Molly Morgan and Robert Morgan on Behalf of Their Minor Child, Allie Morgan v. Southern Hospitality Services, LLC, et al.

Summary

The Louisiana Court of Appeal, Second Circuit, granted Arch Insurance Company's application for supervisory writs and reversed the trial court's refusal to dismiss Arch from the action. The court held that amendments to Louisiana's Direct Action Statute, effective August 1, 2024, applied retroactively because the statute created a procedural right of action, and the plaintiffs filed suit after the effective date. The court sustained Arch's exception of no right of action, granted its motion to strike, dismissed the claims against Arch with prejudice, and ordered its removal from the caption and pleadings.

Holdings

1. The amendments to La. R.S. 22:1269 apply retroactively to claims filed after August 1, 2024, even when the underlying events occurred before that date, because the Direct Action Statute creates a procedural right of action.
2. The Morgans had no right of action against Arch under the amended La. R.S. 22:1269(B), because none of the statute's exceptions permitting a direct action against an insurer applied.
3. Arch was entitled to have its name stricken from the case caption and pleadings under La. R.S. 22:1269(B)(4)(a) and (b).

Questions Presented

1. Whether the 2024 amendments to Louisiana's Direct Action Statute, La. R.S. 22:1269, apply retroactively when the underlying injury occurred before the amendments' effective date but the lawsuit was filed afterward.
2. Whether the Morgans had a right of action against Arch under the amended Direct Action Statute.
3. Whether Arch was entitled to have its name stricken from the caption and pleadings under La. R.S. 22:1269(B)(4)(a) and (b).

Disposition

reversed