serving Pro Tempore by special appointment of the Louisiana Supreme Court.
This appeal challenges the trial court's dismissal of a nullity action. We reverse.
BACKGROUND
On November 23, 1995, Kathleen Labatut was involved in an automobile accident with Kieffer Bailey at an intersection in Baton Rouge, Louisiana. Kathleen died as a result of injuries sustained in the accident, and on February 26, 1996, her parents (the Labatuts) filed a wrongful death action in the 19th Judicial District Court for the Parish of East Baton Rouge. Named as defendants were Bailey and his alleged automobile liability insurer, Mississippi Farm Bureau Mutual Insurance Company (Farm Bureau). The case was assigned to Division "D" of the 19th JDC. Farm Bureau was served with the wrongful death petition on March 1, 1996, and filed an answer to the action on April 10, 1996.
On June 17, 1996, Farm Bureau filed a petition for a declaratory judgment in the Circuit Court of Lincoln County, Mississippi, seeking a determination that the policy it issued to Bailey did not afford coverage of the November 23, 1995 accident in the State of Louisiana due to non-payment of the premium. Bailey was served with a copy of the complaint and filed an answer through his Mississippi attorney. Farm Bureau filed a motion for summary judgment in that case, and Bailey's attorney filed a response thereto. On September 22, 1997, the Mississippi court granted the motion for summary judgment, finding that Bailey failed to pay his policy premium, the policy was properly cancelled by Farm Bureau, and there was no coverage in effect for Bailey on the date of his accident with Kathleen Labatut. No appeal was taken from this ruling.
On December 29, 1997, Farm Bureau filed a petition in the 19th JDC, seeking to make the Mississippi judgment executory in accordance with the Enforcement of Foreign Judgments Act, La. R.S. 13:4241-4247. The case was assigned to Division "N". On March 27, 1998, the Division "N" judge entered an order decreeing the Mississippi court's order to be made judgment of the court.
On September 24, 1998, the Labatuts filed a petition seeking to annul the March 27, 1998 judgment. Plaintiffs averred despite the fact Farm Bureau had appeared and filed responsive pleadings in the wrongful death suit, Farm Bureau did not serve or otherwise give notice to them of the declaratory judgment action in Lincoln County, Mississippi, nor did it apprise them of their petition in the 19th JDC to make the Mississippi judgment executory. They sought to annul the judgment under article 2004 of the Louisiana Code of Civil Procedure, alleging that the judgment was obtained through ill practices because Farm Bureau failed to notify them of the proceedings so that they could assert an interest therein.
The trial judge denied the petition, finding that the Labatuts failed to demonstrate that they had a legal right to notice of the proceedings under Louisiana or Mississippi law. This appeal, taken by the Labatuts, followed.
DISCUSSION
Louisiana Code of Civil Procedure article 2004 provides that any final judgment obtained by "fraud or ill practices" may be annulled. The article is not limited to cases of actual fraud or intentional wrongdoing, but is sufficiently broad to encompass all situations where a judgment is rendered through some improper practice or procedure. Belle Pass Terminal, Inc. v. Jolin, Inc., 2001-0149, p.5 (La. 10/16/01), 800 So.2d 762, 766. A judgment is subject to nullification for fraud or ill practices when two criteria are met: (1) the circumstances under which the judgment was rendered show a depri
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