Opinion

Certain Underwriters at LLoyd's London v. Covington Flooring Company, Inc.

Court
District Court, E.D. Louisiana
Filed
Jan 17, 2024
Cited by
0 cases
Authority
More cited than 22.4%

The opinion

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF LOUISIANA

CERTAIN UNDERWRITERS AT LLOYDS, CIVIL ACTION

LONDON, ET AL.

VERSUS NO. 22-5292

c/w 23-371

COVINGTON FLOORING CO., INC., ET SECTION: “G”(1)

AL.

ORDER AND REASONS

Before the Court are Defendants Covington Flooring Company, Inc., The Charter Oak Fire

Insurance Company, and Travelers Property Casualty Company of America’s (collectively

“Defendants”) “Motion for Partial Summary Judgment”1 and Plaintiff St. Augustine High School,

Inc.’s (“St. Augustine”) “Motion for Extension of Deadlines for Experts.”2 St. Augustine brings

claims against Defendants for damages to a gymnasium leased by St. Augustine.3 Defendants

argue that St. Augustine does not have a right to recover damages for: (1) loss of property value;

(2) betterment and improvement costs; (3) increased cost of property and casualty insurance

coverage and limited property and casualty insurance coverage; (4) property damage; (5) non-

compliance with loan covenants, and (6) past, present, and future mental pain and suffering.4 In

opposition, St. Augustine argues that it does have the right to recover damages as a result of the

1 Rec. Doc. 31.

2 Rec. Doc. 32.

3 Rec. Doc. 1.

4 Rec. Doc. 31.

fire to the gymnasium based on certain language of the lease agreement.5 Considering the motions,

the oppositions, the reply memoranda, the record, and the applicable law, the Court grants in part

and denies in part Defendants’ Motion for Partial Summary Judgment and grants St. Augustine’s

Motion for Extension of Deadlines for Experts.

I. Background

St. Augustine contracted with Defendant Covington Flooring Company, Inc.

(“Covington”) to replace the hardwood floors in the gymnasium located at 2600 A P Tureaud

Avenue, New Orleans, Louisiana 70119, after it was damaged during a hurricane.6 It is alleged

that Covington’s employees were utilizing cloth rags to apply Bona DriFast Stain and Bona Sport

Seal products which contain compounds that are susceptible to self-heating and spontaneous

ignition if the rags are not properly disposed.7 The Complaint provides that shortly after

Covington’s employees left the project for the day on November 25, 2021, a fire was discovered

at the gym.8 It is alleged that the fire occurred as a result of the self-heating and combustion of the

improperly discarded stain rags.9 As a result of the fire, St. Augustine submitted a first-party claim

for repairs and additional expenses incurred as a result of the fire.10 At the time of the fire, the

gymnasium was insured by Certain Underwriters at Lloyds, London, Indian Harbor Insurance

Company, QBE Specialty Insurance Company, Steadfast Insurance Company, General Security

5 Rec. Doc. 34.

6 Rec. Doc. 1-2 at 4.

7 Id.

8 Id.

9 Id.

10 Id.

Indemnity of Arizona, United Specialty Insurance Company, Lexington Insurance Company, HDI

Global Specialty SE, Old Republic Union Insurance Company, Geovera Specialty Insurance

Company, and Transverse Specialty Insurance Company (“Insurance Plaintiffs”).11

On November 10, 2022, Insurance Plaintiffs filed suit against Covington in the Civil

District Court for the Parish of Orleans.12 On December 14, 2022, Covington removed the matter

to this Court, and it was assigned docket number 22-5292.13

On November 24, 2022, St. Augustine filed suit against Covington, The Phoenix Insurance

Company, and Travelers Indemnity Company of Connecticut.14 On January 30, 2023, Covington

removed the matter to this Court, and it was assigned docket number 23-371.15 On May 24, 2023,

St. Augustine filed an Amended Complaint, which added The Charter Oak Fire Insurance

Company and Travelers Property Casualty Company of America as defendants and removed The

Phoenix Insurance Company and Travelers Indemnity Company of Connecticut as defendants.16

On June 9, 2023, Covington filed a Motion to Consolidate both cases.17 On June 14, 2023,

the Court granted the motion and consolidated the matters.18

11 Rec. Doc. 1-2 at 1–3.

12 Rec. Doc. 1-2.

13 Rec. Doc. 1.

14 Case No. 23-371, Rec. Doc. 1-2.

15 Case No. 23-371, Rec. Doc. 1.

16 Case No. 23-371, Rec. Doc. 13.

17 Rec. Doc. 24.

18 Rec. Doc. 25.

On November 7, 2023, Defendants filed the instant Motion for Partial Summary Judgment

referencing docket number 23- 371.19 On November 17, 2023, St. Augustine filed the instant

Motion for Extension of Deadlines for Experts.20 On November 22, 2023, St. Augustine filed an

opposition to Defendants’ Motion for Partial Summary Judgment.21 On November 29, 2023,

Defendants filed a reply memorandum in further support of the Motion for Partial Summary

Judgment.22 On November 29, 2023, the parties filed a Stipulation of Dismissal, dismissing all

claims in docket number 22-5292.23 On December 4, 2023, Defendants filed an opposition to St.

Augustine’s Motion for Extension of Deadlines for Experts.24

II. Parties’ Arguments

A. Defendants’ Arguments in Support of the Motion for Partial Summary Judgment

First, Defendants argue that St. Augustine, as the lessee of the gymnasium building, has no

right to recovery for property damages to the gymnasium.25 Defendants submit that at the time of

the November 25, 2021 fire, St. Joseph’s Society of the Sacred Heart, Inc. (“St. Joseph”) owned

the property, and St. Augustine was the tenant of the premises.26 Defendants contend that it is St.

Joseph that has a personal right to seek repair for the damage.27 Defendants aver that the lease

19 Rec. Doc. 31.

20 Rec. Doc. 32.

21 Rec. Doc. 34.

22 Rec. Doc. 40.

23 Rec. Doc. 38.

24 Rec. Doc. 41.

25 Rec. Doc. 31-3 at 4.

26 Id.

27 Id. at 6.

agreement between St. Augustine and St. Joseph does not contain an assignment or subrogation of

rights provision for St. Augustine to pursue claims of St. Joseph.28 Defendants assert that the lease

agreement provides that St. Joseph maintains all the rights as owner of the property in the event of

a loss or damage to the property, and St. Joseph is listed at the sole loss payee.29 As such,

Defendants argue that St. Augustine’s claims for property damage should be dismissed.30

Next, Defendants argue that if the Court finds that St. Augustine does have a personal right

to pursue a claim for damages to the gymnasium building, then St. Augustine has no claim for

damages for betterment and improvements to the gymnasium building.31 Defendants contend that

St. Augustine renamed the gymnasium building and made an announcement that it would rebuild

a “new and improved Health and Wellness Center” consisting of three levels, new “modernized”

products, a wellness room, additional bathrooms, a coaches’ office, championship pavilion, and a

mezzanine area.32 Defendants contend that St. Augustine seeks from Defendants the full cost of

its new Health and Wellness Center project as property damages in this case.33 Assuming that St.

Augustine has the right to recover for property damage, Defendants aver that St. Augustine can

only recover damages to restore the property to its pre-damage condition, not a better condition.34

28Id.

29 Id. at 7.

30 Id. at 8.

31 Id.

32 Id. at 9–10.

33 Id. at 10.

34 Id. at 11.

Next, Defendants argue that St. Augustine has no legal right to pursue damages for the loss

of property value.35 Defendants contend that since St. Augustine is not the owner of the

gymnasium building, it has no ownership interest in the property, and thus no legal right to

damages for loss of property value.36 Defendants assert that any loss of value of the gymnasium

building would be a loss by St. Joseph.37

Next, Defendants argue that St. Augustine has no legal right to pursue damages for

increased cost of insurance (higher insurance premiums) as a result of a loss since such claims are

not recoverable elements of damages in Louisiana.38 Defendants contend that Louisiana courts

have repeatedly ruled that no cause of action exists for a plaintiff’s claim for increased insurance

premiums.39 Defendants assert that St. Augustine has not produced any evidence supporting this

element of damages.40

Next, Defendants argue that St. Augustine has no legal right to pursue damages for non-

compliance with loan covenants due to limited property and casualty insurance coverage.41

Defendants assert that this element of damages is derivative of the claim of increased costs of

insurance discussed above.42 Defendants contend that St. Augustine was not able to provide any

35 Id. at 12.

36 Id.

37 Id.

38 Id. at 13.

39 Id.

40 Id.

41 Id. at 14.

42 Id.

evidence to support such a claim.43 Defendants submit that St. Augustine has had no conversations

with any lenders or prospective lenders regarding the effect of insurance coverage.44 Defendants

aver that St. Augustine has no legal authority or evidence supporting this claim.45

Lastly, Defendants argue that St. Augustine has no legal right to pursue damages for past,

present, and future mental pain and suffering.46 Defendants contend that said damages are not

recognized in Louisiana as a recoverable element of damages for a corporation.47 Defendants

further contend that St. Augustine cannot pursue a claim for mental anguish on behalf of others,

such as students, staff, or shareholders.48

B. St. Augustine’s Arguments in Opposition to the Motion for Partial Summary Judgment

In opposition, St. Augustine argues that it does have a right to recover property damages.49

St. Augustine contends that the lease contains numerous provisions that assign real rights from St.

Joseph to St. Augustine, such as the right to make any alterations or modifications, the right to

obtain insurance, the right to address and resolve maintenance items and repairs, and the right to

repair and maintain the premises in good condition.50

43 Id.

44 Id.

45 Id.

46 Id. at 15.

47 Id.

48 Id. at 15–16.

49 Rec. Doc. 34 at 4.

50 Id. at 5.

St. Augustine submits that a letter from Vy. Rev. Nelson Moreira demonstrates an oral

assignment and an oral lease agreement which spans for a period of 20 years.51 St. Augustine

argues that it is entitled to recover damages that will restore its property to its former condition,

including, but not limited to, the cost of all materials, labor, code upgrades and other costs.52

C. Defendants’ Arguments in Further Support of the Motion for Partial Summary

Judgment

Defendants argue that St. Augustine’s opposition is untimely since it was filed seven days

prior to the submission date, instead of eight days prior to the submission date pursuant to Local

Rule 7.5.53 Defendants contend that the Court should not consider St. Augustine’s opposition.

Next, Defendants argue that St. Augustine has not provided evidence to support a transfer

of the right of action to pursue a claim for damages.54 Defendants submit that while St. Augustine

references assignments and subrogation, no such terminology is found within the lease provisions

or the cover correspondence page to the lease.55 Defendants contend that whether the lease

provides for a transfer of the right of action to pursue a claim for building damages via assignment

or subrogation is a legal determination based on the plain reading of the lease.56 Defendants aver

that St. Augustine has not provided any additional evidence in support of its argument that it

obtained St. Joseph’s right to pursue a claim for damages to the gymnasium building.57 Defendants

51 Id.

52 Id. at 6.

53 Rec. Doc. 40 at 2.

54 Id.

55 Id.

56 Id.

57 Id. at 3.

submit that St. Augustine has not provided any legal authority to support its claims.58 Defendants

move the Court to grant the Motion for Partial Summary Judgment and dismissing the contested

elements of damages.59

III. Legal Standard

Summary judgment is appropriate when the pleadings, discovery, and affidavits

demonstrate “no genuine dispute as to any material fact and the movant is entitled to judgment as

a matter of law.”60 To decide whether a genuine dispute as to any material fact exists, the court

considers “all of the evidence in the record but refrain[s] from making credibility determinations

or weighing the evidence.”61 All reasonable inferences are drawn in favor of the nonmoving

party.62 Yet “unsupported allegations or affidavits setting forth ‘ultimate or conclusory facts and

conclusions of law’ are insufficient to either support or defeat a motion for summary judgment.”63

If the entire record “could not lead a rational trier of fact to find for the non-moving party,” then

no genuine issue of fact exists and, consequently, the moving party is entitled to judgment as a

matter of law.64 The nonmoving party may not rest upon the pleadings.65 Instead, the nonmoving

58 Id.

59 Id.

60 Fed. R. Civ. P. 56(a); see also Little v. Liquid Air Corp., 37 F.3d 1069, 1075 (5th Cir. 1994).

61 Delta & Pine Land Co. v. Nationwide Agribusiness Ins. Co., 530 F.3d 395, 398–99 (5th Cir. 2008) (citing

Reeves v. Sanderson Plumbing Prods., Inc., 530 U.S. 133, 150 (2000)).

62 Turner v. Baylor Richardson Med. Ctr., 476 F.3d 337, 343 (5th Cir. 2007) (quoting Reeves, 530 U.S. at

150).

63 Galindo v. Precision Am. Corp., 754 F.2d 1212, 1216 (5th Cir. 1985); Little, 37 F.3d at 1075.

64 Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587 (1986) (quoting First Nat’l Bank of

Ariz. v. Cites Serv. Co., 391 U.S. 253, 289 (1968)).

65 Celotex Corp. v. Catrett, 477 U.S. 317, 325 (1986).

party must identify specific facts in the record and articulate the precise manner in which that

evidence establishes a genuine issue for trial.66

The party seeking summary judgment always bears the initial responsibility of showing the

basis for its motion and identifying record evidence that demonstrates the absence of a genuine

issue of material fact.67 “To satisfy this burden, the movant may either (1) submit evidentiary

documents that negate the existence of some material element of the opponent’s claim or defense,

or (2) if the crucial issue is one on which the opponent will bear the ultimate burden of proof at

trial, demonstrate that the evidence in the record insufficiently supports an essential element of the

opponent’s claim or defense.”68 If the moving party satisfies its initial burden, the burden shifts to

the nonmoving party to “identify specific evidence in the record, and to articulate” precisely how

that evidence supports the nonmoving party’s claims.69 The nonmoving party must set forth

“specific facts showing the existence of a ‘genuine’ issue concerning every essential component

of its case.”70

The nonmovant’s burden of demonstrating a genuine issue of material fact is not satisfied

merely by creating “some metaphysical doubt as to the material facts,” “by conclusory allegations,

66 See id.; Ragas v. Tennessee Gas Pipeline Co., 136 F.3d 455, 458 (5th Cir. 1998).

67 Celotex Corp., 477 U.S. at 323.

68 Duplantis v. Shell Offshore, Inc., 948 F.2d 187, 190 (5th Cir. 1991) (internal citation omitted).

69 Forsyth v. Barr, 19 F.3d 1527, 1537 (5th Cir. 1994), cert. denied, 513 U.S. 871 (1994); see also Morris v.

Covan World Wide Moving, Inc., 144 F.3d 377, 380 (5th Cir. 1998).

70 Morris, 144 F.3d at 380; see also Bellard v. Gautreaux, 675 F.3d 454, 460 (5th Cir. 2012).

by unsubstantiated assertions, or by only a scintilla of evidence.”71 Moreover, the nonmoving party

may not rest upon mere allegations or denials in its pleadings.72

IV. Analysis

As an initial matter, the Court will address the timeliness of St. Augustine’s opposition to

the instant Motion for Partial Summary Judgment. Pursuant to Local Rule 7.5, “[e]ach party

opposing a motion must file and serve a memorandum in opposition to the motion with citations

of authorities no later than eight days before the noticed submission date.” Defendants’ Motion for

Partial Summary Judgment was set for submission on November 29, 2023. Thus, St. Augustine’s

opposition was to be filed to later than November 21, 2023. St. Augustine filed its opposition on

November 22, 2023.73 As such, St. Augustine’s opposition is untimely. Nevertheless, the Court

will exercise its discretion to consider St. Augustine’s untimely opposition.

A. St. Augustine’s Claim for Property Damage and Loss of Property Value

Defendants argue that St. Augustine does not have a right to recover for property damages

or loss of property value to the gymnasium since, as lessor of the premises, St. Augustine does not

have an ownership interest in the gymnasium.74 Defendants submit that the gymnasium is owned

by St. Joseph, and without subrogation or assignment of rights, St. Augustine cannot recover for

property damages to the gymnasium,75 or for loss of property value.76

71 Little, 37 F.3d at 1075 (internal citations and quotation marks omitted).

72 Morris, 144 F.3d at 380.

73 Rec. Doc. 34.

74 Rec. Doc. 31-3 at 4.

75 Id. at 6.

76 Id. at 12.

Louisiana law is clear that the property owner has an action for property damages.

Louisiana Code of Civil Procedure article 681 states, “Except as otherwise provided by law, an

action can be brought only by a person having a real and actual interest which he asserts.” The

ownership of property includes the rights to possess it, use it, enjoy the use of it, and dispose of

it.77 A tortfeasor who causes injury or damage to a real right in property owes an obligation to the

owner of the real right. This relationship arises as a matter of law and provides to the owner of the

real right a personal right to sue the tortfeasor for damages.78

It is undisputed that St. Augustine is not the owner of the gymnasium. St. Augustine

submits that it had a prior oral lease with St. Joseph, which was later reduced to writing.79 St.

Augustine argues that said lease agreement contains assignments and subrogation of real rights

that grant St. Augustine the right to pursue claims for damages to the gymnasium, namely

provisions granting St. Augustine the right to make alterations and modifications to the premises,

the right to obtain insurance, the right to resolve maintenance and repair issues, and the right to

maintain in good condition all portions of the premises.80

The second provision of the lease agreement, titled “Acceptance of Premises” provides in

pertinent part, “Tenant shall accept the Premises on the Effective Date in its “AS-IS” condition…”

and “[t]he taking of possession of the Premises shall be conclusive evidence that Tenant accepts

77 See Eagle Pipe and Supply, Inc. v. Amerada Hess Corp., 10–2267, 10–2272, 10–2275, 10–2279, 10–2289,

pp. 10–11 (La. 10/25/11), 79 So. 3d 246, 258; Giroir v. Dumesnil, 248 La. 1037, 1050, 184 So. 2d 1, 6 (1966).

78 Eagle Pipe & Supply, Inc., 79 So. 3d at 279.

79 Rec. Doc. 34 at 5.

80 Id. at 2.

the Premises and that the Premises were in good condition at the time possession was taken.”81

Therefore, the Court finds that the cited provision establishes that St. Augustine had actual

possession of the gymnasium. The lease agreement states, “Tenant, at its sole expense, shall repair,

replace and maintain in good condition all portions of the Premises and all areas, improvements

and systems of the Premises…”82 As such, the plain language of the lease establishes that St.

August was responsible for repair and maintenance of the gymnasium.

The Court is now faced with mixed questions of law and fact. Jurisprudence is unclear as

to whether St. Augustine, as a lessee, has a right of action to pursue a claim for property damages

or loss of property value under these circumstances. Additionally, there are fact issues in dispute

regarding the extent of the obligation assumed by St. Augustine by way of the lease agreement.

Summary judgment should be granted only where there is a question of law to be decided and

there is no issue of fact to be tried.83 Where a decision of a question of law by the court depends

on an inquiry into the surrounding facts and circumstances, the court should refuse to grant a

motion for summary judgment until the facts and circumstances have been sufficiently developed

to enable the court to be reasonably certain that it is making a correct determination of the question

of law.84 To that end, granting summary judgment on these issues would be inappropriate. Thus,

the Court denies summary judgment as to these claims.

81 Rec. Doc. 31-6 at 3.

82 Id. at 5.

83 Shahid v. Gulf Power Co., 291 F.2d 422 (5th Cir. 1961).

84 N. L. R. B. v. Smith Industries, Inc., 403 F.2d 889 (5th Cir. 1968).

B. St. Augustine’s Claim for Costs for Improvements and Additions to the Gymnasium

Defendants argue that St. Augustine has no claim for damages for betterment and

improvements to the gymnasium building.85 Defendants contend that St. Augustine renamed the

gymnasium building and made an announcement that it would rebuild a “new and improved Health

and Wellness Center” consisting of three levels, new “modernized” products, a wellness room,

additional bathrooms, a coaches’ office, championship pavilion, and a mezzanine area.86

Defendants state that St. Augustine seeks from Defendants the full cost of its new Health and

Wellness Center project as property damages in this case.87 Defendants aver that St. Augustine

can only recover damages to restore the property to its pre-damage condition, not a better

condition.88

In opposition, St. Augustine refers to Section 8 of the lease agreement which grants it the

right to address and resolve maintenance items, repairs, and improvements.89 Louisiana

jurisprudence has established that the assessment of property damage suffered by a plaintiff is

intended to place the injured party in the same position he was in prior to the accident, not in a

better position.90 “When property is damaged through the legal fault of another, the primary

objective is to restore the property as nearly as possible to the state it was in immediately preceding

85 Rec. Doc. 31-3 at 8.

86 Id. at 9–10.

87 Id. at 10.

88 Id. at 11.

89 Rec. Doc. 34 at 5.

90 Lemon v. Fein, 467 So. 2d 548, 554 (La. App. 4th Cir. 1985); Cenac v. Duplantis Moving & Storage Co.,

407 So. 2d 424 (La. App 1st Cir. 1981).

the damage, it is well settled that the measure of damage is the cost of restoring the property to its

former condition.”91

As stated above, “[t]he nonmovant’s burden of demonstrating a genuine issue of material

fact is not satisfied merely by creating “some metaphysical doubt as to the material facts,” “by

conclusory allegations, by unsubstantiated assertions, or by only a scintilla of evidence.”92 St.

Augustine does not present any evidence or legal authority to support a claim for damages for

improvements and additions to the gymnasium. As such, the Court finds that St. Augustine’s

recoverable damages are limited to the cost of restoring the gymnasium to its former condition.

Thus, there are no issues of fact in dispute and summary judgment is warranted in favor of

Defendants on this issue.

B. St. Augustine’s Claim for Increased Cost of Insurance

Defendants argue that damages in the form of increased cost of insurance (higher insurance

premiums) as a result of a loss to the insured are not recognized as a recoverable element of

damages in Louisiana.93 Defendants further argue that St. Augustine has failed to present any

evidence to support said claim.94 St. Augustine does not address this argument. As stated above,

“[t]he nonmoving party must set forth ‘specific facts showing the existence of a “genuine” issue

concerning every essential component of its case.’”95

91 Coleman v. Victor, 326 So. 2d 344, 346–47 (La. 1976).

92 Little, 37 F.3d at 1075 (internal citations and quotation marks omitted).

93 Rec. Doc. 31-3 at 13.

94 Id.

95 Morris, 144 F.3d at 380; see also Bellard v. Gautreaux, 675 F.3d 454, 460 (5th Cir. 2012).

It is well-established under Louisiana law that no cause of action exists for a claim for

increased insurance premiums.96 “If the entire record ‘could not lead a rational trier of fact to find

for the non-moving party,’ then no genuine issue of fact exists and, consequently, the moving party

is entitled to judgment as a matter of law.”97 St. Augustine does not present any evidence or legal

authority to support a claim for increased cost of insurance coverage. As such, the Court finds that

there are no material facts in dispute and summary judgment is warranted in favor of Defendants

on this issue.

C. St. Augustine’s Claim for Damages for Non-Compliance with Loan Covenants

Defendants argue that St. Augustine has no legal right to pursue damages for non-

compliance with loan covenants due to limited property and casualty insurance coverage.98

Defendants assert that this element of damages is derivative of the claim of increased costs of

insurance discussed above.99 Defendants contend that St. Augustine was not able to provide any

evidence to support such a claim.100 Defendants submit that St. Augustine’s representatives

testified that they have had no conversations with any lenders or prospective lenders regarding the

effect of insurance coverage.101 St. Augustine does not address this issue in opposition. As stated

96 Burmaster v. Plaquemines Parish Government, 2010- 1543 (La. App. 4 Cir. 3/30/11), 64 So. 3d 312, 319;

Nikolaus v. City of Baton Rouge/Parish of East Baton Rouge, 2009-2090 (La. App. 1 Cir 6/11/10), 40 So. 3d 1244,

1248; Severn Place Associates v. American Building Services, Inc., 05-859 (La. App. 5 Cir. 4/11/06), 930 So. 2d

125,129; Louisiana Swabbing Service, Inc. v. Enterprise Products Co., 2000-1161 (La. App. 3 Cir. 5/2/01), 784 So.

2d 862, 866–867.

97 Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587 (1986) (quoting First Nat’l Bank of

Ariz. v. Cites Serv. Co., 391 U.S. 253, 289 (1968)).

98 Rec. Doc. 31-3 at 14.

99 Id.

100 Id.

101 Id.

above, “[t]he nonmoving party must set forth ‘specific facts showing the existence of a “genuine”

issue concerning every essential component of its case.’”102 St. Augustine does not present any

evidence or legal authority to support a claim for damages for non-compliance with loan

covenants. As such, the Court finds that there are no issues of material fact in dispute and summary

judgment is warranted in favor of Defendants on this issue.

D. St. Augustine’s Claim for Past, Present, and Future Mental Pain and Suffering

Defendants argue that St. Augustine has no legal right to pursue damages for past, present,

and future mental pain and suffering.103 Defendants contend that said damages are not recognized

in Louisiana as a recoverable element of damages for a corporation.104 Defendants further contend

that St. Augustine cannot pursue a claim for mental anguish on behalf of others, such as students,

staff, or shareholders.105 St. Augustine does not address this issue in its opposition. As stated

above, “[t]he nonmoving party must set forth ‘specific facts showing the existence of a “genuine”

issue concerning every essential component of its case.’”106 It is well-established in Louisiana that

a corporate entity cannot suffer mental anguish,107 nor can one recover for mental anguish suffered

by another.108 St. Augustine has not presented any evidence or legal authority to support a claim

102 Morris, 144 F.3d at 380; see also Bellard v. Gautreaux, 675 F.3d 454, 460 (5th Cir. 2012).

103 Id. at 15.

104 Id.

105 Id. at 15 – 16.

106 Morris, 144 F.3d at 380; see also Bellard v. Gautreaux, 675 F.3d 454, 460 (5th Cir. 2012).

107 Bayou Fleet Partnership v. Clulee, 19-934 (La. App. 5 Cir. 9/10/14), 150 So. 3d 329, at 333–34; M & A

Farms, Ltd. v. Town of Ville Platte, 422 So. 2d 708, at 711 (La. App. 3rd Cir. 1982); Pontchartrain Gardens, Inc. v.

State Farm General Ins. Co., 2009 WL 86671 (E.D.La 1/13/2009); AT&T Corp. v. Columbia Gulf Transmission

Co., 2008 WL 4585439 (W.D. La. 9/15/2008).

108 One River Place Condominium Association v. Axis Surplus Ins. Co., 629 F.Supp.2d 613, 617 (E.D. La.

2019).

for past, present, and future mental pain and suffering. As such, the Court finds that there are no

issues of material fact in dispute and summary judgment is warranted in favor of Defendants on

this issue.

V. St. Augustine’s Motion for Extension of Deadlines for Experts

On November 17, 2023, Plaintiff St. Augustine filed a motion requesting that the Court

extend the expert deadlines set out in the Scheduling Order.109 St. Augustine requests that its expert

deadline be extended from the current deadline of November 17, 2023 to December 1, 2023.110 St.

Augustine also requests that Defendants’ expert deadline be extended from December 15, 2023 to

December 29, 2023.111 St. Augustine contends that it needs to add a property damage expert and

to submit any report generated.112 St. Augustine asserts that an extension would put the parties in

a better position to settle this matter, and no party is subject to prejudice.113

On December 4, 2023, Defendants filed an opposition to the motion.114 Defendants contend

that the requested extension would prejudice Defendants since it would lessen the amount of time

that Defendants have to perform expert discovery and take trial depositions prior to the January 5,

2024 deadline in the Court’s Scheduling Order, and to file any necessary Daubert motions which

must be heard by January 24, 2024.115 Defendants contend that the December 1, 2023 extension

109 Rec. Doc. 32-1.

110 Id. at 1.

111 Id.

112 Id. at 2.

113 Id.

114 Rec. Doc. 41.

115 Id. at 1–2.

date requested by St. Augustine has passed without the production of a damages expert report or

damages expert designation.116 Defendants assert that St. Augustine’s motion is moot and should

not be considered by the Court.117

The Court, in its discretion, finds that St. Augustine has shown good cause for the

modification of the Court’s Scheduling Order. Considering the representations made by St.

Augustine and the March 11, 2023 trial date, the Court grants the parties a two-week extension for

expert deadlines.

VI.Conclusion

For the reasons stated herein, the Court finds that the undisputed facts in the record indicate

that summary judgment is warranted in favor of Defendants for the following claims: (1) costs of

improvements and additions, (2) increased cost of insurance coverage, (3) non-compliance with

loan covenants, and (4) past, present, and future mental pain and suffering, and Defendants are

entitled to judgment as a matter of law. However, Defendants’ Motion for Summary Judgment

is denied regarding St. Augustine’s claims for property damage and loss of property value as

genuine facts remain in dispute. Additionally, the Court finds that St. Augustine has shown

good cause for the modification of the Court’s Scheduling Order. Accordingly,

IT IS HEREBY ORDERED that Defendants’ Motion for Partial Summary Judgment is

GRANTED IN PART AND DENIED IN PART. St. Augustine’s claims for: (1) costs of

improvements and additions, (2) increased cost of insurance coverage, (3) non-compliance with

loan covenants, and (4) past, present, and future mental pain and suffering are hereby

116 Id. at 2.

117 Id.

DISMISSED. Summary Judgment is DENIED as to St. Augustine’s claims for property damage

and loss of property value.

IT IS FURTHER ORDERED that St. Augustine’s Motion for Extension of Expert

Deadlines is GRANTED. Discovery is reopened for the limited purpose of expert discovery.

Plaintiffs shall file their expert report within two weeks of this Order, on or before January 31,

2024. Defendants shall file their expert report on or before February 14, 2024.

IT IS FURTHER ORDERED that the deadline for Daubert motions is extended to March

1, 2024. Any other pre-trial deadlines not addressed herein shall remain in place.

NEW ORLEANS, LOUISIANA, this 17th day of January, 2024.

NANNETTE JQVIVETTE BROWN

CHIEF JUDGE

UNITED STATES DISTRICT COURT

20

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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